HomeMy WebLinkAbout06-09-69 Council Committee of the Whole Meeting MinutesCOMMITTEE OF THE WHOLE JUNE 9, 1969
COMMITTEE OF THE WHOLE MEETING
Be it remembered that the Common Council of the City of South Bend; Indiana, met in the Council
Chambers of City Hall in the Committee of the Whole on Monday, June 9, 1969, at 8:04 p.m.,
with all members present, Councilmen Palmer, Reinke, Zielinski, Wise, Szymkowiak, Grounds, Craven,
Allen and Laven. .The invocation was given by Reverend Father Robert R. Rigel, Our Lady of
Hungary Parish Church, 829 West Calvert Street, South Bend, Indiana. The meeting was called to
order by Chairman, William W. Grounds, who presided.
ORDINANCE
AN ORDINANCE APPROVING A CONTRACT BETWEEN THE CITY WATER
WORKS OF SOUTH BEND, INDIANA AND THE CLOW CORPORATION,
BENSENVILLE, ILLINOIS, FOR THE PURCHASE OF: I. WATER
MAIN PIPE OF CAST IRON OR DUCTILE AND FITTINGS: II.
MECHANICAL JOINT GATE VALVES, IN THE TOTAL AMOUNT OF
$138,024.36.
This being the time heretofore set for public hearing on the above Ordinance, proponents and
opponents were given an opportunity to be heard thereon. Speaking for the Ordinance were Mr.
John Hunter, Superintendent of the Water Works and Mr. William Smurr, Technician. Mr. Hunter
stated that an 8 -inch pipe line is being used in the new Sub - divisions. Councilman Zielinski
made a motion that the Ordinance go to the Council as favorable. Councilman Craven seconded
the motion. Motion carried. 9 ayes, 0 nays.
ORDINANCE
AN ORDINANCE APPROVING A CONTRACT BETWEEN THE CITY WATER
WORKS OF SOUTH BEND, INDIANA, AND LAYNE- NORTHERN COMPANY
INCORPORATED, MISHAWAKA, INDIANA, FOR THE PURCHASE OF A
DEEP WELL PUMP AND MOTOR, IN THE TOTAL AMOUNT OF $6,180.00.
This being the time heretofore set for public hearing on the above Ordinance, proponents and
opponents were given an opportunity to be heard thereon. Mr. John L. Hunter, Water Works
Superintendent and Mr. William Smurr, spoke for the Ordinance and answered various questions
asked by the Councilmen. Mr. Hunter said he thought this bid was a very good bid price -wise.
Councilman Reinke made a motion that the Ordinance go to the Council as favorable. Councilman
Zielinski seconded the motion. Motion Carried. 9 ayes, 0 nays.
ORDINANCE
AN ORDINANCE FOR AN ADDITIONAL APPROPRIATION TO ACCOUNT
P -722, "MOTOR EQUIPMENT" IN THE AMOUNT OF $2,820.00 AND
THE TRANSFER OF SAID SUM FROM ACCOUNT P -11, "SERVICES
PERSONAL" IN THE POLICE DEPARTMENT, ALL BEING WITHIN THE
GENERAL FUND.
This being the time heretofore set for public hearing on the above Ordinance, proponents and
opponents were given an opportunity to be heard thereon. Chief MacNaughton explained to the
Council that the appropriation was needed to purchas:a new motorcycle. Miss Virginia Guthrie
and Councilman Laven asked various questions pertaining to the transfer of funds from the
"Services Personal" Account. City Controller James A. Bickel explained the possibility of a
Police Cadet Corps being formed in the future. Councilman Zielinski made a motion that the
Ordinance go to the Council as favorable. Councilman Palmer seconded the motion. Motion carried.
9 ayes, 0 nays.
ORDINANCE
AN ORDINANCE FOR AN ADDITIONAL APPROPRIATION FROM THE
GENERAL FUND IN THE AMOUNT OF $2,000.00 TO ACCOUNT P -262,
"MEDICAL, SURGICAL AND DENTAL" IN THE POLICE DEPARTMENT
BUDGET.
This being the time heretofore wet for public hearing on the above Ordinance, proponents and
opponents were given an opportunity to be heard thereon. Chief MacNaughton explained that there
has been a large number of doctor and hospital bills for policj officers injured in the line of
duty. He said it is difficult to determine just how much money ^ needed each year for these budget
items. Councilman Allen made a motion that the Ordinance go to the Council as favorable.
