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HomeMy WebLinkAbout07-31-00 Council Meeting minutesSPECIAL MEETING JULY 31.2000 Be it remembered that the Common Council of the City of South Bend, Indiana, met in the Council p.m. Themeetingwas Chambers of the County -City Building on Mondaland the Invocation OOO, tion and Pledge to the Flag called to order by Council President Charlotte Pf eifer were given. ROLL CALL Present: James Aranowski Charlotte Pfeifer Roland Kelly Karl King David Varner Andrew Uj dak Sean Coleman Al `Buddy" Kirsits Karen L. White Absent: None SPECIAL BUSINESS: 1St District Vice - President 2nd District President 3rd District 4th District Sth District 6th District Chairperson, Committee of the Whole At -Large At -Large At -Large ANNOUNCEMENT OF SPECIAL MEETING - AUGUST 17 2000 Councilmember Varner made a motion that the Council conduct a special meeting to be held on Thursday, August 17, 2000, in order to have Second Reading, Public Hearing and Third Reading on the following bill: BILL NO. 59-00 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, FIXING THE ANNUAL PAY AND MONETARY FRINGE BENEFITS OF FIREFIGHTERS OF THE SOUTH BEND FIRE DEPARTMENT FOR CALENDAR YEARS 2001, 2002, 2003 AND 2004 Councilmember King seconded the motion which carried by a voice vote of nine (9) ayes. COMMENTS BY MAYOR STEPHEN LUECKE REGARDING BACKGROUND ON THE LIVING WAGE COMMITTEE AND PROCESS Mayor Luecke informed the Council that this process began long ago and has been the subject of much discussion in the community. He stated that he appreciates the opportunity to report to the Council the findings of the Living Wage Study Committee and has asked Dr. Marty Wilson to highlight the points in favor of the ordinance and Mr. Juan Manigault to highlight some of the committee responses of an opposing view point. He further stated that he will also ask Mr. Hollis Hughes and Mr. Ken Perron to make comments from their perspective as co- chairs of the committee and report the end result of the committee. The Mayor stated that he will then give his response to that report. SUMMARY REMARKS IN FAVOR OF THE LIVING WAGE PROPOSAL Dr. Marty Wolfson, a member of the Living Wage Study Committee, read his written comments. He indicated that the first reason to support the living wage has to do with fairness and justice. A person working hard every day should not have to live in poverty. Secondly, there has to be taxpayer accountability. A Living Wage ordinance does not apply to all businesses but only those doing business with the City. And finally, the Living Wage ordinance has to benefit the entire community. Two (2) objections that were raised against the ordinance most often concerned skill levels and attracting new firms to South Bend. In conclusion, Dr. Wolfson urged the Council to pass the ordinance as submitted. SPECIAL MEETING JULY 31, 2000 SUMMARY REMARKS IN OPPOSITION OF THE LIVING WAGE PROPOSAL Mr. Juan Manigault informed the Council that he is speaking on behalf of the majority of Commission members who were opposed to the implementation of a Living Wage ordinance. Mr. Manigault noted that the concept of a living wage is very complex and emotional and in their review of ordinances from around the country they realized that there was very little objective data available to analysis the impact of living wage ordinances in the community they were intended to serve. Living wages range from $6.22 in Buffalo, New York to South Bend's wage of $10.00. There is a wide range of discrepancies around the country. Mr. Manigault noted that his personal experience tells him that there is a relationship between wages and skills. A living wage sets an artificial ceiling for wages without a corresponding requirement for skills. He noted that sixty per cent (60 %) of the commission members voted against the Living Wage ordinance. The proposed ordinance is the most inclusive of any reviewed in that it contains elements from other ordinances from across the country. It did not look at our community and what has to be done in South Bend. The proposed ordinance has the highest cost of living adjusted wage rate of any ordinance studied. The ordinance as proposed is not specific as to who is covered and who in not. In conclusion, Mr. Manigault stated that both sides would be willing to look at alternative ways to achieve this outcome. Mr. Hollis Hughes, Jr. stated that he and Mr. Kenneth Perrin served as co- chairs of the Living Wage Task Force. The group held its first meeting on November 10, 1999 and continued meeting into June of 2000. There were twenty -seven (27) members that were appointed to the Committee. At the conclusion of the process it was felt that all members of the committee were convinced that they knew what was right and best for our community and acted accordingly in their votes. He noted that the committee was divided into four sub - committees to look at the various components of this complex issue. It was the view of the majority that South Bend should not propose the ordinance as submitted nor any other. MAYOR LUECKE'S RECOMMENDATION AND PRESENTATION OF THE FORMAL WRITTEN REPORT Mayor Luecke thanked Mr. Hughes and Mr. Perrin for their leadership and noted that Council members should have received a copy of the Living Wage Study Committee final report with attachments. Mayor Luecke noted that he will support the recommendation of the Living Wage Committee that the City not enact a living wage ordinance. Mayor Luecke outlined some of the objections to the ordinance which were presented and some of the changes that could have been made. He stated that in place of a living wage ordinance he proposes a number of things which include a rewrite of the tax abatement ordinance and working with the community to