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HomeMy Public PortalAbout04-19-1993 233 PROCEEDINGS OF THE COMMON COUNCIL OF THE CITY OF-RfCHMOND1NDIANi -APRL. t993 • 1 The Common Council of the City of Richmond, Indiana met in regular session at 7:30 p.m. Monday, April 2 19, 1993, in the Council Chambers in said City. President Lundy presided with the following 3 Councilmembers present: Elstro, Brookbank, Donat, McBride, Parker, Allen, Dickman and Hutton. The 4 following business was had to-wit: 5 6 PLEDGE OF ALLEGIANCE 7 8 PRAYER-COUNCILMEMBER DICKMAN 9 10 ROLL CALL 11 12 APPROVAL OF MINUTES OF APRIL 5.1993 13 14 Councilmember Brookbank made a motion to approve the minutes of the April 5, 1993,meeting as prepared, 15 seconded by Councilmember McBride and carried on a unanimous voice vote. 16 17 COMMUNICATION FROM THE MAYOR 18 19 None 20 21 PRESENTATIONS OF REMONSTRANCES.PETITIONS AND MEMORIALS 22 23 REPORT FROM CITY DEPARTMENTS 24 25 None presented. 26 27 REPORT FROM BOARD OF PUBLIC WORKS AND SAFETY 28 29 Minutes of the April 1 and April 8 meetings were in the packets.Councilmember Parker thanked the Board of 30 Works and all others responsible for getting the traffic signal at the intersection of Toschlog Road and 31 National Road West. Councilmember McBride thanked Bill Smith of the Street Division for taking care of a 32 situation on South B Street. 33 34 REPORTS FROM STANDING COMMITTEES 35 36 REPORTS FROM SPECIAL COMMITTEES 37 38 None 39 40 REPORTS FROM OTHER COUNCIL COMMITTEES 41 42 None 43 44 ORDINANCES 45 46 ORDINANCES ON FIRST READING 47 48 Councilmember Brookbank made a motion to suspend the rules and read on first reading by title only 49 Ordinances No. 27, 28, 29 and 30 - 1993, second by Councilmember McBride and carried on a unanimous 50 voice vote. 51 52 ORDINANCE NO.27-1993 53 54 The Clerk read Ordinance No. 27 - 1993 - AN APPROPRIATION ORDINANCE AMENDING THE 1993 55 BUDGET 56 57 City Controller Dennis Grimes explained that the ordinance was an additional appropriation ordinance 58 requesting that Council approve funds that are in the fund balance and the Cumulative Capital Development 59 fund totaling.$736,000. He said members had received in their packets the capital allocation of the 60 departmental requests. He noted that after a review by the City Controller and Mayor they came up with an 61 equitable allocation given the limited number of dollars that were available, yet the need was for twice the 62 total amount. He noted the grand total is.for $1,004,300 and the difference is from the Cumulative Capital 63 Improvement Fund and the General Fund which has already been appropriated.The second part deals with 64 the Public Transit Fund for a total of$257,709.00 which represents the amount of money cut from the budget 65 at the 12/1/92 budget hearing. 2 34 • Common Council Minutes Cont'd - April 19, 1993 Page-2 • . . . •. , r } . I. 1 The reason,Grimes explained,was that the Indiana Department of Transportation had not yet approved the grant and a large percentaget of the operational costs of RoseViewTransit operations are funded through grants. He noted that the normal approval process does not actually conclude until January of each year. He added that he received communication January 15 from the Indiana Department of Transportation stating that not only the capital but the operating asssistance grants had been approved. At that time he began to formulate the numbers necessary to come in for additional appropriations, holding back until further word that there would be additional money available after the Clinton administration took office. He said those funds have become available for the funding of new buses: 1 I Grimes said the sum total of$233,270.00 represents four new buses, handicapped equipped lifts,six radios, 1 other support equipment, and an air compressor. He added that this comes from Indiana.Department of 1 Transportation grants. Councilmember Brookbank moved •to accept the amendments, second by 1 Councilmember Hutton and carried by a unanimous voice vote. 1, 1* Councilmember Hutton asked for an explanation of the engineering consultant on the capital equipment list. 1: Grimes said it was part of the proposed underground storage removal and-replacement project. Earnest 1 Jarvis, director of the Department of Public Works, said the consultant is Bill Spencer out of Indianapolis. 1: Jarvis added that upon a•recommendation made by the City's inspectors because of the highly technical 1° nature of the$130,000 project to replace those fuel tanks at the airport the Board of Aviation hired Spencer. 20 He said bids have been received and are currently being reviewed. 