CITY OF SOUTH BEND - COUNCIL MEETING - May 8, 2017

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1-2. CALL TO ORDER AND PLEDGE OF ALLEGIANCE

The council meeting was called to order by Mayor Struck at 5:30 pm followed by the Pledge of Allegiance. Members present: Councilor Kuiken, Councilor Neve, Councilor Webber, Councilor Hall, Police Chief Eastham, City Supervisor Houk and Clerk/Treasurer Roberts. Councilor Williams was absent. (Excused)

3. APPROVAL OF AGENDA, CONSENT AGENDA, AND APPROVAL OF MINUTES

A motion was made by Councilor Neve to approve the Agenda, Consent Agenda and the minutes of the April 24, 2017 regular meeting. The motion was seconded by Councilor Kuiken. Vote: Ayes-4, Noes-0, Absent-1

Vendors - Check #42977 thru Check #43021 - $113,347.58

Payroll - Check #24245 thru Check #24259 - $91,445.09 Including Direct Deposit

4. CORRESPONDENCE

Clerk/Treasurer Roberts explained that the family of Mel & Fran Gibbons recently donated some property to the city that is located near Cheney Park. The value of the property according to the county accessor is approximately $16,500. The family has respectfully requested that the city place a bench near the park in their parent’s memory. The cost of the bench will be around $500-$700 depending on the cost of the lettering. City Supervisor Houk advised that there is a spot near the gazebo with a concrete slab where the bench can be placed. Councilor Hall made a motion authorizing the purchase and placement of a bench near Cheney Park in memory of Mel & Fran Gibbons. The motion was seconded by Councilor Webber. Vote: Ayes-4, Noes-0, Absent-1

5. ORDINANCE #1523 – 2017 BUDGET AMENDMENTS (ONE READING ONLY)

Clerk/Treasurer Roberts presented Ordinance #1523 – 2017 Budget Amendments. She briefly explained that Fund 630 is a new fund as requested by the state auditors and was not budgeted for and that Fund 701 revenues needed to be amended due to an additional interfund loan payment that was not budgeted. Clerk/Treasurer Roberts also requested it pass with one reading only. Councilor Neve made a motion to accept Ordinance #1523 – 2017 Budget Amendments as presented with one reading only. The motion was seconded by Councilor Webber.Vote: Ayes-4, Noes-0, Absent-1

6. GARBAGE TRUCK FUNDING OPTIONS

Clerk/Treasurer Roberts and Mayor Struck presented the funding options available for the purchase of the city’s new garbage truck. Total loan would be for $250,000.00. Each Option (A & B) represented a local bank that had submitted a funding proposal:

Option A:
6 Years – 72 monthly payments @ $3,910.16 = $281,531.52 (Interest Rate 3.99%)
7 Years – 84 monthly payments @ $3,416.05 = $286,948.20 (Interest Rate 3.99%)
Loan Fee $1,250.00 plus $35.00 document Fee

Option B:
5 Years – 60 monthly payments @ $4,586.00 = $275,160.00 (Interest Rate 3.75%)
6 Years – 72 monthly payments @ $3,950.00 = $284,400.00 (Interest Rate 4.25%)
No Loan Fees

During discussion several of the options were discussed and what would be best for the city and how the different payments would impact the garbage fund. Ultimately it was agreed that a longer term payment would be better and as the garbage fund began to rebound the city would make larger payments to pay off the loan sooner. Clerk/Treasurer Roberts advised that there was no penalty for early payoff.

Following discussion Councilor Hall made a motion to accept Option A – 7 Years – 84 monthly payments @ $3,416.05 = $286,948.20 (Interest Rate 3.99%). The motion was seconded by Councilor Kuiken.
Vote: Ayes-4, Noes-0, Absent-1

7. ITEMS FROM THE PUBLIC

None

8. DEPARTMENT HEAD REPORTS
  • Police Chief Eastham noted that Officer Gonzalez is doing a very nice job and is active at the South Bend High School with TAC (Teen Action Coalition). Patrick Jo will be graduating from the police academy on June 28th.
  • City Supervisor Houk reported that Light Creek Dam will be back on line this week. (See March 17th and 27th Council Minutes) The ground has finally stabilized and it should take about a ½ day of work which will be done on Wednesday, May 10th.
9. MAYOR’S REPORT
  • Mayor Struck explained that Pacific County is proposing a sales tax increase of .001% to fund criminal justice. Mayor Struck further explained that, beginning in 2012, the state legislature has diverted millions of dollars from cities and counties back into the state’s coffers which has created a huge shortfall for many cities and counties in the state. The state feels that each city or county should find their own way to resolve their financial issues and one way to do that is to increase sales tax. The .001% increase amounts to 1¢ on $10.00 and will generate about $250,000. The City of South Bend would get approximately $26,000 of that for criminal justice funding. This type of increase does not require voter approval, it can be passed by the county commissioners. Pacific County has requested this information be presented to each city and have requested support of their proposal. Councilor Hall made a motion that the City of South Bend stand in support of Pacific County’s proposed .001% sales tax increase. The motion was seconded by Councilor Neve. Vote: Ayes-4, Noes-0, Absent-1
  • Mayor Struck spoke about some of the sessions she attended at the Labor Relations Institute (LRI) – particularly Workplace rights in a time of trial: First amendment, flag burning and beyond which she said was very good. She explained that elected officials, teachers and fire & police are held to a higher standard with fewer 1st amendment rights. They are considered positons of respect and trust and it can be asked if the speech or behavior disrupts the workplace and/or does the behavior or speech criticize the public they serve. The more the position commands respect by the community the greater the employer has the right to curtail the speech of their employees. If the job is public facing it is that employee’s responsibility to foster community trust and respect.
  • Mayor Struck also noted that she attended several contract negotiation sessions that that she felt were very beneficial as well.
10. COUNCIL COMMENTS
  • Councilor Hall asked if there was a schedule established for the Cheney Park Baseball Field revamp yet. Police Chief Eastham explained that there might be some work that will start in June but the majority of the work will begin in September. Councilor Kuiken also pointed out that there might be even more money available through grants than anticipated so the project will be easily fully funded.
  • Councilor Hall noted that he had been on vacation for a couple of weeks and he didn’t have anyone check the envelopes at the boat launch while he was out of town. There were still two envelopes left when he returned on Saturday along with a nice note from a tent camper thanking the city for the great location, appreciation for the inexpensive place to camp, that they wished more cities had such a nice place and that they had a wonderful weekend.
11. ADJOURNMENT

The meeting was adjourned at 6:00 PM to meet again at 5:30 PM on Monday, May 22, 2017 for the next regularly scheduled meeting at South Bend City Hall.