City Council

MINUTES OF THE COMMON COUNCIL OCTOBER 26, 2020 The regular meeting of the Hammond Common Council of the City of Hammond, Lake County, Indiana was held on October 26, 2020 in the Hammond City Council Chambers. Council President Dave W oerpel presided. City Clerk Robert J. Golec facilitated. PLEDGE OF ALLEGIANCE was recited by all. Invocation by Councilwoman Alexander. ROLL CALL PRESENT: Alexander, Spitale, Venecz, Kalwinski, Torres, Tyler, Emerson, Rakos, Woerpel ABSENT: None TOTAL: 9 READING OF THE MINUTES Councilman Spitale, supported by Councilwoman Venecz, moved to accept the minutes of October 13, 2020 and place on file AYES: ALL APPROVAL OF CLAIMS Councilman Rakos, supported by Councilwoman Venecz, moved to approve the claims from October 7, 2020 through October 21, 2020. Claim #4910 through #5135, inclusive. ROLL CALL VOTE A YES: Alexander, Spitale, Venecz, Kalwinski, Torres, Tyler, Emerson, Rakos, Woerpel NAYS:None ABSENT: None Motion Carried 9/0/0 CLAIMS APPROVED PUBLIC HEARINGS 20-25 An Ordinance Amending the Schedule of Rates and Charges for Water Services Furnished by the Hammond Water Works Department Mayor McDermott - I'm up here to speak about the water rate increase, basic facts about Hammond's water rate. First off, Hammond is the, domestic utilities' supplies water in Indiana to Whiting, obviously to the City of Hammond, Highland, Munster, Dyer and Griffith, all right. We also supply water to Illinois that does not go to the water utility. The water utility, is Indiana utility makes only money in Indiana, we are talking about a rate increase only affects Indiana communities. So for communities in Illinois, this has nothing to do with them, at all. This proposed rate increase doesn't affect their contracts with the City of Hammond in the slightest bit. The existing rates, in the City of Hammond, for water, is measured in thousand (1,000) gallon increments. Each house typically uses about 5,000 gallons a month, so you use those numbers when we're talking about the Prepared by Robert J. Golec Hammond City Clerk 1 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26. 2020 PUBLIC HEARINGS cont. Mayor McDermott cont. - impact it will have on Hammond residents. But we sell water to all of our customers, in Indiana, for $.44 for a 1,000 gallons. Now what happens to the water when it goes to other communities, it's charged quite differently and we will discuss that as they come up. But in Hammond, residents pay $.44 for a 1,000 gallons, these rates went into effect in 1985 and they haven't been changed since. You know, my father was Mayor when this went into effect, I wish that they were looking far enough down the road, at the_time they put in a simple escalator, 2% a year, 3% a year, it automatically adjusts. If they did 3% a year, automatic adjustment back in 1985, all of our lives would be much easier right now, but the rate would be like a $1.10 for a 1,000 gallons. Which funny enough, it's pretty close to what the IURC told us it actually costs us to make a 1,000 gallons of water. In 2018 the Indiana Utility Regulatory Commission, which is an independent agency, audited the Hammond Water Department, and told us it costs a $1.11 to make a 1,000 gallons of water and we sell it for $.45 for a 1,000 gallons. Which results in the water utility being flat broke, barely able to pay payroll. Not really doing things, like investing in its infrastructure, investing in new tanks, in fact, the latest water ~anks project being undertaken in the Hammond Water Department is being financed by the City of Hammond, funny enough. Ifwe get the proposed rate increase the $1.90 per 1,000 gallons that allowed the Water Utility to use these funds for capital improvements to the :filtration plant and the distribution systems that are badly needed. And I'd like to remind my neighbors or neighbors that are here today from our customer communities, if Hammond's water system filtration system fails, it would be a catastrophic event, not just for Indiana, ~otjust for Hammond, for the south side of Chicago as well. Our customer communities are Lansing, Calumet City, Chicago Heights, Homewood soon to be, would not have a source of water either if that were to happen. A lot of our neighbors are going to come in here and talk about this being a hardship to you, so I just want to get you ready for this, what your going to hear from our customer communities. Town of Whiting buys water from the City of Hammond at $.44, but the typical resident in Whiting uses 5,000 gallons a month, it costs $24.16 for 5,000 gallons, it costs the average Whiting resident per month. It only costs Whiting $2.25 to receive that water. That's a 1,100% markup on what it actually costs to produce that water and we gave them water that's ready to drink. They mark it up 1,100% and use 27 million gallons of water per month. Twelve (12) months a year, Town of Whiting, City of Whiting, uses 324 million gallons of water per year, at $4.83 per thousand gallons that's a 1.56 million a year source. I'm not here to pick on any of our customer communities, quite frankly City of Hammond should of done this in the mid 80's. We didn't, that's our fault. Hundreds of millions of dollars could of been ... ten's of millions of dollars could have been invested in the infrastructure of the Hammond Water Utility over the years had we done our job the right way in 1985, had I done my job the right way when I took over in 2004, we didn't, I didn't. We have a proposal before you that will make it right. The Indiana Utility Regulatory Commission told us it costs $ 1. 11 to make a 1,000 gallons in 2018, $ I .90 is what it costs plus a little bit on top, so we can invest these badly needed funds in infrastructure of the utility. These waters cannot be ... this money cannot be used in our city budget this can't be used for any projects, it has to be used for the water utility, and that's where the money is gonna go. And if our water utility fails, if the infrastructure and our system fails, and it's old, it affects just not Hammond, it affects everybody in the south side of Chicago basically. So, I'm not trying the pick City of Whiting, I see them here I see other people here as well, I have how much water they actually use, I have how much they actually charge and I know how much it costs them, because we gave it to them. So, we can talk about what the motivations are here. It's not reasonableness, it was unreasonable for us to charge $.45 for a 1,000 gallons, that was unreasonable. That was a mistake, I'll take the blame for it. But right now, we can sell water in Illinois for $3.50 for a 1,000 gallons, and we are only charging $.45. Whose fault is that, our fault. The proposal before you, if you approve it to a $1.90 per 1,000 gallons, Hammond water will still be the cheapest in the State of Indiana. Can I say that one more time, if you approve the rate increase, Hammond Prepared by Robert J. Golec Hammond City Clerk 2 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26, 2020 PUBLIC HEARINGS cont. Mayor McDermott cont. - water will still be the cheapest in the State of Indiana. It's a fact. So, I understand it's a big leap, I would be upset if I was a customer community also, we have contracts to deal with these customer communities and I would to reiterate to everybody, we'll follow the contract 100%, if the contract says you have to delay it, we will delay it. If the contract doesn't, if it's earmarked to what Hammond residents pay, that's what the contract says. We appreciate you as a customer, we want you to continue as a customer, but we intend to follow our contracts to the letter of the law. I'm available for any questions the Council may have. Council President Woerpel - Does anybody have any questions for the Mayor? Does anybody have any questions for the Mayor? Thank you. Does anybody else wish to speak on this issue? Just state your name and your address. Sherry Bradkey-McNeil - I am here on the behalf of the Town of Griffith. And I thank the Mayor for that history, I am not aware of most of it and unfortunately I have to start by objecting to the hearing because I just received notice of this, just a couple hours ago, I had no idea I was coming here today. My understanding is the Town of Griffith received a certified letter today and obviously I have absolutely no ability to check, it had no date on it, which was the notice. Other then, something taking place on October 13 here. But obviously with that history and if that is .. I have no reason to doubt that those were the rates that were put in, in 1985. But if we're gonna have an actual hearing, we have to be given the proper notice in order to prepare for that hearing to get into all that and express our views. So my first objection is that it cannot be held with such notice and I frankly have not even