City Council

REGULAR MEETING – July 15, 2014 The Common Council of the City of Michigan City, Indiana, met in Regular session on Tuesday evening, July 15, 2014 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 Parry. Roll call was authorized and the following were noted present and/or absent. PRESENT: COUNCIL MEMBERS Pat Boy, Tim Bietry, Joe Doyle, Ron Hamilton, Rich Murphy, Duane Parry, Don Przybylinski and Chris Schwanke (8). ABSENT: Marc Espar (1). A QUORUM WAS NOTED PRESENT. ALSO PRESENT: Jim Meyer – Council Attorney, Kim Sliwa – Deputy Clerk. APPROVAL OF MINUTES President Parry inquired whether there were any corrections, deletions, or additions to the minutes of the Regular Meeting of July 1, 2014. Councilman Przybylinski made a motion to approve the Regular meeting minutes held on July 1, 2014 second by Councilwoman Boy. The minutes were approved as printed. REPORTS OF STANDING COMMITTEES President Parry stated the Finance Committee met prior to the Council meeting, advising Committee members Parry, Przybylinski and Bietry were present. The Committee unanimously recommended approval for the Riverboat Fund #9000 in the amount of $325,850.23 and the Boyd Development Fund #0417 in the amount of $1,822.50. President Parry stated: $243,246.48 from Reith-Riley Construction Company for work performed for Michigan City on 2014 streets and sidewalks project; $8,353.82 and $1,822.50 to Haas and Associates, for engineering and inspection services provided on 2014 streets and sidewalks project, and research to appeal current Cheney Run Storm water Sewer area FEMA Flood Insurance Program, respectively; $26,272.36 and $31,555.07 from HRP Construction and Lake City Bank respectively for work performed and retainage associated with the Michigan City Sanitary District Lake Avenue Lift Station Project; $13,650.00 from ProITco for project management services provided for the Michigan City Communication Systems Upgrade Project; $2,709.90 to Waymire APS, Inc. for interior emergency lighting equipment for the Michigan City Police Department vehicles; and $347.60 to Donley Safety for Protective equipment for Michigan City Fire Department. REPORTS OF SPECIAL OR SELECT COMMITTEES Councilman Bietry presented the City Clerk with the following Tax Abatement Committee minutes for the meeting that was held on July 2, 2014: Present with committee members – EDCMC Director Clarence Hulse Councilman Bietry called the meeting to order at 5:40 p.m. Mr. Hulse provided form CF-1 for 15 local companies requesting continued support of their abatements. Several companies have more than one abatement. The Page 2 July 15, 2014 total number of added jobs as a result of the abatements is 236. The total real estate investment is $10,589,125.82. The total capital investment is $19,941,091.00. All committee members agree that provisions have been met and no members had issues that would preclude a recommendation to continue support for the abatements. The decision was unanimous that we recommend to the City Council that the request for continued support for the abatement be made. The meeting was adjourned at 6:00 p.m. REPORTS of OTHER CITY OFFICERS and DEPARTMENTS Dean Uminski presented the following report regarding the 2014 Tax Abatement CF-1 forms received, asking the Council for their approval: Mr. Uminski stated he presented a corrected version of the 2014 tax abatement totals this evening to each Council Member and Attorney Meyer. Councilwoman Boy made a motion to adopt the 2014 CF-1 tax abatement forms received, second by Councilmen Hamilton and Murphy. Councilman Bietry stated he would be abstaining from voting since he works part time at one of the companies submitting a CF-1 form. NOTE: Councilman Espar entered the Council Chamber and was noted present. President Parry asked if there were any other comments or questions and hearing none the motion was approved. CLAIM DOCKETS President Parry stated the Claims for Fund #9000 – Riverboat was $325,850.23 and $1,822.50 claims for Fund #0417 – Boyd Development. President Parry asked if there were any other comments and hearing none, a motion by Councilman Przybylinski was made, second by Councilman Bietry, and was approved. Motion carried 9 – 0. PETITIONS There were no petitions. COMMUNICATIONS There were no communications received. RESOLUTIONS The Clerk read the following proposed resolution, MICHIGAN CITY COMMON COUNCIL RESOLUTION NO. 4577 APPROVING AND AUTHORIZING THE SUBMITTAL OF 2014-2018 CONSOLIDATED AND CITIZEN PARTICIPATION PLANS TO HUD WHEREAS, the City of Michigan City (City) is an entitlement community for the Community Development Block Grant (CDBG) from the U.S. Department of Housing and Urban Development (HUD); and Page 3 July 15, 2014 WHEREAS, HUD requires the City to prepare and submit a 2014-2018 Consolidated Plan and Citizen Participation Plan (Plans) that outlines a five-year strategy to address the City’s goals for housing, jobs, and services for lower-income residents in order to be eligible to receive additional CDBG funds; and WHEREAS, the City has disseminated information, received public input, and held at least one public hearing on the Plans; and WHEREAS, adoption of the Plans by the City will make Michigan City eligible for receipt of $616,472 of CDBG funds administered by HUD during 2014; and WHEREAS, the Common Council finds that the public interest will be served by the adoption and approval of the Plans and their submission to HUD in support of a request for CDBG funding for the City; and WHEREAS, there is no match requirement for the City to receive the CDBG funds and upon approval of the Plans by the Common Council and their submission to HUD, the Redevelopment Commission will receive and administer any CDBG funds awarded to the City. NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Michigan City, Indiana: Section 1. That the Common Council approves the City's 2014-2018 Consolidated Plan and Citizen Participation Plan and supports and authorizes the Redevelopment Commission to submit them to the U.S. Department of Housing and Urban Development in support of the City's request for CDBG funds. Section 2. That the Common Council supports and authorizes the use of the Consolidated Plan to allocate CDBG funds in the amount of $616,472.00. Section 3. That upon approval, the Mayor is authorized to execute any and all contracts and memoranda required for the award of the above-described CDBG grant from the United States Department of Housing and Urban Development. Section 4. That the City Controller is authorized to open a fund and an account to receive the CDBG grant funds and make expenditures for CDBG purposes from said fund without further authorization from the Common Council. This Resolution shall be in full force and effect after passage by the Michigan City Common Council and approval by the Mayor. Introduced By: /s/ Pat Boy, Member Michigan City Common Council Councilwoman Boy stated Ms. Judy Pinkston, Coordinator of the citizens participation plans to HUD is present to answer any questions the Council may have. Ms. Pinkston, Community Development, addressed the Council advising the proposed resolution needs to be adopted by the City Council so she can submit it to HUD. Councilwoman Boy stated each Council Member did receive the “Five Year Consolidated Plan” to review. Councilman Hamilton made a motion to adopt the proposed resolution, second by Councilman Przybylinski and Councilwoman Boy. President Parry asked if there were any questions or comments by the general public or Council and hearing none, the resolution was adopted by the following vote: AYES: Council Members Parry, Przybylinski, Schwanke, Bietry, Boy, Doyle, Espar, Hamilton, and Murphy (9). NAYS: None (0). The Clerk read the following proposed resolution in its entirety, Page 4 July 15, 2014 MICHIGAN CITY COMMON COUNCIL RESOLUTION NO.______________ REQUESTING MAYOR TO SUBMIT BALANCED PROPOSED BUDGET FOR 2015 IN FULL COMPLIANCE WITH INDIANA LAW AND THE RELEVANT PROVISIONS OF THE MICHIGAN CITY MUNICIPAL CODE, INCLUDING ORDINANCE NO. 4066 WHEREAS, Indiana law requires the Mayor to submit to the Common Council his proposed budget for the City of Michigan City for 2015; and WHEREAS, Indiana law requires the Mayor’s proposed budget to be balanced and to comply with applicable City Ordinances regarding use of City funds, including Common Council Ordinance No. 4066 entitled Amending Ordinance No. 3943 so as to Require Spending From the Riverboat Fund for Capital Expenditures. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Michigan City that it requests the Mayor to submit to the Common Council a proposed 2015 budget for the City of Michigan City that is balanced and in full compliance with Indiana law and the provisions of City Ordinance No. 4066 which limits the percentage of City Riverboat Funds that can be used for the City’s normal and routine operating expenses to 20% of said Riverboat Funds. This Resolution to be effective upon passage. Introduced By: Duane Parry, Member Michigan City Common Council President Parry advised he asked Ms. Neulieb to read the proposed resolution in its entirety for the benefit of everyone in the Chamber along with those at home watching the meeting. President Parry commented on the email he and the Council received from Michigan City Police Officer Francisco Rodriguez, advising there is