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HomeMy WebLinkAbout11-25-13 Common Council Meeting Minutes REGULAR MEETING NOVEMBER 25, 2013 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 Monday,November 11, 2013 at 7:00 p.m. The meeting was called to order by Council President Derek Dieter and the Invocation and Pledge to the Flag were given. ROLL CALL COUNCILMEMBERS: Present: Henry Davis, Jr. 2nd District Valerie Schey 3rd District Fred Ferlic 4th District David Vamer 5th District Oliver J. Davis 6th District, Vice-President Derek Dieter At-Large, President Gavin Ferlic At-Large Karen L. White At-Large, Chairperson Committee of the Whole Absent: Tim Scott ls` District OTHERS PRESENT: John Voorde City Clerk Janice I. Talboom Deputy Mary Beth Wisniewski Chief Deputy Kathleen Cekanski-Farrand Council Attorney REPORT FROM THE SUB-COMMITTEE ON MINUTES Councilmember Varner made a motion that the minutes of the October 30, 2013, special meeting and the November 11, 2013 meeting of the Council be accepted and placed on file. Councilmember Schey seconded the motion which carried by a voice vote of eight (8) ayes. SPECIAL BUSINESS RESOLUTION NO. 4296-13 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, HONORING CHARLES BUTLER FOR HIS ACTS OF HEROISM IN RESCUING A PERSON FROM THE ENEMY OF FIRE AND SMOKE Whereas, the South Bend Common Council notes that since March 28, 1831, the date when the original plat of the town of South Bend was recorded, that there have been countless acts of unsung heroism by residents and non-residents who have helped shape South Bend's proud history; and Whereas, the very fabric of our diverse community is based on persons who are selfless in their daily actions and who do the right thing, especially in times of adversity; and Whereas, the South Bend Common Council is proud to honor and commend a resident of our neighboring City of Mishawaka, Charles Butler, who truly has become a local hero; and Whereas, the Common Council notes that around midnight on October 15, 2013, smoke and flames were engulfing a home located at 1628 South Leer Street in the City of South Bend; and Whereas, Charles Butler just happened to be passing the home, and upon seeing the burning structure took immediate action to rescue an elderly resident from the home before the South Bend Fire Department firefighters arrived; 1 REGULAR MEETING NOVEMBER 25,2013 Whereas, Charles Butler made this rescue without any protective fire gear and was miraculously able to rescue the resident, with neither sustaining any serious personal injuries. Now, Therefore,be it resolved,by the Common Council of the City of South Bend, Indiana, as follows: Section I. On behalf of the citizens of the City of South Bend, Indiana, the Common Council is pleased to publicly commend, honor and congratulate CHARLES BUTLER from the City of Mishawaka for his selfless acts of heroism in rescuing a resident of South Bend from his burning home on October 15, 2013. Section II. The Common Council sincerely thanks CHARLES BUTLER for his split section decision to accept the risk and quietly and without fanfare save a person's life, before the screaming sirens sounded; for which all of us are forever grateful. Section III. This Resolution shall be in full force and effect from and after its adoption by the Council and approval by the Mayor. s/Tim Scott, 1st District s/Oliver J. Davis, 6th District s/Henry Davis,Jr., 2'"District s/Derek D. Dieter, At Large s/Valerie Schey, 3`d District s/Gavin Ferlic, At Large s/Dr. Fred Ferlic, 4th District s/Karen L. White, At Large Dr. David Varner, 5th District Kathleen Cekanski-Farrand, Attorney Attest: Approved this 2"d day of December, 2013 s/John Voorde, City Clerk s/Pete Buttigieg, Mayor of South Bend Councilmember Valerie Schey offered her comments and thanked Mr. Butler for his selfless act of heroism. She made the presentation for this Resolution by reading it in its entirety and presenting it to Mr. Butler. Mr. Butler thanked the Council for this honor. He stated that he did not think about being a hero, it was just the right thing to do. A Public Hearing was held on the Resolution at this time. Fire Chief Steve Cox, 1222 S. Michigan Street, South Bend, Indiana, on behalf of the South Bend Fire Department, I would also like to commend Mr. Butler for his selfless actions. Often times in this day and age we hear about people not acting or standing by and watching things go down. That was not the case in this situation this gentleman saw a life-threatening situation didn't think twice about his own personal safety just jumped in and because of that a gentleman is alive today. I would like to commend Mr. Butler. Councilmember Dr. David Varner made a motion to adopt this Resolution by acclamation. Councilmember White seconded the motion which carried. RESOLUTION NO. 4297-13 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, HONORING THE JUNIOR PEEWEE CHEERLEADING SQUAD FOR WINNING THE REGIONAL CHEER AND DANCE CHAMPIONSHIP AND ENCOURAGING THEM TO DO THEIR BEST AT THE NATIONAL CHEER AND DANCE CHAMPIONSHIPS AT THE ESPN WIDE WORLD OF SPORTS COMPLEX IN KISSIMMEE FLORIDA DECEMBER 7— 14, 2013 Whereas, the South Bend Common Council notes that Pop Warner Spirit Program has provided an opportunity since the 1970's for over 180,000 children to participate in Pop Warner cheerleading and dance around the world, where new friendships are made and character is developed while having fun in days filled with cheering and dance; and 2 REGULAR MEETING NOVEMBER 25, 2013 Whereas, the Pop Warner Spirit Program provides an organized, supervised and safety-oriented program which stresses the values of competition, of maintaining at least a 2.0 grade point average, and encouraging each participant to give their best efforts while developing their skills and talents; and Whereas, Michiana Pop Warner was established in 2006 &is part of the Mid-America Region Pop Warner which includes 12 states &more than 300 cheer& dance teams. The Michiana Pop Warner Junior PeeWee Cheerleading Squad won 1st place on Sunday, November 10, 2013, at the Regional Cheer& Dance Championships at Northern Illinois University, making them the 1st team from this area to win at this level; and Whereas, the Junior PeeWee Cheerleading Squad will now compete at the National Cheer and Dance Championships in Kissimmee, Florida, at the ESPN Wide World of Sports Complex on December 7th through December 14th and will proudly represent our part of the State of Indiana; and Whereas, the South Bend Common Council proudly recognizes all of the Junior PeeWee Cheerleading Squad members and their coaches for the many hours of practice and fun which they have had at West Haven Park located behind Coquillard School, as they now prepare for the Nationals. Now, Therefore, be it resolved,by the Common Council of the City of South Bend, Indiana, as follows: Section I. On behalf of the citizens of the City of South Bend, Indiana, the Common Council is honored to publicly commend and congratulate the student-athletes, coaches and supporters of the 2013 Michiana Pop Warner Junior PeeWee Cheerleading Squad for coming in 1st at the Regional Cheer and Dance Championships held at Northern Illinois University in DeKalb, Illinois. Section II. The Common Council thank all of the parents, friends and coaches of the Michiana Pop Warner Junior Pee Wee Cheerleading Squad for their support, guidance and leadership; and on behalf of all of the residents of the City of South Bend we wish you continued success as you compete and proudly represent us in the National Cheer and Dance Championships in Florida. Section III. This Resolution shall be in full force and effect from and after its adoption by the Council and approval by the Mayor. s/Tim Scott, 1st District s/Oliver J. Davis, 6th District s/Henry Davis, Jr., 2nd District s/Derek D. Dieter, At Large s/Valerie Schey, 3`d District s/Gavin Ferlic, At Large s/Dr. Fred Ferlic, 4th District s/Karen L. White, At Large Dr. David Varner, 5th District Kathleen Cekanski-Farrand, Attorney Attest: Approved this 2nd day of December, 2013 s/John Voorde, City Clerk s/Pete Buttigieg, Mayor of South Bend Councilmember Henry Davis Jr., made the presentation for this Resolution by reading it in its entirety and presenting it to the members of the Junior Peewee Cheerleading Squad and Coach Dander. A Public Hearing was held on the Resolution at this time. Councilmember's Oliver Davis and Derek Dieter offered comments and wished the squad the best of luck at the National Cheer and Dance Championships in Florida. Councilmember Dr. David Varner made a motion to adopt this Resolution by acclamation. Councilmember Varner seconded the motion which carried. 3 REGULAR MEETING NOVEMBER 25, 2013 ANNOUNCEMENT: REPRESENTING THE CITY ADMINISTRATION WILL BE CHIEF OF STAFF KATHRYN ROOS REPORTS OF CITY OFFICES —MAYOR PETE BUTTIGIEG Mayor Pete gave an update on city activities. RESOLVE INTO THE COMMITTEE OF THE WHOLE At 7:03 p.m. Councilmember Oliver Davis made a motion to resolve into the Committee of the Whole. Councilmember Varner seconded the motion which carried by a voice vote of nine (9) ayes. Councilmember White, Chairperson, presiding. Councilmember White, explained the procedures to be followed for tonight's meeting in accordance with Article 1, Section 2-11 of the South Bend Municipal Code. Councilmember White stated that a brochure may be found on the railing in the Council Chambers explaining those procedures. PUBLIC HEARINGS BILL NO. 64-13 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AMENDING VARIOUS SECTIONS OF CHAPTER 17, ARTICLE 2, OF THE SOUTH BEND MUNICIPAL CODE TO ADJUST SEWER RATES AND CHARGES INCREMENTALLY THROUGH 2017 Councilmember Schey, Chairperson, Utilities Committee, reported that this committee met this afternoon on this bill and sends it to the full Council with no recommendation. Eric Horvath, Director, Public Works, 13th Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana,made the presentation for this bill. Chairperson White: For the public that is present, I would like to make mention that we have had a number of meetings in which we have asked for public input regarding Bill 64-13. Eric Horvath, Director, Public Works, 13th Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. As you have indicated we have had a number of meetings here. I would like to go over some detail again, and I'll try to be a little more brief just so that folks who have not been a part of those meetings understand what we are talking about. (Referring to Power Point Presentation) Here is a beautiful picture of the city and we are finally realizing that the River that flows through the middle of the city is really just a tremendous resource for us. It's an asset that we have to count on, in a way it has always been an asset for the city,but 100 years ago it was an asset that it was basically a sewer pipe that took the sewage away from our streets and out of the city. Over time we took and built a treatment plant and starting intercepting some of those sewers and taking them off the river. But it's still an issue today and it's something that we feel we need to protect and continue to try to make sure that we are treating this as the asset that it is and terms of economic development for us as well as the residential development you've seen occurring downtown along the river. So here's our motivation, I mentioned before that there are 4,000 deaths each day from water borne illnesses, that's South Bend's population in less than a month dies due to water borne illnesses. And so it's something that we can take for granted from time to time, because we are very blessed with having technology and systems in place that we are protecting human health and the environment as much as possible. However,having said that, I think a lot of people when I talk to them are amazed to understand that we have 60 to 70 times each year in a typical year that we've got these sewer overflows that go into the river. So our system is got 36 different places in the City where these overflows occur and as much as a billion gallons of sewage into the river each year which is a tremendous amount of untreated sewage. Here is another part of our motivation (referring to Power Point)We have a number of homes in the area that when these sewer surcharge backflow into basements and we recently did a survey of some areas that we knew we had problems and we surveyed 376 homes and 225 of those homes at least had 1 time a year that they had sewage backing up in their basement. Many of those multiple times a year, so this is part of why we are going to talk about the long Mini control plan and what the next steps are for us. To give you an 4 REGULAR MEETING NOVEMBER 25, 2013 idea briefly on what the sewer overflow looks like (referring to the Power Point) the image to the left is under normal dry weather conditions the pipes are big enough to handle the overflow that comes through them and those all go to the treatment plant, the water get treated, and then discharged to the river in a clean state according to our NPDES Permit that we have. In wet weather however, we get a rain event, this is the 60 to 70 times a year that this happens, the sewer surcharges, so it can't handle all the flow, it backs up, and then spills over a dam and flows into the river. The reason that we don't dam that up entirely because if it didn't overflow in the river it would all overflow into people's basements, streets and other places that we would have serious human health issues. So here is our system (referring to the Power Point) the red dots are the 36 combined sewer overflows in the City. City limits is 40 square miles and half of our city limits is still on a combined sewer system. The development of this plan goes back to 1989, South Bend started study their CSO system as far back as then and really started in earnest looking at their long term control plan in 2002. They were working with EPA and DOJ came in and put a lot of pressure on actually everyone in the State to get these long term control plans done and developed. In 2008, they started their technical plan and were negotiating level of control with EPA and the Department of Justice and then in 2011, the end of 2011 signed the consent decree on the long term control plan. So here is what our plan looks like (referring to the Power Point) comparison to other plans about $40,000 on a cost per acre basis and we have talked about this before but our population is small and we have such a large combined area our cost per capita is very high, it's an issue that we're unfortunate to have, but nevertheless we need to take responsibility for and address. So our plan basically requires us to develop and eliminate these wet weather overflows at all times except for 4 times during a typical year. We can never have dry weather overflows and when we