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HomeMy WebLinkAboutAppropriating $5,915,000.00 Applied on the Cost of Various Purchases ConstructionORDINANCE NO. 6908 -81 Passed by the Common Council of the City of South Bend, Indiana WE V IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, April 14 �9 81 n Clerk of Common Council IRENE K. GAMMON Clerk ORDINANCE NO. 6908 -81 AN ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING THE SUM OF FIVE MILLION NINE HUNDRED FIFTEEN THOUSAND DOLLARS ($5,915,000.00) TO BE APPLIED ON THE COST OF VARIOUS PURCHASES, CON- STRUCTION, REMODELING,AND PUBLIC IMPROVEMENTS BY THE CITY TOGETHER WITH THE INCIDENTAL EXPENSES IN CONNECTION THEREWITH WHEREAS, the Board of Public Works of the City of South Bend has found that it would be in the best interest of said City and its citizens to provide for the purchase of Police Department motor equipment, communications equipment and weapons; the purchase of Fire Department motor equipment, breathing apparatus, the retro- fitting of motor equipment, the remodeling of a fire station and purchase of various equipment for the equipping of the fire station; the construction of a salt storage facility; the construction of an equipment storage facility and repair and reconstruction of the existing storage facility; the reconstruction of the municipal services facility parking lot area including the relocation and remodeling of a diesel fuel storage and pumping facility; remodeling of portions of the municipal services facility; the construction, reconstruction and improvement of streets and necessary materials for the construction and reconstruction of said streets; the purchase of Street Department motor equipment, and other paving and street maintenance equipment and tree maintenance equipment; guardrail installation along certain public right -of -ways and for miscellaneous equipment and the engineering, architectural, and legal fees and expenses incidental thereto and the expenses and legal fees incidental to the issuance of said bonds and has determined that the estimated cost thereof and the incidental expenses necessary to be incurred in connection therewith, including the issuance of bonds, will be in an amount not exceeding Five Million Nine Hundred Fifteen Thousand Dollars ($5,915,000.00). WHEREAS, the Board of Public Works has filed a request for an appropriation in the amount of Five Million Nine Hundred Seventeen Thousand Five Hundred Forty Dollars ($5,917,540.00) for said purpose, which request has been approved by the City Controller with the recommendation that the funds necessary to cover such appropriation be obtained by the issuance and sale of general obligation bonds of the City; and WHEREAS, a petition has been filed by more than fifty (50) owners of taxable real estate in the City of South Bend, requesting the Common Council to issue bonds in an amount not exceeding Five Million Nine Hundred Seventeen Thousand Five Hundred Forty Dollars ($5,917,540.00) for the purpose of procurring funds to be applied on the cost of the projects hereinbefore described; and WHEREAS, the Council now finds that said projects are necessary and will be of general benefit to the City and its citizens; and WHEREAS, the Council now finds that the City has no funds available or provided for in the existing budgets and tax levies which may be applied on said projects, making it necessary to authorize the issuance of bonds of the City in order to procure the required funds, and the Council now determines that an extraordinary emergency exists for the expenditure of more money than was set out in the published budget and the making of the additional appropriation hereinafter set out; now therefore; BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA: SECTION 1. That the sum of Five Million Nine Hundred Fifteen Thousand Dollars ($5,915,000.00) be and the same is hereby appropri- ated for application on the cost of the purchase of Police Department motor equipment, communications equipment and weapons in the amount of Eight Hundred and Twenty -Seven Thousand Dollars ($827,000.00); the purchase of Fire Department motor equipment, breathing apparatus, and retrofitting of motor equipment, the remodeling of a fire station and purchase of various equipment for the equipping of the fire station in the amount of Seven Hundred and Ninety -Eight Thousand Dollars ($798,000.00); the construction of a salt storage facility, the con- struction of an equipment storage facility and repair and reconstruction of the existing storage facility, the reconstruction of the municipal services facility parking lot area including the relocation and re- modeling of a diesel fuel storage and pumping facility, remodeling of portions of the municipal services facility, the construction re- construction and improvement of streets and necessary materials for the construction and reconstruction of said streets, the purchase of Street Department motor equipment, and other paving and street main- tenance equipment and tree maintenance equipment, and guardrail installa- tion along certain public right -of -ways, in the amount of Four Million Two Hundred and Ninety Thousand Dollars ($4,290,000.00); together with the incidental expenses in connection therewith. Funds to meet said appropriation shall be provided from the proceeds of bonds of the City designated "Municipal Bonds of 1981," in the amount of Five Million Nine Hundred Fifteen Thousand Dollars ($5,915,000.00), here- tofore authorized to be issued for application on the cost of said projects. SECTION 2. This ordinance shall be in full force and effect from and after passage and signing by the