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HomeMy WebLinkAbout07-31-19 #2 SpUTH 8E � U � d w aq �K PACE,, %�Y 1865 .t OFFICE OF THE CITY CLERK KAREEMAH FOWLER, CITY CLERK PERSONNEL &FINANCE JULY 31, 2019 5:36 P.M. Committee Members Present: Karen White, Jo M. Broden, Regina Williams-Preston, John Voorde Committee Members Absent: None Other Council Present: Tim Scott,Jake Teshka, Dr. Oliver Davis Other Council Absent: Sharon L. McBride, Gavin Ferlic Others Present: Graham Sparks Presenters: Denise Riedl, Dan Parker, Kyra Clark, Stephanie Steele, Matt Chlebowski Agenda: Innovation and Technology Administration and Finance Human Resources Legal Department Committee Chair Karen White called to order the Personnel and Finance Committee meeting at 5:36 p.m. She introduced members of the Committee and proceeded to give the floor to the presenters. Innovation and Technology Denise Linn Riedl, Chief Innovation Officer for the City of South Bend with offices located on the 12th floor of the County-City Building, stated, I will take this opportunity to give a brief overview of the structure of our department and the different teams that are in Innovation and Technology. There are six (6) main teams that are in Innovation and Technology. We have the Services team and that's in charge of Help Desk functions and hardware for the City of South Bend. Also,vendor relationships. We have our Infrastructure team that maintains our City network. That also includes free City Wi-Fi hotspots that exist across the City. We have our Application Development team, they're chiefly in charge of securing software solutions for the City and customizing them and implementing with departments. We have our Business Analytics team that works in tandem with the Applications Development team. They're in charge of process improvements in innovation that the software is built on top of. And then they also of course help 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 466011 p 574.235.92211f 574.235.91731 www.southbendin.gov •CITY OF SOUTH BEND OFFICE OF THE CLERK with data analytics and performance management. Especially with the SB Stat Program that helps departments track their strategic priorities. Our fifth(5th)team is Civic Innovation. They're chiefly in charge of strategic partnerships that are externally facing. Especially with Notre Dame and with national partners like Bloomberg. They are in charge of bringing in external support in terms of in-kind resources and grant dollars. And then our sixth (6th) and final team the 3-1-1 Call Center. And they of course are the front lines of City services. And they take customer calls and issues and service departments by fielding those calls. The overall mission of Innovation and Technology is to empower an innovative workforce and a thriving community through technology, data and strategic partnerships. She continued, So, I'll just overview our 2020 departmental goals. There are four(4)main goals I really wanted to highlight, the first(1St) two (2) being the most important (referencing a slide in a presentation which is available in the City Clerk's Office). So, of course, given the fact that we're Innovation and Technology, continued cost savings, time savings and then bringing in external revenue from Innovation and Technology work is key. A few examples of this that are forward looking into 2020 are Cityworks implementation and the other software implementations that we'll be doing with other departments in the City. Cityworks will be our new asset management platform. The first (1St) implementation will be done in partnership with Code Enforcement. And then of course we have our DFO platform, Dynamics for Finance and Operations. That's our new ERP system. And then of course we'll be doing utility billing as well. And so those software implementations will be key for time saving and cost saving going forward for the City. Another example of this type of work is the Metronet work. We continue to invest in the Metronet. Our Infrastructure team partners with them to service City facilities and City networks. Using them in comparison to a private provider we estimate saves the City about $400,000 a year. And then of course some examples of external revenue to bring into the City that we'll hopefully continue to bring in as well. This last year we brought in about half a million dollars from the Lily Endowment Grant that was brought into the region. That's specifically for data training and programming around the future of work here in the City. And of course,the Bloomberg money as well is another example of that. She went on, So, number two (2), the second (2nd) goal, again very important, is about strengthening City data operations and culture. So, there are a few components to this. One (1) providing more data support to departments. Examples would be helping legal manage APRA requests. Helping Finance provide transparency and analytics on top of the new budget process. And then just generally increasing our Open Data Portal. We see that as a strategic priority to build out the transparency for the City and build trust as well. We will especially be working with Finance to do that. Police, of course. And also, through the SB Stat Program, we'll work around Police recruitment as well as work around the Community Paramedicine Program. Regarding data culture as well, we're hoping to partner with Legal to stand up new data policies. And then also work to increase security around City networks and data generally. This might be a timely topic, especially as this is a very important issue for the City. And that certainly revolves around data security and operations. The third(3rd) goal will be to create more feedback loops, both internally and externally. We hope to build better technology that's user friendly both for the departments and for residents of the City. Externally that looks like a new civic user testing group that will be set up here in the City. The first (1st) product that will be leveraging that group will be our new digital 3-1-1 services portal which will be launched in 2020. We will go into neighborhoods and ask people to test the beta version of this platform, provide feedback and then we can improve so we can build the technology with residents to make sure it's user friendly. The internally focused EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W.Jefferson Bvld South Bend,Indiana 46601 p574.235.9221 f574.235.9173 TTD574.235.5567 vvww.southbendin.gov 2 CITY OF SOUTH BEND OFFICE OF THE CLERK • feedback loop that I am passionate about building here in the City is around building a new survey, internal survey for department heads and for divisions heads here in the City that's actually built into the budget process for Innovation and Technology. So that looks like fourth (4th) quarter of every year distributing the survey internally, gauging everyone's needs around technology, software, data management and general technology needs. Working with departments and then building that into the strategic process around allocations and the budget creation process. And then also just because we are an allocation department and we are a centralized department as well, building in more reporting for those feedback loops. Just as Admin and Finance provides some of their reports, we will start providing monthly reports for Innovation and technology as well. We will share our portfolio with the Council,with department heads, with division heads and also just give general high-level updates just to keep people informed about the work we're doing and some of the main projects we're working on. She continued, The fourth (4th) departmental goal is facilitating equitable inclusive employment in technology to residents. So, one(1) of the key initiatives in this pillar is the Life-long Learning Program that's been brought into the City of South Bend. So, this program is actually an opportunity to digitize key programs here in the City, one(1)being South Bend Pathways. It's just a nice opportunity to make sure that we're leveraging technology for departmental programs that make a difference for residents. Another key pillar of this goal is the digital 3-1-1 service portal again. We want to make sure, again, it's not only user friendly the fact it's deployed inclusively with residents and that it's easy to use and that we're putting the word out. We see this project not only as saving money but also a way for more residents to be involved in making South Bend better. So,this(referencing a slide in the presentation)is our 2020 budget overview.There are just a few things I wanted to bring to light. We have an increase in our supplies budget. Part of this is a re-classification of the supplies category that I believe Admin and Finance supplied to this budget cycle. For instance, mice and equipment were originally being classified as services and