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HomeMy WebLinkAbout08-19-01 Council Special Meeting MinutesSPECIAL MEETING AUGUST 19, 2001 Be it remembered that the Common Council of the City of South Bend, Indiana, met in the Council Chambers of the County -City Building on Sunday, August 19, 2001 at 5:00 p.m. The meeting was called to order by Council President Charlotte Pfeifer and the Invocation and Pledge to the Flag were given. It was noted that Councilmember James Aranowski was not in attendance this afternoon because of a family medical emergency concerning his father. Council President Pfeifer asked everyone to remember Councilmember Aranowski's father in their prayers. ROLL CALL Present: Charlotte Pfeifer Roland Kelly Karl King David Varner Andrew Ujdak Sean Coleman Al "Buddy" Kirsits Karen L. White Absent: James Aranowski 2nd District President 3rd District 4th District 5th District 61h District Chairperson, Committee of the Whole At -Large At -Large At -Large 1St District Vice - President SPECIAL BUSINESS Council President Pfeifer advised that the purpose of this meeting is to take final action on Bill No. 69 -01 pursuant to Indiana Code 36- 8 -3 -3. RESOLVE INTO THE COMMITTEE OF THE WHOLE At 5:03 p.m. Councilmember Coleman made a motion to resolve into the Committee of the Whole. Councilmember Varner seconded the motion which carried by a voice vote of eight (8) ayes. Chairman Ujdak presiding. Councilmember Ujdak advised that the Council is going to extend to the opposition a period up to a limit of thirty (30) minutes to speak against this bill. Additionally, anyone having questions with regard to this bill were told that those questions would be answered during rebuttal. He noted that under the "Privilege of the Floor" portion of the meeting, the Council will NOT be suspending the rules to allow comment on any item on the agenda. Under normal rules comments are allowed for any item not on the agenda and those are the rules that the Council will be following. BILL NO. 69 -01 PUBLIC HEARING ON A BILL FIXING THE ANNUAL PAY AND MONETARY FRINGE BENEFITS FOR MEMBERS OF THE SOUTH BEND POLICE DEPARTMENT FOR CALENDAR YEARS 2002, 2003, 2004 AND 2005 Councilmember Coleman made a motion to hear the second substitute version of this bill as on file with the City Clerk. Councilmember King seconded the motion which carried. Councilmember Ujdak advised that there was a joint meeting of the Health and Public Safety Committee and the Personnel and Finance Committees this afternoon and the second substitute version of this bill was sent to the full Council with a favorable recommendation. Mayor Stephen Luecke, 1400 County -City Building, South Bend, Indiana, made the presentation for this bill. SPECIAL MEETING AUGUST 19, 2001 Mayor Luecke stated that state law requires the Common Council to set police salaries before August 20th and that is why this special meeting is being held. Mayor Luecke clarified some of changes in the second substitute bill. He noted that salaries for the Chief of Police, Division Chiefs, and Captains have been inserted. Those salaries reflect a four per cent (4 %) annual increase each year and years 2003, 2004, and 2005 reflect a shifting of $400.00 from the cash allowance to their salary. Also, some corrections were made to health insurance to reflect what is actual practice. The previous language indicated that there were twenty -six (26) times per year that a health insurance premium was deducted from a paycheck when in fact it is twenty -four (24) times per year. A section regarding flex time has been removed because it is no longer applicable. Those were the changes that were made to the second substitute bill before the Council at this time. Mayor Luecke stated that he regrets that the City has not yet reached an agreement with the FOP but he is pleased that the City has presented a final offer which will be presented to the FOP membership for a vote. He noted that the salary ordinance presented today is based on the City's July 11th offer to the FOP. If there is no ratification of the final offer the current contract rolls over for a one (1) year period of time. As reflected in the July 11th offer to the FOP there are some changes that had to be made. Insurance premiums could not change in 2002. They could not begin a shifting of the cash allowance from cash allowance to salary until 2003. When the final offer was presented to the FOP and they indicated that they did not have sufficient time to take a vote, the City advised that if they do have a positive ratification vote by August 27th the City would propose to include those higher numbers from the final offer into the salary ordinance. It was suggested that that could happen on August 27th. However, in reviewing Council rules, that cannot happen on the 27th because there needs to be first reading, second and third readings of the corrections that would be made. As soon as notification is received from the FOP by August 27th that there has been a ratification then the City would begin the process to have those higher numbers inserted into the salary ordinance. The FOP was also told that if there is no vote taken or if there is not a ratification by August 27th then the final offer is withdrawn and the salary ordinance that is passed today