nowhere in the proposed resolution where the raise was even mentioned; stating this resolution is not about the raise but about good, responsible government and a public reminder of the duties legally of everyone in our government who is a part of generating the budget. President Parry commended Officers Rodriguez and Radiger for their passion on this matter. Mayor Meer addressed the Council regarding the proposed resolution to remind the Mayor of his duties that he is already doing, reading the following excerpt from his 2014 State of the City Address: There will be many difficult decisions to make for my administration and the Michigan City Common Council as we work through the 2015 budgetary process looking at ways to generate increased revenues for the city and utilizing the financial resources that are unique to our community. We all need to keep in mind that our important obligation as a municipality is to provide services to our residents. So in that thought, this reemphasizes the importance of every one of city departments and the services they provide for the residents of our great city. Our services are only as good as the people we have providing them; we have to invest in our personnel in order to maintain our high level of expertise and professionalism that are given through our City workers. Mayor Meer stated this resolution insinuates that he would do something contrary to the law, that the Council needs to remind him that he isn’t performing his duties; and advised the Council that he has done nothing contrary to the law. Mayor Meer addressed the Council advising that by staying at 20% would mean the Council has made a decision to have approximately three and half million dollars in cuts Page 5 July 15, 2014 to the 2015 budget and would also eliminate any opportunity for pay increases to City employees. Mayor Meer stated several reasons why the Council should not adopt the proposed resolution that President Parry has introduced, and how it would affect everyone in our community if having to make cuts to city employees. Mayor Meer advised since 2012 his administration has eliminated seventeen (17) positions through various city departments totaling almost one million dollars in saving and that he continues to look at that. Mayor Meer introduced City Deputy Controller Yvonne Hoffmaster asking her to go over the slides that were presented to the Council and City Employees at this workshop: President Parry advised Mayor Meer that he was speaking as a citizen under public comment reminding the mayor that by municipal code there is a three (3) minute limit to speak, adding that out of personal respect for the mayor and respect for the office he holds, he has been allowed over 9 minutes to make his comment, and requested the mayor conclude his comment immediately. Mayor Meer advised he was not here this evening as a public resident but in the capacity of the Executive of the City of Michigan City. Councilman Espar called a “Point of Order” stating the Mayor is speaking as part of the public at this time. Discussion ensued between Mayor Meer and President Parry. President Parry asked Ms. Pappas, City Controller, if the information being presented provides the answers to the information requested by Councilman Przybylinski at the last Council meeting on July 1, 2014. Yvonne Hoffmaster, City Deputy Controller addressed the Council regarding the 2015 budget, LaPorte County back taxes, revenue received from the Riverboat, and then presented the following information: MAYOR’S BUDGET PLAN • Amend Ordinance 4066 to decrease the reserve to 59%, leaving 41% available for operating expenses, of Riverboat funds for budget year 2015 • A 2% pay increase for all City employees - $620,000 • Estimated savings for 2015 budget (continues after table) • Restructure department(s) – (1,000,000) • Eliminate position (s) – (500,000) • Net savings $880,000 • Estimated new revenue is $437,000 (83% of 2.7% growth factor) • Estimated shortfall on property tax collections is $2,929,091 (assuming an 83% collection rate) • Additional 21% requested to cover estimated shortfall in property tax collections and employee raise Greg Radiger, President of Dunes Lodge F.O.P. 75 addressed the Council regarding their concerns about the proposed resolution along with the three options (recommendations) for 2015 the Mayor proposed to the Council at the June 26, 2014 workshop. Officer Radiger commented on property tax issues, cost of living that continues to rise, minimal raises received within the last eight (8) years to City employees and how, in spite of economic issues, the City employees have not faltered or stopped providing the best quality of service