now they're being classified as supplies.The debt service increase can really be accounted for from new printers and HP leases that the department procured. The other expenses, that big line-item there, just a few things to bring to light, that's in there. That includes all the software implementations that we do, user licenses and so forth. Transfers out, the $600,000 line-item there on the transfers out category accounts for supporting the DFO, the Dynamics for Finances and Operations for the ERP implementation here in the City. She went on, And just at a high level, too, under operating expenditures, we're about $7.4 million this year compared to $8.3 million last year. As Dan mentioned before, we are approaching the Fiscal Curb and given that our department touches all other departments,we did want to make sure that we were decreasing allocations as much as we could. A few other things to call out in our operating budget, in addition to calling out some of the major reductions we made in the budget, we cut our professional services budget $240,000. We reduced travel and training. We also cut a Wi-Fi expansion. Again, this is all just ahead of the Fiscal Curb. We need to focus chiefly on our main four (4) departmental priorities. The new larger line-item in our budget of course is the city works implementation. And I spoke about that briefly when we discussed goals. And I also wanted to note that in addition to those operational cuts, we also, because of delayed implementation in previous years, Innovation and Technology has a reserve fund that we're spending down now to reduce allocation to departments in 2020. There are a few personnel asks in light of the reductions in professional services and some of the specific departmental goals that we hope to accomplish in 2020 around software implementation and support. We're proposing a raise for our Application Director and Application Developer position. So, this salary cap increase we are hoping will give EXCELLENCE ACCOUNTABILITY j INNOVATION INCLUSION ; EMPOWERMENT 455 County-City Building 227W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TfD 574.235.5567 vwaw.southbendin.gov 3 CITY OF SOUTH BEND OFFICE OF THE CLERK us the flexibility to retain technical talent in the wake of these software implementations. We've actually seen software implementations, especially around the 3-1-1 service portal, delayed as a result of turnover in that department. And we're hoping that this will help us retain technical talent for longer. Of course,the City should never expect to pay competitive market prices for these types of positions, but increasing these marginally will, I think at the very least one (1) goal I have in my mind, be perhaps at the twentieth (20th) percentile of what comparable market rates in South Bend look like. The Applications team, again, will be integral to our software implementations and just general automation here at the City. And certainly, in the wake of the Fiscal Curb and not wanting to increase the head count here in our department. We see this modest bump, the raise, as a way that we can retain that talent internally. Especially in the wake of cutting professional services. She continued, In relation to that, the Business Analyst team is key for a lot of the software implementations and process improvements. We are proposing that one (1) business analyst position turn into a Manager of Business Analytics. That position would create a new mid-level tier in that team, which actually exists in every other team in Innovation and Technology. And again, we're hoping this creates less turnover. It will be available for retaining talent and tacit knowledge around process improvement and tacit knowledge around software. And then we're also proposing another Business Analyst become a Design Specialist. This, of course, will help with our developmental priorities around user friendly technology, civic user testing and supporting the 3-1-1 digital service portal. Committee Chair White stated, I'm just going to ask you, because you know I'm trying to be mindful of time, and I know there's going to be questions that we have, so if you could just highlight the special initiatives, or we could just read through those, and then ask questions with the latter part of the presentation. Because we have three(3)more departments to go through. And I do know there are going to be some questions. Ms. Riedl stated, Right, so I'll just go right to the special initiatives then. One(1) special initiative is the Bloomberg Mayor's Challenge. I'm happy to address any questions if you have more. A really interesting summary is on this slide(referencing a slide in the presentation). There's external funding for this transportation benefit pilot. But we continue to build up here in South Bend. And we have hired a director for this position. And then we're actually moving forward this year with a pilot. And starting with employer partners here in South Bend are taking some support for these pilots as well. I'm happy to go into more detail if you have questions but that's one (1) special initiative to bring to light in Innovation and Technology. Committee Chair White stated, I think an organizational chart will be very interesting and any new positions, if they could somehow be highlighted because we have it in our power point. But when you look at it from an organization perspective it would be a lot easier to look through. Administration and Finance Dan Parker, City Controller for the City of South Bend with offices located on the 12th floor of the County-City Building, stated, All right, I will be short in the interest of time and making sure that we give the opportunity for questions both for Council and members of the public. Department for Administration and Finance. We want to make sure we are increasing transparency in financial reporting in 2020. The reason for this should be fairly obvious, people who receive our reports EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W Jefferson BvId South Bend,Indiana 46601 p 574 235 9221 i 574.235.9173 TTD 574.235.5567 wwwsouthbendin.gov 4 •CITYOFSOUTHBEND OFFICE OF THE CLERK right now they look something like this (referencing a slide in the presentation). They are two hundred to three hundred (200-300) pages of this. We want to make sure our reporting is useful, helpful to both residents and to Council Members. So that's a major build out that we're working on with the Finance team. We want to improve the efficiency and effectiveness of our financial processes while making sure that we are strengthening our internal controls. So, with the accounting software DFO implementation that Denise mentioned, we are revisiting all of our processes and policies, making sure that those policies are as effective as they can be. In addition, we are in the process of putting together, and will continue in 2020, an asset replacement schedule plan so that we know capital assets that we have on hand, when we can expect those to come due for replacement and maintenance so we can better budget for those capital needs on an ongoing basis. The last goal is to plan for long term financial stability. Part of this is making sure that we maintain a strong level of cash reserves. One(1) metric that I think I'll look at quite a bit, we'll introduce in a more formal way, is something called day's cash on hand. It's actually how long the City could operate given our current level of expenditures with no additional revenue coming in. So, how much cash do we have on hand?And we want to make sure that's over four hundred(400) days on an ongoing basis. And that's a metric that we'll be presenting to Council and to the public, it gives a good handle on what our true cash reserves and our ability to handle financial down turns is. And then developing and updating five (5)-year financial plans for departments and making sure their sustainable in the long term. He continued, From a budget overview perspective, there's a couple slides that I have on here because they are obviously our operations, this is our department and our department operations, but there are a few funds that only Admin and Finance touches and I wanted to make sure that Council saw those as well. From our operations perspective,there's actually a decrease from 2019's budget. This is largely due to an accounting reorganization. I'll talk about it in more in a second. What we did is we split out Diversity and Inclusion and Human Resources into their own departments, divisions essentially, so that they have their own budgets separate from the Administration and Finance budget. This is to improve transparency and make sure that Council understands how much we're spending on those particular areas. And truly, operationally, they have a different reporting structure, so it makes sense operationally as well. We also pulled into this budget from