01-28-08 Personnel and Finance Standing Committee

Home Browse Search

Personnel and Finance Committee January 28, 2008 Page 2 receive similar increase as those proposed for the Teamsters. He has filed an ordinance which will receive first reading this evening which would also increase the salaries of non-bargaining employees to the 3% level. Mayor Luecke stated that he is requesting that both ordinances be made retroactive to January 1, 2008. Interim City Controller John Murphy stated that the proposed Teamster increases "are affordable and within budget". He noted that not all salaried positions are filled. The City Administration will monitor the situation and if necessary will file an additional appropriation. Jim Scucz Business Agent for Teamsters Local Union No. 364, with offices located at 2405 East Edison in South Bend noted that he and Robert Warnock III are in favor of Bill No. 89-07. No one from the public spoke in opposition. Council Member Kirsits made a motion, seconded by Dr. Varner that Bill No. 89-07 be recommended favorably to Council. The motion passed. Bill No. 08-10: Resolution Regarding The Lease for the New Public Works Service Center: Council Member LaFountain called for the formal presentation on Bill No. 08-10 which addresses an amendment of the lease with the City of South Bend Building Corporation dated March 1, 2001 and an Addendum to the Lease dated April 23, 2001 regarding the construction and equipping of a new Public Works Service Center Facility. Interim City Controller John Murphy made the formal presentation. The resolution will authorize the city of South Bend Building Corporation to refund its 2001 COIT Lease Rental Revenue Bonds. As a result of this action, the city should realize a savings in debt service costs of about $90,000 per year for years 2008 through 2021. Hershel Frierson of Crowe Chizek, Indianapolis, Indiana noted that with declining interest rates, an interest rate of 3.7% will equal between $88,000 to $92,000 of savings per year. In response to a question from Dr. Varner, Mr. Frierson stated that the projected yearly savings is the amount after the cost of issuance. Re-issuance costs are calculated to be about $185,000. Council Member Kirsits made a motion, seconded by Dr. Varner that Bill No. 08-10 be recommended favorably to Council. The motion passed.