do have wet weather overflows we've got to disinfect. So we have to have some means of disinfection on the nine remaining overflow points that we have during those four occurrences a year. So it will be significantly less than what we have today. Some ask why not just eliminate them all, that was part of the alternative analysis that they looked at and they looked at a number of different plans to try to get the cost down and do a cost benefit analysis and to eliminate them all was I believe over a billion dollar issue and you would have half of the city torn up just separating sewers or building huge tanks to store it. We have talked about this as well we have do have some re-openers built into the plan. This is something that we are serious about it reopening the plan, it is very difficult to have a 20 year plan and not to expect there to be changes in it. So we know that there are going to be things that we can do with green infrastructure and with technology that we can make improvements on the plan and so we will continue to re-look at the plan and find better ways to implement this and hopefully save some money in the process. So the next five years here's what we are looking at in terms of requirements in our consent decree,by December 31, 2017 we need to have completed all the Phase I Collection System Controls. So the Phase I stuff that we have been talking about in separating sewers and trying to keep sewage out of basements according to the consent decree needs to be done by December 31, 2017, these are all controls,projects that we not only have in process but completed. Phase II controls upstream of the East Race we have got to start by March 1, 2014 and Phase II storage tank at Leeper Park we have to have started by March 1, 2017. So in the next number of years those are the key spots in the consent decree that we have to meet otherwise we will have stipulated penalties associated not meeting those. So here is our plan (referring to the Power Point) what we are proposing to do and the next steps. #1 get the sewage out of the basement. There are a number of sewer separation projects that we need to do in various parts of our community, addressing those 225 homes that we looked at and surveys in getting that sewage out of their and reducing as such the overall amount of flow that's going to be going to the system, reducing the overflows to the river and trying to keep as much of this as we can going to the treatment plant. We know that we are going to have more flow coming to the treatment plant and our consent decree requires us to change our treatment plant to meet a peak flow of 100 million gallons a day. Right now we can meet a peak of 77 million gallons a day and so that is also part of the first phase of projects that we need to do and we are staring to move forward on and these would be all these project would be ones that we are looking at doing in this time frame that we are talking about for rates in 2014-2017. So looking at the, we recently updated our facility plan for the treatment plant and have a plan moving forward on how do we get to a 100 million gallon per day plant facility. These are the phase I plans/projects, you see the East Bank, part of that has been done, we still have to do East Bank Five, Avenue has been done, we've got Oliver Plow, some work to be done there, Kensington and the sewer separation projects that we talked about as well as Southwood needs to be done as well sewer separation, and wastewater treatment plant upgrades that I discussed. So next steps are also at the same time we are moving forward with the Phase I which we talked about getting the sewage out of the basements and upgrades to the treatment plant we know that we've got 5 REGULAR MEETING NOVEMBER 25,2013 these other projects that are huge projects that are 40 million dollar tanks there are large interceptors that we have to build and we are saying before we do that let's get some smart and make sure that we have the right data so that we recalibrate the model based on the M-Net system that we have in place and these hundreds of monitors that we've got in our system we now have better data than we ever had,because we are reading the flow and level of sewers every five (5) minutes. And so, we can tell on certain rain events, we've got 9 different rain gauges throughout the city, we can tell what that flow should be and so that will help us zone in on how much flow we really need to control. So that we don't built a tank that is extra-large in hopes that we are going to capture it all and spend 40 million dollars on a tank that we only need to spend 30 million dollars on. So the next phase this coming this year will be recalibrating the model,make sure that we know what types of flows we really need to capture and then looking at what is the best solution based on that. Are there green infrastructure solutions that we could put in place that will take some of that flow off of the system,maybe provide a community benefit and allow us to make a much smaller tank and a much small interceptor sewer and so that will be the next phase that we will do before we jump into Phase II projects. This is the remaining capital costs we've talked about this that we are fighting inflation as we move forward, so that it is something that we want to keep in mind that construction costs haven't gone down they continue to rise so we need to pursue this pretty aggressively and try to get some of these projects sooner rather than later. This is the cost of living index (referring to the Power Point) that we shared before just to show that we are currently very, very competitive in terms of utility rates as a whole in South Bend and this is something that is important for us to stay competitive and that's what I think is everyone's fear is that we don't want to get to the point where we are no longer competitive and nobody wants to develop here because it's just not a good place to develop. So from and Economic Development standpoint this is something that we need to continue to look at as how do we keep that utility cost of living index down. Here is a quick comparison (referring to the power point) of where were currently are you can see these are all of the cities and towns populations over 25,000 in the State of Indiana. South Bend's combined rate is $55 per month and we've got about 22 of the communities that are higher than us and about 13 that are lower. We are roughly in the middle of the pact for rates right now. So here is our goal for the rate increase is to keep something over the next four(4) years is fairly consistent in terms of average dollar amount per year increase, and so we are looking at a 9%per year that will help us meet these regulatory requirements we have and meet the stipulated dates that we have in the consent decree and stay financially sound. I think in addition to meeting regulatory requirements we've said we believe this is the right thing to do. This is you know tough choices nobody wants to see rates go up and I here that loud and clearly. But I think tough choices now mean lower rates later. I think if you look at the numbers it will show that and so I think it takes some courage that we need to step up and increase the rates to meet the needs of not only this consent decree but really of our rate payers who are having sewage back up in their basement and trying to meet the environmental health of the rivers and keep this as an asset for us. I think punting means mean the burden on future generations and so that's why we are looking at trying to move this plan forward aggressively now. Here's where we will be in the next four(4)years given the rate increased that we have proposed (referring to the power point) and this is showing us in relation to all other communities above 25,000 and where they currently are. So this is assuming that none of these individuals have rate increases other than South Bend, Indiana, and we know already that Evansville census data just implemented a 32% for next year; 8% for the following year and 18% for the year after that. Many others are looking at them as well. So I think that I will probably just wrap up, I don't think that I have anything else, I think that I have covered all this. But I am happy to take any questions that you have, and I've also have Jennifer Wilson here with me as well, with Crowe Horwath, who has done our rate analysis and if there are any detailed questions on rates or how we came to those she would be happy to answer them as well. Chairperson White: I am going to go down the row and ask Councilmember's if you have any questions pertaining to bill 64-13, comments that you would like to make in general can be made after the public hearing. Councilmember Oliver Davis: Thank you Mr. Horvath for your presentation. In your phases, could you please, I have a couple of questions I have Councilmember White. Could you please share with us in some more detail regarding your short and long-term plan that is in place to widen and increase users that are currently on our system? As we talked this afternoon if we are very serious about doing this and increasing our user's capacity it would help us in terms of the 6 REGULAR MEETING NOVEMBER 25, 2013 cost of our rates. So that is my first question. I have two others after that, but I will start with that question. What is our short and long term plan to widen our users? Eric Horvath: We all understand that sewers are a human health issue and we've got a number of areas in our county and a couple areas in the city that currently don't have sewers that have septic systems and a number of them would like to have sewers just a matter of finding a way a mechanism to get them there without putting that burden on the rate payers and it's very difficult depending on where they are for them to make it work financially to get the sewers out there. But we've got a model in place now that seems to be working in our regional sewer district that has been formed that now can help set their own rates and be a bulk discharger to us just like any of our large users would be like IN-Tek, IN-Kote; Memorial. So the structure would be that they would take a group of homes in the County and attach those to our sewer system and then start paying sewer rates accordingly. Councilmember Oliver Davis: Could you send us some detail regarding that structure that you have in place, so that we can take our time to look over it. Because I think that is going to be really important as we look at the issues. Another issue you talk about are we opening and what's in place now regarding you or our attorney, I see present our corporate counsel, what is going on right now in our legal department along with our public works area that is looking at re- opening the case as soon as possible. What kind of conversations are you having with our corporate attorney so that we can move forward with that? Because other cities have looked at re-opening it and what currently are we doing in terms of meeting with our corporate attorney to outline legal strategy so we can do this sooner rather than later. Eric Horvath: To answer your question, part of it I answered already in the presentation, that the first step and I didn't say this, but the first step really is looking at the model and is there a better way to do it right. Because based on that answer it will determine how we move forward legally with the EPA and the Department of Justice with this consent decree. It is a legal decree,right, so if we don't move forward with the plan we could be held in contempt. We are going to continue to move forward with the plan, but we are going to look at different ways to do it, and then try to sit down with them and sell them on better and quicker, right? And, everyone who has been successful has done just that,they've said we are going to show you a plan, it might be less money, but it's going to get you environmental benefits quicker and it's going to get you more environmental benefits. Councilmember Oliver Davis: What chances? Eric Horvath: It's premature for me to say how we will do that because the first question needs to be answered and can't be answered until we look at what those flows are and we recalibrate the model and then we re-do the plan and say can we in fact do it for less money and show them that there is a benefit to them, to the EPA and the DOJ. If we can do that we can probably get them willing to talk and open up the consent decree sooner as opposed to waiting until we've got these re-openers built into the decree. Councilmember Oliver Davis: So your recalibration issues and being able to get those numbers back to us are you looking at 6 months; 9 months or a year, what are you looking at? Eric Horvath: I would say probably a year. Councilmember Oliver Davis: So we are looking at the end of 2014/2015 you can sit down with the City legal team and look over those kinds of findings that you have and then make a plan. Eric Horvath: That is correct. Councilmember Oliver Davis: We talked about it earlier, in terms of the letter that I wrote to you. When will you know that you will be able to give us a response to that letter, a written response? Eric Horvath: We could probably do that the beginning of next week. Councilmember Oliver Davis: Again, for the public, could you just talk about why inflation numbers were not included in the original numbers because of the fact that to me a lot of people 7 REGULAR MEETING NOVEMBER 25, 2013 say why inflation numbers weren't included when you are looking at a 15-20 year plan, shouldn't that have already been calculated in that kind of a plan. When you are looking at buying something that is on a long term basis you think about that down the road. Could Jennifer share thoughts regarding that? And when you work with other cities consulting them do you go over inflation cost earlier. Jennifer Wilson, Crowe, Horwath: When these numbers were negotiated with the DOJ and EPA it was done on a present value basis, so everything was back down into 2007 numbers. It was an EPA mandated formula on how that calculation was done. So a lot of the items that we talked about with the EPA was given to us on how we had calculated and it had to be in those present value numbers and so that is why no inflation factor was involved because they wanted to see it in those 2007 numbers. Councilmember Oliver Davis: Is that standard practice then when you are consulting with others cities? Then you come back later to talk about inflationary costs? Jennifer Wilson: Well it was mandated whenever you were doing those negotiations that you use that exact same formula. It was the exact same formula no matter what city that we went to, you had to use that same EPA mandated formula and use present value numbers. Councilmember Oliver Davis: Has the formula changed? Jennifer Wilson: You are only able to inflate the numbers according to how the EPA lets you inflate the numbers. So at that time we were using 2007 numbers and those are the numbers that you have to use. Councilmember Oliver Davis: I am talking about now,have they made any changes in the way that they do their inflation calculations? Jennifer Wilson: We would have to use the formulas that they would give us in order to do it. I am sure that we would be able to bring it inflated up to this time period but we would have to redo the numbers according to the mandate of how they tell us how to do it. Councilmember Varner: I will put this in the form of a question. Since as you know Eric, is new to this, while he has been an Engineer for a number of years, I think that you are probably aware that we raised rates 32%not too many years ago, we raised them 25% another time, so I guess what I am saying, I wonder if you know that? So we are going to deal with each other, I don't want to talk about a lack courage, I think that 9%, 32%, 25% on going for the last ten (10) years is an exhibition of willingness if not courage on the part of the Council to go along with the project. But I think what has happened, from my perspective, is that no one on the Council ever had a chance to participate in this, until the package was brought to us, and then we are told you have to do this, you have to do this, you have to do this, always with threats, always with threats, with fines, and all these other things. I think the people who have to show the courage are the folks that have organized this and put it together have to find a way to get it done for less. Now, if you are telling me and I believe that this was all part of the smart sewer system (M-Net) program, then we are going to recalibrate this in a year, and see where we are, it just seems to me, the time to take a big deep breath is right now, and say, let's find out where we can make improvements, let's find out how much we can reduce this, let's find out what our options are? Having set through four(4) or five(5) of these over the years, what I know is that there will be some unknown circumstance in four(4) years when this is up again, which won't allow us to reduce rates, and then in four(4) years there will be another deal which won't allow us to reduce rates. I just don't see it, everyone seems to be so proud that this is so huge, and I think we ought to be saying instead of we're proud, I think we ought to be saying how can we afford it, how can the folks afford it, and how can we make this workable? I really think that this is where we have let the community down. I don't fault anybody; I think that this is a deal that got out of control and no one was going to put their foot down. So,there is no lack of courage here, there is a genuine concern that this could really get out of control and I hope to help people understand that, I hope that they appreciate it, and I hope that you take it with the sincerity that I offer not as a criticism. Eric Horvath: I understand. 8 REGULAR MEETING NOVEMBER 25, 2013 it Councilmember Dieter: Dr. Varner talked about a lot that I wanted to,but one question as you said,tough choices now, lower rates later, when would later be? Eric Horvath: I think you know what I meant by that is that if you do a rate sensitivity analysis and you know assuming that there are certain projects that have to be done. I understand you are saying lets question those assumptions and part of the plan, the reason that we are moving forward with parts of it now are because they are the projects that were separating sewers and they are the ones that are in the Phase I that we have to have done by 2017. So it makes me nervous if we don't move forward that we are just not going to get there with all the projects. What happens on the rate sensitivity analysis is that if you look at 9%raises over the next four years then your subsequent raises to meet the capital needs of the plan are much less than that and we showed the entire plan to and the rates and I think in year 16, year 15, one of them was zero, one was 1%, so it went down significantly, if you do it the other way around, we did five (5%) percent increases for the first half of the plan, we would end up with rates that would be 15%, 18% at the end and our total monthly charge would go from somewhere you know with the plan that you've got in front of you and $95.00 a month, to somewhere in the realm of$130.00; $140.00 per month depending on how you do it. That's what I meant by that, obviously, if you raise rates, it's generating capital over 16 years as opposed to if you do it later, when it generates it over the last period of the program. Councilmember Dieter: I understand but when you say something like that, I interpret it and I don't know if people paying that bill interpret it that you talk about the lower rates will decreasing throughout the process of the entire project, when people I think the normal person; lay person; they think lower rates okay, it's going be lower than what were are paying now or whatever. Again, it's not anything indicative of all the, I think it's just Dr. Varner said we've been going through this for a long time and this thing has exploded into something that I think we can do, work harder and get something a lot better for the tax payers. Councilmember Dr. Fred Ferlic: The only question that I have to ask really is, that I think your analogy that it is going to cost us more later if we don't come up with it now is based on a$600 million dollar project. But if your project can be cheaper from the onset you may be better off to slow it down now, and add on later. So I think that it's depends on how you interpret your numbers obviously. I agree with Dave completely and I have a sense with talking to you over the last two (2) months about this and you're willing to work with us for the betterment of the city and I think that is the way we should go. So I agree with Dr. Varner and commend you for willing to be opened minded about this whole thing. Councilmember Schey: Eric, I will just reiterate what I had said in committee earlier today. I think that with the federal mandate there aren't any members of Council here that would argue that we do not want raw sewage running into the river, so we are of course going to support you in all your efforts to remediate that issue. However, what I had mentioned earlier is there is the need to have and there is the nice to have. And one thing that at least during my time on Council I feel we haven't done we as a City maybe haven't done as good of a job as possible, is separating those costs. There are the need to have's, there is the actually infrastructure that has to be put in place to separate the storm water and sewage. But then there is the nice to haves and those are the streets, the more elaborate streetscaping improvements that are done on the back of the funding for the CSO project. And I think in the spirit of transparency and accountability we are being a bit disingenuous when we tell the residence you know it's going to cost this much, well the federal mandate portion to eliminate the sewer overflows yes, that is going to cost this much,but the more embellished street scape replacements that are going in after the work has been done, that's a nice to have. And, so in the spirit transparency and accountability we would serve the community well by providing a more detailed analysis of those costs. Council Attorney Kathleen Cekanski-Farrand: Mr. Horvath this presentation somewhat different • than what was presented at the last public hearing. Could you make sure that the City Clerk's get a copy of it. Eric Horvath: Absolutely, it's pretty close, but absolutely. Council Attorney Kathleen Cekanski-Farrand and in particular the one thing is the slide number 8, there was a change to an item that's been under much discussion about meeting the Michigan • • 9 • • REGULAR MEETING NOVEMBER 25,2013 water quality standards which were eliminated from this presentation. So in light of the discussion we have to have more information. Eric Horvath: I took that out just because I think behind the whole thought that's what was driving it, but there is nothing in the consent decree that says that. So I was just being honest with the issue. Council Attorney Kathleen Cekanski-Farrand: But at the last public hearing it was in the presentation. Eric Horvath: It was still in there, absolutely. Councilmember Varner: There is nothing in the consent decree that requires a Michigan standard? Eric Horvath: What is requires is that we disinfect each of those overflows when they overflow. That's what it requires. Council Attorney Kathleen Cekanski-Farrand: However, at the last presentation it was listed. Eric Horvath: Yeah, and the impetus's behind that when they were negotiating with the EPA and DOJ and Jack can speak to this, was to meet the water quality standard at the Michigan State line. What they did was a river model that looked at the water quality impacts on the River and turned off all sources except South Bend CSO's and they said, does the river water quality meet the Michigan standard at the Michigan state line if South Bend sewers are overflowing into the river at the nine different places, the four(4) overflows per year. It didn't meet that. Councilmember Varner: In reality you can't turn off all the other sources? If it rains from here to Mishawaka then it's faulty and if we are using that to spend $40 million dollars per tank we need to argue that. Enough common sense tells me that you can't use that as a model to lay this on the City of South Bend,unless we offered to do that because somebody thought that might be a neat idea. If we offered that to the EPA or something like that. Chairperson White: I think we need to have that clarified, and also as we continue to move forward that's an area where additional information is going to be needed. Councilmember Oliver Davis: Because that's what he said was the impetus's behind it. But there is a difference between what the impetus is behind and what's written it and legally documented. That's what I wanted us to have a better understanding of that. Because the impetus behind something is somebody's interpretation regarding at how we look at life and everything. I know I didn't go to any law school, but there is a whole different ball game behind that. Eric Horvath: The wording didn't change, that we need to disinfect all of the overflows that we have, okay, let's be clear about that. The consent decree requires every overflow be disinfected. The reason that they were given was because it needs to meet water quality standards at the Michigan State line. That hasn't changed. Chairperson White: I am going to ask our attorney to go back and pull out those minutes when we had the discussion about Michigan and the impact. Council Attorney Kathleen Cekanski-Farrand: The concern that I have is that we want to make sure that what is of record with the Office of the City Clerk is accurate. And at the last presentation this slide that was given to the Council and the public stated disinfect overflows in order to meet Michigan water quality standards at the state line. It was listed under the header; if you go to slide eight you can see that you have disinfected overflows. Chairperson White: So I am going to ask our attorney to work with the City Attorney and with Eric to make sure that the language is in line with terms in the consent decree. This being the time heretofore set for the Public Hearing on the above bill,proponents and opponents were given an opportunity to be heard. 10 REGULAR MEETING NOVEMBER 25, 2013 There was no one present wishing to speak in favor of this bill. The following individuals spoke in opposition to this bill: Mr. Davis: Who is going to keep time since Councilmember Scott is absent. Chairperson White: I am going to ask Councilmember Ferlic to keep time. Jesse Davis, P. O. Box 10205 South Bend, Indiana: I have played in sewers for 23 years in South Bend, Mishawaka, Elkhart, so I know a whole lot about these people's basements that flood and I feel real bad for them. But this has been an on-going problem for century, decades, for how ever far back you want to look at it. This is not something that just came up to the City yesterday and they said hey here's this decree you've got to do this tomorrow. We went through this with Mayor Luecke's administration. I sat through many City Council meetings where sewer rates were raised as Mr. Varner said. And all along we were told we are going to do this were going to do that, well these people have been suffering with sewer water in their basements for many years. They are not going to fix that overnight, there not going to fix that in the next four (4) years by 2017, and if they are, I would really like to know how they plan to do that. As far as the water going into the river it's been happening for a long time too and it needs to stop no doubt about, but this is another one of those run away trains where we've got a City Administration that keeps asking for more and more money and now they are talking about well you know we'll see lower rates later. That's never going to happen man, that's just like the county wheel tax we pay, that was supposed to be for a couple of years and it's been there forever. These rates are not going to go down, they may not have as big of an increase ten years from now,but they are still going to have an increase. So let's stop with the joking, let's stop with all the fancy glitter and glitz on these projects and let's do what needs to be done because right now let's face it money's still tight. The City claims they are tight on money, I know I am tight on money and so probably every other person in this room. So let's do what need to be done, let's forget all the fancy stuff that doesn't need to be done right now and get this problem solved. Sam Brown, Citizens United for a Better Government, (no address given): Definitely on this money issue I hope the Council will really take heed of this and see how much this is going to cost us in the long run. And let's not just spend our money and through it out there like we have a lot of money. I don't think this is something that should get passed right away we should just really do a lot of research into this. Barbara Jewel, 821 Gardner, South Bend, Indiana: There are actually three questions that I have. First of all I want to say that water is probably the most important thing we should be talking about. Because if we have bad water it is an extremely important medical problem that you will have, we all have to have clean water. However, there is one thing that I would like to say I know the bill is passed for the streets to be turned back into two-way streets it's a huge, huge money problem that we have in South Bend. Too much money has been put into this there are areas for the project that are