the Central Services budget, Central Purchasing, which again is more reflective of our actual operational reporting structure. And I want to highlight as I said,the additional funds that only Admin and Finance tends to deal with. One (1) of those is the Liability and Insurance Fund. Similar to what Denise was saying with the IT fund, this is another one(1)of those internal service funds where there is targeted spend down of cash reserves. Our budget of expenditures in this fund are assuming losses larger than those seen in recent years. So, we budget fairly conservatively. This fund accounts for workers compensation, as well as our liability. So, if we have liability claims that we need to pay out on, that's where this fund accounts for. The actual losses are not close to where we budget because we budget fairly conservatively. What that means is because we are spending out less than we are budgeting is that the cash balance of this fund continues to grow. And we want to make sure we are not continuing that and the way to do that is to budget for a targeted spend down in those reserve requirements. The balance projected is being assessed at$3, almost$4 million at the beginning of 2020. The reserve requirement is closer to $2 million, so we want to make sure that we're spending that down as appropriate. He went on, Just want to quickly go through this (referencing a slide in the presentation), this is the debt service fund for the whole City. Largely maintaining debt service. We haven't issued any 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 TTD 574.235.5567 www.southbendin.gov 5 CITY OF SOUTH BEND OFFICE OF THE CLERK new bonds in 2019 and don't anticipate in 2020 issuing new bonds. So, debt service is largely a maintenance kind of budget. The debt service increase you do see on there, $419,000, is because we are going to start paying on the general obligation debt that we issued for Fire Station Number Nine(9)in 2020. Vehicle and equipment leasing again,just so that you've seen it, this is where we actually issue debt for capital leases for things like vehicles and equipment. And again, as I said in the beginning in the overview this is expected to increase from 2019. But,still low within the realm of reasonableness, lower than where we were in 2018 and roughly where we were in 2017 from a debt issuance perspective on the capital leasing side. As I said, our highlights, we have an accounting reorganization, we split out Diversity and Inclusion and Human Resources into their own budgets that will be presented separately. And we have brought in, it's not on there, but we brought in the Central Purchasing Department into Admin and Finance. We are proposing one(1) salary increase over the two percent(2%)that is across the board. That is for our Payroll Manager. The reason behind that is the implementation of our Kronos system has really shown that position is key to ensuring that the most basic function of the Admin and Finance Department is fulfilled which is making sure that our employees are paid. We've looked at comparable positions in other cities and we're pretty significantly below that. So, we want to try to get that closer to where other cities are paying that function,managing the payroll for the entire City. So that ask is in there,that proposed increase is in the budget at this point. He continued, There is also in the budget a $300,000 capital spend for the County-City Building elevator upgrade. So, this is a project that was driven by the county. And as per our agreement with the county we are liable for twenty-six-point-four-percent (26.4%) of the cost of that. And that amounts to about$300,000 in 2020. And that is budgeted from our County Income Tax Fund. I wanted to highlight that as well. As you know, financial services are part of the Admin and Finance Department. So quickly, I will go through their budget. From a department goal perspective, Central Services is organized into four(4)different divisions and they are Equipment Services, Facilities Management, Radio Services and Print Shop. On the Equipment Services side, a lot of this has to do with making sure that we are obtaining certifications to make sure that we are increasing our services provided both internally and externally by trying to increase our outside customer base. So, it's important to know that Equipment Services serves other municipalities and other entities other than the City of South Bend. Other entities bring their fire trucks and other vehicles to the City of South Bend Central Services and pay the City for the services we provide. We are continuing to green the fleet with hybrid and CNG cars and powered vehicles whenever possible and efficient. We are implementing a new fleet software system at the end of this year and continuing into 2020 and then obviously continuing to make that so that our positions are filled with skilled employees. He went on, On the Facilities Management and Building Maintenance side, again, the goal here is to increase customer base, add internal customers to that department of operation, and increase the certification level and the skills of that team. We want to make sure that we are ensuring that preventative maintenance gets done, and that gets back to that asset replacement schedule that I talked about earlier and making sure that we are completing the first (1st) phase of our peer-rated design standardization. This allows us to better visualize and see what assets we have on hand. Making sure we know when that preventative maintenance will be necessary and being able to better plan for that. Radio Services side, again, common theme, expand our customer base and service offerings to try and bring more revenue from outside into the City. And we are trying to develop an emergency audit plan for the radio system that we have in case that goes out we need to know where our vehicles are located in the City. So,we will be developing that.And then finally EXCELLENCE ACCOUNTABILITY INNOVATION I INCLUSION EMPOWERMENT 455 County-City Building 227W Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f574.235.9173 TTD574.235.5567 www.southbendin.gov 6 CITY OFSOUTH BEND OFFICE OF THE CLERK with Print Shop,we are trying to continue to ensure that printing services are remaining economical for the City. He continued, On the budget overview side, I touched on this earlier, I just wanted to point it out again. If you look at charges for services and supplies on here (referencing a slide in the presentation) you'll see what I talked about earlier. That is an accounting change where we are now recognizing revenue and expense for items that we previously just reduced expense for. I'm happy to talk about that further if anybody has any questions. But that $1.6 million increase in charges for services is offset by that increase in supplies expense. It's an internal accounting change of how we charge internal departments. This (referencing a slide in the presentation) is the breakdown of the budget for each of those different divisions that I talked about. One (1) thing to notice on here is the utilities. So, if you look down at the very bottom at utilities, the way that utilities work in the City is all utilities for all departments are paid centrally from Central Services and then reimbursed. So,Central Services is reimbursed for the payment of those utilities. In 2020, we are eliminating an eight percent(8%) upcharge that was on that internal allocation. We used to take what we paid out for utilities, add eight percent(8%) for administrative processing, and that's why you see there's a surplus in that division every year. We're eliminating that in 2020 in favor of directly allocating out the Facilities Management Department which is where that money was used to fund in the past. He went on, In terms of operating budget changes, again, what I just said, the allocation of the facilities management department. We're directly allocating that out to departments which replaces that eight percent (8%) markup on utilities. We removed Central Purchasing from the Central Services budget and moved it into Admin and Finance which again operationally makes a bit more sense. In terms of other personnel changes,we are replacing a financial specialist with an executive assistant. There is actually a slight decrease in overall cost here,particularly with the removal of a part-time administrative assistant. The goal here is more of the financial side of financial services being handled by Central Finance with this executive assistant position being more and more focused on operations.And then just wanted to highlight that labor rate that we charge both internal and external customers for working on the vehicles have not changed from 2019. So, we're going to continue with those labor rates in 2020. Human Resources Kyra Clark, Director of Human Resources for the City of South Bend with offices located on the 12th floor of the County-City Building, stated, Hi, good evening, Council. Human Resources, our goal is always to be a great employer for great employees. That is our ongoing and overarching goal but what we'd like to focus on in 2020 in particular are a couple of initiatives,building positive workplace culture and increasing and expanding education and training opportunities for employees. And so, what that looks like particularly for workplace culture, we currently have a volunteer time off policy. We have done a couple of events, but I really think we have an opportunity to capitalize on that and get more people involved. We'd also like to expand other employee friendly policies and initiatives which helps with recruitment efforts including revising vacation policy to allow new hires to have vacation coming in from when they start.When it comes to employee training and education we really like to help employees wisely spend their health care dollars. We also would like to provide general education when it comes to new supervisors, supervisor training. 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 7 CITY OF SOUTH BEND OFFICE OF THE CLERK She continued, Our budget overview, there are two (2) slides here (referencing the presentation). One(1)relates to our operations, as Dan explained, this is our first(1St)year being separated from the Administration and Finance budget. We are a small but mighty team of six (6) people. This is our salary and benefits associated with our team specifically. The next slide relates to the budget overview for three (3) of the funds, the largest is the#711, or the Health Insurance Claims Fund. We have unemployment and parental leave. Parental leave and unemployment are allocations to departments per employee, small fractions of salaries to fund those. Parental leave,as you'll notice later, is funded based on anticipated births of forty (40), last year we had 38. This year in the first (Pt) half of the year we're only at thirteen (13) but it's looking up, there are more babies coming. That number could be closer to forty(40)by the end of the year. She went on, So the highlights that we'd like to focus on quickly from the charts that you just saw, the first (1St) relates to a personnel request, this is for the Senior HR Generalist that focuses on Public Safety. So, this role really serves all aspects of human resources for both Police and Fire. And while it handles a lot of routine, typical questions of employees, things like that, it has taken on a much higher level of initiative. So, things like developing peer-support service policies for the Fire Department.Things like developing a promotions policy for the Police Department. Much higher-level initiatives, working very closely with Legal and trying to ensure legal compliance, things like that. So that request is a six percent (6%) increase from the salary cap currently. The Health Insurance Fund, in recent years we've been really lucky, and we've been able to keep those costs down significantly. I think our run of luck might be over. That's not uncommon, it's very common when it comes to employers across the board, the City is no exception. The increase is expected to be a little less than seventeen percent (17%) next year. As Dan mentioned, the City's done a great job of having healthy funds available for that and this year we're spending that down, we'll continue to spend that down next year. That means that while we do have to increase allocations for departments on a per employee basis,the current allocation is$9,960 per employee. Just under $10,000. That will have to increase to $11,500 per employee. But even in prior years we've been close to $15,000. I think that there were years recently where there was $16,000 per employee. So,relatively low when it comes to that because we're able to spend down that account. We're also evaluating an increase of employee side premiums, but we want to try to be mindful of the costs that employees face as well and make our benefits competitive. She continued, The next aspect, in order to help increase recruitment efforts, employee education, make a more robust City benefit policy, we currently have in human resources, we have the PPO policy, we have the HRA, we would like to explore transitioning that HRA to an HSA. That basically allows you to set aside money on a pre-tax basis to pay for qualified medical expenses. And the City does contribute to that Fund for employees who choose to participate. And that is the employee's money it doesn't go away. They're able to save it and use it for expenses, if not this year, in future years even if they leave the City. So, we'd like to try and explore that for 2020. And finally, we just touched on this already, we will continue to fund parental leave. As I mentioned, forty (40) births, we had very close to that last year, I anticipate we'll have pretty close to that. That's the number that's being budgeted for this year. Legal Department Stephanie Steele, Corporation Counsel for the City of South Bend with offices on the 12th floor of the County-City Building, stated,Thank you and good evening, Council. We appreciate your time this evening. The City's Legal Department has undertaken a lot of meaningful initiatives this year. EXCELLENCE ACCOUNTABILITY ! INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD 574.235.5567 www.southbendin.gov 8 •CITY OF SOUTH BEND OFFICE OF THE CLERK And we look forward to pursuing our 2020 goals. We appreciate your support in our efforts. Starting out,this year in 2020,the Legal Department will continue doing what it does best and that is mitigating risk and reducing expenditures to the City. It is our job to identify potential pitfalls, liabilities, and legal issues. And we work to identify claims and trends in those claims and try to provide any associated trainings that we can to mitigate those risks ahead of time. We're also working to engage in proactive strategies to recover funds from insurance companies and other responsible parties who could aid in our efforts to make sure that the City is not the only responsible party and is not the only party bearing the burden of expenditures. And so, we found that it's not enough to just and to the issues as defendants, but we want to work ahead and J respond ensure fiscally sound and fair results for our community. She continued, The City continues to work with the EPA, and we are trying to obtain a record of decision in the Beck's Lake matter before the end of the year. That is our goal, but as always, it depends on another large party and that is the EPA. We've been happy to see that in all of the EPA reports that they've said that the park is safe, and they've continued to say that it's safe for use. So, we've been happy about that. And we will continue to work with them until we have a record of decision and are able to close this matter. Our final goal for 2020 that's on your slides is to implement a new legal support strategy to cover Diversity and Inclusion, the Board of Public Safety, the Human Rights Commission and the Area Plan Commission. One (1) of the things is we want to ensure that these entities are receivingthe same level of counsel and partnershipand strategic support as all the other Administration areas of the City. And so, we're going to be requesting an additional Assistant City Attorney. I'm going to be up front with you about that. She went on, If you bear with me, I'm going to skip this next slide (referencing the presentation) budgetbiggest but come back to it. In terms of highlighting some of our changes,the change you'll see is the request for an additional Assistant City Attorney. One(1) of the things we've heard over and over again in that last couple of months is our community and Administration would like an attorney to work more closely with the Board of Public Safety to address trainings and policies and procedures with them. And what we would like to do is assign this attorney to the Office of Diversity and Inclusion, as well, which may end up being a requirement of the upcoming disparity study. And so, to make sure that we're covering everything, we have also learned that the City is going to be undertaking a new Area Plan Commission. So, it makes sense to put these three (3) with one(1)person.We want to make sure that we're covering everybody's needs. Now to be clear, we are functioning well as it is but with these additional asks that are being asked of the City's Legal Department, that is something we are talking about. She continued, So, I know that you may have some questions about this slide. I do want to point opioid that one (1) of the training dues and subscriptions, $1,000, that is due to the p ioid liti gation which we'll talk about in a minute as well. So, back to the budget overview. The addition of the Assistant City Attorney is included