to the residents of our community, giving 110%. Officer Radiger respectfully requested the Michigan City Common Council either vote down or table the proposed resolution. Chris Schwanke advised Officer Radiger that there is a three (3) minute limit for public comments. Page 6 July 15, 2014 President Parry advised Officer Radiger that he should finish his comments immediately. Officer Radiger finished his comments asking the Council to table the proposed resolution or vote it down. Comments were made by Mark Swistek (Chief of the Michigan City Police Department) and Jerry Passmore (Michigan City) regarding the 2015 budget and the current budget. A discussion ensued between Mayor Meer, President Parry, Council members Murphy, Przybylinski, Schwanke, Hamilton, Boy, and Bietry, regarding information being requested from the Mayor regarding details of a proposed 2015 budget and the proposed resolution. Attorney Meyer advised an ordinance would supersede a resolution and, when adopted, would become the new law. Deputy Controller Yvonne Hoffmaster advised 53% of our levy of the 2012 pay 2013 tax distribution was received in the middle of April, and in June the City received a tax distribution for 2013 pay 2014 of 71% of the anticipated levy, which was probably taxes from past years. Councilman Bietry stated that the increase of the Riverboat Fund is actually an increase of 21% since the City already receives 20% and approved. Councilman Doyle commented on the property tax issues and revenue monies received; making a motion to TABLE the proposed resolution indefinitely, second by Councilman Hamilton. President Parry asked if there were any other questions or comments from the Council and hearing none, the resolution was TABLED by the following vote: AYES: Council Members Przybylinski, Schwanke, Bietry, Boy, Doyle, Espar, Hamilton, and Murphy (8). NAYS: Council Member Parry (1). President Parry stated the resolution is TABLED indefinitely. ORDINANCE The Clerk read the following proposed ordinance on first reading by title only, APPROVING ADDITIONAL APPROPRIATION FOR THE REINSTATEMENT OF THE POSITION OF TRANSIT DIRECTOR IN MICHIGAN CITY CENTRAL SERVICE DEPARTMENT Introduced by: Duane Parry (DECREASE General Fund #010 Unappropriated balance $33,743.10. INCREASE ACCOUNT #0101 0330401 411.001 - $27,692.32 Salaries & Wages 0101 0304 01 413.001 - $2,118.47 FICA 0101 0304 01 413.002 -$3,932.31 PERF) President Parry apologized to the riders of the City’s Transit System who experienced some anxiety over the ordinance, previously submitted, being voted down due to not being informed with sufficient information as to all of the duties of this position and requirements regarding receiving Federal grant monies for operation expenses. President Parry stated he would be referring this ordinance to the Finance Committee for their review and advisement. Page 7 July 15, 2014 Council President Parry advised there would be a formal public hearing at the August 5, 2014 Council meeting. Mayor Meer addressed the Council advising the City has already advertised for this position, have already received applications and will be moving forward with filling this position. Mayor Meer stated this is a crucial position that needs to be filled to protect our grants as soon as possible. Councilman Hamilton stated the reason he voted against the previous ordinance regarding the position of Transit Director was due to the Mayor’s statement made at their workshop that he stated he was looking at doing something different with that position; stating he would be supporting this proposed ordinance. Councilwoman Boy asked if second and third reading could be done at the next council meeting on August 5, 2014 to expedite it. President Parry asked if there was any objection to have second and third reading at the August 5, 2014 Council meeting and Councilman Espar objected; stating this can be addressed at that meeting. Councilman Murphy stated he appreciated President Parry sponsoring the proposed ordinance advising he did support the previous ordinance to fill the Transit Directors position; advising we can leverage a triangle bus grant that will deliver service from LaPorte to Michigan City to the Purdue North Central Campus and is through a grant obtained by NIRPC and that he would be supporting this ordinance. Councilman Bietry stated he remembered the Mayor also saying there may be things he may want to change relative to this position and is this is one of the reasons he didn’t support filling this position. Councilman Bietry advised, after reading the correspondence from the City Attorney, it became clear that Michigan City did need a transit director; questioning