Mayor. Passed and adopted by the Common Council of the City of South Bend on the 13th day of April, 1981. ME $ERS OF THE COMMON COUNCIL Passed, as amended, April 13, 1981 OFFICE OF THE MAYOR CI'T'Y ®f SOUTH BEND ROGER O. PARENT, Mayor COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 March 18, 1981 Members of the Common Council Council Chambers 4th Floor County -City Building South Bend, Indiana 46601 Dear Members of the City Council: AREA 219 284 -9261 This letter will also serve as the cover letter for the resolu- tion pertaining to the General Obligation Bond. Previous actions have been taken in support of the bond by the City Council and City Administration. The attached resolution and the appropria- tion bill are the next steps in the normal process of selling the bond. The most important and most visible job of city elected officials is to provide the essential services such as police and fire pro- tection, clean water, well maintained streets and parks, and to assure that those services will continue to be provided in the future. The people of South Bend want to have well maintained streets. That is why 3.3 million, over half, of the bond is directed to as- phalt, concrete and equipment for streets. The people of South Bend want their police officers to patrol in reliable automobiles and their firefighters to have modern firefighting equipment. That is why 1.7 million dollars of the bond is for police and fire depart- ments. The people of South Bend want to have their buildings en- ergy- efficient and well maintained. That is why 1 million of the bond is directed to storage buildings, roof repairs and so forth. The bond approach to the funding of basic capital needs of this city is not the one we voluntarily choose. We have no choice. The low gasoline tax revenues, an almost frozen property tax levy and cuts in federal funding force us to sell bonds for needed cap- ital expenses. OFFICE OF THE MAYOR SOUTH BEND, INDIANA Members of the Common Council March 18, 1981 Page 2 Today families who are required to make major repairs to their homes, or to purchase an automobile have to borrow. Unfortunately, the city has been placed in the same situation. It is no longer possible, given the tight fiscal situation, for the city to ac- cumulate funds for the purchase of major equipment or to make major building repairs. It would be better not to have to borrow the needed funds, but the city will not be able to avoid that until the State government provides additional funds or provides local communities with an effective means for raising such funds. The needs of the city will not go away. To the contrary deferred maintenance of streets and buildings have a way of costing much more later. To defer maintenance today will result in phantom savings which will haunt the city tomorrow in the form of serious fiscal problems. The Federal Government and State Government are telling local communities to solve their own problems and not to depend on them for help. The people of South Bend and St. Joseph County have to learn that that means spending local tax dollars. It is our job as elected officials to make tough decisions that may be unpopular. Remember that paying for essential city services becomes popular only when people stop receiving those services in the manner to which they are accustomed. Sincerely% Rog /O/ Parent ROP:lm Enclosures r Richard L. Hill City Attorney Robert M. Parker Chief Deputy Thomas L. Bodnar Terry A. Crone Gregory D. Loughrioge James A. Masters Carolyn V. Pfotenhauer, Robert C. Rosenfeld Eugenie S. Schwartz Kathleen E. Skibe CITY of SOUTH BEND ROGER O. PARENT, Mayor COUNTY CITY BUILDING SOUTH BEND, INDIANA 46601 M E M O R A N D U M 219/284 -9241 TO: ROGER 0. PARENT FROM: RICHARD L. HILL L RE: DETERMINATION OF THE LEGAL SUFFICIENCY OF REMONSTRANCE FILED IN OPPOSITION TO THE 1981 GENERAL OBLIGATION BOND ISSUE DATE: March 17, 1981 The bond ordinance passed by the Council on January 12, 1981 authorizes the City through the City Controller to take all necessary steps for the issuance and sale of bonds after the appropriate notices as set out in the ordinance are provided. The ordinance provides in Section 4 that "[I]n the event a remonstrance shall be filed by the owners of taxable real estate under the provisions of I.C. 6- 1.1 -20 -4, then no further steps toward the issuance of said bonds shall be taken unless and until the Common Council shall have determined that such remonstrance is insufficient." Subsequent to remonstrance petitions being filed with the City Clerk on February 16, 1981 and a completed Auditor's Certificate being filed with the Clerk on February 24, 1981, I submitted to Mr. Robert McCord of the law firm of Ice Miller Donadio and Ryan documents concerning the remonstrance and the bond issuance process. Mr. McCord has been retained by the City to act as bond counsel for the general obligation bond issue. In his capacity as bond counsel, he has reviewed all documents which have been prepared by my office for the bond issue. As bond counsel, he will be required to give a final opinion as to the legal adequacy of the entire bond issuance process in light of both Indiana law and applicable Internal Revenue rulings and regulations. The appropriate documents were submitted to Mr.. McCord in a letter dated February 26, 1981. In that letter, I additionally requested a determination as to the legal sufficiency of the remonstrance petitions that were filed. By letter of March 3, 1981, Mr. McCord set out the correct facts concerning the bond issuance process and the filing of the remonstrance petitions and Auditor's Certificate in addition to citing the applicable Indiana