on this slide. You'll see that the salary line-item will increase in addition to the supplies and other expenses which include the training and other resources required for jobs such as the WestLaw subscription, bar dues and the INLaw conference. Now, you'll also see that we have in the red there some of our other allocations and they have gone down. So, I wanted to make sure you knew about that as well. One (1) special initiative that we wanted to highlight is our lawsuit that we did file regarding opioid litigation. The City has joined that national opioid litigation and it's against the distributors and manufacturers of opioids. We feel that they have failed to report and monitor suspicious orders, and they've disseminated false and deceptive statements about opioids which has led to this nationwide cycle of addiction crisis and EXCELLENCE ACCOUNTABILITY INNOVATION j INCLUSION EMPOWERMENT 455 County-City Building227W Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD 574.235.5567 vvww.southbendin.gov Y Y 9 •CITY OF SOUTH BEND 1 OFFICE OF THE CLERK has affected our community. So, we are seeking damages and recovery funds spent mitigating the harms caused to our community. We have hired a co-counsel here locally to try to make sure that all money spent is staying local. And, we are taking a very hands-on approach internally. You'll notice this is not just an outside counsel case but a co-counsel case. Which means that I'm working on it veryheavily. And it's takingsome time from my office. But, we think it's really important to Y p our community.That concludes our budget request and overview. I appreciate you considering our and I'm happyto answer anyquestions when it's time for that. proposal Committee Chair White stated, I would like to state that as we begin to look at the request for new positions, I want to make sure that this is clear that when the Mayor made the presentation he had indicated that any new positions would be looked upon very closely. So, I want to make sure that is occurring. We see the justification, but I would like to have a little bit more. I'll get with Dan and, hearing from the Council Members, I think they would like to have a little bit more justification as well. Committee Chair White then opened the floor to questions from Committee and Council Members. Councilmember Dr. Davis stated,It was stated earlier by Denise,you're looking at the salary raises because you want to be within the twentieth(20th)percentile of the market value in the City. Could you provide us the percentile of where we are now? You don't have to answer that now but that goes back to what Councilmember White was just saying.A lot of the salary requests for increases, it would be nice to see. Another statement was looking at the different cities,based on that. Could you email us whether it was based on other cities or based on other market values? What's the going rate regarding that and where do we currently stand? That's what I would like to know. Ms. Riedl replied, Yeah, I would be happy to briefly speak on that as well. I don't have the exact numbers in front of me. I'd be happy to give those to you. Raising the application developer salary, so the percentile refers to the curve for all of the salaries that exist in this type of job in this market in the City of South Bend. So, if you were to line all of them up in order based on the amount, the twentieth (20th) from the bottom that's sort of the goal. And right now, we're a little closer to probably zero(0)to ten(10), in that range, for the application developer salary. I chose to actually look more at the market for South Bend just because actuallyI think if I compared it to comparable J P p developers in other cities it would actually be too high. And I wanted it to be more of a modest raise. Councilmember Dr. Davis followed up, If you could show us both, what it is, it would be good for me because if I vote on something like that, it would be able to have some data looking at what's going on currently in South Bend, the twenty percent (20%) that you've suggested, that gives us some understanding. And then looking at other cities that are comparable, especially within the state of Indiana. I mean across the country, I'm not really worried about that. We're a second(2nd) class City, so, something along the basis of Fort Wayne, South Bend, and Mishawaka. And that, to me, is not only addressed to you but I would suggest that anybody who's getting into the salary raises from that standpoint,that would be helpful for me. That's the only one(1) I have for IT. I'm at peace. Councilmember Tim Scott stated, Denise, half your budget, your expenditures, repair and maintenance and professional services. I noticed your professional services dropped forty-two percent (42%). With all the software you guys are bringing on, you're implementing all the new EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f574.235.9173 11-D574.235.5567 www.southbendin.gov 10 •CITY OF SOUTH BEND OFFICE OF THE CLERK systems.Your decrease in professional services,can you kind of explain that?Half of it is in repairs in maintenance, what is going on there? Ms. Riedl replied, So, some of those cuts to professional services are not around software but around things like Wi-Fi. The Wi-Fi expansion,we wanted to concentrate on professional services specifically on software. And another reason for the increase in professional services is that accounting issue with supplies. The increase in supplies came out of the professional services. There's just the accounting change as well. Councilmember Scott followed up, Just for the rest of the Council, I'll send out an email, we're going to have IT come and give an update on Monday. So, if you have any questions or agenda items I'd like to have those by Friday to give you guys time to prepare. Councilmember Regina Williams-Preston stated, I just want to thank you, I think you did a good overview. I've been looking at this, I have a lot of questions about the Code Enforcement Software. I just wanted to make sure that you had mentioned that this is one (1) of the things you're hoping to bring online. Is this the program that we've been talking about that users can call 3-1-1? Is it that particular software? Is this part of the software that they're using to issue citations? Ms. Riedl replied, There are two (2) different software. The Cityworks software, the asset management software, is actually as you just described. It is for issuing citations around RSVP and environmental, and it is an internal tool that Code Enforcement uses. And then in terms of resident reporting, that's going to be the digital 3-1-1 service platform. So, those are two (2) different software. Councilmember Williams-Preston followed up, And so you're anticipating that is going to come online? Ms. Riedl replied, Yes. Councilmember Williams-Preston stated, Great. Next year? Ms. Riedl replied, Yes. Councilmember Jo M. Broden stated, Just quickly, you have several grants, and congratulations, that your department has won and have worked on. Many of those are multi-year, I was wondering if you could provide links to those and attachments to this. In terms of, at least at a minimum, the executive summary and then any budgets that are associated with that and relevant timelines. Ms. Riedl relied Absolutely. replied, Councilmember Broden followed up, That just helps with the general understanding of the really cool things and the great things that you're doing. And actually, so many of these are forward thinking initiatives that have to do with workforce. So, I think the more information that's shared on that, the better. And with specific regard to the Bloomberg, and this next round on it, what sectors? Are the sectors of employment changing or are they staying the same? EXCELLENCE ACCOUNTABILITY I INNOVATION INCLUSION I 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 11 CITY OF SOUTH BEND OFFICE OF THE CLERK Ms. Riedl replied, They are staying the same. We're working with the same employers that we worked with previously. Actually, one (1) of them is the City. So, Venues, Parks & Arts will be one (1) of the partners, and then Beacon, and the University of Notre Dame. Those are all employers who we worked with for the first (1st) pilot for the Bloomberg Mayor's Challenge and we're specifically going to be supporting hourly wage workers at each of those employers Councilmember Broden followed up, Let's talk elevators just quickly. The $300,000 budgeted, how often, you said we're liable at twenty three percent (23%), is that specific to the elevator? Or is that just a twenty three percent(23%) whatever it's needed for? Mr. Parker replied, It's the amount that we pay to the County for common area maintenance. So, every year we pay common area maintenance of that, whatever amount it takes to maintain the buildings. Councilmember Broden