whether there was a need for a full time Transit Director or if that is part of the grant requirements. Mayor Meer stated we need a full time Grant Administrator and Transit Director, which is what the Federal Agency is telling us would be the best situation to contain to protect our grants. Mayor Meer commented on doing research regarding this position and didn’t realize the Council would vote down filling the position. President Parry stated he met with Mr. Evers and he supports what the Mayor said; advising that was the reason he added the third WHEREAS that states one of the Transit Director’s job responsibility is to process and complete federal and state grants . President Parry asked if there were any comments or questions from the general public or Council and hearing none, the proposed ordinance was held over for second reading at the August 5, 2014 Council meeting. The Clerk read the following proposed ordinance on first reading by title only, AMENDING ORDINANCE NO 4066 TO INCREASE THE ANNUAL PERCENTAGE OF FUNDS THAT CAN BE USED TOWARDS THE CITY’S OPERATING EXPENSES FROM 20% TO 41% FOR CALENDAR YEAR 2015 ONLY Introduced by: Pat Boy Rich Murphy Councilwoman Boy read Section 1: For purposes of the City’s 2015 Annual Budget, no more than 41% of the Riverboat Funds may be used for normal and routine operating expenses and 59% of Riverboat Funds shall be reserved for capital expenditures for capital improvement and development projects. Councilwoman Boy advised it doesn’t mean that we have to use the full 41%. Page 8 July 15, 2014 Councilwoman Boy advised the “Rainy Day Fund” that was created by this Council is specifically for tax sale monies of City property sold and could be used the same as Riverboat Funds; advising if we did collect any of those monies it would make up for the funds we used from the Riverboat. Councilman Murphy reiterated what this proposes is that from here on in we’ll continue to be frugal, request the City Department Heads to implement efficiencies from all City employees, halt all unnecessary spending, and reduce staff were we can through attrition, but won’t have a gun to our head to do so. Councilman Murphy commented on the number of staff reductions Mayor Meer’s administration has made from 2012 to 2014 being able to reduce seventeen positions saving one million dollars. Councilman Murphy commented on the 24% crime reduction this year. Councilman Murphy addressed the Council regarding the assets Michigan City has, drawing an additional 50% above our population visiting our community every year; stating that this is linked to economic revitalzation in our down town and surrounding areas within our city. Councilman Murphy stated he did some research between public safety and economic development; advising the high quality services that we deliver and we invest in ourselves will attract high quality investment and businesses to come to Michigan City. President Parry stated he would be referring the proposed ordinance to the Finance Committee to schedule a workshop for review and advisement. Council President Parry advised there would be a formal public hearing at the August 5, 2014 Council meeting. Mayor Meer asked Councilman Parry to please coordinate with his office when scheduling the workshop to make sure the City Controller, Carl Cender and himself could be in attendance. Mayor Meer thanked Councilman Bietry for mentioning that the increase being proposed is actually a 21% increase from what the City has been using (20%). Councilwoman Boy stated that if there have been seventeen (17) positions eliminated and one million saved since 2012 and you multiply by three (3) for the three million dollars the City is short; it would be fifty-one positions that would have to be cut from the budget. Councilman Przybylinski stated that as initially requested, and as Councilman Bietry alluded, was to get the information/details we need regarding option “C”; advising what departments might be closed down or laid off, and asking the Mayor to provide that information by the time the workshop is scheduled. Councilman Murphy commented on the request Councilman Przybylinski was asking from the Mayor regarding information/details of a proposed 2015 budget. President Parry stated the proposed ordinance addressing the 2015 budget will probably be “an important one that will be” brought to this Council in a long time; advising he hopes that everyone engaged in this process gives it the level of attention and seriousness that it requires. President Parry commented on the 21% increase being proposed stating his concerns. President Parry asked if there were any other questions or comments from the general public