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HomeMy WebLinkAbout09-28-2026 Personnel & Finance Committee MinutesOFFICE OF THE CITY CLERK BI ANCA L. T IRADO, CITY CLERK PERSONNEL & FINANCE Committee Members Present: Committee Members Absent: Other Council Present: Others Present: Presenters: Agenda: Jasmine Jackson Cl !ILi' DIYLTY Cns C1.1,RK / Ci 111-:F or' ST.\JT SEPTEMBER 28, 2026, 3: 15 P.M. Rachel Tomas Morgan, Ophelia Gooden- Rodgers, Caz Margenau, Karen L. White, Sheila Niezgodski None Canneth Lee Bianca L. Tirado, Jasmine Jackson, Lari'onna Green, Veronica Pitt-Payne, Bob Palmer Kyle Willis, Chris Kubaszak, Canneth Lee Bill No. 60-26 -Q3 2026 Additional Appropriations Bill No. 61-26 -Q3 2026 Budget Transfers Bill No. 65-26 -2027 Annual Budget Appropriation and Property Tax Levy Bill No. 66-26 -Q3 2026 Non-Bargaining Salary Ordinance Amendment Bill No. 68-26 -2027 TRANSPO Budget Appropriation and Property Tax Levy (Substitute) Bill No. 26-32 -Resolution Supporting Executive Order No. 01-2026, the Data Center Transparency & Accountability Order Prohibiting Nondisclosure or Other Confidentiality Agreements INTEGRITY I SERVICE I ACCESSI BILITY Mattl1e,v Neal D uy1 Y CITY CLERK ; D 1RHTOR 01 Poi .ICY Veronica Pitt-Payne DIRHTOR 01· SPEC! \I. PROJITT~ EXC ELLENCE ! ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 300 City Hall! 215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.9173 i www.southbendin.gov ® CITY OF SOUTH BEND I OFFICE OF THE CITY CLERK Members marked with an asterisk(*) are in virtual attendance. Please note the attached link for the meeting recording: https://docs.southbendin.gov/WebLink/Browse.aspx?dbid=0&repo=sbend&mediaid=414288 Committee Chair Sheila Niezgodski called to order the Personnel and Finance Committee meeting at 3: 15 P.M. Bill No. 60-26 -Q3 2026 Additional Appropriations Kyle Willis, City Controller, with offices on the second (2nd) floor of City Hall, South Bend, [N 46601 , presented the bill. He highlighted key appropriations, including a one-point-eight million dollar ($1,800,000) distribution of Building Department revenue to the City and county, a two- point-one-eight million dollar ($2,180,000) appropriation for a fuel station project at Central Services, and a three-million dollars ($3,000,000) appropriation for a sewer extension project. Committee Vice Chair Karen L. White asked if all remaining American Rescue Plan (ARP) dollars have been allocated. Kyle Willis confirmed that all remaining ARP funds have been allocated to the MLK Dream Center, and they have been expended. He said the ARP appropriation is for a transfer of earned interest out of that fund. Committee Vice Chair White asked for confirmation that one-million dollars ($1 ,000,000) in earned interest was transferred. Kyle Willis confirmed that is correct. Committee Vice Chair White asked how many City employees have used parental leave. Kyle Willis said he is unsure how many individuals have used the program. He explained that the Parental Leave fund has built up a balance over the years because parental leave benefits are typically paid out of department budgets. He said the City will look into whether this specific fund is still needed. Committee Member Rachel Tomas Morgan asked about the appropriation for parking garage expenses. Kyle Willis stated that the parking garage appropriation is for reimbursement of operator expenses. Council President Canneth Lee asked whether the transfer of earned interest from the ARP fund meant the City was closing the account. Kyle Willis confirmed that is correct. Council President Lee discussed the possibility of using the earned interest from the ARP account to fund the Council curb and sidewalk allocation program. Kyle Willis confirmed that City administration is looking for other ways to support the Council EXCELLENCE ' ACCOUNTABILITY IN NOVATION INCLUSION EMPOWERMENT 300 City Hall I 215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 I p. 57 4.235.9221 If. 57 4.235. 9173 I www.southbend1n.gov i@ CITY OF SOUTH BEND I OFFICE OF THE Cff'f CLERK curb and sidewalk allocation program Committee Chair Niezgodski held the public hearing, and nobody spoke. Committee Member Tomas Morgan moved to send Bill No. 60-26 to the Committee of the Whole with a favorable recommendation, which was seconded by Committee Member Ophelia Gooden- Rodgers and carried by a vote of five (5) ayes. Committee Chair Sheila Niezgodski -Aye Committee Vice Chair Karen L. White -Aye Committee Member Ophelia Gooden-Rodgers -Aye Committee Member Rachel Tomas-Morgan -Aye Citizen Member Caz Margenau -Aye Bill No. 61-26 -Q3 2026 Budget Transfers Kyle Willis presented the bill. He said there are two (2) very small transfers: one-thousand-eight- hundred-sixty dollars ($1,860) within the Youth Council budget, and one-thousand dollars ($1,000) within the Human Rights Commission budget. Committee Member Gooden-Rodgers asked what the Human Rights Commission budget transfer was for. Kyle Willis said it was used to cover general office supply expenses. Committee Chair Niezgodski