03-25-02 Council Meeting Minutes

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REGULAR MEETING MARCH 25, 2002 Mr. Derek Deiter,1135 Portage Avenue, South Bend, Indiana, inquired ofthe amount of money this action would free up in the General Fund. There was no one else present wishing to speak in opposition to this bill. In rebuttal, Mayor Luecke advised that on an annual basis approximately $1.367 million dollars in the General Fund will be freed up. Councilmember Coleman made a motion for favorable recommendation to full Council concerning this bill. Councilmember Aranowski seconded the motion. Councilmember Varner indicated that it is understood that for quite some time this fire protection charge has been covered in a water rate bill and has then been paid for or reimbursed to the Water Department through the General Fund. He asked if there are discretionary dollars elsewhere within the funds that the City has at its use to make up the $1.367 dollar shortfall at least in the current term. He further stated that he believes that there are funds available and that a portion of the option tax could be used. Also, there are set asides which he assumes have been and will be used for this occasion. Councilmember Varner advised that as long as there are other discretionary funds,. the County Option Tax being one, he is not inclined to pass along this charge to the rate payer since there is already a consideration for this in the property tax. With that in mind, Councilmember Varner advised that he will not be supporting this bill. The motion carried by a voice vote of six (6) ayes and one (1) nay by Councilmember Varner. BILL NO. 18 -02 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING FUNDS FOR CAPITAL EXPENDITURES FOR THE FISCAL YEAR 2002 - $1,600,000 FROM THE COUNTY OPTION INCOME TAX FUND Councilmember Aranowski advised that the Personnel and Finance Committee and the Public Works and Property Vacation Committee met on this bill and sends it to the Council with a 3 -2 favorable recommendation with the President being the tie breaker. Councilmember Varner stated that the minority opinion with regard to this bill is that the contract itself, which is $1.6 million dollars plus four hundred thousand dollars ($400,000.00), which was in the original capital budget and later altered, is necessitated by a no bid contract where it was identified that there were in fact at least three (3) companies which are capable of doing the j ob. He did note for the record that this is not something that is extraordinary or out of the ordinary but is permitted. However, for the taxpayers of the community to receive the best value for their dollar, the idea of bidding when there are three (3) available and qualified sources makes more sense than awarding a no bid contract. He noted, again for the record, that this procedure is not illegal and he is not suggesting that it is not appropriate but is suggesting that on the basis of consideration of the bid process the City might save some dollars which would provide some discretionary dollars which the City is always looking for. Mayor Stephen Luecke, 14th Floor, County -City Building, South Bend, Indiana, made the presentation for this bill, Mayor Luecke stated that when the Capital Budget was presented it included an expense item of $2 million dollars for design fees for public safety facilities for the police and fire offices as well as the central fire station. At that time the Council asked for additional information about the proj ect itself and how the design team was chosen. That information was presented and the Council approved W