followed up, Okay, so then it's specific to that project in 2020? Mr. Parker replied, Yeah, so because this was a one (1)-time capital spend, the County actually notified us that this project was coming down the pipe and said, "Hey, make sure that you budget appropriately given that there will be this increased cost in 2020." Councilmember Broden stated, And then I think Councilmember Davis hit this, but I think across all the departments if we're asking for an increase and we're benchmarking that against other municipalities, certainly Indiana, and I would actually look more regionally at those, if some of that benchmarking information could be shared I think that would be helpful. I think departments have done that in the past on a general basis and I would concur with Councilmember Davis on that. And then the evaluation on the charge for labor rates. That's obviously revenue that's coming in for equipment services. When was that last evaluated to market? Mr. Parker replied, Last summer. Councilmember Jake Tesha asked, Just to piggyback back on that, that rate, well first(1st) of all I guess, I could be missing it,but what does that outside account for? Outside vehicles we work on, what kind of chunk of change is that? So, that external work that we're charging an extra eighty dollars ($80) for, what does that look like, or what has it looked like for the first half of this year revenue wise. Are we doing a lot of that? Matt Chlebowski, Chief Administration Officer for Central Services with offices located at 1045 West Sample Street,replied,And we reported that just a couple weeks ago when we did our update. Normally, it's right around$220,000 to $250,000 a year that we bring in in external revenues. And really what we do is it helps us keep the costs to our internal City departments lower because we're bringing in that revenue to take care of our overhead and employee costs. Councilmember Teshka followed up, And that's for the most part, that's diesel work right? Mr. Chlebowski replied,Yeah,we do some automotive and van work,like for housing authorities, we do all their vehicles. Councilmember Teshka asked, Externally though, is it mostly diesel? EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f574.235.9173 TTD574.235.5567 www.southbendin.gov 12 CITY OF SOUTH BEND OFFICE OF THE CLERK Mr. Chlebowski replied, Majority. Councilmember Teshka followed up, I should note there's a value in splitting those rates because for diesel, eighty dollars ($80) an hour seems pretty cheap. So, I didn't know if there was a value in saying for an external customer we'll charge X for something that runs on gasoline and that's consumer related and another rate for something diesel. Mr. Chlebowski replied, We did look at that last summer and we did raise it five dollars ($5) an hour for our external customers. Obviously,we make sure we're covering all of our costs and then bringing in some additional. We didn't want to price ourselves out too quickly. We have a chart that we're looking at over the next eight(8) years to continue increasing. There's a double rate that we're doing anything internally. We do understand that they don't have to come to us, but we do want to make it fair to them. And they are municipalities also, and we don't want to put them out of business. Councilmember Dr. Davis stated, I had another question regarding the transportation director regarding Bloomberg. In terms of you adding a transportation person, What correspondence have you had with TRANSPO regarding that? Are you all working along with them? Ms. Riedl replied, We are. We're working very closely with TRANSPO. They're actually going to be a part of our next pilot. Providing rides to all the participants and the employers. Councilmember Dr. Davis replied, Okay. Thank you. I'm at peace. Councilmember Broden stated, So back to kind of the grants, obviously if you lose a grant then if your staff is reliant as a source for funding for that, what happens? Ms. Riedl replied, We actually have no grants right now that pay for staff. Councilmember Broden followed up, But I'm just wondering,in terms of denoting that or flagging that in the reports in a way, I see some significance to doing that. Ms. Riedl replied,Yeah, I'd be happy to do that. I will say there are no operations we're doing that are reliant on grant funding. So, for example with Bloomberg money, Aaron Steiner, the director, he's actually a contractor for the City and that's been a way like a City seeded startup through the Bloomberg Philanthropic Fund. And so, that's why you don't see Aaron Steiner's salary in the presentation. That's not in our budget, it's professional services through the grant fund. Councilmember Broden replied, Okay. Thank you. Councilmember Dr. Davis asked, With the vacation time, if somebody starts with their vacation time now, they have to prove time? Or is that the case or how would that be different? Ms. Clark replied, Currently a new hire who is hired by the City has zero (0) vacation, they're not entitled to vacation until they've been with the City for one(1)year.That becomes a really difficult thing because people have lives.The City does a great job with sick leave and providing sick leave to people. However, we find that it becomes a real barrier to recruitment efforts and retention EXCELLENCE ; ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W.Jefferson Bvld South Bend,Indiana 46601 p574.235.9221 f574.235.9173 TTD574.235.5567 www.southbendin.gov 13 CITY OF SOUTH BEND OFFICE OF THE CLERK efforts when you have zero (0) vacation. So, we want to make that universal. Bargained, non- bargained, we met with the unions, the union representative,to talk about the proposal to increase this. Because right now, especially the teamsters, they have zero (0) vacation. Councilmember Dr. Davis asked, That's for everybody then? Ms. Clark replied, It's for everyone. Councilmember Dr. Davis clarified, You're talking about all the bargaining units plus the administrative side? Ms. Clark replied,Well I should be clear,it does not include Police and Fire as those have separate bargaining agreements to address vacation time. Councilmember Dr. Davis asked,You're talking about teamsters? Ms. Clark replied, Yes, sir. Councilmember Dr. Davis clarified, Teamsters and then those who are not represented by anybody? Ms. Clark replied,Yes, non-bargaining and teamsters would be included in this potential proposal for vacation time. Councilmember Dr. Davis stated, I like that. I didn't realize they were like that, I apologize. Ms. Clark replied, Oh no, I think it's something that I think would be a great opportunity for us to have a conversation about. Councilmember Dr. Davis stated, No, I'm serious, I agree with you. Ms. Clark stated, I'm happyto talk about it in a closed session if you'd like to do that or if you want Y 1 itthe first1 st reading that's fine. to talk about at ( ) ead g Councilmember Dr. Davis stated, I'm embarrassed I didn't know that. I did not know. That's huge. We thank you for doing that. Councilmember Dr. Davis then asked, In terms of the anticipated recovery costs for the opioids, are there any estimates that are out there or is it still unclear? Ms. Steele replied, It's still unclear. There's now, I think at last count, six hundred (600) different municipalities, states and counties suing. So, we're just getting through the first(1St)few cases and getting ready to get through the court process. So, we won't know for a while. Councilmember Dr. Davis followed up, In terms of the issue regarding the zoning, now when you set up the assignments you just basically, if you have somebody who zoning is their key area, but some other area may not necessarily be their expertise,how would you come across putting those three(3)things together? That combination may not be that person's cup of tea. 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 17D 574.235.5567 www.southbendin.gov 14 CITY OF SOUTH BEND OFFICE OF THE CLERK Ms. Steele replied, That's a great question. So, what we're initially saying is right now we have people functioning at capacity. As you noticed, we have been working harder and more in depth in everything than we ever have before. What I'm saying is now that we've hit three(3), instead of say hiring professional services or outside counsel to cover those, since I've hit three (3) different and new departments or expanded,I'm saying that's one(1)person. But,I will probably go through, I'm anticipating, and rearrange assignments, based on what goes together. Because you're absolutely right, it may not be somebody who does well with zoning and does well with diversity. It needs to be somebody who can do well and make sure that they're covering each thing well. Councilmember Dr. Davis stated, Because I had asked about that thing last year, regarding the zoning person, that was my concern. I'm glad to know that's how you're looking at keeping that in house from that standpoint. Ms. Steele replied,Yes, sir. Councilmember Dr. Davis followed up, In terms of the legal question. In terms of the one (1) for utilities, in terms of possible litigation for whether we should go into litigation for the whole thing with our water, the Combined Sewer Overflow Consent Decree, where does that fit in in terms of that? Ms. Steele replied, So, we are already supporting the City's Public Works and they are already covered by one (1) of our Assistant City Attorneys, Clara McDaniels. And she does a very good job supporting them. We also have, if you are thinking of the Consent Decree in particular, we have outside counsel helping us to renegotiate a certain portion of that. But in day to day support, it's one (1) of our Assistant City Attorneys. Councilmember Dr. Davis stated, Okay, all right. I know we're coming up on what's going to be the next move with that issue. Ms. Steele replied, Yes sir, you're correct. And I was trying to make sure I stayed very succinct on this,to respect your time. But there are so many things that we are doing that we're not able to put up here (referencing the presentation), so I anticipate you asking about other things. So, I appreciate it. Councilmember Dr. Davis stated, Thank you. Okay, I'm at peace. Councilmember Scott stated,Yes, Dr. Davis kind of stole the thunder on the person. I like the idea of the person for Public Safety, Diversity and Area Plan. Those are divided up among probably three(3) other people now? How many people now? More than three (3)? Ms. Steele replied, Right now, everybody's doing a little bit. I'm anticipating a little bit with what the Disparity Study will say. As you know this has been an initiative we have supported very strongly. And so, the Disparity Study, not knowing what the final document will say, we're thinking that it's going to say something about making sure that diversity and inclusion is followed in every department throughout the City with every contract. And it's going to require some initial drafting of policies and procedures and getting in and getting everything set in a way that isn't anticipated right now by anyone because we don't have the document. And then the Human Rights EXCELLENCE ACCOUNTABILITY INNOVATION 1 INCLUSION j EMPOWERMENT 455 County-City Building 227W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD 574.235.5567 wvwv.southbendin.gov 15 CITY OFSOUTH BEND OFFICE OF THE CLERK Commission, in the past, they didn't need as much legal support. Or they were relying primarily on an outside counsel for a certain number of hours per month. But in talking with the new co- directors, they would really like day to day support. So,that is something we'll be expanding,too. Previously, we hadn't heard that message before. So, that is an additional ask. And then as you know, the new Area Plan Commission, as well. Councilmember Scott followed up, And honestly, those are three(3) hot topics right now because of everything that's gone with what we're going to do or change with the Board of Public Safety. Of course, diversity has been key to me on that expansion, so, I'm glad to see this. And Area Plan is going to be brand new for the City. So, that's going to be a lot on one(1) person's plate and I do have a concern with that. But I like the fact that you are trying to dedicate a full-time person to that. Ms. Steele replied, Yeah, I don't see a cost savings in telling we can do this if we just hire outside people or contract people on an ongoing basis. If it's day to day support that we're going to be asked to provide, I think, in the long term, it makes sense to have a full-time person. And I'm just counting that all as one(1)body. I'm also glad you mentioned the Board of Public Safety. One(1) of the things, like I said initially, that we've been hearing over and over in these community meetings is, and I forgot who initially said it, but one (1) of the gentleman in the meeting said, "The City shows what we care about by where we put our money."And over and over again lately, people have been saying the Board of Public Safety, we want to know more about what they do, and we want to be sure that they have somebody walking through each policy and procedure with them and each initiative with them and making sure that they understand what things are. Right now, we have an attorney who's there with them at the meetings and is at their call if they have a question. But this would be a paradigm shift in how we treat it, kind of like a different department where day to day, we need to be checking in on them. Councilmember Scott stated, I like that and that's exactly what I'd say about the Diversity and Inclusion Department too. And it really says something to the public where we do put the money towards. Committee Chair White then opened the floor to members of the public. Sue Kesim, 4022 Kennedy Drive, stated, Some are more comments or suggestions. I'm revisiting some even from past years and suggesting them again. Getting something less than forty-eight(48) hours beforehand does not give us time to study it. Again, we ask that we get it two (2) weeks in advance. Budgets are planned way in advance and numbers take time to go over. So,we need them far in advance of forty-eight (48) hours. I think that we need to look at the cost of each shooting. I'm going to bring this up again. We have no local morgue which means we are taking autopsies to either Kalamazoo or Fort Wayne. We're tying up an officer for those trips because of chain of evidence. I really think we need to know the cost of a shooting. The response, the detectives, the whole works. We need to know what crime is costing. Milwaukee did a study, they said it's about $600,000 per shooting. So, I would like, if we're doing budgeting, to what our extensive crime in our City is costing. Again, we would like the detailed check book back. At one (1) time we could see all the checks that were written in the City. That disappeared. That's a lack of transparency. Those are public funds and we would like to see that come back. We'd also like to see the reports in Excel format so those of us that are analyzing figures can do it easily without having to retype all the numbers into Excel. EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD 574.235.5567 wvwnw.southbendin.gov 16 410 CITY OF SOUTH BEND OFFICE OF THE CLERK She continued, We would like to see the EMS run costs. This pertains to the opioids, actually it could really help with the opioid case to say how much we're spending on each opioid run and EMS costs. Again, that goes along with the shootings as well but some of them might be related. We'd like to see data on the EMS responses, not Fire ones, but medically what those costs are. Again, a suggestion on the structure of personnel in the City. We have a lot of directors making high salaries, but they don't seem to be supervising a lot of people. The suggestion was made if you're going to get a directory salary that you at least supervise six (6) people or be a department head. Again,this was a suggestion and at one(1)time there was money,the Council needs to have their own budget analysts. You guys have had money scheduled for that. We think it'd be great, just like you have Bob Palmer for legal advice, we feel like you need financial advice. We think you should livestream these on Facebook. You certainly do it for Council meetings, it would be easy to do for these. There's fifty (50) plus City buildings. I think it would be great to do a study on how costs could be reduced for those in utilities. Maybe it's something the sustainability people could do.We think the meetings should start at 5:30 p.m.A lot of people work until 5:00 p.m.That doesn't give enough time to drive, find a parking space and get here. When you're speaking about spending on underserved communities, I remind you to consider seniors and the handicapped. Once again I'd like to bring up TRANSPO, looking at smaller buses, like other cities do, and if that would reduce some of our costs. A huge area of spending is professional services. It would be nice to see a breakdown of those professional services and where they're going because that seems to be an awful lot of money. (Ms. Kesim's six (6) pages of notes and questions were copied and are available in the City Clerk's Office). Jason Banicki, 3822 West Ford Street, stated, So, one (1) question right off the top was about the HR operations generalist increased pay for that Public Safety Specialist. That position's less than (4) four years old, it came online in the 2016 budget. If it wasn't already at market rate then, why are we giving it such a large increase now compared to everybody else? If you look at six (6) people in the HR department, that already is trending towards a quarter of the HR payroll. And that trends into my next point