held the public hearing, and nobody spoke. Committee Member Gooden-Rodgers moved to send Bill No. 61-26 to the Committee of the Whole with a favorable recommendation, which was seconded by Committee Member Tomas Morgan and carried by a vote of five (5) ayes. Committee Chair Sheila Niezgodski -Aye Committee Vice Chair Karen L. White -Aye Committee Member Ophelia Gooden-Rodgers -Aye Committee Member Rachel Tomas-Morgan -Aye Citizen Member Caz Margenau -Aye Bill No. 65-26 -2027 Annual Budget Appropriation and Property Tax Levy Kyle Willis presented the bill. He noted that the Notice to Taxpayers for this levy has been distributed. He said there will be a budget update tonight at the 7:00 P.M. Council meeting. Committee Chair Niezgodski noted that the bill is being heard for public hearing only, and the vote will take place at the next Council meeting. Committee Chair Niezgodski held the public hearing, and nobody spoke. Committee Member Tomas Morgan moved to send Bill No. 65-26 to the Committee of the Whole with a favorable recommendation, which was seconded by Committee Vice Chair White and carried by a vote of five (5) ayes. Committee Chair Sheila Niezgodski -Aye Committee Vice Chair Karen L. White -Aye Committee Member Ophelia Gooden-Rodgers -Aye Committee Member Rachel Tomas-Morgan -Aye EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 300 City Hall I215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.9173 1 www.southbendin.gov ® cnY OF SOUTII BEND I OFFICE OF THE CITY CLERK I Citizen Member Caz Margenau -Aye Bill No. 66-26 -Q3 2026 Non-Bargaining Salary Ordinance Amendment Kyle Willis presented the bill. He explained the proposed salary increase for the Project Manager position in the Office of Diversity and Inclusion, noting that the staff member in this role has been serving as Acting Director. He said the salary increase ensures that this staff member will not receive a drastic pay cut when the Director role is filled. He said the amendment also adds two (2) positions from the Department of Innovation and Technology to the salary ordinance. Committee Chair Niezgodski asked about the two (2) added positions. Kyle Willis confirmed that these are existing positions that were inadvertently omitted from the salary ordinance. He confirmed that these positions have been budgeted for. Committee Chair Niezgodski thanked Kyle Willis for the clarification. Committee Vice Chair White asked if the employees in these positions are paid at their salary caps. Kyle Willis said he is unsure, but offered to check and follow up. Committee Member Gooden-Rodgers asked about the timeline for filling the vacant Director position in the Office of Diversity and Inclusion. Kyle Willis said that would be a question for the Mayor's Office, noting that it is a Mayor- appointed position. He confirmed that the position has been vacant for a while, and the intent is to fi 11 it. Committee Member Tomas Morgan asked for confirmation that the Project Manager salary is being raised because the staff member in this role has been serving as an interim Director for the past year. Kyle Willis confirmed that is correct. Committee Member Tomas Morgan asked if that staff member's salary would revert once a new Director is hired. Kyle Willis explained that the proposed cap increase would apply once that individual returns to the Project Manager role. He said the staff member is currently paid at the Director level. Committee Chair Niezgodski held the public hearing, and nobody spoke. Committee Member Gooden-Rodgers moved to send Bill No. 66-26 to the Committee of the Whole with a favorable recommendation, which was seconded by Committee Member Tomas Morgan and carried by a vote of five (5) ayes. Committee Chair Sheila Niezgodski -Aye Committee Vice Chair Karen L. White -Aye Committee Member Ophelia Gooden-Rodgers -Aye Committee Member Rachel Tomas-Morgan -Aye Citizen Member Caz Margenau -Aye EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 300 City Hall ! 215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.9173 1 wvvw.southbendin.gov CHY OF SOlJI'H BEND I OFFICE OF THE CITY CLERK Bill No. 68-26 -2027 TRANSPO Budget Appropriation and Property Tax Levy (Substitute) Committee Chair Niezgodski entertained a motion to accept the substitute bill. Committee Member Gooden-Rodgers moved to accept Substitute Bill No. 68-26, which was seconded by Committee Vice Chair White and carried via a vote by voice. Chris Kubaszak, Chief Executive Officer of Trans po, with offices at 140 l South Lafayette Boulevard, South Bend, IN 46601 , presented the bill. He noted that the 2027 Transpo budget is balanced at twelve-million-six-hundred-ninety-six-thousand-five-hundred-thirty-three dollars ($12,696,533) in both expenses and revenue. Fifty-six percent (56%) ofrevenue comes from local tax revenue and passenger fares, and federal funding covers twenty-eight percent (28%) of operating costs. Salaries and Wages represent seventy-seven percent (77%) of expenses, and ninety-nine percent (99%) of all expenses are driven by service levels