2 2 Councilmember Brookbank moved to suspend the rules and advance Ordinance No. 27 - 1993 to second 2 reading and read by title only,second by Councilmember McBride and carried by a unanimous voice vote. 2• 2. The Clerk read Ordinance No.27-1993 on second reading. 2. 2 Councilmember.Elstro asked Jarvis about Transilwrap. Jarvis said.in 1990 the City was approached by 2: Transilwrap stating that it would be willing to add 100 jobs if the City would help install a railroad spur across 2" Industries Road into itslot. Jarvis said that had never been done. Now Transilwrap has reminded the City 30 that it hasn't been done and the City is trying to make it. right. Kinnett explained that Transilwrap did 3 approach the City the latter part of 1990 and the City applied for infrastructure grants of$150,000 to extend 3 the rail spur. It was approved by the Indiana Department of Commerce but the City ran into where the extra 3• cost factor would come from. He added that this$150,000 is our matching part ofthe grant. 3. ; , 3• In answer to Councilmember Parker's question as to whether or not it was allowed to lease purchase the fire 3° engine over a three-year period of time, Milligan said it was allowable. Fire Chief James Sticco said it takes 3 almost a year to build once the permission is given for funds: He said the new engine will be at Fire Station 3: No.3, replacing a 1969 engine that has been refurbished and still serviceable. 3° . 40 Councilmember Donat questioned the salaries transferring to the public transit funds. Grimes explained that 4 at the tax hearing in December the Commissioner determined there were not enough funds shown on the 4' balance sheet to support the expenditures,approved by.the Council. He said it was determined he was $257,709 short and the budget was cut by that amount until funding was identified. He said evidently his word was not good enough but he had confirmation in letter•form about the grant agreement, putting back what Council originally passed. In answer to Councilmember Donat's question,Grimes said he had to make 4• a decision in 15 or 20 minutes and he chose to cut regular salaries and insurance because they were the 4 largest items in the budget that could absorb that type of cut without an unfavorable impact until actually 4: going through this process tonight. 4° , 50 Grimes said he chose to cut the salaries because it would be possible to continue to operate until this time. 5 The budget cut of $177,709 was made knowing that the City would get the approval from the Indiana 5 Department of Transportation. He said there need not be any 'unfavorable repercussions because he could 5 come back to Council for additional appropriations and prove to the state through revised documentation 5, there are sufficient revenue sources to support the total budget as it was presented to them. 5 5. Councilmember Donat said she was alarmed that that amount had been taken from salaries without 5' Councils knowledge. Grimes explained that since no documentation was presented at the tax.hearing that 5: the City was going.to get the money for the grant from the Indiana Department of Transportation the hearing 5° examiner felt uncomfortable about arbitrarily approving the budget for the transit authority. Grimes said it 60 was merely a timing difference but everything is,in order now and the City has the necessary documentation. 6 • • . . 6 President Lundy announced that Ordinance No.27-1993 was on public hearing.There being no comments 6 either for or against, Councilmember McBride moved for engrossment second by Councilmember Parker 6, and carried by a unanimous voice vote. - - • , 6 . • • ,I 235 Common Council Minutes Cont'd April 19, 1993 Eage_3 1 Councilmember Brookbank moved to suspend the rules and advance Ordinance No. 27- 1993 to third and 2 final reading and read by title only,second by Councilmember Parker and carried by a unanimous voice vote. 3 4 The Clerk read Ordinance No.27-1993 on third and final reading. 5 6 Ordinance No.27-1993 was adopted on the following call of the roll: 7 8 Ayes:Elstro, Brookbank, Donat, McBride,Parker,Allen, Dickman, Hutton and Lundy(9) 9 Nays:None 10 11 ORDINANCE NO.28-1993 12 13 The Clerk read Ordinance No. 28 - 1993 -A SPECIAL ORDINANCE AMENDING THE R-4 SPECIAL USE 14 DISTRICT AT 810 INDIANA AVENUE 15 16 President Lundy announced that Ordinance No.28-1993 would go to the Planning Commission. 