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Home My WebLink About03-14-2022 Personnel and Finance Committee Meeting Minutes (Signed)OFFICE OF THE CITY CLERK D AWN M. JO NES, CITY CLERK PERSONNEL AND FINANCE COMMITTEE MARCH 14, 2022, 4:00 P.M. Committee Members Present: Others Present: Agenda: Chair Sheila Niezgodski , Vice-Chair Eli Wax , Rachel Thomas Morgan, Troy Warner, Henry Davis Jr., Aaron Steiner Dan Parker, Bemado Malone, Dawn Jones, Victoria Trujillo, Bob Palmer, Chief Scott Ruszkowski, Sharon McBride, Eric Horvath, Bill No . 08-22 -Ql 2022 Additional Appropriation Ordinance Members marked with an asterisk (*) are present digitally Please note the attached link for the meeting recording: https://docs.southbendin.gov/WebLink/browse.aspx?dbid=0&mediaid=353647 Committee Chair Sheila Niezgodski called to order the Personnel and Finance Committee meeting at 4:00 p.m. Bill No. 08-22 -01 2022 Additional Appropriation Ordinance City Controller Dan Parker presented Bill No. 08-22 which is a budget amendment request for additional appropriation ordinance. The bill requests to increase the budget and provide for additional items that were not contemplated in the initial budget. The request is for eight million five hundred thousand dollars ($8,500,000), and seven million eight hundred thousand dollars ($7,800,000) of the total amount is related to the request for the purchase and renovation of the South Bend school's administration building which has been discussed at school board meetings and other community meetings. The opportunity presented in Bill No . 08-22 is the purchase of the SBC SC administration building at 215 Dr. Martin Luther King Jr. Boulevard to become the new South Bend city hall. The tentative purchase price is two million eight hundred thousand dollars ($2,800,000), which is under n egotiations. The facility underwent a seven million five hundred thousand dollars ($7,500 ,000) renovation update in 2005 and an appraisal indicated that the building is well maintained. The facility is connected to covered parking with additional parking garage and public surface parking within two (2) blocks. The purchase of the SBCSC administration building will enhance operational efficiency and accessibility as follows: • The expansion of space for current CCB workers EXCE LL ENC E ACCOUN TAB ILI TY INNOVAT ION INCL U SION EMPOW ERMENT 455 County-City Building 227W. Jeffe rson Bvld South Bend. lndiana46601 p 574.235.9221 f574.235.9173 TTD574.235.5567 www.southbendin.gov CITY O F O UTH BEN D OFFI CE OF THE CLERK • Consolidation of City departments which may save approximately fift y-eight thousand dollars ($58 ,000) in rental costs for the water works administration building • Enhanced accessibility for the public • Dedicated Council chambers and meeting space • A fifty percent (50%) increase in usable square feet Additional benefits were outlined: • Enhanced partnership with South Bend schools • Benefits to the South Bend Community School Corporation including reduced ongoing operational costs which allows for increased investment in classrooms and the reduction of the capital asset portfolio to align with the number of students The purchase price of two million eight hundred thousand dollars ($2,800,000) aligns with the pricing analysis and appraisal received from the school. Proposed renovation costs are approximately five million dollars ($5,000,000). Ongoing maintenance and operational costs would be approximately four hundred thousand dollars ($400 ,000). The City of South Bend currently pays twenty-six and five hundred fifteen thousandths' percent (26.515%) of all CCB costs, which is approximately six hundred thousand dollars ($600 ,000) per year. The move to the SBCSC could provide savings of approximately two hundred seventy-five thousand dollars ($275 ,000) in annual and ongoing savings with the number growing to over three hundred thousand dollars ($300,000) in approximately ten (10) years. The overall repayment period with a seven million eight hundred thousand dollars ($7,800 ,000) million investment is approximately twenty-one (21) years. The estimated renovation cost of five million ($5) million includes high-level estimates for the replacement of elevators and any other necessary structural repairs or replacements . The structural elements will be evaluated through architect engagement and an external FCA consultant. In 2023, council had appropriated funds to conduct a full facilities condition assessment to gauge the life cycle of building components. A full security assessment is planned to part of the architect engagement. The police department will be engaged to ensure they are involved in the security planning. Space planning will