and staffing, leaving only one percent (1 %) controllable without service adjustments. Chris Kubaszak gave a detailed breakdown ofTranspo's operating expenses. He noted increases in health insurance, vehicle insurance, worker's compensation, and utility costs. He said labor costs for 2027 are also expected to increase, since the collective bargaining agreement is being finalized. He said he does not expect the wage increase to exceed the budgeted amount. The main budget challenges are an anticipated reduction in property tax revenue due to Senate Enrolled Act One ( l ), and the local income tax changes expected for 2030. He spoke about challenges with federal funding and noted that their Public Mass Transit Fund allocation has been flat for more than five (5) years. He elaborated on rising capital costs, noting that there has been a two-hundred- thousand dollar ($200,000) price increase for fixed-route buses over the last five (5) years, and the cost of ADA vehicles has doubled. Chris Kubaszak then spoke about Transpo's community value. He said they employ over one- hundred ( l 00) individuals and bring four-million dollars ($4,000,000) in federal funding to the City annually. He said they seek to utilize local vendors whenever possible, and last year, over one-million-dollars ($1 ,000,000) from their operating fund was spent with local businesses. He said forty-two percent ( 42%) ofTranspo rides serve ADA paratransit users and students, and over fifty percent (50%) of all rides serve underserved community members. He noted that they are seeking to hire drivers, mechanics, and service line workers, and they are looking for ways to upgrade their scheduling software. Committee Chair Niezgodski asked Chris Kubaszak to elaborate on funding challenges and changes to federal grants. Chris Kubaszak explained that many federal grants for green projects have been eliminated, which prevents them from pursuing this type of capital project. He said funding for fixed-route buses is their primary focus, since the fleet includes eighteen ( 18) vehicles that were acquired in 2014 and are now eligible for replacement. He noted that for the past two (2) years, competitive grants have included language that prioritizes larger systems. Committee Member Gooden-Rodgers asked Chris Kubaszak if he foresees that the City will always have a bus route. EXCELLENCE \ ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 300 City Hall I 215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.9173 1 www.southbendin.gov {~ CTIY OF SOUTH BEND I OFFICE OF THE CITY CLERK Chris Kubaszak expressed hope that the City will always have a bus route but acknowledged uncertainties with state and federal funding. He noted that fares only account for twelve percent ( 12%) of Trans po' s revenue, and fares are among the lowest in the state. Council President Lee asked about a potential fare increase. Chris Kubaszak explained that fare increases pose a challenge due to the potential tradeoff between cost and ridership. He noted that ADA riders are disproportionately impacted by fare increases since ADA rides cost double the fixed-route fare. He said some riders would not be able to afford a fare increase, especially ADA riders on fixed incomes. He added that federal regulations require a fare analysis study before any fare increases. Council President Lee asked if increasing ridership would help. Chris Kubaszak stated that increasing ridership is the best approach. He noted that the majority ofrevenue comes from local taxes, and changes to those amounts have the most significant budget impacts. He also stated that Transpo is approaching the maximum amount of federal money that can be used for operating expenses, limiting the amount of federal money that can be spent on capital. Committee Member Tomas Morgan acknowledged that several buses from 2014 need replacement and noted that fi xed-route buses often operate below capacity. She asked if purchasing smaller buses would make financial sense. Chris Kubaszak confirmed that there would be a lower capital cost, but he explained that operating costs would increase because smaller buses cannot use compressed natural gas (CNG). He said their CNG fueling infrastructure puts their fuel prices around one dollar and seventy cents ($1. 70) per gallon, and the current price of diesel is six dollars ($6) per gallon. Committee Member Tomas Morgan asked about electric buses. Chris Kubaszak said electric buses were considered during a fuel source study last year, but the battery capacity would be insufficient for Transpo's performance needs, particularly during the winter. He elaborated on the challenges posed by charging logistics and infrastructure needs. Committee Chair Niezgodski opened the public hearing. Bill Binder, 1223 Woodward Avenue, South Bend, IN 46616, asked if Transpo has long-term contracts with set prices for diesel. He asked if ridership studies show that any particular route has fewer passengers, and whether smaller buses could be used on routes with low ridership. He asked if electric