or Council and hearing none, the proposed ordinance was held over to the August 5, 2014 Council meeting. Page 9 July 15, 2014 The Clerk read the following proposed ordinance on second reading by title only, APPROVING ADDITIONAL APPROPRIATION IN THE BUDGET OF THE BOYD DEVELOPMENT FUND TO PURCHASE APPRAISALS AND SURVEYS FOR THE PURPOSE OF SELLING EXCESS REAL PROPERTIES OWNED BY THE CITY Introduced by: Ron Hamilton Councilman Hamilton stated Craig Phillips was present if the Council may have any questions regarding the proposed ordinance. Council President Parry noted the formal public hearing is scheduled for this evening. The formal public hearing was opened, with President Parry asking “is there anyone from the public who wishes to address the Council?” Craig Phillips, City Planner, asked if the Council would consider having second and third reading this evening. Councilman Espar stated he objected to having second and third reading this evening. President Parry asked if there were any other comments and hearing none, the formal public hearing was closed. Council President Parry asked if there were any comments from the Council on the proposed ordinance and hearing none, the ordinance was held over for third reading at the August 5, 2014 Council meeting. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS President Parry advised the Council has one (1) appointment to the Michigan City Police Civil Service Commission (term expiring 9-07-2014). Incumbent: Mr. Mike Buda President Parry stated nominations would take place at the August 5, 2014 Council meeting and that nominations have to be filed in the Clerk’s Office by noon on Thursday, July 31, 2014. COMMENTS FROM THE PUBLIC Willie Morse, East Crossing, Michigan City addressed the Council regarding his civil rights. COMMENTS FROM THE COUNCIL Councilman Doyle addressed the Council regarding applying for various grants and how they are administered, asking if a position for a grant writer for the entire City be established. Craig Phillips, Planning Director stated that he spoke to the Mayor and Attorney Meyer about a position within the City for a Grants Administrator that would coordinate all grants that City would consider going through the process of applying for; advising is would require additional City funds. President Parry stated it was encouraging to hear that he and the Mayor has already discussed and is reviewing is matter. Page 10 July 15, 2014 Councilwoman Boy stated the Michigan City Commission for Women is having a fund raising event on Friday, August 15, 2014 at 5:30 p.m. at the Uptown Center for the Performing Arts – 903 Franklin Street inviting everyone to attend “A Celebration of Women in the Arts” (a celebration featuring visual and performing arts by some of Northwest Indiana’s most prominent and promising female artists!). Councilwoman Boy advised anyone interested could contact her or the Clerk’s Office for more information. Councilman Bietry stated he wanted to take this opportunity to congratulate Officer Radiger for the comments he made. Councilman Bietry commented on Jan Orlich leaving the Park Department; stating he enjoyed working with her and that she did a great job. Councilman Schwanke visited several events that were taking place in our community this past weekend; commenting on a private citizen he spoke with about what this Council has had to address since they have been in office, and having to make one- hundred-year-old type decisions that past Councils wouldn’t have had to make. Councilman Hamilton made a motion to adjourn, second by Councilman Doyle. Councilman Espar advised there was a motion on the floor. Councilmen Hamilton and Doyle withdrew their motions. Councilman Przybylinski advised that at the next Sanitary District Board meeting, Mike Kuss Sanitary District Superintendent will be reporting on updates of Lake Henry. Councilman Przybylinski thanked Councilmen Doyle, Parry and the Summer Festival Committee on doing a great job this summer on the annual parade. Attorney Meyer stated the Sanitary District Board meets on the 4th Wednesday at 4:00 of each month. President Parry commented on the 4th of July parade, advising he assisted Councilman Doyle; advising Mr. Doyle is Mr. Summerfest and does more work to make that organization shine, and saluted him for what he does. Councilman Doyle stated the Summerfest has a team and they all work for the same goal. ADJOURNMENT A motion by Councilman Hamilton, supported by Councilman Doyle and there being no further business to transact, President Parry declared the meeting ADJOURNED (approximately 8:36 p.m.) ______________________________ Gale A. Neulieb, City Clerk Page 11 July 15, 2014