also be part of the architect engagement. The process overview was highlighted for the Committee's information. On January 24, 2022, the SBCSC passed a resolution that indicated their intent to sell the administration building to the City of South Bend. Within fifteen (15) days of the passed resolution , the SBC SC submitted an application to the Indiana Attorney General forapproval and the Attorney General had thirty (30) days to respond upon receipt . The council approval will authorize the appropriation of funding to allow for the hiring of the architect and the continuation and finalization of negotiations. At the conclusion of the meeting , the SBC SC and City Board of Public Works must adopt substantially identical resolutions authorizing the sale on terms and conditions agreed upon for the sale. The intention is to close the deal during the summer of 2024 with the school relocating at that time. The floor was opened to questions or comments regarding the presentation. 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 www.sout hbendin.gov 2 CITY O F SO UTH BE D OFFICE OF THE CLERK Councilmember Eli Wax inquired about the actual amount that may be required out of the five million dollars ($5 ,000 ,000) budgeted for renovations . Dan Parker responded that an architect has not been engaged yet; therefore , the full scope has not been determined. The five million dollars ($5,000 ,000) million budget is generous and the entire balanc e may not be required. Public Works Director E ric Horvath reiterated that the precise costs are unknown and an analysi s of the building component s is required to confirm an estimate. The elevators are aging and will require an update , and additional security measures such as key card readers will be considered. Councilmember Wax suggested that the council wait until the estimate s are confirmed before appropriating funds . Dan Parker responded that the appropriation would allow for the engagement of the architect to provide estimates. Councilmember Troy Warner inquired about th e numb er of A ED s that will be purchased . Chief Scott Ruszkowski noted that th ere are currently one-hundred and sixty ( 160) patrol unit s and the number of AEDs will be confirmed . Councilmember Rachel Thomas Morgan inquired if the County will need to address any items including resolutions or agreements. Dan Parker respond ed that no action is required from the County , as th ey own the building ut ili zed at the present time , and th e Cit y of South Bend pay s approximately twenty-six (26 %) per the rental agreement. Ongoing updat es will be pro v ided to the County . Councilmemb er Wax expre ss ed reservation appropriating fund s until a spending plan 1s det ermined. Councilmember Henry Dav is Jr . inquired about the cost of constructing a new building. Dan Parker commented that the cost is undetermined ; however, an organization is constructing a new building at a co st of approximately twenty million dollars ($20 ,000 ,000). At sixty-five tho usand (65 ,000 ) square feet , the cost would be approximatel y under t en million dollars ($10 ,000 ,000 ) without th e co st of land . Public Works Director E ric Horvath noted that new construction co sts for a mid-rise commercial building are significant . Committee Chair Sheila Niezgo d ski commente d t hat the five million dollars ($5,00 0 ,0000) estimate for renovations may be conservative an d the renovations of elevators could be a costly en d eavor. Committee Chair N iezgod ski motioned to send Bill No. 08-22 to the Committee of the whole with a favorable recommendation w h ic h was seconded by Committee Member Tomas Morgan an d carried by a vote of five (5) ayes . EXCELLEN CE I ACCOUNTABILITY INNOVATION INCLUSION I EMPOWERMENT 455 County-City Building 227W. Jefferson Bvld South Bend. lndiana46601 p 574.235.9221 f574.235.9173 TTD574.235.5567 www.southbendin.gov 3 CITY OF SOUTH BE D I OFFICE OF THE CLERK Committee member Troy Warner -Aye Committee Member Rachel Thomas Morgan -Aye Committee Chair Sheila Niezgodski -Committee Vice Chair Eli Wax -Aye Aye Committee member Henry Davis Jr. -Citizen Member Aaron Steiner -No Aye response With no further business , Committee Chair Niezgodski adjourned the Personnel and Finance Committee meeting at 4:31 p.m. Respectfully Submitted, Sheila Niezgodski , Committee Chair ~CJTJCE FOR HEARl~C AND SICJff IMPAIRE D PERSONS Aux iliary Aid o r Other Services may be Available upon Request at No Chugc. P1 ease give Reuo n11ble Adva nc e Requ es t wh en Pnuible EXCELLENCE I ACCOUNTABI LI TY I INNOVAT ION INCLUSION I EMPOWERMEN T 455 County-City Building 227W. Jefferson Bvld South Bend. Indiana 46601 p 574.235.9221 f574.235 .9173 TTD574 .235.5567 www.south bendin.gov 4