been able to ... I was supposed to be at another hearing at 6:30, so I diverted and I'm here. But, I certainly need to look into all of that in order to have a proper hearing, where both sides can argue their case. But for the record, I will just say that obviously our position will be that, the rates are unreasonable without the proper notice in order to, with what I at least read in the paper quickly and what I just heard is, basically tripling the rates without a proper hearing or notice or figuring this all out. So we have to object, obviously, and certainly I would ask that the Common Council would not vote on this until time we can have discussions and ability to have a hearing like this and provide you with every response to what the Mayor just discussed. Thank you very much. I assume there's some questions or anything? Council President Woerpel - No, I explained earlier, this is a public hearing. This has been adv;ertised, we've met on this, it was in the paper and this is the public's tum to tell us how they feel. Sherry Bradkey-McNeil - Thank you. Mayor McDermott - Yes, the Mayor has the right to intervene anytime during the Council meeting, I know the Council is aware of that. I just want to remind people that, this is a normal protocol. Town of Griffith, interesting facts, I can also go through how much water they use. But first off, I know all of our customer communities received a letter from the Hammond Water Company a couple months ago, everyone all of our customer communities. All of our Indiana customer communities received notice from the attorney for the Water Board, who's here. Ms. Evanton, do you remember what the date you sent those out? Well while she's looking. I want to inform everybody, Town of Griffith's contract with the City of Hammond Water Department, lapsed at the end of 2019. They don't have a current contract with the City of Hammond Water Company right now. We still sell them water, under the terms of the old contract because we are good neighbors. It's a fact though, the contract expired December 31, 2019 with no notice to renew. So, we need to renegotiate a new Prepared by Robert J. Golec Hammond City Clerk 3 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26, 2020 PUBLIC HEARINGS cont. Mayor McDermott cont. - contract with the Town of Griffith. So while we are talking about that, Town of Griffith uses 4.2 million gallons of water per month, that's 504 million gallons of water per year, they charge their residents $5.79 for a 1,000 gallons, which is a 1,200% markup on what they buy it from the City of Hammond for and profit $2.9 million a year off of Hammond Water. We give them finished water, and they make $3 million a year, every year, which is fine I'm not begrudging them, that's a fact I would be here arguing if I was from the Town of Griffith as well. I would be here mad about this revenue source being jeopardized, ifI was from the Town of Griffith. It's a 1,200% markup, these are facts from the Hammond Water Department. John Hanes - I'm the Clerk/Treasurer of the City of Whiting. I will start off saying thank you for allowing me to talk to you tonight. I'm not sure where the Mayor got his data, but it's not correct. Number one (1) the minimum bill for 3,000 gallons for a customer is not what he said, it is actually $9.03 and if they use 5,000 gallons it's $15. 0 5. Let me give you a little data that I have for the City of Whiting, in 2019 we paid the City or the Water Department $155,712.00 to purchase water. Based on that number, ifwe use the rates that you may pass here as a $1.90, we will pay the Water Works $616,360.00 and increase of $460,648.00. To give you a little perspective our total revenue for metered water in 2019 was $612,938.00. We would be paying the City of Hammond more money to purchase the water then our current revenue. Our profit in 2019 was $30,070.00, so the comments that other communities that are buying water from Hammond are making huge profit, it is not that in Whiting. That's completely fake news. I know your charging your other customers, your retail customers, but we are a wholesaler. And I know there's nothing in the statue that talks about wholesaling. Based on the 313% increase in our water rates, we do not believe we are violating our contracts since the contract indicates, in the event that the utility does request said modification to a single flat rate that Whiting will not unreasonably object to join any petition file any required documents or attend proceedings which may be necessary to affect said modification before the Indiana Regulatory Commission or any other public body. And agrees to abide by such adjusted single flat rate and to pay the same. The key word in that contract is, unreasonable and we are saying before this public body that a 313 % increase is not reasonable. In December of 2017 the Hammond Water Works Department petitioned the Indiana Utility Regulatory Commission to seek $7.5 million in revenue bonds, from the Hammond bond bank. You also indicated in that petition that the principal and interest of the new Water Works revenue bonds will pay the principal and interest of a new Water Works revenue bonds. What is surprising, is that you said you would not have to increase rates, that your normal operating expenses would be paid. So you weren't asking for a water rate increase. My question to the Council, you won't have the answer obviously, is what has significantly happened since December of 2017? When you were going to raise $7.5 million and you weren't going to raise rates because you said you had enough money to run those operations. One other thing, the Honorable Mayor McDermott said we were paying $.44, we're paying $.46. Mayor McDermott - That is probably true, I apologize Clerk. And I would like to point out to the Clerk that usually in our assumption of $24.16 per 5,000 gallons, which is what we did for everybody wasn't particularly Whiting sir. In Whiting it costs you $9.06 per month just to hook up to the system, in Hammond it costs you $3.00, ok, in Whiting it costs you $9.06 a month and then $3.02 per 1,000 for the first 5,000. I said assuming 5,000 gallons for this discussion, which is what most houses use, I use more. I imagine most houses in Hammond are around 5,000 so, we did typical math, $3.02 per 1,000 times five (5) and plus $9.06 is $24.16 for 5,000 gallons of water in Whiting. It costs Whiting $2.25 for that water, that they charge $24.16 for, that's Prepared by Robert J. Golec Hammond City Clerk 4 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26, 2020 PUBLIC HEARINGS cont. Mayor McDermott cont. - 1,100% markup. I'm not trying to be disrespectful to the Clerk, but 5,000 gallons was for ease of discussion. Because that's what most houses use per month. I wasn't trying to penalize Whiting, it was just a fact. And if we're talking about 1,000 gallons I agree, it would be much less. Council President Woerpel - We only speak one (1) time, but you want to be real, real, brief, go ahead. I don't want to get into a debate here. John Hanes - I just want to say that, based on my math the customer pays $3.00 per 1,000, so they would pay $15 and some cents per 5,000 gallons. The other thing I would like to say is that Hammond doesn't pay for any of our infrastructure, so all we're doing is purchasing water, so it goes to our infrastructure right by the water plant. Council President Woerpel - Thank you. I just want to remind everybody. We are not debating this. Mayor McDermott - Mr. President. True on both counts, what they charge $3.02 per 1,000 gallons in Whiting costs $.46. But it also costs $9 .06 a month just to hook up to the system, which is a blended rate of $24.16 for 5,000 gallons. I agree with the Clerk/Treasurer though, the infrastructure cost of Whiting are by the city's utility, I agree with him on that. Council President Woerpel - Does anybody else wish to speak? Please state your name and where your from sir. Adam Sedia - I'm the Attorney for the Town of Dyer. I would just like to echo the objections raised by the Town of Griffith. And as the Council knows, Dyer is in a unique situation as we are down stream from Highland in this whole network. So our objection is based on largely the same facts that Highland will raise. Additionally, I would like to point out to the Council that Dyer has yet to receive the letters that the Mayor says went out. In addition we believe the rate is unjust, unfair and unreasonable contrary to statute. And we do intend on joining that other customer communities in taking this process further. Thank you. Mayor McDermott -The Mayor didn't send out the letter over the Mayor's signature, I assumed the Water Board attorney was not lying to me, when she told me she sent letters to the customer communities. So, Town of Dyer I agree is downstream of Highland and