very questionable, could some of that money be put into the sewer project, is that even possible that it could be allocated for that? That's the first one, the second one is I was looking at the way the interest was presented to us for 2014 the interest was projected to be$3.64 per month, 2015 $3.96 per month; 2016 $4.32 per month; 2017 $471 raise per month, and yet it was 9% per year or an average of$3.44 per month, it doesn't even make sense. $3.44 per month right away for 2014 it's already projected to be $3.64 per month, it doesn't even make sense. My last question is what about the areas out in the country that are still South Bend for instance Auten Road that are on sewers, I know it was brought up I believe by you Mr. Dieter, the ones that are on septic tanks, are they going to be forced to go onto sewers? I know some of the ones along that area have enforced to go into sewers is that how some of the money is now going to be gained by forcing those people to go in sewers? That is a lot of money for each of those households to have to put in a sewer. That is a question that I would like to know. I'm sure that those people out in those areas would like to know whether or not they have to pay those bills to have a sewer system put in. Thank You. Robert S. Rajski, 51778 Old Mill Road, South Bend, Indiana: To start out with, the rates that they showed on the screen are different than the rates that we got through the mail. And I would like to say you know when you retire you more or less like on a fixed income and to get an $80.00 water bill it's kind of ridiculous because I know that includes your trash and all the other 11 REGULAR MEETING NOVEMBER 25, 2013 stuff but the sewage alone was $45.70. Now, if you take or by the way I worked at the Water Works for that must have been 14, 15 years ago, and I `m not trying to point fingers at anybody, but there is a lot of money wasted, I think we should give somebody in there to monitor the money that is going into these projects and see all the money that is wasted. The other thing is in the summer time I just moved back to South Bend two (2) years ago my first water bill was $600 some dollars and I tried to explain to the people downtown that there must be some kind of mistake. Downtown they said it must be a leak, somewhere and that what was causing the bill to be so high. Well my sprinkling guy came out and checked it out, the city, Water Works came out and checked the meter and everything and put new meters in there, I tried to explain to them, did you ever get something that was new and you got problems with it? Well, it so happens that the meter was messed up, I mean it was ridiculous, I mean finally, they were threatening to charge me delinquent fees and all the other things,but we finally got that straightened out. But the thing is you know it's ridiculous that you have to raise these rates so much when so many things are being wasted, you know like I said you know $45.70 that's a good hunk of money for a retired person to be paying. Like I said every water bill that must be like a standard rate and the thing is it is just my wife and I in the house. So, it can't be that much sewage going down there,but$45.70 must be a standard rate, is that right? I don't know? Every time I go down to the Water Works I just want to strangle somebody because they don't want to understand anything,they don't want to say that might be our mistake. Everything is the customer,the customer, well, every time I had the meter people out there, or the sprinkling company comes out, there are no leaks, I don't know where all this water is going to,but I know we are not using it, and yet I'm still being charged for it. I think like in the summer time my water bill is higher than my electric and my gas bill combined. I mean to me that is a little ridiculous. That's all I have to say. Chuck Kureth, 51775 Villager Parkway, Granger, Indiana: That is actually Clay Township, between Hickory and Ironwood north of Cleveland and we are on sewer. I represent the Village of Farmington Homeowners Association. We don't have an official position on this; I can tell you that the general tenor is not favorable. We haven't taken an official position; we do have a request though. Right now we, if there is a problem with the water line and it has to be fixed, we are paying insurance, for insurance to cover that. We don't have the same privilege with the sewer line. And if the rates are going to be raised we think that it's only fair that we also get access to the sewer insurance. We're not sure how that process works, we have heard a couple of different stories, and the one most recent one was that it requires an ordinance by the City Council to include those areas outside of the boundaries of South Bend. It is our understanding that inside the boundaries of South Bend, that insurance is available. We would like to have that available because most of the people in the Villas are retired and an assessment for a sewer repair would be very burdensome to them. Thank you. Dave Stickle, 1308 Mishawaka Avenue, South Bend, Indiana: I have heard a lot of talk all evening about money and about purification, and in the Mayor's report to the City, I heard the word green technologies, alternatives, I also have heard a lot about building more tanks, larger tanks, so on and so forth, for storage. I know for a fact that methane capture is the future for alternative fuels. Now there has been no alternatives offered,the only thing that I have heard is building and money. I haven't heard and maybe I've missed it and maybe it's part of a presentation where I did not see it. But I haven't seen any alternatives to possibly add to this situation at all. The city allocated quite a bit of money I understand to convert their cars and some of their vehicles to LP. Methane capture can now be used for fuel, so I am just sort of putting that as a question. I have seen no other presentation except the cost, and need for purification. But over the top of all purification systems I am just going to say it in layman's terms a"tent"you can draw off of that and some of that methane can be used in different areas. So I just ask the question have any of those resources been considered in this equation. Christopher Huff, 1831 College, South Bend, Indiana: I am neither speaking in favor nor in opposition at this point. I do have several questions that I do not believe were addressed at all during the presentations and I would like to hear some answers to them. #1 It was my understanding that we are only using 2007 net present value dollars to project 22 years into the future. Did I miss something along that line, or are all the costs in 22 years into the future up until the year 2029 based on 2007 costs, if that is the case, then this is very, very disingenuous. Hopefully I am wrong. #2 The rate changes are to pay for money, are these to be bonds, what type of bonds, revenue, general obligation,hybrid, if they are bonds of some sort or another, what are the anticipated rates, the terms and what are the basic tranches. How many bonds are 12 REGULAR MEETING NOVEMBER 25, 2013 we talking about here, undoubtedly it won't be just one? Next, what is the percentage of sewer rate payers that live outside the city but do not put out any storm water into those sewers? Next, what are the general areas of basement flooding and based upon the money that we have already paid to begin this project what percentage of those basements that have flooded in the past before 2011, what is the decline in the percentage of houses that have flooding in their basements? Also we are talking about 60—70 overflow events per year hopefully that number has declined over the last few years, what is the percentage decline in that problem. And that's enough for now, thank you very much. Chairperson White: Now we will go back to the administration for rebuttal. I have listed a number of questions that were posed so I don't know at this time if the administration would want to come back for a five minute rebuttal in terms of the questions that were asked. Some of which could, some of the funds that have been allocated for the two-way street could some of these be used to address the issue that is before us? The interest rates from 2014 until 2017 are 9% somehow the numbers did not add up to that? The rates are different than were presented on the screen versus what was mailed. Is $45 or$47 dollars a standard rate? Use of Greentech and other alternative means and 2007 net present dollars as we look 20 years out, what is the bond type and rate? There are a number of questions, and I don't know at this point if the administration would like to come back for a five (5) minute rebuttal and there are four(4) additional questions as well. Eric Horvath: I have some answers and I there are some that I can get you answers for. The rates, I guess maybe if you want to start asking them one at a time. Chairperson White: I don't know if the Clerk's Office was able to the garner some of these questions as well? The first question was could some of the funds that have been allocated for the two-way streets could they be used for this project? Eric Horvath: Probably legally I'm guessing that they could. The idea is to take care of long term control plan with sewer rates and so our proposal is that we would use sewer rates and put the burden on the rate payers for the increase fees. Chairperson White: The second question was the 9% if you were to go back screen, looking at $3.64; $3.96; Councilmember Oliver Davis: I don't think that they heard your first answer. The microphone maybe a little (inaudible) Eric Horvath: I think; I don't know that there is any legal reason not, we could address that with the Council, yes. Councilmember Dr. Fred Ferlic: I think the answer is that there is about $4.5 million dollars for two-way streets the rest of it goes to Memorial etc. $600 million dollars, $4.5 million dollars, even if you took away the two-way streets it's not going to make much difference. So it's probably not a real important aspect. Chairperson White: I am going to ask that the conversation stay at the Council level. There are a number of questions; again I want the administration to have their 5 minute rebuttal. I would recommend that the questions will be typed up and given to the administration, and that this questions and the answers could be posted, but for the residents that are here at this time, you do have five (5) minutes. And you can choose what questions you would like to respond to. Eric Horvath: The average on just this slide(referring to the power point) for a point of clarification, she's right, those four(4) years would not average out to $3.44 per month per year. That's the average over through 2029 so that when we gave you guys that rate sheet that should all the years through 2029 you take the average per year that's $3.44 per year. That's what I was trying to show with that bullet. Rates in the bill, there is a component that goes up on the meter and a component that goes up on the use and the component on the meter went up $1.32; the component on the use went up $2.32, so the combined was $3.64 so it does match what was given to them and sent to them in the mail. So those rates do match, it's just that you've got to figure out how to calculate it based on, what we are talking about, and those rates based on an average user which would be 600 eel Access to sewer insurance is something we can take a 13 REGULAR MEETING NOVEMBER 25,2013 look at. We do currently have water insurance allowed for customers outside of the city limits. We do capture methane and we've got digester's being rebuilt right now that the methane capture will be used to power our C&G vehicles. The gentleman on College Street had a number of good questions, we will have a series of bonds, those bonds would be yearly,those rates & terms would vary depending on the time. We would look at either a sewer bond or a SRF Bond depending on what conditions, whether conditions are favorable or not. Currently we have a really strong financial position which puts us in a good position to get low rates on bonds. I don't have an answer on percentage of basement flooding or percent of decline on overflows, but I can get those answers to you. Chairperson White: The number of sewer rates payers who live outside of the city. Eric Horvath: Yeah, I did provide that before. I believe it's 4,000 of our 40,000 customers are outside of the city limits or about 10%. I can verify that for you. Chairperson White: We will make sure that the administration will get all the questions that were asked during the public hearing portion. And would recommend that somehow these questions could be made available to the public so that they know that we have heard the questions and you can have the answers to those questions as well. Councilmember Oliver Davis: Could we put them on our website? Chairperson White: Yes. Eric Horvath: The customer count by class inside the city limits is 36,476; outside city limits 3,591, so close to ten percent(10%), a little less. Council Attorney Kathleen Cekanski-Farrand: Could you also supply a copy of this power point. Eric Horvath: Absolutely. Chairperson White: The public hearing portion is now closed. We will go down the line for Council comments and then would like to entertain a motion. Councilmember Henry Davis Jr.: Thank you Chairman White. As I stated before and this is why I was asking Mayor Buttigieg to be at these conversations. Obviously these conversations get a bit intense not only because of your presence, but you also provide a roll as a visionary for the City of South Bend and what happens next and what's going to happen next as planning takes place. When we are able to have those conversations and match them up with what's happening now it gives the Council as well hopefully your office as well to put things in their proper perspective or points or list them as priorities. It's not a way of taking attendance, it's just a way of having a progressive conversation that is really not political but addresses the needs of the citizens of South Bend. Based upon what we are looking at it is almost looking like water is becoming a commodity here in South Bend. What I mean by that is that if you can look at the some of the extreme cases across the city but I am going to start with District 2. You have folks using water hoses from the neighbor's houses to help put water inside their houses because clearly the water has been turned off somewhere and at some time and if we go with a rate increase you are going find a situation where that water will never get turned on and you have people who will probably will (inaudible) and you have here the situation with kids or whomever don't have water,running water in their houses and how do they get it turned back on, if they don't have any money and the rate has increased. I was also provided with probably a bit of a solution, I don't necessarily know if this is a total solution, but having a tiered scale when we are dealing with large consumers of water here in the city. We talked about this, there was a court case some time ago and we kind of pulled back on it, I think that the more you use, the more you should pay. Just because you use huge quantities, you shouldn't get a huge discount because you use huge quantities, this is not Wal-Mart; this is not Sam's Club; this is South Bend, Indiana. So, I am just really thinking about it. You stated earlier that 9.9%was the employment rate, I would go for that right now,but when you talk about the chronically employment, you are probably going to times this about 2, and then if you go into minority communities you could probably times it by 3. And so you are going to be looking at a big situation with the haves and have not's. And not having water says a whole lot about a city. I was just looking earlier at the poverty rate, it's like 16% we really have to pay attention to what is going on with our residents. 