02-10-75 Council Meeting Minutes

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REGULAR MEETING FEBRUARY 10, 1975 REGULAR MEETING - RECONVENED (CONTINUED) the city could "go alone" on the project, and Mr. Byers indicated that, as MACOG interpreted the guidelines, the program was areawide. Councilman Taylor indicated that he would support the resolution; however, he was bothered about funds coming from Washington, D.C., and he felt this should be done in a flexible way. He felt that, in the past, block grants have lacked flexibility Mr. Byers indicated that he agreed with Councilman Taylor's remark. Councilman Miller made a motion to reluctantly adopt the resolution, seconded by Councilman Taylor The resolution was adopted by a roll call vote of six ayes (Councilmen Serge, Miller, Taylor, Nemeth, Newburn and Parent), one nay (Councilman Szymkowiak) and one abstention (Councilman Kopczynski). Councilman Horvath was absent. Councilmen Szymkowiak and Kopczynski were of the opinion that additional information was needed concerning the matter. RESOLUTION A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, ESTABLISHING THE AUTHORITY OF THE MAYOR TO DESIGNATE INDIVIDUALS AUTHORIZED TO DRAW ON A LETTER OF CREDIT EXECUTED FOR GRANTS UNDER TITLE I OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974. A public hearing was held on the resolution at this time. Mr. Walter Lantz, Chief Deputy Controlli explained that the resolution would meet the terms of the Community Development Act in providing the means of the receipt of money distributed to the city. This requirements was not needed in th, past; however, now two individuals must sign in order to draw on a letter of credit, and the resolution was required. He stated that this would apply to any funds received under the Communit: Development Act. Councilman Miller asked for an explanation regarding the letter of credit. Mr. Lantz indicated that a bank must be designated as a depository for the city. A letter of credit was used rather than a check. When this was sent to the bank, the city would sign as a receiver and could then draw on that amount. Councilman Miller asked about the regulations required for drawing out of the account. Mr. Lantz indicated that this would be the same procedure as a checki: account. He stated that the resolution, however, did not deal with the disbursement of the funds. Councilman Serge asked about the signatories, and Mr. Lantz indicated that Mr. Barcome, himself or Mr. Hojnacki could be designated. He stated that all expenditures would be handled through the normal process of approving claims. Councilman Nemeth asked about the normal claim procedure. Mr Lantz indicated that the claims are docketed by the City Clerk and then signed and approved by the Board of Public Works. He stated that the Council also reviews the claims and the State Board of Accounts audits. Councilman Nemeth stated that, in effect, the administration would not be coming back to the Council for expenditures of the money. He wondered which bank was to be designated, and Mr. Lantz indicated that the American National Bank would probably be the depository; however, if a large amount of money was given, it could be distributed among the banks Councilman Nemeth wondered who designated the banks, and Mr. Lantz indicated that the Mayor did. Councilman Nemeth wondered about a budget for the program and the appropriations. He wondered if a resolution could be adopted for expending the funds. Mr. Lantz indicated that he was not talkin, about spending the funds, merely receipt of the funds. Councilman Nemeth stated that he wanted to know about the procedure for expenditure. Council President Parent asked that Mr. Lantz outline for the Council in writing the procedure utilized so that it could be made aware of the situation. Councilman Nemeth made a motion to refer the resolution to the Human Resources Committee until the information requested was received, seconded by Councilman Kopczynski. Mr. William Hojnacki, Director of the Department of Human Resources and Economic Development, indicated that he would provide a circular to the Council explaining the procedure. Councilman Miller wondered if the Council had adopted a similar resolution concerning the Manpower Program. Mr. Lantz indicated tha- a resolution of this sort had never been required in the past and two signatures also were not required before. He explained that the Manpower funds were received by check and a fund was established, with a fund number being assigned. Councilman Miller indicated that the Council was concerned about maintaining its integrity on the supervision of the funds of the city. He stated that, in the manpower area, this was done outside the Council's jurisdiction. He did not want the Community Development funds to escape the Council's jurisdiction. Council President Parent felt the matter was clear in that the resolution dealt with the receipt of money - -not the expenditure of it:. He wondered if there was a problem in delaying the issue temporarily. Mr. Hojnacki indicated that the city was anticipating advance funding within the next two weeks and it could not be received until the resolution was passed. He indicated that a one -year plan would be approved by the Council on the expenditure of funds for the program before it was submitted to the federal government. Council President Parent asked that the public hearing be continued to February 24 rather than just referring the issue to committee. Councilman Nemeth indicated that he would withdraw his original motion. He then made a motion to continue the public hearing on the resolution to the February 24th meeting of the Council and also refer the matter to the Human Resources Committee. Councilman Kopczynski seconded the motion. The motion carried. RESOLUTION NO. 473 -75 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING THE AWARDING OF THIRTEEN CONTRACTS IN EXCESS OF $5,000 FOR REHABILITATION WORK IN THE SOUTHEAST NEIGHBORHOOD DEVELOPMENT PROGRAM. WHEREAS, under provisions of Ordinance No. 5689 -74, passed by the South Bend Common Council on June 24, 1974, all contracts in the Neighborhood Development Program in excess of $5,000 must be approved by the Common Council; and WHEREAS, low bids for thirteen properties to be rehabilitated under the Neighborhood Development Program have exceeded $5,000. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana: 1. That approval be granted to the Redevelopment Commission of the City of South Bend, Indiana, to enter into a contract with Area Services, Inc. for the rehabilitation of the following properties: