HomeMy WebLinkAbout11-10-03 Public Works & Property Vacation ontin ittu teport
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The November 10, 2003 meeting of the Public Works and Property Vacation Committee was
called to order by its Chairperson, Council Member David Varner at 5:10 p.m. in the Council
Informal Meeting Room.
Persons in attendance included Council Members Kelly, White, Varner, Aranowski, Pfeifer,
Coleman, Kirsits, and Kuspa; Mayor Stephen Luecke, City Controller Rick 011ett, Public Works
Director Gary Gilot, City Engineer Carl Littrell, Chief Assistant City Attorney Aladean M.
DeRose, Assistant City Attorney Cheryl A. Greene, Dennis Whittacker,Terry Bland of the
4ut1j 3i n ertt unt, and Kathleen Cekanski-Farrand, Council Attorney.
Dr. Varner noted that he called the Committee meeting in order to receive updates on three (3)
items, namely the cable franchise agreement, the demolition of St. Joseph/Jefferson Street Parking
Garage, and the Studebaker National Museum.
Chief Assistant City Attorney Aladean M. DeRose noted that in preparation for today's meeting she
sent to the Council a one-page document entitled"Frequently Asked Questions Regarding Comcast
Cable Public Hearing",a two-page letter from her dated October 16, 2003 to Lori Marsh,Manager
of Corporate Affairs for Comcast Communications, Inc., and a copy of the 23-page Franchise
Agreement between the City of South Bend and Heritage Cablevision(copies attached).
Ms. DeRose noted that in 1983 the city entered into an agreement for a cable franchise with
Heritage Cablevision. In 1998 the agreement was entered into with TCI which was the successor
company to Heritage Cablevision. The first term of the contract expires on December 31, 2003,
with the possibility of a ten(10) year extension.
Ms. DeRose noted that the City is obligated to review upgrades, services, programming and repair
services. The public hearing has been scheduled for Monday, November 17, 2003 from 5:30 pm
to 7 pm in the Council Chambers. The Board of Works will be acting under contract law and will
determine if the contract would be extended and therefore ending in 2013.
In response to a question from the Council Attorney, Ms. DeRose stated that in 2002 the city
received $640,000 in cable revenues and this year the revenues will be between $620,000 to
$640,000. The service fee which generates such revenues is in consideration for the use of the
right-of-ways and for the various services which the City renders. The service fee is based on
Comcast's gross revenues.
In response to a question from Council President White, Ms. DeRose noted that all such revenues
being deposited into the general fund.
Dr. Varner inquired whether the rights granted to the cable company are exclusive. He noted that
he attended the public hearing in 1998 and that WTTW from Chicago was requested as a
programming channel. He noted that the cable representatives stated that they would work on it
and that the channel is only available if you have digital service.
Ms. DeRose stated that the rights are contractual and under the agreement they are granted a
"nonexclusive franchise" which authorizes them to construct and operate a cable system [SEE § 2
RANT OF FRANCHISE, 9 2.1j. She further added that programming is addressed in the agreement
'NGE 11, ¶3.19 PROGRAMMING]. She added that public input in important.
Public Works and Property Vacation Committee
November 10, 2003
Page 2
Council Member Kirsits noted that he has received several calls about the quality of the equipment
and in particular the quality of Channel 3 public access. He also inquired whether the term of the
contact was standard.
Ms. DeRose noted that the prior contract did not address equipment, and that such concerns should
be made known. She added that the typical term of contract is 10-15 years.
Dr. Varner noted that the rates appear to be higher,noting that Bloomington and Greenfield receive
more channels for less money. He added that there is a perception that we are not getting our
monies worth when compared to what other services which other communities are receiving. Dr.
Varner also inquired whether the city has conducted a study of programming in other communities
and their cost s for such services.
The Council Attorney noted that Bloomington simultaneously transmits their Common Council
meetings and other city meetings on their public access channels. She also noted concerns over the
channel numbers changing without the cable company providing an updated list to its customers.
Ms. DeRose stated that a study would be completed by the end of the year. The public hearing
would be held on November 17, 2003, the Board of Public Works will then review the responses
and at the last Board meeting in December the Board will determine whether to renew the contract.
Council Member Kirsits noted that he knows of individuals in the 5th Councilmanic District that
decrease payment on the bills based on the amount of down service days they experience.
Dr. Varner requested that the comparables be shared with the Council and that the Council be
advised as to the exact time and date of the Board of Works meeting in December when they will
take action on the franchise agreement renewal.
It was then requested by the City Administration that the update on the Studebaker National
Museum be heard next.
