02-23-76 Council Meeting Minutes

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REGULAR MEETING FEBRUARY 23 1976 he knew the representative cost of a mile of four lane street. Mr. Farrand said it averaged out to about $400,000 a mile. He said this figure was based on the engineer's estimate with a little bit of contingency fund thrown in. Mr. Evans said the county estimates $80,000 per mile for a two lane road. Mr. Farrand said that the county does not have to provide curbing on both sides of the road, or storm sewers. Mr. Evans asked if Mr. Farrand was satisfied with this estimate. Mr. Farrand indicated that the bids should be competitive at this time of year, and he thought th price would be favorable. Councilman Serge made a motion the ordinance be recommended to the Coun it favorably, seconded by Councilman Taylor. The motion carried. ORDINANCE AN ORDINANCE TRANSFERRING THE SUM OF $250,000 BETWEEN VARIOUS ACCOUNTS IN THE CUMULATIVE CAPITAL IMPROVEMENT FUND OF THE CITY OF SOUTH BEND, INDIANA This being the time heretofore set for public hearing on the above ordinance, proponents and opponents were given an opportunity to be heard. Mr. Peter Mullen, City Controller, made the presentation for the ordinance. He said this ordinance was to transfer $125,000 from Account 260, Century Center, and $125,000 from Account 440, Other Materials, to Account 810, Bonds & Notes. He said he felt everyone was aware of the arrearage in the Municipal Garage Sinking Fund, he said there was a balance of $50,000 and the fund was in arrears $425,000. He said in order to main- tain current annual payments $146,250 per year must be placed in the fund by December 31, 1976. He said by maintaining this annual payment there will be accumulated $675,000 in the fund and the fund will be current. He said there was a need to preserve our bond ratings, and that several security firms have communicated their concern regarding the garage bonds. He said it was their intention to utilize the $250,000 by directing it into the Sinking Fund. He said they would apply $156,250 towards the term bond requirements and the remainder of $93,750 could be applied toward serial bond payments due this year. He said they intended to test two hour free parking in the garages for approximately 90 days. He said this would cost about $73,750, and the loss of revenue from the parking meters on Saturdays and Monday nights amounts to $20,000, therefore, the $93,750 could be used for that purpose. He said they would raise the existing rates at both garages from the third hour. He said the allowed two hour free parking would incur an annual loss of $42,000, however, the raise in rates from the third hour on would make the loss approximately $6,271.20. He said the downtown merchants had agreed to pay the cost of the $6,200. They will pay the pro rata portion for whatever time the program is in effect. Kathleen Cekanski, the Council's attorney, said she had researched this question and found that the proposed transfer of $125,000 from Account No. 260 (Century Center) and $125,000 from Account No. 440 (Other Materials) to Account No. 810 (Bonds & Notes) would be an illegal transfer under Indiana law. Council President Parent asked Ms. Cekanski if she was telling them they could not act on this ordinance, and she indicated it would not be proper. Ms. Cekanski said that as far as two fold plan for the parking garages, the Council is without power to act on the proposal. She said the plan should have been submitted in resolution or ordinance form to the Board of Works and then to the Common Council. what Mrs. Irene Mutzl, 320 Parkovash, asked if she understood correctly, thatnwas being asked could not be allowed. Councilman Horvath said that was correct in the Council attorney's opinion and this had been checked with the State Board of Accounts. Mrs. Mutzl said she wondered why this had not been researched. Council President Parent said he had requested the attorney's opinion not expect anything like this. Mrs. Mutzl said she wondered if a question about the complete financing of the garages would be in order, and Councilman Horvath indicated it would. Mrs. Mutzl asked if Community Development Funds could be used to finance the garages. She said the citizens were concerned about the city defaulting on the bonds. She said the garages should be owned by private enterprise. She also `indicated that the citizens do not want to see the garages refinanced for four years, therefore, she wanted to know if there was any possible way that Community Development Funds could be used. Mayor Peter J. Nemeth said that Community Development Funds could not be use Mr. Gene Evans, Executive Secretary of the Civic Planning Association, said he was surprised that the Council had not moved to withdraw consideration of the ordinance. He said if the ordinance was passed,-it would zero out Account 440 (Other Materials) and there would be no money to meet any needs of the Street Department. He said he would urge the Council not to make the transfer at this time. He said money should be kept in the fund to meet emergency needs. He said we coulc have more snow. Thomas Brunner, City Attorney, said based upon some rather hurried research, the, disagreed with the conclusion ofa:the Council, and if possible would like to take a ten minute recess to see if they could get together. Council President Parent made a motion to recess in order that the City and Council attorneys could find a solution to the problem, seconded by Councilman Adams. The motion carried. The meeting recessed at 7:55 p.m. COMMITTEE OF THE WHOLE MEETING - RECONVENED Be it remembered that the Common Council of the City of South Bend reconvened in the Committee of the Whole Meeting in the Council Chambers at 8:45 p.m. Chairman Frank Horvath presiding. Councilman Taylor made a motion to continue the public hearing until March 8, and the Administra- tion will come up with an accompanying ordinance at that time, seconded by Councilman Serge. Councilman Miller said he would have to disagree with the motion, he said the first obligation of the Council is to protect the interest of the City financially. He said he felt a two week delay was not necessary. He said he felt the transfer of this money legitimately concerned the Council, and he would accept the report from the Council's attorney as being correct, however, this does not deny the power to the Council to transfer the funds within the CCIF with full insurance and full intent to replace the money before the end of the year. Council President Parent said there was still some vagueness in whether or not we can go ahead and appropriate the funds. Eventually the money will be transferred, but there are certain criteria that has to be met. He said that in regard to the security company (Standard & Poor), there is no threat that if we do not appro- priate the funds they will sue us, so he thought the public hearing could be delayed two weeks an( hear both ordinances at that time. A roll call vote was taken on the motion, and the motion passed with five ayes (Councilmen Serge, Taylor, Dombrowski, Horvath and Parent) to four nays (Councilmen Szymkowiak, Miller, Kopczynski, and Adams).