will stand. , Mayor Luecke noted that this ordinance sets compensation for four (4) years for police officers with raises ranging from 4.35% to 5% a year. It also shifts $400.00 of cash allowance to the salary each year except in the year 2002. This total of $1,200.00 shifted does not take money from any officer but rather it puts in on the base pay where it belongs so that it can compute for overtime pay and pension. For first class officers who are in 2001 earning $31,275.00 as a base salary by the year 2005 that salary would increase to $38,806.00. For Corporals currently at $36,100.00 by the year 2005 that salary would increase to $44,5.99,00. For Sergeants currently earning $37,500.00 that would increase to $46,280 and for Lieutenants currently earning $39,150.00 it would increase to $48,260.00. On the first class salary that is an increase of $7,531.00 in the salary for a twenty -four per cent (24 %) increase. For Corporals it is a $8,499.00 increase if you subtract the transfer of the $1,200.00 from cash allowance to the salary it is $7,299.00 new dollars for Corporals. For Sergeants an $8,780.00 increase which includes $7,580.00 new dollars. For Lieutenants a $9,110.00 dollar increase which includes $7,910.00 in new. dollars. For retirees the increase in the pension base means that their pensions would increase depending on longevity and whether they are receiving between fifty per cent (50 %) or seventy -four (74 %) per cent of the base salary. Retirees would see an increase from $3,765.00 to $5,573.00 dollars. The Mayor noted that there are some individuals that have indicated that they felt that the City was not proposing any raise at all for the officers and that is not correct. The City feels that this is a substantial offer. If a first class officer in 2005 had stayed at the same salary for the four (4) years of the salary ordinance the difference for that officer when you look at both salary and cash allowance is ($15;000.00) in that officer's pay. That is $15,000.00 additional dollars over four (4) years. For Corporals it is an additional $17,000.00 over four (4) years. For Sergeants it an additional $18,000.00 over four (4) years and for Lieutenants it is an additional $18,800.00 over four (4) years. Those are new dollars for these officers and that is a substantial pay increase. Additionally, as part of this salary ordinance there are increased insurance premiums that officers would pay over this four (4) year period of time. For an SPECIAL MEETING AUGUST 19, 2001 officer with single coverage the increased premiums over this same four (4) year period would amount to about $1,000.00. For family coverage it would amount to about a $2,000.00 increase over the four (4) years. Mayor Luecke noted that there has been an increase in health insurance costs. - Additionally, the City is trying to put the police officers into the same insurance preferred provider organization network as other City employees. Mayor Luecke commended the Council for successful negotiations and for working hard to provide substantial pay increases that significantly raise first class pay and the pension base and also help to provide a quality standard of life for the officers. The cost of the package in this salary ordinance for salary, pension and benefits and other compensation is about $8.1 million dollars over four (4) years. He noted that other City employees need to be provided for as well as continuing to invest in the facilities and equipment and provide other services to the community. The Mayor stated that he believes this is a fair package and he therefore asked for the Council's positive vote. Council Attorney Kathleen Cekanski- Farrand advised that several items have come to her attention in reviewing this substitute bill and she has asked the legal staff present to review their previous copy of the bill as the Council may have received a prior version. She directed everyone's attention to Page 4 Paragraph "L" line 4 where it refers to Fifteen Thousand Dollars and 00 /100 when it should be One Thousand Five Hundred Dollars and 00 /100 for the Operation Safe Neighborhood Reimbursement. In Paragraph "M" the word "to" should be inserted immediately prior to the word "provide" and on Page 5 Paragraph "R" the final version read "qualifying FTO officers" but that needs to be checked. She noted that these items are being brought to the Mayor for his attention as far as technical corrections. Mayor Luecke pointed out that in regards to the Operation Safe Neighborhood Reimbursement, the dollar amount is correct but the verbiage is incorrect. Councilmember Ujdak reminded everyone present that if anyone has questions that they wished to have answered regarding this bill, to make sure they'are asked at this time as they will not have the opportunity to do so under the "Privilege of the Floor" as this is the only bill for consideration and the Council will be following normal rules. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There was no one present wishing to speak in favor of this bill.. The following individuals spoke in opposition to the bill. Mr. Tom Leszcz, President, Fraternal Order of Police South Bend Lodge #36, 701 West Sample Street, South Bend, Indiana, informed the Council that the FOP will have a membership meeting on Wednesday, August 22nd at 7:00 p.m. at the lodge bingo hall. At 10:00 p.m. the secret balloting will begin at the police station until 12:00 p.m. on Saturday, August 25``' at which time it will be closed. They are also allowing those officers who cannot make the meeting or the balloting to make out officers reports to put into a sealed envelope to be given to Lt. Rick Bishop. He stated that everyone thinks this is about money. In 1997 Mayor Luecke told him that he would not pay one (1) entity more than another. This is not about money, it is about paying one (1) department more than another. Mr. Leszcz stated that they will reward their friends and defeat their enemies. Mr. Tom Dixon, Attorney for FOP Lodge #36, no address given, stated that the Mayor advised that over four (4) years a first class patrolman is going to see $15,000.00 in new dollars under this bill. However, in his computing he does not see that number and therefore he takes issue with any characterization by a public official that says there is going to be this much more money for the first class patrolman. He noted that what the City is offering and what the Council is voting on is a pay increase of $7,500.00 with $1,200.00 transferred from the current pockets of the first class patrolman and the other officers on the department through their clothing, gun and radio allowances. This offer is $6,300.00 over four (4) years which is equivalent to a four per cent (4 %) pay increase. SPECIAL MEETING AUGUST 19, 2001 There was no one else wishing to speak in opposition to this bill. In rebuttal, Mayor Luecke apologized if he was not clear in what he stated. In his initial presentation he referenced the $7,000.00 increase in the first class salary. In the first year, and this includes looking at the cash allowance as well as the salary, a $32,682.00 salary plus $2,200.00 cash allowance is a base pay of $34,882.00 which is $1,407.00 more than that base pay currently. In the second year the salary is $34,505.00 plus a $1,800.00 cash allowance for $36,304.00 which is $2,829.00 more than the level currently being received by a first class officer. In the third year it is a $4,500.00 increase over what is currently being received and in the fourth year it is $6,300.00. He noted that $15,000.00 is the total new dollars compared to the current compensation. Mayor Luecke stated that what they were looking at is the total dollars in the pay over that period of time by comparing them to the current level. Council Attorney Cekanski- Farrand read the three (3) technical corrections as follows: On Page 4 Paragraph "L ", Fifteen Thousand and 00 /100 Dollars should be struck and replaced with One Thousand Five Hundred and 00 /100 Dollars. In Paragraph "M" add the word "to" between continued and provide. On Page 5, Paragraph "R" the sentence should begin "A qualified Field Training Officer (FTO) shall" Those are the only changes of a technical nature. Councilmember Coleman made a motion to amend the second substitute version of this bill as read into the record by Council Attorney Cekanski - Farrand. Councilmember Kelly seconded the motion which carried by a voice vote of seven (7) ayes and one (1) nay vote by Councilmember Kirsits. Councilmember Varner stated that the City wanted to make a significant improvement in the position of first class patrolman because there are a number of retirees who look to their pension as a substantial portion of their retirement income. This bill will add $8,600.00 to the pension base He stated that he wished the City could pay what New Albany paid but South Bend has a flat tax base and has the second highest property tax rates in the State of Indiana. This increase may not be what the police officers wanted but it is healthy. Councilmember Varner noted that looking into the future the City may have to look for additional sources of revenue. Beginning with the budget hearings next week the Council can look to make sure that those extra dollars will be there in the form of savings over the next three (3) years rather than having to look at some sort of change in the property tax rate. Councilmember Varner stated that the negotiating team did a wonderful j ob and he intends to support this bill. Councilmember Coleman urged the FOP membership to act favorably on the proposal that they will be reviewing. The proposal represents the City's continuing commitment to improve the base salaries of the police officers. This is an effort that was begun four (4) years ago when the contract increased the police officers salary over twenty- five per cent (25 %) which was the largest pay increase in at least twenty -five (25) years. This contract would increase wages by another twenty - three per cent (23 %) during the next four (4) years an increase of over $8,000.00 in the first class patrolman salary. It took from the mid 1970's to the mid 1990's for the City to fall as far behind in salary increases for the police department due in large measure to the community's inability to enact additional sources of revenue specifically the option taxes. Councilmember Coleman noted that all Councilmembers are committed to continuing to improve wages and working conditions for the police officers. The contract that the FOP members will consider this week has very substantial increases across all ranks and allows the City to address salaries fairly, responsibly and cooperatively. Councilmember Kirsits stated that he agrees with Councilmember Varner on the property tax issues. He noted that he does not believe the City's budget is destitute but thinks it is a matter of priorities. He further stated that he is embarrassed that the police pay is so low in this City and when he looks 1 U 1 SPECIAL MEETING AUGUST 19, 2001 at this bill it appears that police officers are funding their own raise. Money that was allotted as a cash allowance for equipment was deliberately put there years ago by politicians that did not want to give the pension and the pensioners an increase in their retirement fund. He stated that he believes in a fair wage and those companies that receive tax abatements should pay union wages. Councilmember Kirsits stated that he believes in collective bargaining with last chance binding arbitration. He noted that he was confused as to where all the numbers are but one thing that he cannot support is "take aways" where an ordinance is passed that says we're going to give you less if you don't take what you have been offered over here and he therefore cannot support this bill. Council President Pfeifer thanked all those involved in this negotiation process and the community for voicing their opinions as well as the police officers who during this time continued to do a good job. Councilmember Ujdak stated that the negotiation process was fraught with harsh words and accusations which are part of labor negotiations. He noted that he was told by someone who was a member of the administration over thirty (30) years ago that the City purposely kept the pension base down because they knew what the costs would be down the road. The City is now dealing with long delayed advances that cannot be fixed overnight but a ratification of this offer is a significant step there. In terms of the budget, the City cannot allow expenses to outstrip growth. In the next few years the Council will take a good hard look at the efficiency of the government and perhaps some things that should be privatized. Councilmember Ujdak thanked everyone for their time and involvement in this long process. Councilmember Kelly made a motion to send second substitute Bill No. 69 -01 as amended to the full Council with a favorable recommendation. Councilmember Varner seconded the motion which carried by a voice vote of seven (7) ayes and one (1) nay by Councilmember Kirsits. RISE AND REPORT Councilmember Kelly made motion to rise and report to the full Council. Councilmember Varner seconded the motion which carried by a voice vote of eight (8) ayes. ATTEST: orett . Du , Cit Cle ATTEST: dy\+VV ,Chairperson Committee o the Whole REGULAR MEETING RECONVENED Be it remembered that the Common Council of the City of South Bend reconvened in the Council Chambers on the fourth floor of the County -City Building at 5:50 p.m. Council President Charlotte Pfeifer presided with eight (8) members present. BILLS - THIRD READING ORDINANCE NO. 9243 -01 A SECOND SUBSTITUTE ORDINANCE FIXING THE ANNUAL PAY AND MONETARY FRINGE BENEFITS FOR MEMBERS OF THE SOUTH BEND POLICE DEPARTMENT FOR CALENDAR YEARS 2002, 2003,2004 AND 2005 SPECIAL MEETING AUGUST 19, 2001 Councilmember Coleman made a motion to consider the second substitute verison of this bill as amended. Councilmember Kelly seconded the motion which carried by a voice vote of seven (7) ayes and one (1) nay by Councilmember Kirsits. Additionally, Councilmember Kelly made a motion to pass this bill as substituted and amended. Councilmember Varner seconded the motion which carried by a roll call vote of seven (7) ayes and one (1) nay by Councilmember Kirsits. UNFINISHED BUSINESS There was no unfinished business to come before the Council at this time. NEW BUSINESS There was no new business to come before the Council PRIVILEGE OF THE FLOOR Council President Pfeifer asked if there was anyone present wishing to address the Council on any issue that was not on the agenda. Mr. Tom Dixon, resident of South Bend, Indiana, no address given, stated that he would like to comment on negotiations. Mr. Dixon thanked individual members of the Council for their respective roles in the negotiation process. He stated that negotiations were more harsh than any labor negotiations he has been involved in before. He further stated that South Bend is a community that is changing and it is not enough to belong to a political party. You have to have ideas and energy. The ordinance passed tonight and the last best and final offer that is going to be voted on will not get the first class patrolman pay in the top thirty (30) in eight (8) years and they deserve to be in the top five (5) in the state. Mr. Scott Ruszkowski, 2437 Inglewood Court, South Bend, Indiana, advised the Council that he would like to relinquish his three (3) minutes to Mr. Dixon. Council President Pfeifer advised him that that is not an option as Mr. Dixon has already spoken and the rules under Privilege of the Floor do not allow him to relinquish his time. ADJOURNMENT There being no further business to come before the Council, President Pfeifer adjourned the meeting at 5:55 p.m. ATTEST: ATTEST: oretta J u fl Citj Cler c Charlotte Pfeifer, President U 1