develop a career center. Mayor Luecke recommended that the City find common ground to help all move forward in terms of providing good paying jobs in the community, opportunities for the working poor to advance and to be able to earn a sufficient income for themselves and their families. PUBLIC COMMENTS: Mr. Federico W. Thon, Owner, Thon Steel, LLC, 1500 South Grant Street, South Bend, Indiana, noted that he is a minority community activist and his employees are all minorities. He stated that the Living Wage ordinance is a mistake and would hurt the people it was meant to help and he is therefore opposed to the ordinance. Ms. Ann Puzzello,1247 East LaSalle, South Bend, Indiana, wondered if the City employees that do not make ten dollars ($10.00) an hour are all women. She noted that she is a schoolteacher and sees a lot of children who are on the reduced lunch program. She stated that no person should make less than ten (dollar s($10.00) an hour and she is in favor of the ten dollar ($10.00) living wage. Ms. Rebecca Johnson, President, NAACP, voiced her concern that the committee did not look at alternatives but just the draft ordinance that was presented to them. She stated that the City does need a living wage. SPECIAL MEETING JULY 31, 2000 Mr. Peter Mullin, 210 South Coquillard, South Bend, Indiana, noted that he is a representative from the Chamber of Commerce and the Board adopted a position statement against the ordinance. They believe that continued skills and not mandates will solve the problem and they support a career center and education and skill development. Mr. Kevin Hunter, 818 Amhurst, South Bend, Indiana, informed the Council that the City needs to be built up. The ordinance is not about the businesses coming into the City for a tax abatement, but about the residents of South Bend. He stated that he is in favor of the ordinance. Mr. Richard Pfeil, President, Koontz - Wagner, no address given, noted that he was a member of the Living Wage Committee and Sub - Committee #4. He noted that the committee was able to look at the City's employment situation and the ordinance applied to both full time and part time employees. Thirteen (13) workers are making less than ten dollars ($10.00) an hour with fringe benefits. To adjust those salaries would cost the City twenty -six thousand dollars ($26,000.00) the first year. However, there were three hundred sixty (360) part-time workers making less than ten ($10.00) per hour without fringe benefits. When you adjust those to ten dollars ($10.00) an hour and fringe benefits, it would take eight hundred seventy thousand dollars ($870,000.00) to adjust those individuals to the ordinance. In addition to this action, there will be a ripple effect and the bill the first year could be $1.1 million dollars. Mr. Pfeil noted that it would be unthinkable to apply this ordinance to other people and not the City's own employees. Mr. Willie Horsely, 26332 Riding Trail, South Bend, Indiana, employed by the SBCSC as a Career and Technical Education Director, noted that being part of the Commission has given him a lot of insight. He believes that training and productively are very important and citizens need the skills to be competitive. In conclusion be noted that he believes that the training facility should be made a reality. Mr. Lee Gloster, Chair of the Living Wage Committee of the St. Joseph Valley Project, 2110 South High Street, South Bend, Indiana, informed the Council that he would like to address a few of the issues of the living wage that have not been addressed. He addressed the issues of health care and nutrition for children. Ten dollars ($10.00) meets only the basic needs and uninsured families grow every year. Ms. Carolyn Peterson, 1906 Briarway, South Bend, Indiana, stated that she was a member of the Living Wage Commission and as an educator she faces the effects of poverty every day when children come into the classroom. The poor children educators encounter are from the working poor. The free and reduced lunch rate is the most accurate indicator of the level of poverty in the schools. She noted that the Living Wage ordinance is a step into the right direction as the City needs to address poverty in South Bend. She further noted that training alone does not address the issue. Mr. Frank Perri, Holliday Corporation, informed the Council that he has talked to people who have received tax abatements on their properties which is one incentive the City puts forth to try to lure businesses to the community. This is only one issue but this issue is looked upon skeptically by the businesses. Their perspective didn't speak to this concept of a minimum wage but rather what message it would be sending to the businesses in and out of the community. He asked the Council to please consider the fact that what they are saying to businesses is that the City is stifling the opportunity for them to run the business in the most competitive way they know. He further stated that he would hate for the City to be black listed before they knew they were in the running for a relocation for a company. He asked for the Council's consideration of these business people before they consider an ordinance. Dr. Gail McGuire, 746 South 23rd Street, South Bend, Indiana, noted that she is a teacher and has come across a lot of non - traditional students. She further noted that regardless of skill level as the number of women and people of color increase in a job, wages decrease. Skills need time to be developed along with resources to do that. Skills are not created equally and they are defined differently depending upon who is doing them. In conclusion, she noted that all people deserve a living wage. SPECIAL MEETING JULY 31, 2000 Mr. Robert Hunt, 2804 South Twyckenham, South