17 18 ORDINANCE NO.29-1993 19 20 The Clerk read Ordinance No.29-1993-A GENERAL ORDINANCE ABOLISHING THE DEPARTMENT OF 21 ECONOMIC GROWTH AND DEVELOPMENT AND ECONOMIC GROWTH AND DEVELOPMENT BOARD 22 23 Councilmember Brookbank moved to suspend the rules and advance Ordinance No. 29 - 1993 to second 24 reading and read by title only,second by Councilmember McBride and carried by a unanimous voice vote. 25 26 The Clerk read Ordinance No.29-1993 on second reading. 27 28 President Lundy announced that Ordinance No.28-1993 was on public hearing. 29 30 Explaining the ordinance,Jim Kinnett, director of Economic Development for the City, called attention to the 31 letter Councilmembers had received dated March 25, 1993 from Orville Allen, president of the Board of 32 Economic Development. In the letter Allen outlined his feelings about the disposal of the board. He noted 33 that with the new Board in place and that mechnism being adopted for the ongoing funding of that operation 34 at least through 1996, he recommended that the Richmond Economic Growth and Develpment office be 35 abolished and those duties be assigned to the Economic Growth Corporation of Wayne County. Kinnett said 36 he believed Allen's letter addressed the timing issue of that which takes place July 1, 1993. 37 38 Hearing no further comments either for or against Ordinance No. 28 - 1993, Councilmember Hutton moved 39 for engrossment,second by Councilmember Parker and carried by a unanimous voice vote. 40 41 Councilmember Parker moved to suspend the rules and advance Ordinance No. 28- 1993 to third and final 42 reading and read by title only,second by Councilmember McBride and carried by a unanimous voice vote. 43 44 The Clerk read Ordinance No.28-1993 on third reading. 45 46 Ordinance No.28-1993 was adopted on the following call of the roll: 47 48 Ayes:Elstro, Brookbank, Donat, McBride,Parker,Allen, Dickman, Hutton and Lundy(9) 49 Nays:None 50 51 ORDINANCE NO.30-1993 52 53 The Clerk read Ordinance No. 30 - 1993 - A SPECIAL ORDINANCE AUTHORIZING THE BOARD OF 54 WORKS TO ACQUIRE CERTAIN INDUSTRIAL PROPERTY 55 56 Councilmember Donat proposed the addition of a Clause F containing wording to include" must be a clean 57 closure statement in hand upon purchase of this property and there would be no encumbrances upon the 58 City to clean up any sort of waste that would have been left by the previous owners,being Wayne Corp." 59 60 Councilmember Elstro asked for a Phase I and Phase II in this motion and Councilmember Donat added that 61 to her motion with wording which included "have to go through a Phase I and Phase II and documents for 62 fulfilment for clean closure be filed with the RP & L Board." Milligan said he could provide in the ordinance 63 that the Board of Public Works and Safety be instructed to take adequate safeguards to protect the City from 64 any unreasonable expenditure regarding the environmental audit that is to be performed. He advised not 65 going any further because the City has to be able to move forward. He added that the environmental audit has not been done and the Board is the body that actually safeguards the City's interests and looks into this. He said Council is not going to enter into a contract by any means so it has to authorize the Board of Works to do it which means it simply authorizes the Board of Works to encorporate such safeguards to that extent. • • 236 • •- • Common Council Minutes Cont'd . - :' April 19, 1993 • : ' • • ' Rage_4 .. - . - • Councilmember Donat said the word safeguards is not going to be adequate. Milligan explained that the • 'environmental issue being discussed is a very serious concern of any'industrial commercial closing today and therel are methods where it is ascertained what those costs will be and what those cpnerns will be. He added that the prusent agreement for the purchase of this land has been arrived at at a very advantageous _ cost and he simply heeds to have sufficient flexibility for the Board of Works to work with this as a part of the closing and not be tied.down to some type of instrument that someone has described. He said he feels Council will be in a position to advise the Board of Works to go forward with it.The environmental concerns, r. he said, are stated in.a number of different contexts in the agreement for purchase that has been entered • into by Industries Inc. and this matter in the City's interest will be safeguarded. He added that Council simply 10 has to stay away from narrow confining language to permit that process to go ahead. 1 1 Councilmember Donat said she would like that clause to stay, adding that she cannot vote for something that 1 she feels is going to jeopardize the City of Richmond. She said she doesn't feel it is good business to enter 1- into a contract that could cost millions of dollars when all that is needed is a document and a safeguard is 1 not a document. 