it's a blended, since they're using the same metering system. These two (2) Towns use 104 million gallons of water per month, which is a lot of water. It's 1.248 E9 gallons per year. They charge their residents in Highland and in Dyer $19.55 is actually one of the cheapest communities, it will be the second cheapest community in Northwest Indiana outside of Hammond, we'll still be the cheapest. But, $19.55 for 5,000 gallons, which is a real good rate. Which is $3.91 for a 1,000 gallons that's really what your charging your customers Mr. Sedia, $3.91 and your buying it for $.46. Which is a 850% markup. $4.8 million a year between the two (2) communities. I don't know what the split is, but $4.8 million a year between the two (2) communities, 850% markup. Which is the smallest markup, Highland and Dyer smallest markup out of all the communities that use our water. Council President Woerpel - Would anyone else like to speak? Prepared by Robert J. Golec Hammond City Clerk 5 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26, 2020 PUBLIC HEARINGS cont. Robert Tweedle - Good evening, I'm here on behalf of the Highland Water Works Board. I'm here just to document our objections to the proposed increase. First of all I would like to point out, this matter is not properly before this body this evening, the advertised notice did not set forth the proposed scheduled rates and charges, that's a requirement in the statute. All that was advertized was just a small reference to the hearing this evening, that's not adequate for action this evening. As far as letters, Highland did receive a letter on the 191\ it did provide proposed volumetric rates, but did not provide any meter charges for us. Also, it only referenced the proposed ordinance 20-25, did not include a copy of it and the only way we were allowed to receive a copy was that, we would have to send somebody to the city to obtain a copy. I don't know why it was not provided to the communities, fortunately someone did provide us with a copy of that. I would also like to point out, it is our position Highland's position that the proposed rates are unjust, unreasonable and discriminatory. In addition to that, the proposed ordinance also provides for automatic annual meter rate increases effective as of January 1, 2024. That type of automatic are perpetual increase is illegal and should not be included in your ordinance. Mayor McDermott - I have a hard time finding, I have a hard time understanding how Highland could say that the $1.90 per 1,000 gallons is unreasonable, when they charge their own residents $3.91. Even ifwe pass this rate increase they will still have 100% left to markup to their residents. What do they need 800%, 900%, 100% is not good enough? Council President Woerpel - Anyone else care to speak? George Smith - Good evening, I'm currently serving as the President of the Highland Water Board. Thank you for this opportunity to address the Council tonight. I'm not here to quibble with the Mayor about whatever he does or does not think the rates should or should not be. While some level of increase maybe warranted, and non-graduated rate increase for wholesale customers of 280% is arbitrary, abusive and unreasonable at this time. There are many alleged deficiencies in the procedure. So I just pray this Council will table consideration of this ordinance until such time as a full consideration of the structure as it affects the commercial, industrial and wholesale customers serviced by the Hammond Water Works. Thank you again for allowing me to address this Council. God Bless you all. Council President Woerpel - Anyone else? Dustin Anderson - I'm the Town Manager of Munster Indiana, I'm here on behalf of the Town Council of Munster. Thank you for holding the hearing Mayor, thank you I look forward to hearing some fun facts about my town. The Town of Munster recognizes that it is necessary and appropriate to adjust utility rates from time to time. The town also recognizes that the current water rates are not sufficient to adequately cover the Water Departments operational and maintenance activities. I think we can all agree that thirty-five (35) years is a long time. However, we are very concerned about the ordinance, the proposed rate effective in only sixty-seven (67) days will be over a 300% increase. And that increase will be born by homes, business' and institutions. These additional costs are headwinds that are in addition to. the already challenging times, all ·these people have had to endure this year already. This does not seem, from a mere time line perspective just or reasonable. If it is indeed the correct rate, and perhaps it is, for the safe and responsible management of the utility, then certainly there must be a way to phase this in gradually over time. Thank you for your time, I appreciate the opportunity. Prepared by Robert J. Golec Hammond City Clerk 6 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26, 2020 PUBLIC HEARINGS cont. Mayor McDermott - I appreciate that Dustin. We agreed that our rate is low and I appreciate you acknowledging that. I realize you're concerned with the proposed rate and I just appreciate your professionalism and kind words. I'd like to point out, Town of Munster uses 106 million gallons of water per month, which is 1.272E9 gallons of water per year, they charge their residents $4.99 per 1,000 gallons, which is a 1, 100% markup on what they get charged by the City of Hammond: And their revenue source is $6.3 million a year. Again, I don't' begrudge the Town of Munster, I go to the Town of Munster every day of my life. I think they've done a great job in the Town of Munster, by the way, Highland, Whiting, Griffith, Dyer are gorgeous communities. I think they've done wonderful, I appreciate them as a neighbor. But this isn't, I love Whiting, I love all these communities we're talking about, all right. But to come up here and say, the proposed rate in the City of m,unmond is unreasonable at a $1.90, when your charging your own residents $4.99, is disingenuous. I get it, it all at once, I wish it weren't, I acknowledge that. I wish that there was some way this was adjusted over time, it wasn't. It was negligent on my part as Mayor that we haven't done it before now, it's my fault. I should have done it earlier, but I didn't, and here we are. But, and I appreciate our neighbors being here, we appreciate them as customers, we want to continue to keep them as customers, we hope that they would absorb the rate increase. Quite frankly, not raise it on your residents. You know like in Munster, why don't you absorb it and still charge $.4.99 to your residents? It would cost you a lot more for the wholesale water, you don't have to raise it on your residents, we're not charging more then $4.99. Thanks for listening Councilmen. Council President W oerpel - Does anyone else wish to speak? Mary Ellen Slazyk - A lot of you here know me, I haven't been here for a while it's been a bad year for me. I'm a senior, I'm a widowed senior and I'm on a fixed income. I'm collecting social security on my late husband's account, which is a lot more then what was from my account, but it's still not a lot. This increase is ridiculous, that's the only way I'm gonna say it. 5,000 gallons seriously, I'm a single at home, I don't have a swimming pool, I'm not watering a garden, but I'm using 6,000. That's what my bill says, here Mr. Mayor if you would like to look at it. Mayor McDermott - Two (2) months. Mary Ellen Slazyk - Two (2) months, yes it says 6,000, not 5,000. There's been a figure of 5,000, based on 5,000 average. That's a bunch ofbalarky, I got 6,000 here. Like I said, I don't have a swimming pool, I'm not watering a garden, I have high efficiency appliances and this is ridiculous. There's a lot of people besides me, a worse boat then I'm in, that are living on a fixed income or their incomes have been greatly affected by this covid, ok, and they're barely making it. Where you got people that are working full time, they're not getting minimum wage, they are getting more then minimum wage. But to support their families, they are also qualifying for food stamps and they're having hard times. There's a lot of seniors out there, like me, on a fixed income, and I'm in a pickle half the time, I've had a really bad year all the way around because I even had a water heater go out a couple weeks ago that dumped out all over my basement floor. So it's been rough. For me or anybody else on a fixed income or a lower income to come up with a little bit of extra money, it's going to be rough. Times are hard out there and look at the demographics in Hammond, where you've got a School City where all these kids are getting free lunch and free breakfast. And it's because so many, a high percentage of the Prepared by Robert J. Golec Hammond City Clerk 7 