City Council

REGULAR MEETING – September 7, 2010 The Common Council of the City of Michigan City, Indiana, met in regular session on Tuesday evening, September 7, 2010, at the hour of 6:30 p.m., local time, in the Common Council Chambers, located in the lower level of the City Hall Building, 100 East Michigan Boulevard, Michigan City, Indiana. The meeting was called to order at 6:30 p.m. by Council President Marc Espar. Roll call was authorized and the following were noted present and/or absent: PRESENT: COUNCIL MEMBERS Patricia Boy, Phillip Jankowski, Marc Espar, Robert McKee, Richard Murphy, Ron Meer, Joe Doyle, Angie Nelson and Willie Milsap (9). ABSENT: None (0). A QUORUM WAS NOTED PRESENT. ALSO PRESENT: City Clerk – Thomas Fedder, Deputy Clerk - Gale Neulieb, and Council Attorney – James Meyer. APPROVAL OF MINUTES President Espar inquired whether there were any corrections, deletions, or additions to the minutes of the Regular Meeting of August 17, 2010. Councilwoman Boy made a motion to approve the minutes as printed, second by Councilman Meer. The minutes were approved as printed. REPORTS OF STANDING COMMITTEES Councilman Jankowski reported on the Finance Committee meetings that were held over the past few weeks to review the 2011 budget. Mr. Jankowski advised the Finance Committee met prior to the Council meeting stating the committee unanimously approved the proposed 2011 budget subject to the reduction totaling $616,957 along with approving the Claim Docket filed on September 1, 2010 in the Clerk’s Office in the amount of $206,545.49. Councilman Jankowski reported on the Finance Committee meeting held on September 2, 2010 advising the Finance Committee unanimously voted to approve the proposed ordinance “Approving the Creation and Administration of an Economic Development Revolving Fund” with certain amendments that would be made on second reading. Councilman Jankowski reported on the final IDEM report received on June 22, 2010 addressing the Sanitary District. Mr. Jankowski commented on the Cender & Company financial report received regarding the Guidance Document 1: SEWER RATE AND FINANCING REPORT FOR WWTP MASTOR PLAN IMPLENTATION. Page 2 September 7, 2010 REPORTS OF SPECIAL OR SELECT COMMITTEES There were no reports of select committees. REPORTS of OTHER CITY OFFICERS and DEPARTMENTS There were no reports of other city officers and departments. CLAIM DOCKETS Councilman Jankowski made a motion to approve the claims from Fund #9000 – Riverboat in the amount of $206,545.49, second by Councilman Murphy and approved. Motion 9 – 0. PETITIONS The Clerk read the petition by title only; a petition against discontinuing the evening Michigan City Transit bus routes. Paul Smith, 519 Washington Street stated his concerns regarding the City Transit evening schedule that will be discontinuing soon. Margaret Picur, 1009 Tennessee Street addressed the Council with her concerns regarding the evening schedule of the City Transit and the petition she presented at the last Council meeting (August 17, 2010). COMMUNICATIONS There were no communications. RESOLUTIONS There were no resolutions. ORDINANCES The Clerk read on first reading by title only, DELETING THE APPROPRIATION FOR ANY FULL-TIME EMPLOYEE POSITION FUNDED THROUGH THE MICHIGAN CITY BUDGET FOR ANY AND ALL FULL TIME POSITIONS THAT BECOME VACANT FOR ANY REASON AND REQUIRING THE MAYOR TO OBTAIN AN ADDITIONAL APPROPRIATION TO FILL THE POSITION Introduced by: Robert McKee Marc Espar NOTE: President Espar advised that a similar Ordinance was adopted by the Council earlier during 2010 and the proposed ordinance when adopted will be in effect and enforced on January 1, 2011. President Espar asked if there were any questions or comments by the general public or Council on the proposed ordinance and hearing none, the ordinance was held over for second reading President Espar stated that he would not be referring the proposed ordinance to a committee for further review. Page 3 September 7, 2010 The Clerk