Councilman Laven seconded the motion. Motion carried. 9 ayes, 0 nays.
COMMITTEE OF THE WHOLE JUNE 9, 1969
ORDINANCE
AN ORDINANCE OF THE CITY OF SOUTH BEND CONCERN-
ING THE PURCHASE OF LAND AND THE CONSTRUCTION,
MAINTENANCE, OPERATION AND FINANCING OF OFF -
STREET PARKING FACILITIES THEREON, THE ISSUANCE
OF REVENUE BONDS TO PROVIDE THE COST THEREOF, THE
COLLECTION, SEGREGATION AND DISTRIBUTION OF THE
REVENUES OF SAID PROJECT, THE SAFEGUARDING OF THE
INTERESTS OF THE HOLDERS OF SAID BONDS, AND OTHER
MATTERS CONNECTED THEREWITH,
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This being the time heretofore set for public hearing on the above Ordinance, proponents and
opponents were given an opportunity to be heard thereon. City Controller, James A. Bickel
was first to speak for the Ordinance and gave a detailed explanation of the flow of funds of the
revenue bonds. He first reviewed the background leading up to the public hearing on the Ordinance,
His review was as follows: (1) The Area Plan Commission and Harlan Bartholomew & Associates
recommended the construction of two parking structures. (2) The Board adopted a resolution
on Feb. 21st, 1968 to proceed in accordance with the Indiana Statutes to acquire land and
construct two parking structures. The Board further resolved to seek approval or rejection of
this resolution by the Common Council. (3) On March 26, 1968, the Common Council adopted
a resolution approving the Board's resolution and authorized the Board to proceed. Next, after
plans and specifications were developed and approved, the Board advertised for construction
bids. Bids were received on May 20, 1969 and the total estimated costs were developed.
All Parking Fees from the Garages are deposited in the "Parking Fund. An amount equal to two
months operation and maintenance expenses is credited to the M/O Account. The balance is
credited to the Net Revenue Account. The Sinking Fund is a fund established to insure payment
of bond principal and interest. The Ordinance specifies the manner in which deposits are to be
made.
Upon delivery of the bond proceeds, the bid premium, accrued interest and the amount as shown
in a previous slide - called capitalized interest - are to be deposited to the sinking fund and
credited to the;Bond and Interest Account. This will assure interest payments on the Bond
issue for the first 18- months. In addition, monthly deposits are made to the sinking fund,
transferred from the net revenue account - to assure fulfillment of requirements to meet schedul-
ed payments on time.
After meeting requirements of the Parking Fund and the Sinking Fund, any residual revenues are
to be transferred to the Replacement and and Improvement Fund. These funds may be used to pay
the cost of replacements, additions, extraordinary repairs, extensions and improvements to the
project 1969 facilities.
Unobligated net revenues from the On- Street Parking meters shall be pledged, to the extent
required, to make up any deficiencies in annual deposits to the Sinking Fund. If there is no
deviciency, these net revenues may be used for any authorized purpose, including transfer to
the City's General Fund.
Mayor Lloyd M. Allen spoke on behalf of the Ordinance and pointed out how important this Ordinanc
was as part of a plan for the South Bend renewal project, that has been developed over a period
of seven years. He stated that it is the responsibility of governments to create a favorable
economic climate and he urged "with all the sincerity I can muster, that you approve this bond
issue."
Mx. Donald Wiggins, President, South Bend Redevelopment Commission stated that the decision of
the Common Council will clearly determine the future of this community. He asserted that these
parking structures are an integral part of the downtown redevelopment program.,
Mr. Richard A. Rosenthal, President, South Bend - Mishawaka Area Chamber of Commerce, Inc., read
the following statement from the Organization:
TO THE HONORABLE CITY COUNCIL OF THE CITY OF SOUTH BEND:
During the past several months, the South Bend - Mishawaka Area Chamber of Commerce
repeatedly has reviewed the proposed construction by the City of South Bend of two parking
garages in the downtown area.
The detailed studies have confirmed the belief of the Chamber that the parking struct
project is in the best interests of the total community. The additional parking will stimulate
further private investment in downtown South Bend, provide needed local credit for the downtown
renewal program and add additional element of convenience and stability to the central core of
the city. Perhaps most importantly, the new structures will tell the world that our people
are determined to keep South Bend moving forward.