Gary Gilot, Director of Public Works, provided copies of a 14-page handout entitled"Studebaker
National Museum" (copy attached) and noted that this information is available on the internet. Mr.
Gilot stated that nine(9) proposals were received today and that the RFP process is moving along.
There will be a four (4) month process for design. He then called upon Assistant City Attorney
Cheryl A. Greene to provide a summary to the Committee on the ongoing negotiations.
Ms. Greene stated that the negotiations are in three (3) basic categories namely: site assemble,
construction, and operation & management. South Bend Heritage will oversee the house move.
The Studebaker Museum and the Center for History will donate land to the Redevelopment
Commission. Plans and specs are being prepared with the Studebaker Museum paying for these
services. Construction costs are estimated to be $5.5 million, with the Board of Public Works
being in charge of the binding process. The construction manager will be South Bend Heritage.
Lease agreements and management agreements will be required as well as agreements between the
parties for the use of common areas.
Ms. Greene noted that there will be numerous contracts which are all very complicated. She noted
that the Memorandum of Understanding is not finalized yet, and will not be a binding agreement,
but rather will act as a road map.
Public Works and Property Vacation Committee
November 10, 2003
Page 3
Ms. Greene stated that TIF bonds will also be involved. She added that none of the agreements are
in final form and that she believes that they should not be given to the Council at this point since
they are still being negotiated. She anticipates that the MOU will be completed later this week.
Council President White inquired about the two (2) homes which may be involved. Ms. Greene
stated that one is independent and that old Planned Parenthood building will be moved. It was
noted that three of the Studebaker Board Members were present.
Council Member Kirsits asked if there would be one admission fee. It was noted that this would
be a staff level decision.
Dr.Varner noted that there are many lose-ends for a building which will be ongoing for the next
30-40 years. He noted that the costs of operations catches up with you, not the costs of the
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building itself. He voiced concern that much of this seems premature, noting that costs of
operations may be $200,000 or as high as $600,000. He stated that at the present time there is not
enough information made available to know the City's risk. Dr. Varner noted that the city should
know where they are going and the costs associated with it. Dr. Varner inquired about what the
County's obligation would be.
Mayor Luecke stated that a business plan was presented to the Council which sets forth a wealth of
information,
Dr. Varner noted that the ERA of 1994 study was "terribly flawed" when it came to the College
Football Hall of Fame,and when it was mentioned in the business plan it raised a"red flag".
Dr. Varner thanked everyone for their update and asked that the Council be updated.
Dr. Varner then asked for an update on the proposed demolition of St. Joseph/Jefferson Street
Parking Garage.
City Engineer Carl Littrell made the presentation. He noted that originally the cost to rehab both
garages was estimated to be $4.2 million. The garages were built in 1970 and opened in 1971,
with both being the first generation of pre-stressed concrete with post tension wires.
In the Spring of 2003 a consultant was hired to follow-up on the 1993 study on the garages. The
latest study shows that many of the pre-stressed tendons are broken. He noted that the garages
were constructed of light-weight concrete which was very porous. During the 1980's
rehabilitation to both garages took place. The Jefferson garage is used more and has more traffic.
The Jefferson garage does not meet the strength test due to flaws in construction and aging. As a
result the 3rd, 6th and 7th levels have been closed which effectively closes the 4th and 5th floors
also. Only the 1st and 2nd floors are currently open. All parkers have been accommodated in other
parking garages and the city is paying the costs for such parkers in the first month.
Mr. Littrell stated that the prognosis for the Jefferson garage is "grim". The cost to rehab is $3.1
million, but they cannot save the slabs, with the cost to rehab being more than the cost of a new
garage. They propose that in early 2004 that the Jefferson garage be demolished, with the area
being used for surface parking as a "stop gap measure". A study of downtown parking needs
shows that there is currently a surplus. The best site will be reviewed and the study is still
ongoing.
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Public Works and Property Vacation Committee
November 10, 2003
Page 4
Mr. Gilot stated that because of safety concerns they are recommended the demolition of the
Jefferson garage. The other garage should have a 20-year service life after rehab. He noted that
there are currently 10,000 parking spaces in private and public areas in the downtown, however
they are not always conveniently located for the parkers. As reports come in, the Council will be
further updated.
Mr. Littrell stated that bids were taken today to reinforce the Colfax/Main garage as a stop-gap
measure. It will be completely rehabbed, and made ADA accessible.
Dr. Varner thanked everyone for their presentations and then adjourned the meeting at 5:53 p.m.
Respectfully submitted,
Council Member David Varner,Chairperson
Public Works and Property Vacation Committee
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