read on second reading by title only, AN ORDINANCE ESTABLISHING SALARIES FOR THE POLICE DEPARTMENT OF THE CITY OF MICHIGAN CITY FOR THE CALENDAR YEAR 2011 Introduced by: Marc Espar President Espar asked if there were any questions or comments by the general public or Council and hearing none, the proposed ordinance was laid over for third reading. The Clerk read on second reading by title only, AN ORDINANCE ESTABLISHING SALARIES FOR THE FIRE DEPARTMENT OF THE CITY OF MICHIGAN CITY FOR THE CALENDAR YEAR 2011 Introduced by: Marc Espar President Espar asked if there were any questions or comments by the general public or Council and hearing none, the proposed ordinance was laid over for third reading. The Clerk read on second reading by title only, AN ORDINANCE SETTING SALARIES AND WAGES FOR APPOINTED OFFICIAL AND EMPLOYEES OF THE CITY OF MICHIGAN CITY, INDIANA, FOR THE CALENAR YEAR 2011 Introduced by: Marc Espar President Espar asked if there were any questions or comments by the general public or Council and hearing none, the proposed ordinance was laid over for third reading. The Clerk read on first reading by title only, ORDINANCE FOR APPROPRIATION AND TAX RATES Introduced by: Marc Espar NOTE: Council President Espar stated that this ordinance has gone through extensive Finance Committee meetings as well as workshops attended by most of the Council. The formal public hearing was opened, with President Espar asking “is there anyone from the public who wishes to address the Council?” Council President Espar asked if there were any comments by the general public and hearing none, the public hearing was closed. Councilman Jankowski made a motion to adopt the following amendments, second by Councilman Murphy, ♦ Strike one (1) Deputy Chief position from the City’s Fire Department Page 4 September 7, 2010 ♦ Adjust Departments and Funds totaling $616,957 from the 2011 budget 2011 Amount Published Proposed by Budget Finance Appropriation Committee Amendment 0101 General Fund 0040 Controller 100000 Personal Services 291,756 291,756 0 200000 Supplies 4,800 4,800 0 300000 Other Services and Charges 101,976 88,600 (13,376) 400000 Capital Outlay 0 0 0 9999 Total 398,532 385,156 (13,376) 0042 Clerk 100000 Personal Services 174,678 174,678 0 200000 Supplies 5,300 5,300 0 300000 Other Services and Charges 21,600 16,000 (5,600) 400000 Capital Outlay 0 0 0 9999 Total 201,578 195,978 (5,600) 0044 Mayor 100000 Personal Services 210,740 210,740 0 200000 Supplies 1,000 1,000 0 300000 Other Services and Charges 8,750 8,750 0 400000 Capital Outlay 0 0 0 9999 Total 220,490 220,490 0 0069 Common Council 100000 Personal Services 132,198 132,198 0 200000 Supplies 500 0 (500) 300000 Other Services and Charges 21,000 20,000 (1,000) 400000 Capital Outlay 0 0 0 9999 Total 153,698 152,198 (1,500) 0071 Police Civil Service Commission 100000 Personal Services 8,481 8,481 0 200000 Supplies 250 50 (200) 300000 Other Services and Charges 18,800 18,800 0 400000 Capital Outlay 0 0 0 9999 Total 27,531 27,331 (200) 0075 Board of Public Works & Safety 100000 Personal Services 30,538 30,538 0 200000 Supplies 2,500 1,400 (1,100) 300000 Other Services and Charges 1,415,000 1,380,200 (34,800) 400000 Capital Outlay 0 0 0 9999 Total 1,448,038 1,412,138 (35,900) 0079 Planning & Inspection 100000 Personal Services 592,780 592,780 0 200000 Supplies 5,500 3,500 (2,000) 300000 Other Services and Charges 20,200 18,000 (2,200) 400000 Capital Outlay 0 0 0 9999 Total 618,480 614,280 (4,200) 0080 Fire Merit Commission 100000 Personal Services 11,283 11,283 0 200000 Supplies 31,050 31,050 0 Page 5 September 7, 2010 300000 Other Services and Charges 9,700 9,700 0 400000 Capital Outlay 0 0 0 9999 Total 52,033 52,033 0 0117 Personnel 100000 Personal Services 74,427 74,427 0 200000 Supplies 1,200 1,000 (200) 300000 Other Services and Charges 11,750 11,200 (550) 400000 Capital Outlay 0 0 0 9999 Total 87,377 86,627 (750) 0119 Central Maintenance 100000 Personal Services 710,212 689,866 (20,346) 200000 Supplies 