Bend, Indiana, noted that he is a member of the South Bend Redevelopment Commission and serviced on the Living Wage Committee that reviewed this ordinance. He stated that he voted to reject this ordnance and any ordinance. Mandating wage levels without regards to market forces and productivity, in his opinion, is not an economically sound thing to do. Even though an existing business in South Bend is not likely to leave, they may reconsider expansion. He urged the Council not to consider this ordinance. Ms. Gladys Muhammad, 510 South Kaley, South Bend, Indiana, advised the Council that she supports the living wage ordinance. She stated that she sees people every day who are trying to make a living wage. Young people are living with their parents because they cannot afford to live on their own. She stated that the City has issues of drugs, crime and violence and we need to improve the quality of life which can be done by paying a living wage. Mr. Larry Neff, President, Goodwill Industries, 55717 Danbury Drive, South Bend, Indiana, noted that Goodwill issues five hundred sixteen (516) paychecks a week at a cost of one hundred seventy - six thousand dollars ($176,000.00) with an average hourly rate of seven dollars and ninety -three cents ($7.93). He noted that they try to help their employees become as productive as they can be so they can make higher wages. He asked that his employees not become more vulnerable by artificially raising wages. Father Sullivan, no address given, addressed the Council. He stated that parts of the arguments tonight are about values. The free market has to be a fair market. He noted that he is delighted to hear about training improvement to bring up skills but what about the people before they go through the training. Why do people have to have an entry level so low? And if it pushes things up with a ripple effect we have to deal with that. He noted that he is disturbed that the committee said the City doesn't need an ordinance. He stated that maybe the City doesn't, but up to this time, the research is not all in. Ms. Vivian Sallie, 16194 Baywood Lane, Granger, Indiana noted that she is a business owner and all of her employees make more than the ten dollars ($10.00) an hour being discussed tonight. She stated that she served on the Living Wage Committee and tried to keep an open mind throughout the process and weigh all the information presented. She noted that the City needs to move past talking and do something about the problems being faced by the working poor. She further noted that the Committee was charged to review the ordinance and they did that. Now with the Council recommendation and the Mayor's support another group of individuals can come together as another Committee and look for solutions. Mr. Tony Mroczkiewicz, 23651 Ardmore Trail, South Bend, Indiana, Business Representative for the Carpenters Union in South Bend indicated that he wanted to talk about an issue that was not raised too much tonight and that is the effect construction has on of tax abated projects. He advised the Council that the Living Wage Committee chose to contact the County Council on another ordinance that addressed only that issue and urged them to delay action based on the action of this Committee. He noted that he addressed the Committee and asked them not to pursue that but they did in fact delay that action. He indicated that there is subcontracting to misclassified workers who are paid under a 1099. He stated that he is ashamed when he looks back on this community that is now turning its back on the middle class people and let them become poor class people. That is exactly what is happening and the union is trying to do something about it. Ms. Mary McLain, 1009 Woodside, South Bend, Indiana, noted that she is a member of the Commission and read every document provided. She further noted that she voted against the ordinance as proposed as well as any ordinance of this type. She urged the Council to look beyond the mention of ten dollars ($10.00) per hour. She noted that the proposed ordinance was very inclusive, more so than any anywhere else in the country, and there were many provisions besides just the wage factor. She noted that she could not be convinced that some of the requirements of the ordinance would actually put money in the poor of the community. She further noted that alternatives were addressed both in the sub - committee and the group as a whole and one of those alternatives involved the career center. She stated that she supports the Mayor's recommendations and urged the Council to look at another way to address the problem of poverty and a better life for SPECIAL MEETING JULY 31, 2000 our citizens. To enact a very invasive ordinance would serve to drive businesses away. Mr. Greg Jones, 53384 Olive Road, South Bend, Indiana, representative of the Indiana Plan, informed the Council that they spent five (5) years to come up with this ordinance and one thing that disappointed him about this Committee is that they never debated the ordinance. He noted that he was looking forward to debate the ordinance line by line. He further noted that the ordinance was well thought out and not anti - business. Ms. Dawn Jones, 602 Cushing Street, South Bend, Indiana, stated that she does work in the community and has gone to school to increase her skill level. She further stated that it is difficult to concentrate in school and your grades are not going to be good when you have to worry and decide what bills have to be paid. There are so many issues that are not be considered when you talk about a living wage and she asked that the Council consider the living wage. Ms. Dawn Chapla, 518 Eckman, South Bend, Indiana, advised that she is the chairperson of FEMA and has contact with many working