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26, 2020 PUBLIC HEARINGS cont. Mary Ellen Slazyk cont. - children qualify because their parent's incomes are lower. Now there is a lot of these lower income parents that are renting, and there are some that are homeowners, but they all are going to be hit. Because their rents are going to go up some more and the homeowners that are just struggling and trying to feed their kids, working doing the right thing, they are going to be hit by this too. You're taking away from them and your definitely taking away from the seniors and the disabled people on a fixed income. This doesn't seem like a lot right now, but I only have a few bucks to my name, I'm just about broke after all the disasters I've had this year. And it's rough for me and a few dollars means a lot to me, maybe it doesn't mean something much to anybody who's got very good income and lives in a good part of town. But for me and many people like me, this hurts like hack. And if you would like to look at my bill, it is 6,000 gallons. Ok, like a say I have energy efficient appliances, I do the right thing environmentally and I still got this and this is gonna be hacked up, hack no. Mayor McDermott - 6,000 gallons on your bill is a two (2) month period, which is 3,000 gallons per month which is below a typical household, which make since because Ms. Slazyk lives alone or it's a smaller family. So she doesn't use 5,000 gallons like a typical family does. I bet you my family uses 7,000 'gallons a month ok. But I did miss the math on Ms. Slazyk's bill on what her new bill would be, how much higher it would be per month, $4.50 a month. I get it, people are on fixed income, I get it. That's a lot of money to some people and I acknowledge that, you know, for some people it's not a big deal and for other people it's a big deal. But I would like to point out that we have programs for our seniors and people on fixed incomes, it costs the City of Hammond $1 million a year that we provide to our residents that are on fixed incomes and living real close to the line. But using Ms. Slazyk's own numbers its $4.50 increase per month, is what we're talking about. $4.50 a month, that's a Starbucks cup of coffee, per month. Council President Woerpel - Does anybody else wish to speak? Phil Taillon - Chief of Staff for the City of Hammond. I know last me_etingI brought my bill and went though it, I know there's a lot of new people here so I just thought, one (1) more time I'd just give a real life example for everybody. I didn't hand pick a special bill for the year, this is the last bill that I just received a week a half ago. Actually it's very similar to Ms. Slazyk's bill. But my bill for water for two (2) months was $8.63, so that basically breaks down to about $4.31 a month. Because there is a $3 base rate, that means I'm paying about $1.31 inflow rate for a month for my entire house. Which is a family of three (3), I have another son but he is at college, so he don't count right now. This bottle of water costs a $1.99 at Walgreens, for my entire house for the month, as of right now, I'm paying a $1.31. So, you can see there's a bit of discrepancy in costs when you start thinking about 1,000 gallons, verses this bottle of water. With this rate increase, my bill will go up just over $5.00 a month. So again, I just want to give a real life example, I'm happy to talk to any residents that have their bill, with what they want to compare and look at numbers and what their bill will go up every month. But again, I think you can hear the numbers and get a good idea of where we are at now and probably where we need to be. Thank you. Council President Woerpel - Does anyone else wish to speak on this issue? Prepared by Robert J. Golec Hammond City Clerk 8 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26, 2020 PUBLIC HEARINGS cont. Gary Dreizer - Good evening Councilmembers, 5th District Hessville - Ok, so I did a little research myself, and I did talk to people in Whiting today and yes Whiting is $3.02 whether you use zero (0) or 1,000 gallons of water and every 1,000 up to 50,000 gallons they charge $3.02. Also, Whiting's the garbage fee they charge $5.46 a month, and we pay $21.00 a month in Hammond. East Chicago they don't charge their residents anything for garbage pickup, ok. MS4, Hammond has MS4 fee, that's new with the sewers and water separation all that. Anyway, East Chicago does have MS4 similar to Hammond residents, they are at $96 and we're at $93. Their commercial is only $288 where Hammond's a $1,080 for the year on their property taxes. Your sewer fees there's a base rate Hammond $8.40 a month, EC is at $8.90 a month, Whiting is $12.99 a month but it also includes up to 3,000 gallons of treated waste what I was told. So, anyway that's how they do their stuff. I'm just trying to get something that, let's have a compromise, if we're gonna do ... and I'm fine with the water increase because I know it's been low and to do repair stuff. But why can't we get a trade off, why are we paying so much for garbage fees when other communities, cities I should say, like I said no charge at all like East Chicago or minimum of Whiting does $5.46 a month. I just feel we should get more benefits out of this. But I've got other rates ... I mean like sewer rates Hammond's what about $2.40 treated sewer per 1,000, East Chicago $2.34, I think Whiting came up to be like $1.40 or something like that per 1,000 after that 3,000 something like that. A lot of this stuff you can find online, you can call them they'll talk to ya, whatever. I just wanted to compare city to city, that's how I want to do things. I appreciate what your trying to do, I mean I realize we need the money to fix our infrastructure, my street is terrible Dave Woerpel knows. I wish we could have some compromise to, hey if we are going to pay an increase whey can't we decrease our garbage fee or something? Do something else and trade them, you know. Thank you anyway. Mayor McDermott - Thank you sir. I want to address, even though we're not talking about garbage rates. This isn't applicable because East Chicago, I don't know if it's true or not I imagine it is, let's say East Chicago doesn't charge for their garbage pickup, wow that must be great, they must just magically incinerate their garbage and it just disappears, right? The garbage has to be paid for, if it's not being paid for by a user fee it's being paid for by a property taxes being paid in other ways. It just doesn't magically disappear. When you tum on your faucet, it's like, wow look at that you just put a faucet in and water appears, no. We have to put infrastructure in to get the water to your front door. But the fact is, in Hammond we charge exactly what is costs too pickup your garbage and dispose of it, we don't make a penny off that we did it on promise like that. Also, we seem to be talking a lot about what reasonableness is, in regards to water rates. Our proposed rate would be we a $1.90 to our customer communities. Indiana American Water charges $5.22 per 1,000 gallons, Crown Point I love Crown Point my good friend is the Mayor of Crown Point, charges $8.80 per 1,000 gallons. That's a lot of money, we're talking about $1.90, if the rate increase is approved. So what is reasonable? In Crown Point they would kill to pay $1.90 for a 1,000 gallons, they would kill to pay that. My brother's water bill, we watered his lawn during August, September, his water bill was $800 in one month. He didn't realize, holy crap you can't water your lawn down here because the water is so expensive. So what is reasonable? $.44 is not reasonable, I think we all agree on that. The argument is being made that a $1.90 is not reasonable, I tell you what, you shop around to our neighbors $1.90, they would kill for a $1.90 per a 1,000 gallons. Council President Woerpel - Does anyone else wish to speak? Prepared by Robert J. Golec Hammond City Clerk 9 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26. 