741,375 673,300 (68,075) 300000 Other Services and Charges 233,400 212,129 (21,271) 400000 Capital Outlay 0 0 0 9999 Total 1,684,987 1,575,295 (109,692) City 0164 Hall 100000 Personal Services 144,559 144,559 0 200000 Supplies 18,000 15,600 (2,400) 300000 Other Services and Charges 84,784 65,000 (19,784) 400000 Capital Outlay 0 0 0 9999 Total 247,343 225,159 (22,184) 0168 Historic Review Board 100000 Personal Services 6,046 6,046 0 200000 Supplies 200 0 (200) 300000 Other Services and Charges 700 0 (700) 400000 Capital Outlay 0 0 0 9999 Total 6,946 6,046 (900) 0270 Corporation Council 100000 Personal Services 197,166 197,166 0 200000 Supplies 1,000 850 (150) 300000 Other Services and Charges 76,250 73,250 (3,000) 400000 Capital Outlay 0 0 0 9999 Total 274,416 271,266 (3,150) 0304 M.C. Transit 100000 Personal Services 830,475 830,475 0 200000 Supplies 107,500 107,500 0 300000 Other Services and Charges 282,550 282,550 0 400000 Capital Outlay 0 0 0 9999 Total 1,220,525 1,220,525 0 0306 Engineer 100000 Personal Services 80,711 80,711 0 200000 Supplies 200 170 (30) 300000 Other Services and Charges 1,850 1,350 (500) 400000 Capital Outlay 0 0 0 9999 Total 82,761 82,231 (530) 0309 Human Rights Commission 100000 Personal Services 138,452 138,452 0 200000 Supplies 900 700 (200) 300000 Other Services and Charges 8,600 8,000 (600) 400000 Capital Outlay 0 0 0 Page 6 September 7, 2010 9999 Total 147,952 147,152 (800) 0361 Emergency Management Agency 100000 Personal Services 72,647 72,647 0 200000 Supplies 2,500 2,500 0 300000 Other Services and Charges 7,550 5,500 (2,050) 400000 Capital Outlay 0 0 0 9999 Total 82,697 80,647 (2,050) 0362 Fire Department 100000 Personal Services 7,239,882 7,220,062 (19,820) 200000 Supplies 55,900 47,515 (8,385) 300000 Other Services and Charges 257,200 246,850 (10,350) 400000 Capital Outlay 0 0 0 9999 Total 7,552,982 7,514,427 (38,555) 0370 Police Department 100000 Personal Services 7,874,839 7,815,669 (59,170) 200000 Supplies 74,100 74,100 0 300000 Other Services and Charges 352,350 308,123 (44,227) 400000 Capital Outlay 0 0 0 9999 Total 8,301,289 8,197,892 (103,397) 0524 Central Services 100000 Personal Services 297,586 297,586 0 200000 Supplies 2,700 2,400 (300) 300000 Other Services and Charges 3,750 3,750 0 400000 Capital Outlay 0 0 0 9999 Total 304,036 303,736 (300) 0548 Tree Board 100000 Personal Services 6,230 6,230 0 200000 Supplies 100 100 0 300000 Other Services and Charges 1,550 400 (1,150) 400000 Capital Outlay 0 0 0 9999 Total 7,880 6,730 (1,150) 0623 Vector Control 100000 Personal Services 109,761 109,761 0 200000 Supplies 22,800 22,800 0 300000 Other Services and Charges 6,750 6,750 0 400000 Capital Outlay 0 0 0 9999 Total 139,311 139,311 0 0626 Animal Control 100000 Personal Services 120,014 120,014 0 200000 Supplies 8,000 6,000 (2,000) 300000 Other Services and Charges 3,500 2,000 (1,500) 400000 Capital Outlay 0 0 0 9999 Total 131,514 128,014 (3,500) 0101 General Fund 100000 Personal Services 19,355,461 19,256,125 (99,336) 200000 Supplies 1,087,375 1,001,635 (85,740) 300000 Other Services and Charges 2,949,560 2,786,902 (162,658) 400000 Capital Outlay 0 0 0 9999 Total 23,392,396 23,044,662 (347,734) 1301 Park & Recreation Page 7 September 7, 2010 0802 Park Administration 100000 Personal Services 411,585 411,585 0 200000 Supplies 11,525 8,700 (2,825) 300000 Other Services and Charges 148,905 103,660 (45,245) 400000 Capital Outlay 0 0 0 9999 Total 572,015 523,945 (48,070) Page 8 September 7, 2010 0803 Recreation 100000 Personal Services 225,838 225,838 0 200000 Supplies 59,300 50,800 (8,500) 300000 Other Services and Charges 61,376 52,170 (9,206) 400000 Capital Outlay 0 0 0 9999 Total 346,514 328,808 (17,706) Park 0804 Zoo 100000 Personal Services 470,888 470,888 0 200000 Supplies 79,325 76,700 (2,625) 300000 Other Services and Charges 162,746 138,334 (24,412) 400000 Capital Outlay 0 0 0 9999 Total 712,959 685,922 (27,037) 0805 Park Maintenance 100000 Personal Services 826,234 814,931 (11,303) 200000 Supplies 