which is we keep hearing about competitive wages. Public service is not something that people get into to make a competitive market wage. You get into it to serve your community.There are other benefits that the public market does not offer that we're not taking into account when we say, "We've got to pay a competitive salary." Well, some of the advantages you get when you go into public service is you get a pension.There aren't many jobs left that offer you a pension. Public service does after ten (10) years in the state of Indiana. Typically, you have a better health care plan than most private companies offer nowadays. And at the end of the day your job is much less sensitive to market trends in the public service. It's great to say, "We've got to keep up with the private market." However, you're getting some other non-monetary benefits that we have to take into consideration. And then one(1)really big point given that we spend a lot of time from January to May talking about neighborhoods, we even have the candidate out of the Mayor's own Administration talking a lot about neighborhoods.Yet,we're spending less than$1.4 million in additional money on these neighborhoods. I fully expect whether it's the end of this year or early next year we are going to hear that somehow, some way, we have $100 million to bring South Shore downtown. We only have $1.4 million more for neighborhoods? We have got to put our money where our mouth is. We can't just say it as a campaign talking point. We can't say when it's convenient, yet we can find $100,000 for this position, $60,000 for this, that and the other. We've got to do more than$1.4 million more for these neighborhoods.They are still lagging behind and that's not enough. Thank you. EXCELLENCE ACCOUNTABILITY I INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD 574.235.5567 www.southbendin.gov 17 ®CITY OF SOUTH BEND OFFICE OF THE CLERK Jim Bognar, 807 West Washington, stated, Good evening, Council. I want to be brief because I know you folks want to get out of here. The State Board of Accounts provided information to the City on the 17th of this month and sent most of the material down for 2018. I had the opportunity to read it and I was concerned about something here. I encourage Council to go to the State Board of Accounts and read the material for 2018. Mr. Parker responded on June 24th, "The City continuously strives to monitor and improve upon a system of internal controls."This was an issue of the City or at least the State finding out that the City reconciled the bank balances to the fund balances monthly for several months in the audit period which was for 2018. The City could not provide audit evidence that someone performed a review of the reconciliation. My concern is that you have an ERP system that is going in this year. And by reading this, Mr. Parker who was pretty short on the job in 2018 and we're glad he's here, he says that this will be in full use by the spring of 2020. That's when it will be fully implemented. And he believes that by the end of 2019, things should look better. I do think that there's a concern that as we're working on a 2020 budget, what effect could the implementation of this ERP system have? Is it going to be proper? Is it going to work the way we want it to work? I understand we have to update our systems, but we have a lot of challenges.And rather than just stating certain issues that are in here,I would encourage Council to look at that. Part of the problem with the State Board of Accounts is it reflects on what happens in 2018. A lot of people weren't here in 2018. We're now in 2019 and we're talking about 2020. But history can tell us a lot. This ERP system is the foundation of everything we rely on here. So, the fact that we are implementing it right now, and I don't believe it was discussed by Mr. Parker, but we're implementing it right now, and it's critical. Is it going to work? Is it going to give us the data? Is it going to provide the information we need to have? Because that's the basis for all the decisions we make. So, I ask the Council to be mindful of that to be sure that they monitor that. I would encourage you to go back and look at 2018 and look at the State Board of Accounts found. You might find something interesting in there that I did. But I think it is critical to understand the importance of IT and the importance of Administration and Finance to make sure we know what we have and it's where it needs to be. And I thank Council for all their work. I know it's going to be a long budget process, thank you. Councilmember Dr. Davis stated, I just have one (1) question. In terms of these meetings able to be on Facebook, what could we do to ensure that others could see the budget meetings? Committee Chair White replied, I would say that we would need to check with the City Clerk's office to see what that will entail and also contact with the IT office as well. Councilmember Dr. Davis replied, I'm good. I'm at peace. Committee Chair White stated, Again, our next budget meeting will be on August 7th. We will only be looking at Public Works for that entire budget presentation. We do thank all of the department heads for your presentations and for staying with us, and also for the work that you've put in. This is just the beginning of the budget process. I, too, when I saw the percentage that was identified for neighborhoods, I did ask that question. As we continue to work through all the departments, we'll begin to see more of those particular focuses that will come in those particular departments. Again, we have done a lot of work, we as the Council just on this past Monday had a meeting and we began to talk about looking at those particular neighborhoods that have not been properly served or even as one (1) person has stated underserved. Our commitment is to focus on Quality of Life issues but most importantly to align our budget in terms of making sure that as we EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f574.235.9173 TTD574.235.5567 wwvv.southbendin.gov 18 CITY OFSOUTH BEND OFFICE OF THE CLERK develop those next steps and those priorities that we will see those in the upcoming budget, 2020, 2021, and 2022. Councilmember Broden stated, So, in the public comment,there actually were a couple things that came up in our past work in the budget process and one(1)was the livestream. So, I'm wondering if there's an opportunity for us to implement that through the Clerk's Office. And then the 5:30 p.m., I actually would support that as well. And I think the check book question was asked in previous years. I would like a direct response to that question, pros or cons of that, why it was changed and why it no longer appears. And then we did discuss previously a financial analysis. Committee Chair White replied, I think Council Members did receive information and were asked to provide feedback regarding that. So, you should look through that and you give your feedback as quickly as possible with regards to what you think that should look like. I would need to be able to meet with the department heads because we publicize the 5:00 p.m. and I'll look into that. Councilmember Voorde stated, Just one(1) question. We often hear that there are certain areas of the City that are underserved and that need additional investment.But I've never seen any numbers. How could we quantify that? What are we basing that on? Committee Chair White replied, I can tell you, and I'm so pleased with Community Investment, we asked them, which was part of that meeting on Monday, and it was a wonderful meeting, we asked them to identify those areas but also to put dollar amounts to those. And they developed two (2) major charts. And they will be in the process of continuing updating that. I did ask for us to have the copies in our areas so that Council Members and the public can see that. Also, what was part of the discussion was, we're moving past the talking stage. And I, clearly and others, really supported that. We know what the issues are. We identified five (5) areas that consistently individuals, leaders, residents themselves, are focusing on. If Council Members can go back and look at all the information, you see that there was a template that individual neighborhood associations and residents were asked to work through. From that,we're looking at coming up with action items but also align that with our budget. So that's a good question but the chart was very well done. I appreciate Community Investment for that. You can look at the dollar amount and you can also look at the categories in terms of where those monies are really, we're targeting. With no further business,Committee Chair White adjourned the Personnel and Finance Committee meeting at 6:58 p.m. Respect 11 Submitted, Karen ite, 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 TTD574.235.5567 wvwv.southbendin.gov 19