14 REGULAR MEETING NOVEMBER 25, 2013 II We are not a boutique society unless we are trying to put a plan together to push all the people who don't have out of the city on all for these faces for people who do have a lot of money. I don't know if that is what South Bend is? Maybe that is the new South Bend that you talked about when you were being sworn in at your swearing-in ceremony. I'm not sure, I'm just really, really, disappointed that we are in a position right now that we are looking at people that we serve not having any use to water. It doesn't look good, our senior citizens, I have many of them in my district, I feel for them. Now, they probably will be really,really, choosing between medications or paying the water bill. That's not what we should be doing and I would hate to believe that we are going to be taxing people out of the city. I have heard that before, I didn't believe it, never thought it would be true. But things like this and just the lack of or against forwardness, or progressive conversation in making sure that we are hitting every point available to make sure that this is being decreased it is not being done so I am probably offered to believe that we are probably will be taxing people out of the city, they will probably just be moving out. That is obviously not good for bringing in new business. I just have some real tough concerns and the truth is that it is not anyone's fault in here, I would never place the blame individually on anyone,but it is up to us to get it corrected. And I charge your office with that, obviously the Council; we are in tuned to it. I just think that as a non-political issue, as a servant issue, as our jobs we really, really, really need to look at what's going on out here. And those numbers that I just ran off they are not getting corrected overnight and as a matter of fact they are not going to get corrected over the next two nights, so we have to pay attention and we have to be very, very mindful of the population that we serve. Councilmember Schey: Thank you Chair Woman White, no questions. Councilmember Ferlic: I don't think at 9% a year even if it decreases after while is sustainable. We are all up here wanting to create jobs there is no company that is going to move in here that is water dependent that's going to pay those kinds of water rates, when they can get them cheaper elsewhere. So if our job is to create jobs, we have a tough road ahead of us, so I think that it is mandatory like Henry said that we get together and try to solve this and I think we can. Councilmember Dieter: Thank you, again I think that there is a lot of work that needs to be done. I appreciate all the work that has gone into it, but there are questions that have come up tonight from previous things or in some of the presentations, some of the numbers, again there is just a lot more information that this entire Council needs to have and digest. So, hopefully, with the questions that were asked and again I appreciate the citizens that came up with some very good things that I hadn't thought of before. So again, more information from citizens, more information from the Council to get some questions answered would be greatly. Councilmember Varner: I think that we are beginning to have the discussion that could have been had 8, 10, or 12 years ago, if someone had thought, gee it would be useful to have Councilmember's as part of this planning process. I made that objection; I voiced that objection, as long as 12 years ago because it is obvious that the Council is not part of it. No one thought it was important. Everyone apparently just decided that we can train the Council to do what we want them to do by threatening them with large projects and fines. If a Federal Judge sends me a written order that says I have to agree to it, then I'll agree to it. I don't think that it has to get that far, I think people just have to take it upon themselves to find a way to do this, if it's for new technology, then its new technology. When you have a rate, a time and an interest factor and our dollar costs are so much greater than everybody else then we either have to have some sort of rate break or we have to have some sort of a tie break. If it's a 50 year infrastructure improvement financing it for 20 years with cash and financing just doesn't make sense for the current rate payers. So I'm not sure if it's financing, I'm not sure what is construction projects, I'm not sure if it's just the plan in general. I think we definitely need more information on this Michigan deal, because if we are doing something on the basis of a faulty model, it is very expensive which amounts apparently to treating any of this (inaudible) I think we are doing a tremendous disservice to the community, to saddle people in this community with exorbitant rates and extra-ordinary construction project when some of it isn't necessary. So, I will bring forth first a resolution next month that so states this and when we are through I would make the recommendation that there has to be an increase. Chairperson White: Why don't you hold that? Councilmember Varner: Ok 15 REGULAR MEETING NOVEMBER 25,2013 Councilmember Oliver Davis: Okay, thank you Chairwoman. Two things: I look forward to receiving since the first penny has been spent with this project the decline list that was mention by I think Chris back there in the back. Since we had the rates of 30% in the past and the other rates that the Council voted for over the past years and all that money has gone into different projects from day one to now, what has been the progress regarding the homes across this whole entire area that are no longer on the list of having any problems with sewer. I would like to look at that and see how are money in the past has been invested. I close with this there was a mention regarding punting, that we shouldn't punt, I like football and a coach knows that punting is not a bad thing when you have proper clock management. Punting sometimes going for 4th down and 10 when you are in the wrong sideline is not courage; it's an act that should cause people to consider to be removed. And I do appreciate watching coaches when they have the ball in a very dangerous position when they have good clock management punt the ball to give their offense or defense more time to think things through and then come back out with proper clock management and get their offense and score. If some of my favorite teams had done that we would have probably won this past weekend but that didn't happened and so therefore, we talked earlier this afternoon about three months, six months, looking at things we heard tonight that we will hear better numbers possibly a year from now. That's not a lack of courage that's could be punting the ball into a precise location where you have a better chance to win. And we all want to win, the Administration, the Council, Crowe, all your people over there want to win. And, so therefore I really think that we need to value what it means to have a good punter on the team and punt and make sure that we punted in the right location give us some time to bring the offense back out and then let's come back and win the game. Thank you. Councilmember Ferlic: No comment. Chairperson White: At this time I would like to entertain a motion. Councilmember Dieter made a motion to continue this bill until the January 27, 2014. Councilmember Schey seconded the motion. Council Attorney Kathleen Cekanski-Farrand: Point of order, I would request that any motion include that the Public Hearing be continued in the Council Portion Only, and that set for further deliberation by the Council on January 27, 2014. Councilmember Dieter: That's what I said. Council Attorney Kathleen Cekanski-Farrand: And refer back to the Utilities Committee. Councilmember Dieter: Go back to the Utilities Committee. Councilmember Schey: Second. Chairperson White: A motion has been made and it has been seconded. Councilmember Oliver Davis: How does that relate Dr. Varner's Resolution that is planning to bring. Chairperson White: It can still bring it. Councilmember Oliver Davis: Cool. Chairperson White: A motion has been made, all those in favor of the motion may I hear your vote. The motion carried by a voice vote of eight (8) ayes. This bill will be continued in the Council Portion Only until January 27, 2014. 16 REGULAR MEETING NOVEMBER 25, 2013 BILL NO. 66-13 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 2, ARTICLE 8, SECTION 2-121 (a) OF THE SOUTH BEND MUNICIPAL CODE TO REINSTATE ONE NON-DESIGNATED HOLIDAY Councilmember Dr. David Varner, Chairperson, Personnel & Finance Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. Mark Neal, City Controller, 12th Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Mr. Neal advised that this bill would amend the South Bend Municipal Code pertaining to holidays for officers and employees of the City of South Bend. He stated that on December 10, 2012, the South Bend Common Council passed Ordinance No. 10211-12 which recognized Rev. Martin Luther King's birthday as a designated holiday for City officers and employees. This increased the number of designated holidays from nine to ten, and eliminated one-non- designated holiday. The municipal code was amended accordingly. Mr. Neal stated that at this time, to increase morale and better accommodate persons of all religions, Good Friday will be eliminated as a designated holiday to be replaced by one non-designated holiday which can be any day selected by each City officer or employee. This necessitates another amendment to the Municipal Code, which will now provide for nine (9) designated holidays and one non- designated holiday of each officer or employee's choice. He asked the Council for their favorable consideration. 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 being no one present wishing to speak to the Council either in favor of or in opposition to this bill, Councilmember Dieter made a motion for favorable recommendation to full Council concerning this bill. Councilmember Schey seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 60-13 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL FOR THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $21,000.00 FROM THE PALAIS ROYALE HISTORIC PRESERVATION FUND (FUND 450) FOR REPAIRS TO THE HISTORIC EXTERIOR/INTERIOR OF THE VENUE Councilmember Henry Davis Jr., Chairperson, PARCS Committee, reported that this committee held a meeting this afternoon and it was the consensus of the committee to send this bill to the full Council with a favorable recommendation. Dennis Andres, Executive Director, The Morris Performing Arts Center, 211 N. Michigan Street, South Bend, Indiana, made the presentation for this bill. Mr. Andres advised that this bill would appropriate $21,000.00 within the Palais Royale Historic Preservation Fund, Fund#450 to allow repairs to the historic tone work on the exterior of the Palais Royale building, and to reseal areas around existing windows, and to repair interior wall damage that was caused by water seeping into the building from around exterior historic stone work. Mr. Andres noted that the revenues for Fund#450 are generated from a 2% surcharge assessed on all services provided in connection with the use and rental of Palais Royal facilities. He asked the Council for their favorable consideration. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. 17 REGULAR MEETING NOVEMBER 25, 2013 There being no one present wishing to speak to the Council either in favor of or in opposition to this bill, Councilmember Dieter made a motion for favorable recommendation to full Council concerning this bill. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight(8) ayes. RISE AND REPORT Councilmember Gavin Ferlic made a motion to rise and report to full Council. Councilmember Oliver Davis seconded the motion which carried by a voice vote of nine(9) ayes. ATTEST: ATTEST: Tek-ii4( John Voorde, City Clerk Karen L. White, Cha erson Committee of 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 8:53 p.m. Council President Derek Dieter, presided with eight (8) members present. BILLS—THIRD READING BILLS—THIRD READING ORDINANCE NO. 10272-13 AN ORDINANCE OF THE COMMON COUNCIL OF ' THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 2, ARTICLE 8, SECTION 2-121 (a) OF THE SOUTH BEND MUNICIPAL CODE TO REINSTATE ONE NON-DESIGNATED HOLIDAY This bill had third reading. Councilmember Varner made a motion to pass this bill. Councilmember Oliver Davis seconded the motion which carried. The bill passed by a roll call vote of eight (8) ayes. ORDINANCE NO. 10273-13 AN ORDINANCE OF THE COMMON COUNCIL FOR THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $21,000.00 FROM THE PALAIS ROYALE HISTORIC PRESERVATION FUND (FUND 450) FOR REPAIRS TO THE HISTORIC EXTERIOR/INTERIOR OF THE VENUE This bill had third reading. Councilmember Varner made a motion to pass this bill. Councilmember Oliver Davis seconded the motion which carried. The bill passed by a roll call vote of eight (8) ayes. RESOLUTIONS RESOLUTION NO. 4298-13 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING A CERTAIN AREA WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 1028 NOTRE DAME AVENUE AS A RESIDENTIALLY DISTRESSED AREA FOR PURPOSES OF A (5) FIVE- YEAR RESIDENTIAL REAL PROPERTY TAX 18 REGULAR MEETING NOVEMBER 25, 2013 ABATEMENT FOR MARIA JOSE FERNANDEZ MORENO& FRANCISCO DE ASIS MARTINEZ JEREZ WHEREAS, a Statement of Benefits and a petition for residential real property tax abatement have been submitted to and filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana, requesting that the area commonly known as 1028 Notre Dame Avenue, South Bend, Indiana, and which is more particularly described as follows: That part of the Northwest Quarter Section 1, Township 37 North, Range 2 East, Portage Township, City of South Bend, St. Joseph County, Indiana, which is described as Lot`B" as shown on the Plat of Boyd-Snee's Subdivision, First Replat recorded June 13, 2012 in the Office of the St. Joseph County, Indiana Recorder as Instrument No. 1217686. Containing 0.19 acres more or less. Subject to all legal right-of—ways, easements, and restrictions of record. and this property has Tax Key Number 018-5105-370203, be designated as a Residentially Distressed Area under the provisions of Indiana Code 6-1.1-12.1 et seq.; and South Bend Municipal Code Sections 2-76 et seq., and; WHEREAS, the Department of Community Investment has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as a Residentially Distressed Area under Indiana Code 6-1.1-12.1, et seq., and South Bend Municipal Code Sections 2-76, et seq., and has further prepared maps and plats showing the boundaries and such other information regarding the area in question as required by law; and WHEREAS, the Community Investment Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as a Residentially Distressed Area. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: • SECTION I . The Common Council hereby determines and finds that the petition for real property tax abatement and the Statement of Benefits form meet the requirements of Indiana Code 6-1.1-12.1 et seq., for tax abatement. SECTION II. The Common Council hereby determines and finds that the area meets one of the following conditions as formally established in Ordinance No. 9394-03, which was passed on February 10, 2003: A. The area is comprised of parcels that are either unimproved or contain only one (1) or two (2) family dwellings designed for up to four (4) families, including accessory buildings for those dwellings; or B. Any dwellings in the area are not permanently occupied and are: i. the subject of an order issued under IC 36-7-9; or ii. evidencing significant building deficiencies; or C. Parcels of property in the area: i. have been sold and not redeemed under IC 6-1.1-24 and IC 6-1.1-25; or ii. are owned by a unit of local government; or D. A significant number of dwelling units within the area are not permanently .- . occupied or a significant number of parcels in the area are vacant land; or E. A significant number of dwelling units within the area are: i. the subject of an order issued under IC 36-7-9; or ii. evidencing significant building deficiencies; or F. The area has experienced a net loss in the number of dwelling units, as documented by census information, local building and demolition permits, or certificates of occupancy, or the areas are owned by Indiana or the United States; or, G. The area (plus any areas previously designated under this subsection) will not exceed ten percent(10%) of the total area within the Council's jurisdiction. 19 REGULAR MEETING NOVEMBER 25,2013 SECTION III. The Common Council also hereby determines and finds the following: A. That the description of the proposed redevelopment meets the applicable standards for such development. B. That the estimate of the value of the redevelopment is reasonable for projects of this nature; C. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment; and D. That the totality of benefits is sufficient to justify the requested deduction, all of which satisfy the requirements of Indiana Code 6-1.1-12.1-3. E. The deduction will not be allowed unless the dwelling is rehabilitated to meet local code standards for habitability. F. The deduction will not be allowed unless the dwelling rehabilitation is completed within five (5) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION IV. The Common Council hereby determines and finds that the proposed described redevelopment can be reasonably expected to yield benefits identified in the Statement of Benefits and the petition for real property tax abatement consideration and that the Statement of Benefits form prescribed by the State Board of Accounts are sufficient to justify the deduction granted under Indiana Code 6-1.1-12.1-3. SECTION V. The Common Council hereby accepts the report and recommendation of the Community Investment Committee that the area herein described be designated as a Residentially Distressed Area and hereby adopts a Resolution designating this area as a Residentially Distressed Area for purposes of real property tax abatement. SECTION VI. The designation as a Residentially Distressed Area shall be limited to five (5) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION VII. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of five (5) years as shown by the attachment pursuant to Indiana Code 6-1.1-12.1-17. SECTION VIII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana Code 5-3-1 and Indiana Code 6-1.1-12.1-2.5, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION IX. Pursuant to Indiana Code 6-1.1-12.1-2, the rehabilitation must meet all local code standards for habitability as a specific condition of having such property designated as a residentially distressed area. SECTION X. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. s/Derek D. Dieter Member of the Common Council Councilmember Gavin Ferlic, Chairperson, Community Investment Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. Franciso de Asis Martinez Jerez, 50841 Ashford Lane, Granger, Indiana, made the presentation for this bill. Mr. de Asis Martinez Jerez: Maria Jose Fernandez Moreno and I are planning to construct a 3,800 square foot, single-family home. The cost of the home is approximately $550,000.00. Total taxes to be abated during the five (5) year abatement period are estimated to be $1,893.00. Total taxes to be paid during the five (5) year abatement period are estimated to be $34,827.00. 20 REGULAR MEETING NOVEMBER 25, 2013 A Public Hearing was held on the Resolution at this time. There being no one present wishing to speak to the Council either in favor of or in opposition to this Resolution, Councilmember Oliver Davis made a motion to adopt this Resolution. Councilmember Dr. David Varner seconded the motion which carried and the Resolution was adopted by a roll call vote of six (6) ayes and two (2) nays (Councilmember's Dr. Fred Ferlic and Gavin Ferlic.) BILL NO. 13-76 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING A CERTAIN AREA WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 1106 GEORGIANA STREET AS A RESIDENTIALLY DISTRESSED AREA FOR PURPOSES OF A (5) FIVE- YEAR RESIDENTIAL REAL PROPERTY TAX ABATEMENT FOR KEVIN AND KELLEY DEETH Councilmember Gavin Ferlic, Chairperson, Community Investment Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with no recommendation. Council President Dieter: Council Attorney I don't believe we received a call from the petitioners? Clerk Voorde? Council Attorney Kathleen Cekanski-Farrand: I would recommend that the bill be continued until the December 9, 2013 meeting of the Council. Councilmember Oliver Davis made a motion to continue this bill until the December 9, 2013 meeting of the Council. Councilmember Varner seconded the motion which carried by a voice vote of eight(8) ayes. Council President Dieter: Then there will be a note or a call made? • Council Attorney Kathleen Cekanski-Farrand: The Clerk will do that. BILL NO. 13-77 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 237 NORTH MICHIGAN STREET AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF UP TO A TEN (10) YEAR REAL PROPERTY TAX ABATEMENT FOR GREAT LAKES CAPITAL DEVELOPMENT Councilmember White made a motion to continue this bill indefinitely. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of eight (8) ayes. RESOLUTION NO. 4299-13 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 215 NORTH SYCAMORE STREET AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE-YEAR REAL PROPERTY TAX ABATEMENT FOR EAST BANK SOUTH BEND DEVELOPMENT LLC WHEREAS, a petition for real property tax abatement has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana, requesting that the area commonly known as 215 N. Sycamore St., South Bend, Indiana, and which is more 21 REGULAR MEETING NOVEMBER 25, 2013 particularly described as follows: LOT NUMBER 9 OF EAST BANK TOWNHOMES MINOR SUBDIVISION LOCATED IN THE NORTHWEST 1/4 SECTION 12, TOWNSHIP 37 NORTH, RANGE 2 EAST, CITY OF SOUTH BEND, PORTAGE TOWNSHIP, ST. JOSEPH COUNTY, INDIANA, AND RECORDED AS INSTRUMENT NO 1100776 IN THE OFFICE OF THE RECORDER OF ST. JOSEPH COUNTY, INDIANA and which has Key Number 71-08-12-127-004.000-026 at this point and time, be designated as an Economic Revitalization Area under the provisions of Indiana Code § 6-1.1-12.1 et seq., and South Bend Municipal Code Sections 2-76 et seq., and; WHEREAS, the Department of Community Investment has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as an Economic Revitalization Area under Indiana Code § 6-1.1-12.1, et seq., and South Bend Municipal Code Sections 2-76, et se ., and has further prepared maps and plats showing the boundaries and such other information regarding the area in question as required by law; and WHEREAS, the Community Investment Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as an Economic Revitalization Area. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby determines and finds that the Petition for Real Property Tax Abatement and the Statement of Benefits form completed by the Petitioner meet the requirements of Indiana Code § 6-1.1-12.1 et seq., for tax abatement. SECTION II. The Common Council hereby determines and finds the following: A. That the description of the proposed redevelopment or rehabilitation meets the applicable standards for such development; B. That the estimate of the value of the redevelopment or rehabilitation is reasonable for projects of this nature; C. That the estimate of the number of individuals who will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed described redevelopment or rehabilitation; D. That the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed redevelopment or rehabilitation; E. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation; and F. That the totality of benefits is sufficient to justify the requested deduction, all of which satisfy the requirements of Indiana Code § 6-1.1-12.1-3. SECTION III. The Common Council hereby determines and finds that the proposed described redevelopment or rehabilitation can be reasonably expected to yield benefits identified in the Statement of Benefits as set forth in Sections 1 through 3 of the Petition for Real Property Tax Abatement Consideration, the Memorandum of Agreement between the Petitioner and the City of South Bend, and that the Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code § 6-1.1-12.1-3. SECTION IV. The Common Council hereby accepts the report and recommendation of the 22 REGULAR MEETING NOVEMBER 25, 2013 Community Investment Committee that the area herein described be designated as an Economic Revitalization Area and hereby adopts a Resolution designating this area as an Economic Revitalization Area for purposes of real property tax abatement. SECTION V. The designation as an Economic Revitalization Area shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of(5) five years as shown by the attachment pursuant to Indiana Code 6-1.1-12.1-17. SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana Code § 5-3-1 and Indiana Code § 6-1.1-12.1-2.5, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VIII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. s/Derek D. Dieter Member of the Common Council Councilmember Gavin Ferlic, Chairperson, Community Investment Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. Dave Matthew, 215 E. Colfax Avenue, South Bend, Indiana, Member, East Bank South Bend Development, LLC, advised that he intends to construct a five-story mixed use building, 16,000 square feet, four (4) 1-bedroom; four (4) 2-bedroom and four (4) 3-bedroom condo like apartments. A Public Hearing was held on the Resolution at this time. • There being no one present wishing to speak to the Council either in favor of or in opposition to this Resolution, Councilmember Oliver Davis made a motion to adopt this Resolution. Councilmember Schey seconded the motion which carried and the Resolution was adopted by a roll call vote of eight (8) ayes. RESOLUTION NO. 4300-13 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 1106 20`h STREET, 1112 20TH STREET AND 2007 NORTHSIDE BLVD AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (9) NINE-YEAR REAL PROPERTY TAX ABATEMENT FOR MECCA COMPANIES, INC. WHEREAS, a petition for real property tax abatement has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana, requesting that the area commonly known as 1106 20th Street, 1112 20`h Street, and 2007 North Side Blvd., South Bend, Indiana, and which is more particularly described as follows: PARCEL I: Lot Numbered One (1) and a lot or parcel of land 38.35 feet in width, North and South, taken off of and from the entire length of the North side of Lot Numbered Two (2) all as shown on the recorded Plat of Riverview Subdivision in the City of South Bend, St. Joseph County, Indiana. PARCEL II: Lots Numbered Thirty (30) and Thirty-one (31) as shown on the recorded Plat of B.F. Dunn's First 23 REGULAR MEETING NOVEMBER 25,2013 Addition to the Town of River Park,now within and a part of the City of South Bend, St. Joseph County, Indiana, together with the vacated alley lying in between said lots. and which has Key Numbers 018-6135-4692, 018-6135-4694, and 018-6135-4696 at this point and time, be designated as an Economic Revitalization Area under the provisions of Indiana Code § 6-1.1-12.1 et sec ., and South Bend Municipal Code Sections 2-76 et seq., and; WHEREAS, the Department of Community Investment has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as an Economic Revitalization Area under Indiana Code § 6-1.1-12.1, et sec., and South Bend Municipal Code Sections 2-76, et seq., and has further prepared maps and plats showing the boundaries and such other information regarding the area in question as required by law; and WHEREAS, the Community Investment Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as an Economic Revitalization Area. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby determines and finds that the Petition for Real Property Tax Abatement and the Statement of Benefits form completed by the Petitioner meet the requirements of Indiana Code § 6-1.1-12.1 et seq., for tax abatement. SECTION II. The Common Council hereby determines and finds the following: A. That the description of the proposed redevelopment or rehabilitation meets the applicable standards for such development; B. That the estimate of the value of the redevelopment or rehabilitation is reasonable for projects of this nature; C. That the estimate of the number of individuals who will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed described redevelopment or rehabilitation; D. That the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed redevelopment or rehabilitation; E. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation; and F. That the totality of benefits is sufficient to justify the requested deduction, all of which satisfy the requirements of Indiana Code § 6-1.1-12.1-3. SECTION III. The Common Council hereby determines and finds that the proposed described redevelopment or rehabilitation can be reasonably expected to yield benefits identified in the Statement of Benefits as set forth in Sections 1 through 3 of the Petition for Real Property Tax Abatement Consideration, the Memorandum of Agreement between the Petitioner and the City of South Bend, and that the Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code § 6-1.1-12.1-3. SECTION IV. The Common Council hereby accepts the report and recommendation of the Community Investment Committee that the area herein described be designated as an Economic Revitalization Area and hereby adopts a Resolution designating this area as an Economic Revitalization Area for purposes of real property tax abatement. 24 REGULAR MEETING NOVEMBER 25,2013 SECTION V. The designation as an Economic Revitalization Area shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of(9) nine years as shown by the attachment pursuant to Indiana Code 6-1.1-12.1-17. SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana Code § 5-3-1 and Indiana Code § 6-1.1-12.1-2.5, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VIII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. s/Derek D. Dieter Member of the Common Council Councilmember Gavin Ferlic, Chairperson, Community Investment Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. Kyle Bach, President & CEO, Mecca Companies, Inc., 911 Main St., Indianapolis, Indiana, made the presentation for this bill. Mr. Bach: I will keep it really brief, but I am excited to be presenting this proposal today,being the fact that I grew up in the River Park Neighborhood and after leaving Nuner, went to Washington High School, "Pride of the West Side." We are here today presenting a$7.5 million total dollar investment into the community. I am excited about the opportunity of providing off- campus student housing facilities for students at Indiana University South Bend, and anybody else who want to partake in our facility. So I want to thank you for your time and I am here to answer any questions that you might have. A Public Hearing was held on the Resolution at this time. There being no one present wishing to speak to the Council either in favor of or in opposition to this Resolution, Councilmember Oliver Davis made a motion to adopt this Resolution. Councilmember Schey seconded the motion which carried and the Resolution was adopted by a roll call vote of eight (8) ayes. RESOLUTION NO. 4301-13 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 212-220 WEST EWING AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (7) SEVEN-YEAR REAL PROPERTY TAX ABATEMENT FOR DEMBY ENTERPRISES, LLC WHEREAS, a petition for real property tax abatement has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana requesting that the area commonly known as 212-220 West Ewing, South Bend, Indiana, and which is more particularly described as follows: Lots numbered four (4) through forty-eight (48), both inclusive, as shown on the recorded plat of Stover- Longley Addition to the City of South Bend as platted by Silas E. Longley and Burton H. Stover, which plat was recorded February 24, 1915 in Plat Book No. 9 at page 187 in the Recorder's office of St. Joseph County, Indiana. Also the vacated alley lying South of Lots 4 to 8, inclusive, in said Stover —Longley Addition and the vacated alley lying East of Lots 28 to 46, inclusive, in said Stover-Longley Addition. Also the South half of the vacated alley lying North of Lot No. 9 in said Addition, also, the whole 25 REGULAR MEETING NOVEMBER 25,2013 of vacated Victoria Street as shown in said Addition; also, the whole of vacated Lafayette Street lying between Ewing Avenue and Fairview Avenue in said Addition, excepting the West half of that part of Lafayette Street which lies East of Lot Numbered 3 and the North half of the vacated alley lying South of said Lot No. 3; the whole property herein considered being bounded by a line running as follows: Beginning at the North-west corner of Section 24, Township No. 37 North, Range No. 2 East; thence running South 1009 feet, thence East 384.7 feet to the West line of the right of way of the Vandalia Railway; thence North with the said right of way 1009 feet to the North line of said Section No. 24; thence West 383 feet to the place of beginning, excepting therefrom such part of said real estate as is now occupied by Ewing Avenue and Fairview Avenue in said city, excepting also a strip of land 7 feet in width, East and West, taken off from the entire length of the West side thereof, heretofore conveyed as the East half of a public alley and excepting also the following: Beginning at a point on the present South line of Ewing Avenue 7 feet East of the West line of said Section No. 24; thence running East 149 1/4 feet to the center of vacated Lafayette Street; thence South 107 feet to a point in line with the centerline of the alley lying between Lots 1,2,3 and 9 in said Stover-Longley Addition; thence West 149 3/4 feet to the East line of said Stover-Longley Addition; thence North 107 feet to the place of beginning. and which has Key Number 71-08-24-101-003.000-026, be designated as an Economic Revitalization Area under the provisions of Indiana Code § 6-1.1-12.1 et seq., and South Bend Municipal Code Sections 2-76 et seq., and; WHEREAS, the Department of Community Investment has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as an Economic Revitalization Area under Indiana Code § 6-1.1-12.1, et seq., and South Bend Municipal Code Sections 2-76, et sec., and has further prepared maps and plats showing the boundaries and such other information regarding the area in question as required by law; and WHEREAS, the Community Investment Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as an Economic Revitalization Area. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby determines and finds that the Petition for Real Property Tax Abatement and the Statement of Benefits form completed by the Petitioner meet the requirements of Indiana Code § 6-1.1-12.1 et seq., for tax abatement. SECTION II. The Common Council hereby determines and finds the following: A. That the description of the proposed redevelopment or rehabilitation meets the applicable standards for such development; B. That the estimate of the value of the redevelopment or rehabilitation is reasonable for projects of this nature; C. That the estimate of the number of individuals who will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed described redevelopment or rehabilitation; D. That the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed redevelopment or rehabilitation; E. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation; and 26 REGULAR MEETING NOVEMBER 25,2013 F. That the totality of benefits is sufficient to justify the requested deduction, all of which satisfy the requirements of Indiana Code § 6-1.1-12.1-3. SECTION III. The Common Council hereby determines and finds that the proposed described redevelopment or rehabilitation can be reasonably expected to yield benefits identified in the Statement of Benefits, Sections 1 through 3 of the Petition for Real Property Tax Abatement Consideration and the Memorandum of Agreement between the Petitioner and the City of South Bend, and that the Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code § 6-1.1-12.1-3. SECTION IV. The Common Council hereby accepts the report and recommendation of the Community and Economic Development Committee that the area herein described be designated as an Economic Revitalization Area and hereby adopts a Resolution designating this area as an Economic Revitalization Area for purposes of real property tax abatement. ii SECTION V. The designation as an Economic Revitalization Area shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of seven (7) years as shown by the attachment pursuant to Indiana Code 6-1.1-12.1-17. SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana Code § 5-3-1 and Indiana Code § 6-1.1-12.1-2.5, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VIII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. s/Derek D. Dieter Member of the Common Council Councilmember Gavin Ferlic, Chairperson, Community Investment Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. Jeff McGowan, Taxpayer Representative for Demby Enterprises, LLC, Kruggel, Lawton, 210 S. Michigan St., Ste. 200, South Bend, Indiana, quickly Demby Enterprises would request an abatement for$1.8 million dollars to rehabilitate and improve a cold storage warehouse facility that is leased to Plumrose USA a bacon and meat processor manufacturer. Demby Enterprises did have a substantial fire loss in November 2012 and as a result of the fire loss did have to pull a fire permit, but no permit has been pulled in regards to the$1.8 million dollar projected cost of the rehabilitation. I do have one report error or something that I would like to fix, is that something I give to you or just say now? Council Attorney Kathleen Cekanski-Farrand: I would fix it now. Mr. McGowan: Okay, on page 2 of the Tax Abatement Report its states that the petition intends to basically return the building to its use and the abatement request is for not just a return, but it is an improvement, one that utilizes hot air technology with significant water savings. Councilmember Oliver Davis: Sewer Mr. McGowan: Absolutely, that's right. I would also like to make a correction as far as the employment numbers. I don't know if it was clear in there, but under the employment impact the current Plumrose will retain the 23 existing full-time position with $890,000.00 of annual payroll and the addition of two (2) additional jobs which will add$67,000.00 to that payroll. They are seeking a seven (7) year tax abatement for this real property during the abatement 27 REGULAR MEETING NOVEMBER 25,2013 period they will pay$297,000.00 of which the abatement amount will be $161,000.00. I have with me the co-managing members of Demby Enterprises of the Annette Demby Trust, Ben Silver and Joshua Silver if you have any questions. Councilmember Henry Davis, Jr.: A real quick question and I don't know if you can answer this or the managing partner. I just really see this as being a great opportunity for South Bend. We always talk about jobs and we never say good jobs or this is a good employer for good jobs, manufacturing based, low scale, to mid-grade scale, they pay pretty good wages as well, so these are things that we really need to concentrate on in the city, so our people are employed at a level so that they can take care of a house,household or mortgage or both. And my question right now I guess Mark Neal, or even Oliver Davis, because this is you area as well, in the ongoing conversations about expansion or helping to support expansion or helping to support expansion of businesses like this probably would be one of our better ways of getting more jobs here that are sustainable than what we think that we are doing with new restaurants and all this other stuff. Not to say that they don't deserve a place, but these places who employ people that will eat at those restaurants. So you know it's one of those deals, so thank you, for the investment, but I think that the conversation needs to happen, Councilmember, Administration with folks like that to see how we can help them expand. A Public Hearing was held on the Resolution at this time. There being no one present wishing to speak to the Council either in favor of or in opposition to this Resolution, Councilmember Schey made a motion to adopt this Resolution. Councilmember White seconded the motion which carried and the Resolution was adopted by a roll call vote of eight(8) ayes. RESOLUTION NO. 4302-13 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, TO APPOINT THE BOARD OF PUBLIC WORKS AND THE DEPARTMENT OF PUBLIC WORKS AS ITS AGENTS FOR OVERSEEING THE GUARANTEED ENERGY SAVINGS CONTRACT FOR THE CENTURY CENTER Whereas, in 1982, the South Bend Common Council passed Ordinance No. 7108-82 which provided among other things that a South Bend Civic Board of Managers would be continued for the "...purpose of supervising, managing, operating, and maintain Century Center and its programs..."pursuant to Indiana Code § 36-10-2-5; and Whereas,the City of South Bend is interested in upgrading and implementing more energy efficient programs and equipment in the Century Center in order to conserve energy and energy costs; and Whereas,pursuant to Indiana Code § 36-1-12.5-5, the Common Council is authorized to enter into an agreement to participate in a utility efficiency program or a guaranteed savings contract in order to implement energy savings measures; and Whereas, the South Bend Common Council does not have its own staff with the technical expertise and experience to evaluate potential proposals and to supervise a Guaranteed Energy Savings Contract for the Century Center; and Whereas, on August 21, 2013, the Century Center Board of Managers adopted a resolution which authorized the appointment of a committee to review response to a request for qualifications for a Guaranteed Energy Savings Contract and a draft of a"Request for Qualifications for a Guaranteed Energy Savings Contract: Century Center" with copies of those documents attached for informational purposes to this Resolution. Now, Therefore, Be It Resolved by the Common Council of the City of South Bend, Indiana, as follows: 28 REGULAR MEETING NOVEMBER 25, 2013 Section I. The South Bend Common Council hereby believes that the following guidelines and policies are in the best interests of the City of South Bend, Indiana, in order to advance potential energy efficiencies and energy savings at the Century Center: 1. The Board of Public Works and the Department of Public Works of the City of South Bend, Indiana, shall be the authorized agents for the South Bend Common Council for purposes of meeting the provisions required of Indiana Code § 36-1-12.5-5, and other Indiana laws leading up to the final review of and the execution by the South Bend Common council of a Guaranteed Energy Savings Contract for upgrading and implementing more energy efficient programs and equipment in the Century Center in order to conserve energy and energy costs. Such authorization would include without limitation the preparation of specifications, evaluation criteria, and advertisement for proposals, opening of proposals, evaluating proposals, rejecting non-responsive proposals, and making advisory recommendations to the Common Council. 