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HomeMy WebLinkAbout06-16-04 Public Works, Property Vacation and Personnel & Finance Joint Meeting of the Public Works and Property Vacation Committee and the Personnel and Finance Committee The June 16, 2004 joint meeting of the Public Works and Property Vacation Committee and the Personnel and Finance Committee was called to order by Public Works and Property Vacation Committee Chairperson, Dr. David Varner at 3:05 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Puzzello,Kelly,Dieter,White,Kuspa,and Varner; Mayor Stephen Luecke, City Attorney Charles Leone,City Controller Rick 011ett, Community&Economic Development Executive Director Sharon Kendall, City Clerk John Voorde,Morris Performing Arts Center Executive Director Dennis J. Andres, Terry Bland of the South Bend Tribune and Council Attorney Kathleen Cekanski-Farrand. It was announced that next Wednesday at 9 am in the Board Room on the 13th Floor there will be a demonstration of electronic bidding, which has been endorsed by IACT. Dr. Varner asked the Council Attorney to attend. Dr. Varner then noted that the joint committee was called to continue to review Bill No. 32-04 which was last discussed by the joint committees on June 9th. He suggested that the page-by-page review of the draft substitute bill begin on page 6 with Section 2-93 addressing monthly reporting of financial information. He noted that the Controller's current monthly report is nice,but that it is short with regard to completeness. He added that once the initial spread sheet is made that it should be easy to provide such monthly updates. Rick 011ett suggested that on page 6, Sec. 2-93,paragraph(c)(1)that"in detail"be replaced with"by account". Mr. Andres inquired whether the requirements in Sec. 2-88 and Sec. 2-93 would affect his accountant,and asked what the trickle down affect would be. He feared that it would put an additional 20 hours of work and that it would cause turn over or additional comp time. Mr. 011ett noted that most of the information would be gathered by the Department of Administration and Finance. He stated that there needs to be more discussion on the reporting level needed by the Council. Mayor Luecke stated that some of the suggested language would result in formatting information differently. Dr. Varner stated that Mr. Andres concern of a substantial added workload would not be realized by his operation. Council Member Kelly stated that the city needs to balance what is needed and what is extraneous in the Bill. With regard to Sec. 2-94 and the reporting requirements for IRS Tax-Exempt Charitable Organizations,Mr. Leone stated that the core issue is the uniformity of treatment of those within a class. He noted that he was having difficulty distinguishing the requirements of non-profits vs. for profits,noting that all CDBG grants are contractual. He gave the example of the River Park Joint Meeting of the Public Works and Property Vacation Committee and the Personnel and Finance Committee Neighborhood Association getting money for banners, and the Robert Henry Corporation getting a contract to hang the banners. He noted that there may be a constitutional issue of"privileges and immunities". Mr. Leone noted how complete the Council's legislative record was for the adult business ordinance which supported by the legislation was necessary. He noted that the Council must develop a rational basis for the proposed regulations in this area. Dr. Varner suggested that the title to Sec. 2-94 be changed by deleting"Reporting"and replace it with"Application"and throughout that section as needed,and perhaps focus on those who are seeking funding. Mr. Leone stated that that would go part way in addressing his concern. Dr. Varner noted that some of his requests for Form 990's have been ignored,and that if they are a part of the application process they would be a matter of record on file in the City Clerk's Office. He noted that the Form 990's are public documents,but that Council Members should not have to go to the non-profits office to review them, especially when they are receiving monies from the city. The Council Attorney suggested that a minimum amount might be considered for the application process in light of the banner example. Dr. Varner noted that good reporting or accounting information helps protect the Council when money is appropriated, and may in fact involve liability if due diligence is not done. He noted that he had provided a one-page sheet entitled"Types of Tax-Exempt Organizations"which the IRS prepared and which summarizes information on the various types (copy attached). Mr. 011ett noted that there is the same liability involved when for profit companies are at the table. He added that property tax payments are not tracked routinely by the city;to which Dr. Varner replied that if the Administration wanted that added he would be open to their suggestion. Mr.Andres noted that his operation asked for 501(CX3)exempt letter verification in order to give discounts.. Council Member Puzzello suggested that clarification was necessary with regard to contributions and service. Dr. Varner noted that his primary concern was on non-profits who request funding or contributions from the city. Chuck Leone noted that Underwriters Laboratory has a special status as a water testing lab with whom the city contracts. He also noted that South Bend Heritage has been hired when houses are moved. Sharon Kendall voiced concern of holding non-profits to a higher standard, noting that the proposed regulations may be challenged. June 16,2004 Page 2 3 Joint Meeting of the Public Works and Property Vacation Committee and the Personnel and Finance Committee Dr. Varner again noted that the Form 990 which is being requested is a public document,and that there would be uniformity. Mayor Luecke suggested that if the Form 990 is being requested that it be a requirement as part of the initial application process for 501(C)(3)non-profits so that the issue of debarment would not be raised later. Mr. Leone again noted that there should be a showing of inherent characteristics for the requirement. Dr. Varner thanked everyone for their input and stated that the joint committees would start again on July 7,2004 at 4 pm with Sec. 2-95. Respectfully submitted, Dr. David Varner, Chairperson Public Works and Property Vacation Committee Derek D. Dieter,Chairperson Personnel and Finance Committee KCF:kmf Attachments June 16,2004 Page 3