129,100 123,866 (5,234) 300000 Other Services and Charges 216,249 183,812 (32,437) 400000 Capital Outlay 0 0 0 9999 Total 1,171,583 1,122,609 (48,974) 0806 Senior Center 100000 Personal Services 89,163 89,163 0 200000 Supplies 300 250 (50) 300000 Other Services and Charges 43,481 36,959 (6,522) 400000 Capital Outlay 0 0 0 9999 Total 132,944 126,372 (6,572) 1301 Park & Recreation 100000 Personal Services 2,023,708 2,012,405 (11,303) 200000 Supplies 279,550 260,316 (19,234) 300000 Other Services and Charges 632,757 514,935 (117,822) 400000 Capital Outlay 0 0 0 9999 Total 2,936,015 2,787,656 (148,359) 0227 CEDIT 100000 Personal Services 0 0 0 200000 Supplies 65,000 65,000 0 300000 Other Services and Charges 765,000 765,000 0 400000 Capital Outlay 1,200,000 1,200,000 0 9999 Total 2,030,000 2,030,000 0 0341 Fire Pension 100000 Personal Services 2,584 2,584 0 200000 Supplies 100 100 0 300000 Other Services and Charges 1,676,000 1,676,000 0 400000 Capital Outlay 60,000 60,000 0 9999 Total 1,738,684 1,738,684 0 03472 Police Pension 100000 Personal Services 2,584 2,584 0 200000 Supplies 100 100 0 300000 Other Services and Charges 1,795,211 1,795,211 0 400000 Capital Outlay 60,000 60,000 0 9999 Total 1,857,895 1,857,895 0 Page 9 September 7, 2010 0417 Boyd Development 100000 Personal Services 0 0 0 200000 Supplies 0 0 0 300000 Other Services and Charges 0 0 0 400000 Capital Outlay 0 0 0 9999 Total 0 0 0 0429 Major Moves Road Construction 100000 Personal Services 0 0 0 200000 Supplies 0 0 0 300000 Other Services and Charges 0 0 0 400000 Capital Outlay 0 0 0 9999 Total 0 0 0 0706 Local Road & Street 100000 Personal Services 0 0 0 200000 Supplies 25,000 25,000 0 300000 Other Services and Charges 266,000 266,000 0 400000 Capital Outlay 0 0 0 9999 Total 291,000 291,000 0 0708 Motor Vehicle Highway 100000 Personal Services 1,339,425 1,339,425 0 200000 Supplies 121,000 102,850 (18,150) 300000 Other Services and Charges 218,515 193,515 (25,000) 400000 Capital Outlay 0 0 0 9999 Total 1,678,940 1,635,790 (43,150) 0990 Cumulative Channel Maintenance 100000 Personal Services 0 0 0 200000 Supplies 1,900 1,900 0 300000 Other Services and Charges 6,000 6,000 0 400000 Capital Outlay 0 0 0 9999 Total 7,900 7,900 0 1001 Barker Civic Center 100000 Personal Services 136,633 136,633 0 200000 Supplies 3,400 2,890 (510) 300000 Other Services and Charges 53,228 45,244 (7,984) 400000 Capital Outlay 0 0 0 9999 Total 193,261 184,767 (8,494) 1151 Police Continuing Education 100000 Personal Services 0 0 0 200000 Supplies 15,500 15,500 0 300000 Other Services and Charges 20,000 20,000 0 400000 Capital Outlay 0 0 0 9999 Total 35,500 35,500 0 1303 Zoo Education Non-Reverting 100000 Personal Services 0 0 0 200000 Supplies 11,000 11,000 0 300000 Other Services and Charges 4,000 1,500 (2,500) 400000 Capital Outlay 11,700 11,700 0 9999 Total 26,700 24,200 (2,500) Page 10 September 7, 2010 1304 Senior Center Non-Reverting 100000 Personal Services 0 0 0 200000 Supplies 3,000 3,000 0 300000 Other Services and Charges 10,000 6,000 (4,000) 400000 Capital Outlay 6,000 6,000 0 9999 Total 19,000 15,000 (4,000) 1311 Recreation Non-Reverting 100000 Personal Services 0 0 0 200000 Supplies 52,856 50,690 (2,166) 300000 Other Services and Charges 136,000 136,000 0 400000 Capital Outlay 0 0 0 9999 Total 188,856 186,690 (2,166) 1314 Golf 100000 Personal Services 573,225 573,225 0 200000 Supplies 189,800 161,330 (28,470) 300000 Other Services and Charges 107,185 102,072 (5,113) 400000 Capital Outlay 0 0 0 9999 Total 870,210 836,627 (33,583) 1315 Park Concessions 100000 Personal Services 76,661 76,661 0 200000 Supplies 83,800 71,230 (12,570) 300000 Other Services and Charges 5,768 4,903 (865) 400000 Capital Outlay 4,000 4,000 0 9999 Total 170,229 156,794 (13,435) 1320 Patriot Park Non-Reverting 100000 Personal Services 0 0 0 200000 Supplies 0 0 0 300000 Other Services and Charges 12,000 12,000 0 400000 Capital Outlay 0 0 0 9999 Total 12,000 12,000 0 2102 Aviation 100000 Personal Services 196,358 196,358 0 