class individuals. A liveable wage for a nurses aid or orderly is fourteen thousand eight hundred dollars ($14,800.00). She noted that the poverty level for a family of three (3) in the state of Indiana is fourteen thousand dollars ($14,000.00) to fourteen thousand five hundred sixty dollars ($14,560.00). One (1) in every five (5) working families in this community live in poverty. Ms. Chapla stated that she wants her tax dollars to support this but she doesn't want to support companies that don't pay the living wage. Mr. Brian Bogaert, 11189 Harrison Road, South Bend, Indiana, indicated that he served on the Committee and was disappointed. He cited statistics from the Indiana Department of Workforce Development. He noted that some things cannot be controlled but we can control how we can fairly take care of the workers, the taxpayers and businesses moving into our community. He asked that the Council take a look at this and do it in a way that everyone can benefit and the City can grow as a community. Ms. Rosalyn Hampton, 813 South Michigan Street, South Bend, Indiana, stated that the ten dollars ($10.00) an hour has to be earned and it takes time. She stated that last year she was making a little over five dollars ($5.00) an hour and this year she is making thirteen dollars ($13.00) per hour because she changed jobs. But that thirteen dollars ($13.00) did not come magically and she still is not reaping the benefits of it yet because she has not worked on the job long enough. She stated that the City does need a living wage. Mr. Roger Voelker, 1713 Franklin Street, South Bend, Indiana, stated that companies that receive a public subsidy owe something back to the public. In the least, it means that they share with their employees some of the wealth the labor of those employees creates. He noted that he assumed that there would be a fair amount of negotiation and had hopes to look at each item of the ordinance. He stated he simply does not believe that looking at any living wage would scare off any companies and the problem is not going away. Mayor Luecke thanked the Council for the opportunity tonight to present this information. As a point of clarification he stated that there currently are twenty -eight (28) City employees out of one thousand (1,000) full time employees that earn less than ten dollars ($10.00) an hour and they are in entry level positions. Further, the City has directed its economic development activities to attract and maintain good paying jobs in this community and it is looking forward to bringing investment to the community. No one denies the difficulties of poverty and the effects it has on individuals and on the community but how does the City reduce poverty in this community. Other cities have adopted living wage ordinances. However, a review of those ordinances indicates that they are much more focused in their content than what was presented to the City. He stated that he is not persuaded that a living wage will have the positive benefits that have been suggested. Just as training will not solve the poverty issues in the community by itself nor will a living wage ordinance solve the poverty issues in this community by itself. The City needs to take direct action toward things that can enhance actions that are already being taken to attract and maintain good jobs in this community. Also, the City needs to do a better job of tracking tax abatements and the impacts that they have in addition to working toward creation of a career center to help provide opportunities SPECIAL MEETING JULY 31, 2000 for people and for the community in order to prepare individuals for better paying jobs. He encouraged the Council to invite Sam Pavel to come and speak on his research on the living wage issue and the Mayor encouraged the Council to have other hearings on this issue. However, at this time the Mayor stated that it is his recommendation not to enact a living wage ordinance. President Pfeifer asked the Mayor to please file in the City Clerk's office a copy of all documents in regards to this issue in the event citizens would like to have a copy. Councilmember Kelly stated that as the Chairperson of the Council Community and Economic Development Committee, he was chosen to serve on the Living Wage Committee. He thanked members of the Committee for their hard work. Further, Councilmember Kelly stated that no one can oppose a living wage but how to achieve that is a difficult question. He noted that a living wage ordinance would have a negative impact on the economic development in this community and he has difficulty in supporting a living wage ordinance. He stated that a career center is something that this community needs and the only way the City can provide a living wage for everyone in the community is to provide the training necessary to upgrade talents and skills. Councilmember Kelly additionally stated that he agrees with the Mayor in rewriting the tax abatement ordinance. Councilmember White stated that she recommends that the Council review all comments made this evening and meet to outline their course of action based on the suggestions made. She further stated that she believes that the Council needs to have full discussion prior to making a decision on how best to move forward on this matter and that would be her recommendation. Councilmember Kirsits noted that if this City is going to survive, wages need to be brought up. But, but how can that be accomplished? He further noted that the ordinance proposed at least started to answer that question and if something is not put in place the City will go down the tubes. ADJOURNMENT There being no further business to come before the Council, President Pfeifer adjourned the meeting at 9:25 p.m. ATTEST: ATTEST: Charlotte Pfeifer, Presi nt