The South Bend - Mishawaka Area Chamber of Commerce strongly endorses the proposed
parking structures and respectfully urges the members of the South Bend Common Council to vote
in support of the revenue bond issue that will finance those structures.
/s/ Richard A. Rosenthal
President
DATED: June 9, 1969
COMMITTEF, OF THE WHOLE
Committee of the Whole - Parking Structures (Continued)
JUNE 9, 1969
Mr. Richard Doyle, South Bend Attorney, recommended that the City build a Portable Parking
Structure similar to the ones built in Los Angeles, California. Mr. Roman Kowalski, 802 Birch-
wood Street, objected to the City building Parking Structures because he felt the taxpayer would
be burdened with cost of'financing them. Mr. Donald Carter, 918 S. Twyckenham Drive said he
favored the program as it was presented but wanted to propose an amendment, which would provide
for a single garage construction instead of the two proposed units, He felt this was more
economical and thought if one proved successful, then another could be constructed.
Miss Virginia Guthrie, South Bend Civic Planning AssociationExecutive Secretary, asked why
the Updated Feasibility Report was not available. Councilman Laven explained that an updated
feasibility report was due May 20th but now will not be ready until Friday and that it is
principally aimed for the eyes of prospective bond holders. Mr. Ronald V. Noreen of the financial
consultant firm of Paul D. Speer & Associates, Chicago, said.-.he had suggested that the independent
consultant firm of Harland Bartholomew & Associates, Memphis, Tenn., which had made the original
feasibility study, also do the updating on the study in view of the "difficult market and horri-
ble interest rates" The prime interest rate was raised to 8.5 per cent by one New York bank
Monday.
Mr. William Reinke, South Bend Attorney, represented the South Bend Parking Company, which
operates an extensive parking lot system in the City. Using charts and maps,he claimed the
parking structures are not needed and that there is ample parking space in the downtown area.
He also claimed the public is against the construction of the facilities. He also contended that
the parking ticket validation system under which downtown merchants pledge up to $6,600 a month
to meet revenue deficiencies "is only 49 pieces of paper ", and, that it is an unenforceable
agreement since it is unilateral. He also disagreed with the City's procedure of pledging
parking meter revenues to help pay off the bonds.
Also speaking against the Ordinance was Mr. Frank Edgerton, owner of the Edgerton's Travel Servic
226 S. Main St., South Bend, Indiana, and Mr. Peter Bodner, Insurance Agent, W. Washington Ave.,
South Bend, Indiana.
Councilman Laven made a. motion that the Council adjourn for a short recess at 10:20 p.m. Council-
man Zielinski seconded the motion. Motion carried. The Council reconvened at 10:45 p.m.
Councilman Laven made a motion that the Ordinance be amended as follows:
Amendment #1
in Section 2, page 5 8th line, strike out the words and figures "seven per
cent (70/)" and insert in.lieu thereof the words and figures "seven and one-
half per cent (7-1/2%)"
Amendment #2
In Section 16, page 28, strike out all of subparagraph (d) and insert in lieu
there of the following:
"(d) To the extent that the City owns, leases, or in any manner
controls the revenues from any additional off - street parking
facilities, rates and charges for parking at such additional
facilities shall be set at such'a level as will not materially
reduce the revenues of the Project 1969 facilities."
Councilman Craven seconded the motion. Motion carried. Councilman Grounds asked for a show
of hands on the motion. 8 ayes, (Councilmen Allen, Craven, Grounds, Laven, Palmer, Reinke, Wise,
Zielinski) 1 nay, (Councilman Szymkowiak)
Councilman Laven then made a motion that the Ordinance go to the Council as favorable, as amended.
Councilman Reinke seconded the motion. Motion carried. Councilman Grounds asked for a show of
hands on the motion. 6 ayes, (Councilmen Craven, Grounds, Laven, Palmer, Reinke and Zielinski)'
3 nays, (Councilmen Wise, Allen and Szymkowiak)
There being no further business to come before the Committee of the Whole, Councilman Laven
made a motion to rise and report to the Council. Councilman Craven seconded the motion. Motion
carried. Time: 11:38 p.m.
ATTEST:
CITY` CLERK
AT
TE n
Cam_
CHAIRMAN