2020 PUBLIC HEARINGS cont. Kevin Smith - Thank you Mr. President, Council good evening, Corporation Council for the city. First of all, I guess I do want to thank some ofmy colleagues Mr.Sedia and Ms. Bradkey, Mr. Tweedle, Ms Sejna, Mr. Anderson for coming by tonight, sounds like we are going to have some further discussions on this matter and I look forward to those. The reason I wanted to speak is to address some things about reasonableness and just to give the Council some contexts. Because I think when you see numbers thrown around like 330% increase or 400% increase it may sound, oh my gosh that sounds just on its face unreasonable, but really, as always, it's important to have some contextual basis and understanding where that comes from. First of all as the Mayor pointed out and it's been pointed out several times the city has not raised water rates since 1985. And by the way, that does not a count for any inflation. Mayor pointed out that just cost of living increase would put that number somewhere around $.90 to a $1 today. There is no accounting for any infrastructure improvements during that time between 1985, the rate I'm talking about the rate only, additionally the IURC do a study in 2018 and said the cost of just providing the water without any accounting for infrastructure improvements was $1.11 in 2019 they updated that study to $1.20, that was from the IURC. Mayor eluded to the fact that the water tank that we are know doesn't looked to good at 165th and Columbia, the Water Works did not have the money to pay for that, that was paid for out ofTIF $2.5 million. Interestingly, there was an independent rate study done by Baker Tilley, it was called Indiana Comparative Rate Study it was done in May of 2019. They looked at 368 utilities throughout the State of Indiana, the minimum for the flow charge per 1,000, the minimum of all 368 communities was $.44 per 1,000, guess who that was City of Hammond. The maximum of all 368 utilities was $22.40 per 1,000. I think the important number, the average $6.96 per 1,000 out of 368 utilities. They also took a look at what the base charges were, and that's that base charge you see on your bill I think it comes in at $5.99 per two (2) months, which more ofus get our bills at. But per month that's just rounded off to $3.00. They looked at all 368 utilities the minimum of all 368 utilities was, you guessed it $3.00, guess where Hammond. The maximum charge for that for the base charge was $46.32, the average of the 368 was $18.31. There is no proposed increase on that base rate, it's still gonna stay at $3.00 which will keep us the lowest. I think that's all I had ... actually sonieone handed me ... Phil had a nice prop up here, the Aquafina bottle is about 16oz. you pay about $1.90 at the gas station for it. Somebody down at the Water Works did a calculation that at a $1.90 per 1,000 gallons you could actually fill up for the $1.90 at the gas station; if you just did it with your tap you could fill up 7,570 bottles for a $1.90 per _1,000.Thank you I appreciate it. Council President Woerpel - Anyone else wish to speak on this issue? Does anyone else wish to speak on this issue? I guess I'm gonna ask City of Hammond, Chris, is there anybody from the public that you see with their hand up or anything on zoom? So no one wishes to speak from zoom either? Public Hearing is now closed. COMMUNICATIONS None COMMITTEE REPORTS Council as a Whole Committee - Councilwoman Venecz - Brought out 20-25, 20-20, 20-21, 20-22, 20-23, 20-24, 20-26, 20-27, 20-28 Prepared by Robert J. Golec Hammond City Clerk 10 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26, 2020 COMMITTEE REPORTS cont. Community and Crime Watch Committee - Councilwoman Venecz - We never expected the restrictions that we've had on our Crime Watch meetings every month. Many of the facilities that we used, for precautionary reasons, are not allowing us to conduct our meetings there. We've had to step out of the box a little bit and follow the lead of other communities with the Zoom meetings. Hammond Police and Community Crime Watch Groups will be hosting a virtual Crime Watch meeting on Tuesday, November 10th at 6:00 p.m. That can be found on the Hammond, Indiana Police Facebook page. The Zoom information will be available so anyone can participate. Whiting-Robertsdale Crime Watch; Thursday, Nov. 12th ; 6:30 p.m.; Calumet College Rm 200 Covid Task Force - Councilwoman Alexander - Our update to Covid numbers from last meeting to this meeting are 46320 is an additional 40 new cases; 46327 there's an additional 41 cases; for 46323 there's an additional 85 cases; for 46324 there's an additional 75 cases and for 46394, which includes Robertsdale and Whiting, there's an additional 35 cases. We have an additional 276 cases from the last meeting. I know Mayor is present, and Mayor, I want to make a motion that we get back to our Covid Task Force meetings because our numbers are rising extremely fast. I know the Governor put the entire state into Stage Five, but we really need to look out for our residents. I'm suggesting you speak out on wearing masks, sanitizing, maybe you can put out some good videos or something to help combat this as a city because the entire State is up and Lake County is still the highest in Covid numbers. It's affecting everyone. Kids are going back to school. They are proposing for them to come back to school and the numbers are just on a rise. That's just my proposal, that we get back to the Covid Task Force meetings so we can combat this in out city and help keep our residents safe. Because we were originally averaging about 100 between meetings, last meeting we were at 220, this meeting we're at 276. I don't know how true the County's numbers are but that's all I have to go with. We are extremely high and need to do something as a city. Mayor McDermott - We had twice weekly meetings during the teeth of the pandemic and I realize numbers are similar. I'm not gonna now deny that numbers are not similar now as they were before. I think your recommendation is a good recommendation, Councilwoman. I found, personally, that attendance started to fall off greatly in the Corona Virus Task Force. I found that we were saying the same thing from meeting to meeting. We did have people watch it, I don't deny that but if we're gonna do something hopefully people are participating and if they're not then I feel like we are just doing this ... I don't know. I'm not making excuses, Councilwoman, I think it's a good recommendation. I just want to make sure that if we're gonna do something like that it's effective because you're gonna need doctor's to cooperate, we need people to come and meet. ButI agree, Councilwoman, I know people, personally, that are sick with it and it's a deadly and dangerous disease. That's why we're all wearing masks in City Hall. That's why you're Zooming in. I appreciate you reminding us all, Councilwoman. Prepared by Robert J. Golec Hammond City Clerk 11 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26. 2020 SUSPENSION OF RULES Councilwoman Venecz, supported by Councilman Rakos, moved to suspend the rules to consider 20R-18. ROLL CALL VOTE (suspend rules) A YES: Alexander, Spitale, Venecz, Kalwinski, Torres, Tyler, Emerson, Rakos, Woerpel NAYS:None ABSENT: None Motion carried 9/0/0 RULES SUSPENDED 20R-18 A Resolution to Honor American Legion Hammond Victory Post 168,Commander Ernest 'Ernie' Dillon and Officially Name the Tribute to Our Troops Memorial at the Intersect of Lyman Avenue and Douglas Street Where the Monon and Erie-Lackawanna Bike Trail Intersection in Hammond, Indiana Clerk read the resolution in its entirety. Councilman Spitale, supported by Councilwoman Venecz, moved for adoption. Councilman Spitale - First I want to thank Councilman Tyler for getting this organized. Three Councilmen belong to Post #168, myself, Pete Torres and Bill Emerson. We're all on the board with him with Post 168. Ernie had been the backbone of getting Post 168 back up and running again. He deserves what he has done throughout his career and the man wears many hats. Thank you, Ernie, for bringing our Post #168 back to earth again, we really appreciate it, thank you. Councilman Emerson - I would like to just comment on Resolution 20R-18. Ernie and I go way back. I want to just add, I know that it's about the Memorial at Douglas and Lyman, but I wanted to mention a few other things that he's done for the Vets. Long ago the day for military families at the National Guard Armory on 173rd Street where he dedicated the whole day to the families of active duty personnel and Veteran's in general. The Veteran's Appreciation day parade on Veterans day in Hammond, the 7th Annual is 11-7 on Saturday. The co­ leader of the Veteran's Parade this year, one of the original founders of the Veteran's Views Radio Program. He was instrumental, over ten years ago in sending care packages, fifteen years ago, to Iraq and Afghanistan Veterans. He's a past Veteran's service Officer for Lake County, helping Veterans get the services if they needed them. He has been instrumental in rehabbing a Civil War Veteran's Tombstone in Oak Hill Cemetery. I'm sure I'm forgetting something. Oh, yes, a three time Commander of Post #168. Thank you Ernie for all you have done for the Veterans of Lake County. Just, congratulations. Councilman Torres - I just want to congratulate Post #168 and their Commander Ernie, and to all the troops past and present. Congratulations. Councilman Kalwinski - Post # 168, I too am a social member there and have watched Ernie, for decades, championed many causes regarding the military and Veterans. So, Ernie, congrats again on getting some more things done. And if possible, Mr. President, I'd like my name added as a sponsor to this resolution. Prepared by Robert J. Golec Hammond City Clerk 12 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26. 