200000 Supplies 16,500 14,025 (2,475) 300000 Other Services and Charges 47,415 45,633 (1,782) 400000 Capital Outlay 0 0 0 9999 Total 260,273 256,016 (4,257) 2104 Aviation Fuel 100000 Personal Services 0 0 0 200000 Supplies 200,000 200,000 0 300000 Other Services and Charges 0 0 0 400000 Capital Outlay 20,000 20,000 0 9999 Total 220,000 220,000 0 2120 Cemetery 100000 Personal Services 469,206 469,206 0 200000 Supplies 26,000 22,100 (3,900) 300000 Other Services and Charges 53,166 47,787 (5,379) 400000 Capital Outlay 0 0 0 9999 Total 548,372 539,093 (9,279) Page 11 September 7, 2010 2379 Cumulative Capital Improvement 100000 Personal Services 0 0 0 200000 Supplies 0 0 0 300000 Other Services and Charges 75,000 75,000 0 400000 Capital Outlay 80,000 80,000 0 9999 Total 155,000 155,000 0 2391 Cumulative Capital Development 100000 Personal Services 0 0 0 200000 Supplies 100,000 100,000 0 300000 Other Services and Charges 0 0 0 400000 Capital Outlay 575,400 575,400 0 9999 Total 675,400 675,400 0 4238 DEA Forfieture 100000 Personal Services 0 0 0 200000 Supplies 8,000 8,000 0 300000 Other Services and Charges 28,000 28,000 0 400000 Capital Outlay 0 0 0 9999 Total 36,000 36,000 0 9000 Riverboat 100000 Personal Services 0 0 0 200000 Supplies 0 0 0 300000 Other Services and Charges 0 0 0 400000 Capital Outlay 4,867,250 4,867,250 0 9999 Total 4,867,250 4,867,250 0 Civil City - City of Michigan City 100000 Personal Services 24,175,845 24,065,206 (110,639) 200000 Supplies 2,289,881 2,116,666 (173,215) 300000 Other Services and Charges 8,860,805 8,527,702 (333,103) 400000 Capital Outlay 6,884,350 6,884,350 0 9999 Total 42,210,881 41,593,924 (616,957) ♦ Authorize the Controller to adjust revenue to protect maximum levy Councilman Meer commented on the proposed amendment. President Espar addressed Councilwoman Nelson’s questions regarding the adjustments made to the 2011 budget. President Espar asked if there were any questions or comments by the general public or Council and hearing none, the amendment was adopted by the following vote: AYES: Council Members Nelson, Boy, Doyle, Espar, Jankowski, McKee, Meer, Milsap, and Murphy (9). NAYS: None (0). President Espar asked if there were any questions or comments by the general public or Council and hearing none, the proposed amended ordinance was laid over for third reading. Council President Espar asked John Schaefer, City Controller, if they could go over the figures after he makes the amendments to the 2011 budget before the next Council meeting (September 21, 2010). The Clerk read on second reading by title only, APPROVING THE CREATION AND ADMINISTRATION OF AN ECONOMIC DEVELOPMENT REVOLVING LOAN FUND Page 12 September 7, 2010 Introduced by: Marc Espar Robert McKee Pat Boy Council President Espar explained how the revolving loan works to Dennis Boy, 218 Southwood Drive stating when adopted this will entice new businesses to locate in our community and retain existing businesses not to leave. John Regetz, Executive Director, Michigan City Economic Development Corporation addressed the Council regarding the proposed ordinance asking for their support and is looking forward to using this to retain jobs. Councilman Murphy made a motion to amend by substitution the following; MICHIGAN CITY COMMON COUNCIL ORDINANCE NO.____________ APPROVING THE CREATION AND ADMINISTRATION OF AN ECONOMIC DEVELOPMENT REVOLVING LOAN FUND WHEREAS, Michigan City received a riverboat license because the area experiences lower paying jobs and higher unemployment when compared to state averages; and WHEREAS, Michigan City receives funds from the operation of the riverboat and said funds can be used for economic development opportunities; and WHEREAS, the Common Council of the City of Michigan City now determines that a revolving loan fund would be a beneficial incentive to encourage existing companies to remain or to expand, and for prospective companies to locate in, Michigan City thereby increasing Michigan City's tax base and employment of