2. The Board of Public Works and the Department of Public Works shall make an advisory recommendation to the South Bend Common Council concerning the selection of a company to contract with for an Energy Savings Contract, with the South Bend Common Council retaining the sole and exclusive authority to enter into such a contract. 3. The Board of Public Works and the Department of Public Works are authorized to supervise all work done on the Guaranteed Savings Contract concerning the Century Center, including the power to authorize change orders. 4. The Board of Public Works and the Department of Public Works shall report to the South Bend Common Council via the Parks, Recreation, Cultural Arts & Entertainment Committee and at a regular Common Council meeting under"Special Business" as requested by the Council, and to any scheduled meetings between any company which submits a proposal and a member of the Board of Public Works or a Department of Public Works employee. Section II. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. • s/Derek D. Dieter Member of the Common Council Councilmember Henry Davis, Jr., Chairperson, PARC Committee, reported that this committee held a meeting this afternoon and it was the consensus of the committee to send this bill to the full Council with a favorable recommendation. Ann-Carol Nash, Assistant City Attorney, 12th Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Ms. Nash advised that they had a little debate who might be presenting this,but I appreciate that Mr. Davis was actually the person who helped usher this through and I think Council Attorney Farrand also was the person who helped with this so much. As Council is probably well aware the Century Center Board of Managers hopes to enter into a Guaranteed Energy Savings Contract, and it wants to do adequate research and obtain as much information as possible from potential contractors and so our office has been working with Jonathan Burke from the public works and with Scott Herczeg and other people in order to prepare a request for qualifications and as part of the process, actually the most important part of the process, is that the Council will ultimately need to enter into the guaranteed energy savings contract on behalf of Century Center . Board of Managers and this resolution is to allow the Board of Public Works to do the working out of that contract and to do that on behalf of the Common Council. If there are any other questions I would be glad to try to answer them. But we also have Scott Herczeg(inaudible) from Century Center, and of course Councilmember Davis is familiar with this as well. A Public Hearing was held on the Resolution at this time. There being no one present wishing to speak to the Council either in favor of or in opposition to this Resolution, Councilmember Oliver Davis made a motion to adopt this Resolution. 29 REGULAR MEETING NOVEMBER 25, 2013 Councilmember Schey seconded the motion which carried and the Resolution was adopted by a roll call vote of eight (8) ayes. BILLS - FIRST READING BILL NO.67-13 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, SETTING THE FINAL INTERFUND LOAN AMORTIZATION SCHEDULES FOR MAJOR MOVES FUND 412 ADVANCES TO THE NORTHEAST RESIDENTIAL TIF FUND 436 IN CONNECTION WITH THE EDDY STREET COMMONS AND TRIANGLE DEVELOPMENT PROJECTS This bill had first reading. Councilmember Varner made a motion to refer this bill to the Public Works and Property Vacation Committee and set it for Public Hearing and Third Reading on December 9,2013. Councilmember White seconded the motion which carried by a voice vote of eight (8) ayes. (Councilmember's Gavin Ferlic and Oliver Davis left the Chambers at this time.) BILL NO. 68-13 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 9, ARTICLE 5 OF THE SOUTH BEND MUNICIPAL CODE ADDRESSING HAZARDOUS MATERIALS AND TACTICAL RESCUE TEAM This bill had first reading. Councilmember Varner made a motion to refer this bill to the Health & Public Safety Committee and set it for Public Hearing and Third Reading on December 9, 2013. Councilmember White, seconded the motion which carried by a voice vote of six (6) ayes. BILL NO. 69-13 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING VARIOUS SECTIONS WITHIN CHAPTER 4, ARTICLE 4 OF THE SOUTH BEND MUNICIPAL CODE REQUIRING ELECTRONIC REPORTING OF TRANSACTIONS BY PRECIOUS METALS DEALERS REGULATED IN SECTION 4-44, BY SCRAP METAL DEALERS, JUNK DEALERS, VALUABLE METAL DEALERS AND RECYCLING OPERATIONS REGULATED BY SECTION 4-51 AND BY SECONDHAND STORES REGULATED IN SECTION 4- 53 This bill had first reading. Councilmember White made a motion to refer this bill to the Health &Public Safety Committee and set it for Public Hearing and Third Reading on December 9, 2013. Councilmember Henry Davis, Jr., seconded the motion which carried by a voice vote of six (6) ayes. (Councilmember Dr. Fred Ferlic left the Chambers at this time.) BILL NO. 70-13 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 2, ARTICLE 8 OF THE SOUTH BEND MUNICIPAL CODE BY THE INCLUSION OF NEW SECTION 2-116.1 CITY RESIDENCY REQUIREMENTS This bill had first reading. Councilmember Dr. David Varner made a motion to refer this bill to the Personnel &Finance Committee and set it for Public Hearing and Third Reading on 30 REGULAR MEETING NOVEMBER 25, 2013 December 9, 2013. Councilmember White seconded the motion which carried by a voice vote of five (5) ayes. (Councilmember's Dr. Fred Ferlic and Gavin Ferlic back in Chambers at this time.) BILL NO. 71-13 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING ADDITIONAL FUNDS FOR CERTAIN DEPARTMENTAL AND CITY SERVICES OPERATIONS IN 2013 OF $90,000 FROM PARKS & RECREATION FUND (#201), $16 FROM DEPARTMENT OF COMMUNITY INVESTMENT GRANT FUND (#213), $675,000 FROM LIABILITY INSURANCE & PREMIUM RESERVE FUND (#226), $750,000 FROM LOSS RECOVERY FUND (#227), $37,378 FROM HUMAN RIGHTS GRANT FUND (#258), $30 FROM ECONOMIC DEVELOPMENT REVENUE BOND FUND (#281) $450,000 FROM EMS CAPITAL IMPROVEMENT FUND (#288), $475,000 FROM COUNTY OPTION INCOME TAX FUND ($404), $700,000 FROM SELF-FUNDED EMPLOYEE BENEFIT FUND (#711) This bill had first reading. Councilmember Dr. David Varner made a motion to refer this bill to the Personnel & Finance Committee and set it for Public Hearing and Third Reading on December 9, 2013. Councilmember Schey seconded the motion which carried by a voice vote of seven (7) ayes. BILL NO. 72-13 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING ADDITIONAL FUNDS FOR CERTAIN DEPARTMENTAL AND ENTERPRISE OPERATIONS IN 2013 OF $294,344 FROM SOLID WASTE FUND (#610), $84,000 FROM SOLID WASTE DEPRECIATION FUND (#611), $418,872 FROM SEWAGE WORKS GENERAL OPERATIONS FUND (#641), $418,872 FROM SEWAGE WORKS CAPITAL FUND (#642), $13 FORM 2006 SEWER BOND FUND (#645), $63 FROM 2007 SEWER BOND FUND (#647), $699 FROM CLAY SEWAGE WORKS OPERATIONS FUND (#650), $113 FROM 2007B SEWER BOND FUND (#651), $331 FROM 2010 SEWER BOND FUND (#658), $2,100,000 FROM 2013 SEWER BOND FUND (#663) AND $215 FROM 2013 SEWER REFUNDING BOND FUND #664 This bill had first reading. Councilmember Dr. David Varner made a motion to refer this bill to the Personnel & Finance Committee and set it for Public Hearing and Third Reading on December 9, 2013. Councilmember Schey seconded the motion which carried by a voice vote of seven (7) ayes. BILL NO. 73-13 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, FOR BUDGET TRANSFERS FOR VARIOUS DEPARTMENTS WITHIN THE CITY OF SOUTH BEND, INDIANA FOR THE YEAR 2013 This bill had first reading. Councilmember Dr. David Varner made a motion to refer this bill to the Personnel & Finance Committee and set it for Public Hearing and Third Reading on December 9, 2013. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of seven (7) ayes. it 31 REGULAR MEETING NOVEMBER 25,2013 BILL NO. 74-13 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING THE 2013 SALARY ORDINANCE NO. 10199-12 FOR APPOINTED OFFICERS AND NON- BARGAINING EMPLOYEES OF THE CITY OF SOUTH BEND, INDIANA TO ADDRESS CERTAIN ZOO EMPLOYEE COMPENSATION This bill had first reading. Councilmember Dr. David Varner made a motion to refer this bill to the Personnel &Finance Committee and set it for Public Hearing and Third Reading on December 9, 2013. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of seven (7) ayes. • BILL NO. 75-13 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING 2014 SALARY ORDINANCE#10266-13 FOR APPOINTED OFFICERS AND NON- BARGAINING EMPLOYEES OF THE CITY OF SOUTH BEND This bill had first reading. Councilmember Dr. David Varner made a motion to refer this bill to the Personnel &Finance Committee and set it for Public Hearing and Third Reading on December 9, 2013. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of seven (7) ayes. BILL NO. 76-13 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING THE LEGAL DESCRIPTION AND MAP WITHIN ORDINANCE NO. 10165-12 TO EXPAND THE BOUNDARIES OF THE EXISTING RIVERFRONT DEVELOPMENT PROJECT AREA UNDER IND. CODE 7.1-3-20-16 This bill had first reading. Councilmember Gavin Ferlic made a motion to refer this bill to the Community Investment Committee and set it for Public Hearing and Third Reading on December 9, 2013. Councilmember Dr. David Varner seconded the motion which carried by a voice vote of seven (7) ayes. BILL NO. 77-13 FIRST READING ON A BILL ESTABLISHING RESPONSIBLE BIDDER REQUIREMENTS OF PUBLIC WORKS PROJECTS This bill had first reading. Councilmember Varner made a motion to refer this bill to the Public Works and Property Vacation Committee and set it for Public Hearing and Third Reading on January 13, 2014. Councilmember Dieter seconded the motion which carried by a voice vote of seven (7) ayes. UNFINISHED BUSINESS REPORTS FROM AREA BOARD OF ZONING APPEALS BILL NO. 13-81 SPECIAL EXCEPTION - 5117 S. IRONWOOD DR. BILL NO. 13-82 SPECIAL EXCEPTION - 1029 WEBSTER STREET Councilmember Gavin Ferlic made a motion to refer these bills to the Zoning&Annexation Committee and set them for Public Hearing and Third Reading on December 9, 2013. Councilmember White seconded the motion which carried by a voice vote of seven (7) ayes. 32 REGULAR MEETING NOVEMBER 25,2013 REPORTS FROM AREA PLAN COMMISSION BILL NO. 61-13 REZONING—736 CALIFORNIA AND 906, 908,910 PORTAGE AVE. BILL NO. 62-13 REZONING—605, 613, 617, 621 NOTRE DAME AVE AND 823 SORIN ST. Councilmember Varner made a motion to refer these bills to the Zoning& Annexation Committee and set them for Public Hearing and Third Reading on January 13, 2014. Councilmember White seconded the motion which carried by a voice vote of seven (7) ayes. NEW BUSINESS Councilmember Henry Davis, Jr. asked the administration with the purchase of the smart trucks for removal of yard waste, will people be losing their jobs? Kathryn Roos, Chief of Staff to Mayor Pete Buttigieg advised that she will have to check with Public Works Director Eric Horvath and get back to Councilmember Davis. PRIVILEGE OF THE FLOOR Christopher Huff, 1831 College Street, South Bend, Indiana: Nice to see you again. This past summer this Council considered a special use permit change in order allow the establishment of gasoline pumps at an existing convenience store on West Western Avenue. I happened to be here not specifically here for that but I over sought that entire process. It appeared to me that it went on for at least a month and half here before the Council. Ok, that's fine, I'm not up here criticizing the decision that is between basically the neighbors and the Council and certainly the Mayor. What I am up here to talk about for a moment is the way it was presented. I have been a practicing planner since February 1, 1977, ladies and gentlemen, the 13 years that I spent in Mishawaka, if I had heard this once, I heard it ten thousand times, and it basically boils down to this: that until the idiots in the County-City Building are gone they would never develop, they would never invest, they would never do anything within the City of South Bend. For years I ignored that, I thought it was ridiculous, until I saw what happened this past summer. It's stuck in my throat here for several months now and it boils down to this: when you got professional staff that we pay for on the 11th floor coming and making a recommendation to this Council, which they are paid to do and it was in the affirmative. And at the last hour, essentially the 11th hour, a month and half later, you've got that same planning organization making recommendation to the Council affirmative. And then literally the last person to make comment on that issue at this very lectern right here, another one of our paid staff members from the 11th floor,but unfortunately or fortunately or whatever happened to be in a different organizational office which was counter or completely the opposite of what was recommended before. I have never seen a more or better example of bad public management in my entire life. This does nothing more than indicate to me that those people who made those statements to me for years were right, because nobody knows who's on first, second or third, I bring this to your attention, I think you know what the situation is, I mentioned it to the Mayor when I had his ear a few minutes ago,this has got to change. This has got to change, that was the most egregious example I have ever seen. Any staff member of mine before would have been booted for doing anything like that. Sam Brown, P. O. Box 1976, South Bend, Indiana, representing Citizen's United for a Better Government: Keep working Council, you are doing a good job looking out for the public. The 14th Floor has excuses and beats up on the Council for doing their job. When you are not doing your job it will come back to haunt you, the public will have the final say. 33 REGULAR MEETING NOVEMBER 25, 2013 Jesse Davis, P. O. Box 10205, South Bend, Indiana: I would like to Council to look into the work being done by Monoform for the City of South Bend. It appears they are paid approximately$4,000.00 or more per manhole to refurbish the manhole. This manhole was done during the month of October 2013. About one month later a friend of mine called to say he had hit this and damaged his wheel and has a flat. I went and helped him get a wheel and tire put on his vehicle. I was shocked to see the poor workmanship that our tax dollars had paid for. Please get a list of work they have done and see what they have been paid by the city for said work over the past two (2) years. I would like to know if there has been any other issues with work performed by them, or bids they have submitted with the city. ADJOURNMENT There being no further business to come before the Council, President Derek D. Dieter adjourned the meeting at 9:27 p.m. ATTEST: ATTEST: • L d /y ♦ . ����� John Voorde, City Clerk Derek D. Dieter, President I I 34