2020 SUSPENSION OF RULES cont. Council President Woerpel - I have no problem with that. In fact, in adding the Council as a Whole to this. But my question is, to the attorney, can we consider it with more than four sponsors? Council Atty. Berger - I think so. We've done it before. Council President Woerpel - Does anybody object to putting Council as a Whole down as a sponsor? Councilman Kalwinski - Thank you, Mr. President. Councilman Tyler - I apologize, because I'm the one that typed this up. But there are a couple of typos that I would like to get corrected. I don't know ifl need to make that motion to correct that now or ifl could just connect with the Clerk's Office after the meeting. Council President Woerpel - You talking about how that would be written on the Memorial? Councilman Tyler - Just in the resolution in general. The title of the resolution it says "intersect" instead of "intersection". Council President Woerpel - Are you proposing an amendment to it or just ... Councilman Kalwinski - A typo ...correction. Council President Woerpel - Correction. That's fine. Is there any other discussion? Mayor McDermott - On behalf of Mr. Dillon, when I firsfgot out of the Navy, he's one of the first people I met that worked for County Government at the time. He was the Veterans Affair Officer. Ever since the day I met Ernie he's been a Veteran. He's proud of it. He wears it on his sleeve. He works hard for the community. The bike trail stop that he did, over by 18th Street Brewery. He doesn't know this story. I ride my bike a lot. I was cooking one day, going real fast, and it was like 95 to 100 degrees out that day and I was heading up to Whiting and as I passed that little Memorial, Ernie was down there, by himself, planting flowers. I didn't stop because I had good time going. But I went up to Whiting, did my circle around Whiting and started heading back down home, an hour and a halflater, and I pass up that same spot, Ernie's out there planting flowers by himself. It's like 95 degrees out that day. This guy does so many things for the community. He has no idea. I didn't stop the second either. But, Ernie, I appreciate it but I am acknowledging it publically right now. He is an asset to the City of Hammond. He's an asset to Veterans across Northwest Indiana and I just want to congratulate him again. Could you give him one more round of applause everybody? Councilman Tyler - I know that we already suspended the general meeting so hopefully if Mr. Ernie would like to say something we could give him an opportunity to. Prepared by Robert J. Golec Hammond City Clerk 13 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26. 2020 SUSPENSION OF RULES cont. ROLL CALL VOTE (adoption) AYES: Alexander, Spitale, Venecz, Kalwinski, Torres, Tyler, Emerson, Rakos, Woerpel NAYS:None ABSENT: None Motion carried 9/0/0 RESOLUTION NO. Rl 8 ADOPTED Ernie Dillon - With all of that said, I'm just gonna go to, "In conclusion,". Mr. President, Mayor, members of the Council, let me begin by saying the City of Hammond is truly a City that works. Especially honoring our military Veterans and their families. Mayor McDermott, a Navy Veteran, established a Veteran' Appreciation Day Parade to honor all Veterans many years ago and it's still moving forth every year. Also, I want to thank our City Council members, whom several are Veterans, who spoke this evening, and Clerk Golec for your dedication to the City of Hammond and our Veterans and their families. This resolution tonight says it all. A Memorial in the City of Hammond, a new Memorial, to honor our Veterans from all wars. Those who are serving and those who will be serving. A tribute to our Troops and Women at War. Just briefly, that site was chosen at the bike trail, and I want to thank the Mayor for all his work on the bike trails, they're a tremendous asset for the City of Hammond, Thank you, Mayor. That was chosen specifically for that reason, to be there where the bike trail intersects because of the Tribute to our Troops back in the day. It was a train stop. So having aid all of that, I wanna also thank all our sponsors and I'm proud to ... about the City Elected Officials in Hammond being part of our sign, our Memorial that we're gonna put up there and have their names displayed as well as the sponsors who helped us work on this Memorial. So, I guess with that, Mr. President, members of the Council, Mayor, and those on Zoom, whatever that is. I want to thank everyone for their comments. Council President Woerpel - Thank you, Ernie. Did you ever think you'd see the day where you were standing there calling me Mr. President? Ernie Dillon - Well, I remember in 1999 ..... Council President Woerpel - There we go, that's okay. Council President Woerpel - We're gonna take a five minute recess and then we'll get back to the regular order of business. Five (5) minute break was taken. Councilwoman Venecz, supported by Councilman Torres, to return to the regular order of business. ROLL CALL VOTE (regular order) AYES: Alexander, Spitale, Venecz, Kalwinski, Torres, Tyler, Emerson, Rakos, Woerpel NAYS:None ABSENT: None Motion carried 9/0/0 MOTION CARRIED Prepared by Robert J. Golec Hammond City Clerk 14 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26. 2020 ORDINANCE 3RDREADING - FINAL PASSAGE Kevin Smith, Corporate Counsel - Thank you for the courtesy of allowing me to speak. During the recess we had an opportunity to review some information and, I believe, the suggestion was made to not pull 20-25 out and the suggestion would be to have a special meeting on November 16th to allow for another public hearing and consideration of 20-25. That would be the suggestion by, at least, the administration. Council President Woerpel -I'll entertain a motion to call a Special meeting on November 16th at 6:00 p.m., one issue meeting. With a public hearing. Councilwoman Venecz - I so move. Councilwoman Alexander - Second. Council President Woerpel - Clerk Golec, roll call. ROLL CALL VOTE (special meeting) AYES: Alexander, Spitale, Venecz, Kalwinski, Torres, Tyler, Emerson, Rakos, Woerpel NAYS:None ABSENT: None Motion carried 9/0/0 SPECIAL MEETING APPROVED 20-20 2021 City of Hammond Budget Proposal Councilwoman Venecz, supported by Councilman Spitale, moved for passage. Mayor McDermott - Thank you for consider the City Budget. I've already presented to the Council in regards to the City Budget. I' re-presenting in just in case there are people that weren't watching the first time. Our proposed 2021 Budget for the City of Hammond has a $85 million tax levy. Which is 2.3% less than our budget was in 2020. So instead of going up, as typical, our budget is going down by 2.29%. There's 21 positions that were cut within this budget. It's never easy. The 21 positions that were cut were open positions that won't be filled. We didn't lay anybody off with this budget. College Bound, 25% of College Bound will be paid by TIF just like they were for this year. Pilot fees paid to the City of Hammond are gonna increase by $1 million this year. Which is good for all of us to help with the revenue side. Pay raises built into the budget are 2% pay raises for all employees outside of Police and Fire who agreed to not have pay raises this year and next year, 2021 and 2022 in leu of adjustments we made to the pension for the Police and Firemen. They gave up pay raises so that we'd make those changes, and we did. So Police and Fire are our most expensive departments to not have pay raises built into the budget, per our contract agreement with them. Interesting facts about out budget, Public Safety costs $55 million. We only collect $33 million in property taxes. So right off the bat the City of Hammond has to find $22 million just to pay for Police and Fire. That's without doing one street. That's without paying for one other employee or a truck, a cop car, or anything else and we still make ends meet. Our largest line items in the city, Hammond Police Department is a $32 million operation with currently around, no, it's budgeted for 195 Police Officers. They'll all be filled. Hammond Firefighters are gonna have 150 Firemen, Prepared by Robert J. Golec Hammond City Clerk 15 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26. 