its residents; and WHEREAS, the Common Council finds that upgrading the City's workforce through training for jobs available with new and expanding businesses will leverage the City's investment through the revolving loan fund for the benefit of the City and its citizens, and City provided funding for training targeted for the new jobs will increase the incentive to businesses to locate or expand in the City; and WHEREAS, the City has no greater asset than its workforce, and the Common Council finds that investing in improving the skills of the City's workforce is as important for the City's economic growth as is the investment in the City's infrastructure and, while large sums have been invested by the City in its infrastructure, a relatively small amount has been invested by the City in upgrading the skills of its workforce; and WHEREAS, Michigan City, acting by and through the Board of Public Works and Safety, contracts with the Michigan City Economic Development Corporation to conduct business development programs. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of Michigan City, LaPorte County, Indiana, as follows: Section 1: That the Board of Public Works and Safety is authorized to enter into a contract with the Michigan City Economic Development Corporation for the administration of a revolving loan fund (RLF) generally described as follows: 1. GOAL Stabilize and expand the employment base and economy of Michigan City through retention and attraction of primary employment. 2. OBJECTIVE Create an incentive financing program to secure industrial and commercial business retention, expansion, and external locations for the Michigan City Community. The Michigan City Economic Development Revolving Loan Fund (MCEDRLF) will finance, in conjunction with the SBA 504 program and other traditional financing, amounts between those of the City RLF and Industrial Revenue Bonding structures. The MCEDRLF will also have flexibility to close competitive project deals for Michigan City. 3. PRIMARY TARGETS Manufacturing, logistics (wholesale, warehouse and transportation), information and advanced technology, service industries and construction trades. Local companies publicly announcing operation relocations from Michigan City to other areas are considered high priority retentions. Page 13 September 7, 2010 4. ELIGIBLE USES New investments in capital assets and operating capital: a) Purchase of machinery and equipment. b) Purchase of buildings and land for prospective operations. c) Construction, repair, and renovations of buildings. d) Operating capital including inventory and work in progress. e) Quantifiable employee training when state and federal grants have been investigated and exhausted. 5. TERMS a) Up to 10 years for real estate investments. b) Up to 5 years for machinery and equipment. c) Up to 3 years for operating capital. d) Interest negotiable, (Standard Rate: ¾ Prime). e) Maximum loan $650,000.00. f) Minimum loan $75,000.00. g) Job Creation – a maximum of $10,000/new job; $5,000/job retained. h) Job Training – Training funds shall be awarded at a maximum of $1,000 per incumbent position; $2,000 per new position created; and shall comprise a maximum of 50% of total training costs. An additional 25% bonus in funds available will be made available for Michigan City resident trainees. i) All loans shall be secured by a mortgage on real property. 6. REQUIREMENTS a) Location in Michigan City, or within ½ mile of city limits, that is served by the Michigan City Water Department and/or Sanitary District. b) Three years minimum in business. c) Credit worthy – credit checks and SBA/Industry finance standards. d) Investment structure – minimum project funds invested 1:1 cost share ratio. 10% minimum equity injections (higher equity to MCEDRLF funding ratio receives priority). e) The MCEDRLF Committee can make exceptions to the Terms and Requirements for demonstrated cause: 1) The Loan Committee may provide forgivable loans to retain companies that have publicly announced the transfer of Michigan City operations to other locations, or their cessation. 