law. Mr. McCord determined that the "purported remonstrance" is not legally sufficient to constitute a remonstrance under Indiana law. -2- Be -cause of the importance of the ultimate resolution of this matter to the City, on March 11, 1981, I contacted Mr. Michael Borge of the law firm of Borge and Pitt in Chicago to request that he conduct a review of the remonstrance filed in opposition to the general obligation bond issue and determine the legal sufficiency of the remonstrance. By letter of the same date, I provided Mr. Borge with the appropriate information concerning the remonstrance and the bond issuance process. I met with Mr. Borge in his office on the morning of March 12, 1981 to respond to additional questions about the bond issuance process and the remonstrance. By letter of March 16,'1981, Mr. Borge determined that the remonstrance was not legally sufficient. The basis of the determination made both by Mr. McCord and Mr. Borge is the fact that Indiana law requires that a remonstrance be both verified under oath and certified by the County Auditor as to the actual number of petitioners who are owners of real property in the political subdivision at the time the remonstrance is filed with the Clerk. The remonstrance, according to Indiana law, must be filed within thirty (30) days after the notice is given. The thirty (30) day period terminated on February 16, 1981. The petitions were not certified by the Auditor until February 24, 1981. The law firm of Ice Miller Donadio and Ryan is recognized as having_ the expertise to give the required opinions on bond issues. The law firm of Borge and Pitt is equally qualified. As you know, during the remonstrance period, this office received requests for legal advice from several of the remonstrators. The petitioning and remonstrance process set out by Indiana law is by its nature an adversial. proceeding. The process can easily result in litigation being filed either by the City or the remonstrators. The Code of Professional Responsibility prohibits the representation of clients with conflicting interests and provides that in instances where the conflicts of interests are critically adverse, one attorney or one office cannot represent both sides in the dispute. [,chile my office encouraged inquiring remonstrators to consult their own counsel, we refused, on the basis of accepted practices of professional responsibility, to provide legal advice to them. In light of the determination made by Mr. McCord as bond counsel and the fact that this determination was confirmed independently by Mr. Borge, I have drafted for Council consideration a Resolution determining the legal insufficiency of the remonstrance along with the necessary Appropriation Ordinance. If you have any further questions in regard to these matters, please let me know. RLH /smp CITY of SOUTH BEND ROGER O. PARENT, Mayor COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 Joseph E. Kernen - 219/284 -9742 Director, Administration and M E M O R A N D U M Finance _ — — — _ _ _ _ — — TO: MAYOR ROGER PARENT FROM: JOSEPH E. KERNAN RE: GENERAL OBLIGATION BOND DATE: MARCH 18, 1981 When the 1981 budget was passed last year it was understood that a general obligation bond issue would have to be sold in order to maintain an adequate level of essential City services. In order to provide safe and reliable equipment, and protect the substantial capital investments made in the past, the fol- lowing figures were determined to be a minimum for the next two years: (1) Police Department - $827,000.00 to be used primarily for the purchase of patrol cars for a two -year period. The City will continue to purchase more fuel efficient vehicles and keep up its efforts in the area of vehicle maintenance. With a longer anticipated service life from the vehicles we will continue to down size the City's entire fleet. (2) Fire Department - $798,000.00 to be used for the replace- ment of outdated fire equipment. While there have been four (4) fire trucks purchased since 1971, none of those have been purchased with local property tax dollars. (3) Street Department - $3,259,000.00 will be used or street department motor equipment and street maintenance materials. This department, which was underfunded by over one million dollars in 1980, has been hardest.hit in that an additional $480,000.00 cut in revenues is anticipated for 1981. (4) Other- the $1,031,000.00 million dollars in additional funds will be used to replace or repair other captial goods and equipment throughout the City. Most of this will be used to provide support for street department operations. Mayor Roger Parent March 18, 1981 - Page -2- The reasons for pursuing this $5,915,000.00 bond.issue today are the same as they were a year ago. And, in fact, are more compelling given the information that we have re- ceived from Washington and Indianapolis since that time. It is the most fiscally responsible course of action open to you given your commitment to continue to provide the best services possible to all of the citizens of South Bend. JEK:des (111mmutre $eport Ma tilt (dommon (founrtl of illy tdifg of #oW4 Wcnd: Your Committee Of the Whole to whom was referred A BILL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING THE SUM OF FIVE MILLION NINE HUNDRED FIFTEEN THOUSAND DOLLARS ($5,915,000.00) TO BE APPLIED ON THE COST OF VARIOUS PURCHASES, CONSTRUCTION, REMODELING AND PUBLIC IMPROVEMENTS BY THE CITY TOGETHER WITH THE INCIDENTAL EXPENSES IN CONNECTION THEREWITH. Respectfully report that they have examined the matter and that in their o inion This bill should be recommended to the Council favorable. John Voorde I... I.... •U.L ... I.. M 211 I !7