2020 ORDINANCE 3RDREADING - FINAL PAS SAGE cont. Mayor McDermott cont. - it will all be filled. It's a $23 million operation. Our city's health insurance costs $12 million. That's our third most expensive line item on our budget. Water Revenues, $10.5 million a year. That's from sales to Illinois communities before any of our customers get fired up. City of Hammond sells water in Illinois. Hammond Water Utilities is forbidden to make money from water sales in Illinois because it's an Indiana Utility, so the contracts that we have with Illinois is through the Mayor's Office and it flows into the City budget. That water revenue went up 25% this year. Real ·good news is the Town of Homewood and Highland recently made indications that within the next year they will be hooked up to our system and they will be a customer of Hammond Water. To give you an idea, I know we've been throwing numbers around a lot today. That's one of our cheap Illinois contracts, and Homewood will be paying $2 for a thousand gallons of Hammond water. $2, and we're talking about $1.90 for our customer communities. The Town of Homewood is dying to get water from the City of'Hammond for $2, and you know, Homewood's not far away. We have top three sources of revenue, we make $36 million a year off casino, $33 million a year off property taxes, and water, $10.5 million. So we're real proud of the budget we turned in, like I said, it's 21 positions light, it's 2.3% less than it was last year. We did all that despite major headwinds posed by the pandemic. We had a 38% decrease in gaming revenue this year. Obviously, with the casino boats being shut down for 2½ months that took a major effect on our gaming revenues. We were down 10% in permits and fees, which is $50 thousand. We' re down 40% in Service Sales and Fees, which is $120 thousand. Park Fees, Park Revenue, you know, who would have known with the Sportsplex has revenues every year of over a million dollars a year. Obviously, the Sportsplex was shut down for a couple months this year. As a result, we didn't make fees that we anticipated and built into last years budget, or this years budget. That 20% drop is $120 thousand. MVH funds, because people weren't buying gas for two months because of the pandemic this year. Our MVH funds, Motor Vehicle Highway Funds, dropped $600 thousand this year. People weren't making as much money this year so they weren't paying as much in income tax. We get income tax money, and that is $425 thousand less than it was last year as well. So, despite all those headwinds we still manage to tum in a budget to you with 2.3% less than it was last year. Right now, projected end of year cash balance in the City of Hammond, assuming that we continue to operate as we are today, we'll have close to $5 million free and clear in the bank at the end of this year. I've been Mayor for seventeen years now, never been able to tell you that. Usually we're rolling into the next year upside down. We have $5 million sitting in our bank account, unspent, untouched, unbudgeted, just sitting there, and that's something to be proud of. Projected 2021 numbers, over $12 million will be given to the Capital Improvement Board for Infrastructure Projects across the City. Mayor's Gaming Revenue will be $2.8 million, as per our City Ordinance. Each Council District Councilman will receive $467 thousand, as per our City Ordinance. The Rainy Day Fund, which we established per Councilman Kalwinski and Councilman Tyler's great recommendations, the Rainy Day Fund Will have $750 thousand put into it at the end of this year. And the Gaming Advisory Committee will have $750 thousand given to it to support non-profits around the city. Our budget also has overtime built into it for Police, a million in overtime built in for the Police Department, including Henry Units and other sources of overtime. In the Fire Department, $650 in overtime built into the budget. So, we worked real hard on this budget. I'd like to thank Megan Flores and all of her employees in the Hammond Controller's Office. This was Megan's first budget and she worked real hard on it and it's a real good budget. So thank you to Megan and to everybody that worked so hard to make this happen. Thank you to the Hammond Council for your consideration. I'm available to answer any questions. Prepared by Robert J. Golec Hammond City Clerk 16 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26. 2020 ORDINANCE 3RDREADING - FINAL PAS SAGE cont. Councilman Torres - I'd just like to say that I had some questions about the budget but I met with the Controller Flores. She gave me a couple hours on two different days. She answered all the questions and I'm satisfied. She's an awesome Controller, very knowledgeable. After looking at it, because of circumstances we're in and unpredictable and even in the coming future, I think is a well set budget. Councilman Tyler - I just wanted to thank all of the department heads for coming to the budget hearing meeting we had last week. I know for Councilwoman Alexander and I, of course this is our first budget as members of the City Council, so really appreciated everyone walking through the budget changes from last year to this year. Any nuances that are gonna be presented to us in 2021. It was very helpful in letting us to have a deeper level understanding of where our money is going and where it's corning from. Councilwoman Alexander - Sarne. Just like Councilman Tyler said It was refreshing to understand the actual City Budget since the book was so big. And getting those critical questions answered to especially let me know, and to let all ofus know, how things were flowing and that we will continue to stay afloat and be able to come out of any debt or any or anything like that. And knowing that the taxes are coming in even though slowly. And then understanding that we will still be able to sustain for the next budget year. So that was good. Thank you, Megan. And I echo him on thanking the department heads for corning out and spending that time with us to help us understand because it was definitely needed. Council President Woerpel - Mayor, on behalf of the Council I think we can all thank you for making the department heads available last Monday and the meeting we had and the questions answered. So, thank you to yourself and your staff. Mayor McDermott - Councilman Woerpel, I think they were real good meetings. I appreciate the Council asking questions. Because we work real hard on this budget and you asking questions and making suggestions is how it's supposed to work so I appreciate everybody. I think this was a real collaborative budget and I appreciate all the hard work everybody put into it. ROLL CALL VOTE (passage) AYES: Alexander, Spitale, Venecz, Torres, Tyler, Emerson, Rakos, Woerpel NAYS: Kalwinski ABSENT: None Motion carried 8/1/0 ORDINANCE NO. 9477 PASSED City Clerk Golec - I'd like to remind the Council that the Council needs to sign off on Form 55865 requesting your signature and how you voted. So please stop by tomorrow in the Clerk's Office to sign off for those of you that aren't here. Your secretary will give you a call to remind you. Prepared by Robert J. Golec Hammond City Clerk 17 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26, 2020 ORDINANCE 3RDREADING - FINAL PASSAGE cont. 20-21 2021 Hammond Redevelopment Budget Proposal Councilwoman Venecz, supported by Councilman Spitale, moved for passage. ROLL CALL VOTE (passage) A YES: Alexander, Spitale, Venecz, Torres, Tyler, Emerson, Rakos, Woerpel NAYS: Kalwinski ABSENT: None Motion carried 9/0/0 ORDINANCE NO. 9478 PASSED 20-22 2021 Sanitary District of Hammond Budget Proposal Councilwoman Venecz, supported by Councilman Spitale, moved for passage. ROLL CALL VOTE (passage) A YES: Alexander, Spitale, Venecz, Torres, Tyler, Emerson, Rakos, Woerpel NAYS: Kalwinski ABSENT: None Motion carried 9/0/0 ORDINANCE NO. 9479 PASSED 20-23 2021 City of Hammond Salary Councilwoman Venecz, supported by Councilman Spitale, moved for passage. Mayor McDermott - In this ordinance you will find that, just like in Redevelopment, all employees, outside of the Police Officers and Firefighters, are scheduled to receive a 2% pay raise in the year of 2021. Those are the only raises you'll see. There's not one other raise outside of your 2% pay raise. Police and Fire personnel, because of the agreement they made with us in their contract, are scheduled to receive 0% pay raises in 2021 and in 2022. 2023 and 2024 they will get 1% in each of those years. So they agreed to go 0, 0, 1, 1 in exchange for the changes we made to their pension. Any questions from the Council? Councilman Tyler - Mayor, can you just talk about when this, the raise was talked about was agreed about, this 2%. Mayor McDermott - This year, after Municipal Election year, one of the first orders of business for a Mayor is to start negotiating with Police and Fire Contracts, Teamsters, Operating Engineers are up as well. We're in the process of negotiating with them. Usually when I enter into a contract negotiation, I'm the type of boss, I believe in pay raises. Not excessive, we work for the taxpayers, but I do believe in 2% pay raises and it's something that I've talked about before. I did that because of who I was when I was in the Navy. I made $23 thousand the last year I was in the Navy and I remember what a 1% and a 2% pay raise was. I swore to myselfifl ever become Prepared by Robert J. Golec Hammond City Clerk 18 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26. 