2) Under competitive conditions, the Loan Committee may provide forgivable loans to recruit or expand companies that pay 25% above the Michigan City average wage. 3) Under competitive conditions, the Loan Committee may provide low to no interest loans to recruit or to expand companies in Michigan City. Section 2: The Common Council of Michigan City, Indiana intends to appropriate $650,000.00 to initially fund this program and annually hereafter or as required to provide additional funding to maintain an adequate operating level for the program, which said amounts shall be subject to the financial conditions of the City itself. Section 3: That the Michigan City Economic Development Corporation will operate MCEDRLF as part of a contract with the City of Michigan City (acting by and through the Board of Public Works and Safety) for economic development services. Said contract shall provide for the creation of a loan committee by the Corporation that includes two senior-level professional loan officers, one appointed by the Mayor and one appointed by the Council. The committee shall also include one additional member appointed by the Mayor and one appointed by the Council. No appointee shall be employed by, or receive any form of compensation directly from, the City of Michigan City. The loan committee shall prepare appropriate loan policies, requirements, forms, and manuals for approval by the Council. Additionally, the Council shall appoint one of its members as a non-voting liaison to this committee. The liaison shall be informed of and shall be allowed to attend all meetings held by the committee, including executive sessions. The contract shall require the submission of a semi-annual written report and, upon request, oral presentation, to the Mayor and to the Common Council that reveals individual summaries of training, employment, investment, and loan status. This Ordinance shall be effective upon passage by the Council, approval by the Mayor, any necessary publication, and any necessary approval by the Indiana Department of Local Government Finance. INTRODUCED BY: Marc Espar, President Page 14 September 7, 2010 Michigan City Common Council Robert McKee, Member Michigan City Common Council Patricia Boy, Member Michigan City Common Council The motion was second by Councilwomen Nelson and Boy. President Espar asked if there were any questions or comments by the general public or Council and hearing none, the amendment was adopted by the following vote: AYES: Council Members Boy, Doyle, Espar, Jankowski, McKee, Meer, Milsap, Murphy and Nelson (9). NAYS: None (0). President Espar asked if there were any questions or comments by the general public or Council and hearing none, the proposed amended ordinance was laid over for third reading. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS There was no new business. COMMENTS FROM THE PUBLIC Margaret Picur, 1009 Tennessee Street asked the Council what their opinion was on the City Transit after hour schedule that will be discontinued after September 30, 2010 and what the cost would be to continue the service. Dave Croy, 406 Springland Avenue, stated his concerns regarding the evening hour buses being discontinued. COMMENTS FROM THE COUNCIL Councilman Murphy stated that he would contact Ms. Picur with the information she requested regarding the cost of the continuation of the evening hour transit service. Councilman Meer stated that the Mayor’s Office should be able to provide information explaining how the after hour transit schedule began and why it is being discontinued to better explain how the grant works to Ms. Picur. ADJOURNMENT A motion by Councilman Doyle, supported by Councilwoman Boy, and there being no further business to transact, President Espar declared the meeting ADJOURNED (approximately 7:05p.m.). _____________________________ Thomas F. Fedder, City Clerk Page 15 September 7, 2010