buses are more or less costly to maintain. He noted that fare revenue is low and asked about the possibility of offering an Uber-style bus service for small groups. Chris Kubaszak responded. He confirmed that there are no diesel vehicles in the fleet, with the fixed-route buses running on CNG and the smaller ADA buses running on unleaded gasoline. He noted that gasoline is purchased through the City and therefore tax exempt. He said electric buses are more expensive to purchase than CNG buses, and installing charging infrastructure would be an additional cost. He noted that battery performance is also a concern. He confirmed that EXCELLENCE I ACCOUNTABILITY , INNOVATION INCLUSION EMPOWERMENT 300 City Hall I 215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 t p. 574.235.9221 If. 574.235.9173 1 www.southbend1n.gov ® CfIT OF SOUTII BEND I OFFICE OF THE CITY CLERK ridership is tracked for each route, and service changes were made in September based on these numbers. He acknowledged the concern about low revenue and noted that increasing fares may make rides inaccessible for the people who need them. Sue Kesim, 4022 Kennedy Drive, South Bend, IN 46614, noted that ADA rides are the highest operating expense and that ADA buses run on gasoline. She said La Porte, Indiana has used propane-powered buses for ten (10) years and asked why Transpo has not considered this technology. She asked why Transpo has not considered driverless vehicles, noting that this would reduce labor costs and that Amazon is successfully using driverless large rigs. Chris Kubaszak responded. He said propane conversion is a great idea, but fueling propane buses would require a significant investment in new fueling infrastructure. He stated that labor is the primary cost driver for ADA rides, not gasoline. He noted that ADA passengers often require assistance getting on and off the bus, and there needs to be a driver present to operate the lifts. He said he is unaware of any other cities that currently use thirty-five (35)-foot driverless vehicles, and Transpo does not want to be the first (1 st) to try to implement the technology. Committee Chair Niezgodski closed the public hearing. Committee Member Gooden-Rodgers moved to send Substitute Bill No. 68-26 to the Committee of the Whole with a favorable recommendation, which was seconded by Committee Member Tomas Morgan and carried by a vote of five (5) ayes. Committee Chair Sheila Niezgodski-Aye Committee Vice Chair Karen L. White -Aye Committee Member Ophelia Gooden-Rodgers -Aye Committee Member Rachel Tomas-Morgan -Aye Citizen Member Caz Margenau -Aye Bill No. 26-32 -Resolution Supporting Executive Order No. 01-2026, the Data Center Transparency & Accountability Order Prohibiting Nondisclosure or Other Confidentiality Agreements Council President Canneth Lee, 1929 North Huey Street, South Bend, IN 46628, presented the bill. He stated that it is a resolution supporting Mayor Mueller's Executive Order, the Data Center Transparency and Accountability Order. He explained that the executive order prohibits City employees and appointees from entering into non-disclosure agreements (NDAs) with data centers that would restrict transparency beyond what applicable law already permits. He said it also affirms the status of data center project agreements as public records subject to the protections that state and federal law already provide. He noted that there is currently one ( l) active NDA between the City and Amazon, and it is set to expire at the end of the year. Committee Chair Niezgodski opened the public hearing. Sue Kesim, 4022 Kennedy Drive, South Bend, IN 46614, spoke in opposition. She said she is not against transparency and accountability, but she believes it should be an ordinance instead of an executive order. She expressed broader transparency concerns and said there should be a comprehensive sunshine ordinance that includes NDAs. EXCELLENCE I ACCOUNTABILITY INNOVATION I INCLUSION I EMPOWERMENT 300 City Hall 1215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.9173 I www.southbend1n.gov ® CITY OF SOUTH BEND I OFFICE OF TIIE CITY CLERK Committee Chair Niezgodski closed the public hearing. Committee Member Tomas Morgan moved to send Bill No. 26-32 to the Full Council with a favorable recommendation, which was seconded by Committee Member Gooden-Rodgers and carried by a vote of five (5) ayes. Committee Chair Sheila Niezgodski -Aye Committee Vice Chair Karen L. White -Aye Committee Member Ophelia Gooden-Rodgers -Aye Committee Member Rachel Tomas-Morgan -Aye Citizen Member Caz Margenau -Aye Committee Chair Niezgodski acknowledged Citizen Member Margenau and thanked her for her ongoing participation in the budget process. With no further business, Committee Chair Niezgodski adjourned the Personnel and Finance Committee meeting at 4:21 P.M. Respectfully Submitted, Sheila Niezgodski, Committee Chair EXCELLENCE I ACCOUNTABILITY I INNOVATION ' INCLUSION EMPOWERMENT 300 City Hall I215 S. Or. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.9173 1 www.southbendin.gov