2020 ORDINANCE 3RDREADING - FINAL PAS SAGE cont. Mayor McDermott cont. - boss, I'm gonna be the type of boss that gives pay raises. So, I approach contract negotiations assuming that Police and Firemen are probably gonna get 2, 2, 2, 2 over four years. I'm not gonna make them fight for it. That's just how I feel as a person. I feel like you're entitled to a 2% pay raise because you're probably losing that to inflation anyways. ·I approach contracts with Police and Fire this way. They were asking for something that was more expensive in return of a 2% pay raise. However, we felt, the administration felt, that what they were asking for with their pension would save us money in the long run by getting more expensive Police Officers and Firefighters to retire earlier, like this year. Our Police Officers and Firemen that have seniority have six weeks of vacation, a very high salary, and quite frankly if they retired and we replaced them with brand new Firefighters or Police Officers, the cost would go down dramatically. 16% to 17%. Would be the savings we'd experience with the new Firefighters or Police Officers. So, we took the gamble that instead of giving 2% pay raises to Police Officers and Firemen we would agree to change their pension as they asked and hoping that we would see a lot of retirees as a result of the changes that we made. So, in exchange, in consideration, using legal terminology of the pension adjustments we made, Councilman Tyler, next year the Firemen and Police Officers pension will go up dramatically but they're not gonna be getting a pay raise. But what we're doing, Councilman Barry, is smart business. The State picks up a lot of the cost of the pension increase and quite frankly it's dramatic how much the Firemen and Policemen will be getting in difference, pension wise. It's enough to make you want to retire, sooner rather than later. And I think that's good for the City of Hammond, Councilman Barry, because in some departments we have bad diversity numbers and we want to get better. If some of our more senior Firemen and Police Officers retire, that gives us an opportunity to hire new,.younger, more diverse Police officers and Firemen so that at the end of the day our Police Department and our Fire Department look like the city that they police and they protect. So, that's our goal, Councilman Barry, I do think that the changes we made in the pension for Police Officers were worth it for them to take a 0, and I do believe that we will see a lot of Police Officers and Firemen retire because of the changes we made. So thank you for the question, Councilman. ROLL CALL VOTE (passage) AYES: Alexander, Spitale, Venecz, Torres, Tyler, Emerson, Rakos, Woerpel NAYS: Kalwinski ABSENT: None Motion carried 9/0/0 ORDINANCE NO. 9480 PASSED 20-24 2021 Hammond Police and Fire Salary Councilwoman Venecz, supported by Councilman Spitale, moved for passage. ROLL CALL VOTE (passage) AYES: Alexander, Spitale, Venecz, Torres, Tyler, Emerson, Rakos, Woerpel NAYS: Kalwinski ABSENT: None Motion carried 9/0/0 ORDINANCE NO. 9481 PASSED Prepared by Robert J. Golec Hammond City Clerk 19 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26. 2020 ORDINANCE 3RDREADING - FINAL PASSAGE cont. 20-26 Creating a New Fund (Fund #260) for FY2021 Lake County Drunk Driving Task Force Grant Funds Councilman Spitale, supported by Councilwoman Venecz, moved for passage. Councilman Spitale - The Lake County Drunk Driving Task Force was awarded to the City of Hammond for $80 thousand for the purpose of preventing drunk driving injuries and fatalities. ROLL CALL VOTE (passage) AYES: Alexander, Spitale, Venecz, Torres, Tyler, Emerson, Rakos, Woerpel NAYS: Kalwinski ABSENT: None Motion carried 9/0/0 ORDINANCE NO. 9482 PASSED 20-27 Amend Ordinance 7661, also known as Sections 160.01, 160.02, 160.03 and 160.99 of the Hammond Municipal Code as it pertains to the General Maintenance Code and its application to all Properties within the City of Hammond Councilman Rakos, supported by Councilman Spitale, moved for passage. Councilman Rakos - This is a, like it said in the title, it's a way to clean up some of the ordinances that we passed in the past. Try to eliminate inconsistencies iri Hammond Municipal Code and enhance the enforcement of the code. Also just to make sure ... it's a cleanup ordinance so that we comply with all other codes as well. ROLL CALL VOTE (passage) AYES: Alexander, Spitale, Venecz, Torres, Tyler, Emerson, Rakos, Woerpel NAYS: Kalwinski ABSENT: None Motion carried 9/0/0 ORDINANCE NO. 9483 PASSED 20-28 Amending Ordinances No. 9461 and 9405, being: An Ordinance Amending Ordinance 8514 for an Amendment to Title XXIX Overlay Zoning Districts to Establish New Provisions for Development within the Oxbow Landing Overlay Zoning District (OxLan-OL) Councilman Spitale, supported by Councilwoman Venecz, moved for passage. Councilman Spitale - This was three lots, 2901, 2111 and 2929 Carlson Drive, in Oxbow Landing, It's re­ subdivided lots into two lots. The two lots will be .95 acre, 2.601 acres, the lots met the minimum size requirement for C-4, which is general commercial district in the Oxbow Landing Overlay District. Prepared by Robert J. Golec Hammond City Clerk 20 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26. 2020 ORDINANCE 3RDREADING - FINAL PASSAGE cont. ROLL CALL VOTE (passage) AYES: Alexander, Spitale, Venecz, Torres, Tyler, Emerson, Rakos, Woerpel NAYS: Kalwinski ABSENT: None Motion carried 9/0/0 ORDINANCE NO. 9484 PASSED INTRODUCTION OF ORDINANCES 20-29 An Ordinance of the Common Council of the City of Hammond, Indiana upon Recommendation of the Hammond Economic Development Commission Designating a Certain Area Within the City as an Economic Development Target Area Pursuant to Indiana Code 6-1.1-12.1 Councilman Spitale, supported by Councilwoman Venecz, moved the proposed ordinance to 1st and 2nd reading by title and referred it to the Council as a Whole Committee with a Committee meeting on November 9, 2020 at 5:30 p.m. AYES: ALL RESOLUTIONS 20R-17 A Declaratory Resolution Determining That a Certain Area of the City of Hammond, Indiana be Designated as the Oxbow Landing Economic Revitalization Area #2 to which Deductions from Assessed Valuation May Be Requested by an Applicant to the Common Council of the City of Hammond, Indiana Pursuant to Indiana Code 6-1.1-12 .1 Councilman Spitale requested a public hearing on November 23, 2020 for 20R-17. AYES: ALL NEW AND UNFINISHED BUSINESS Councilwoman Venecz, supported by Councilman Spitale, moved to create a Capital Improvement Committ~e. AYES: ALL Councilman Tyler - I just want to remind everyone that this years Trunk and Treat will take place at the Hammond Sportsplex on Friday, October 30th from 5:00 to 7:00 p.m. Residents and children will stay in the car and the organizations and residents will bring the candy to you. I just wanted to remind everybody. I believe Trick or Treating will still also occur Saturday evening as well. Prepared by Robert J. Golec Hammond City Clerk 21 MINUTES OF THE COMMON COUNCIL cont. OCTOBER 26, 2020 NEW AND UNFINISHED BUSINESS cont. Mayor McDermott - Councilman Tyler reminded me to remind everybody that Trick or Treating is scheduled for 5:00-7:00 p.m. in the City of Hammond on Halloween as normal. We're still gonna have the crews on the street as we normally do protecting your children. I would anticipate a heavier than normal year for a lot of people because a lot of our neighboring communities are not having Halloween, they're not having Trick or Treating. I imagine that's not gonna stop the hard core kids from Trick or Treating. Councilwoman Alexander - With that being said about Tr;ick or Treating, I just ask that everybody mask up and if residents are not participating make sure your lights are off so that people won't come to your homes. Continue to wear masks. Wear rubber gloves. Things like that to help keep everybody safe. PUBLIC EXPRESSION MaryEllen Slazyk - There are a lot of people that can't afford a big increase. They can't afford Starbuck's. It's not just water, everything is going up and people on a fixed income, lower income people are gonna be really hurt. Medicare is gonna go up. The School City referendum is gonna kick in soon and that's gonna be the whopper. So consider the people on fixed incomes. Councilwoman Venecz, supported by Councilman Tyler, moved to adjourn. AYES: ALL ATTEST: Hammond Common Council ~ Robert J. Golec, City Clerk Time: 7:55 p.m. cb Prepared by Robert J. Golec Hammond City Clerk 22