1° 1 , Councilmember McBride commented that he thought Klute had referred to that situation and was going to 1: handle it through Congressman§harp's office. Councilmemler Donat noted that the letter simply stated that 1° it would be okay to could go ahead arid manufacture.'"Councilmember Elstro asked if Council could hold off 20 on any action on the ordinance until its next meeting. Milligan assured the members of Council that the 2 executive branch of this administration is very:capable of safeguarding the City's interest with regard to 2. environmental concerns on any property that it purchases. He said the Department of Law is involved in this 2 on a routine basis because there are a number of properties in the City where there are environmental 2, concerns and he will proceed in a prudent manner to protect the City's interests in this regard. He implored 2 the Council to adopt language that gives the City sufficient authority to move ahead on this promptly and 2• proposed that Clause F simply state that the Board of Public Works and Safety enter into an agreement 2 which provides for the environmental clearances that are necessary and that such agreement be consistent 2: with the existing commercial real estate practice in this City. He added that that is not done with any intent to 2° ignore this concern but is done with the intent to enable the closing of-the deal and not be tied up with certain 30 language. He said it was his opinion that what Councilmember Donat-had proposed would be an 3 unnecessary burdensome restraint on this very important transaction. Councilmember Donat said without 3 the document she asked for,Council would beliable,and that is the only way she would cast an aye vote. 3 3, Milligan acknowledged President Lundy's concern about liability and answered that Council simply has to go 3 forward on this transaction. He noted that environmental audits are to be performed and paid for by the 3° seller. It can be ascertained what that audit says and it is with only that information that the City can decide 3 to go forward or not go through with the purchase._He added that as.a practical matter, the executive 3: department of the City administration and the Department of Law together with the appropriate experts have 3° to be in a position to proceed;'He said it is not appropriate,for Council to get involved in'every single 40 provision of the sales agreement and he'asked Councilmembers to authorize.the Board of•Works to close 4 this. ' 4 • • • Councilmember Donat said 'President.Lundy's question was who would be liable which Milligan did not -• answer. She said the Councilmembers are liable to the people who voted for them and put them into office and they are the ones who needed protection and without the:paper and assurance Council could not do 4° that. 4 4* Councilmember Elstro asked if any amount of money had been set aside for cleanup. Rhett Baumgartner, 4° speaking for Industries Inc., said the way the offer is set up now U.S. Steel is conducting a Phase I study, 50 spending $100,000 to do that. He added that if there is anything that is contaminated it will probably show in 5 either the Phase I or Phase II studies and the City has the authority to discontinue the deal. He added that 5 Phase II could take as much as 90 days. 5 5 Baumgartner said the purpose for the Phase I and Phase II audits is to make sure everyone is aware of any 5. problems and if anything is uncovered U.S.Steel can say it will take care of it. Councilmember.Donat asked, 5• if Carpenter would.move into the facility and after operating for a couple of months something was found 5' what'would happen. Baumgartner answered that at this point no commitments had been made along those 5: lines by either the buyer or the seller,but if anything was found, in all likelihood the seller would-be involved. 5* He said he.has worked with a lot of industrial properties and the offer is structured. Councilmember McBride 6* asked Baumgartner if Wayne Corp. ceased to exist because of contamination arid Baumgartner answered 6 not to his knowledge. ' _ . 6' 6 President Lundy asked-if.the letter from Congressman Sharp indicated that another company could still 6• continue to do what Wayne Works is doing and never have any problem. Baumgartner said he interpreted 6• the letter that to the best of Sharp's knowledge there is no record of Wayne Corp.have serious problems. . 237 Common Council Minutes Cont'd April 19,1993 Pages 1 Milligan, upon request from Lundy, read Clause F: "that the board of works consider the environmental 2 realities of this site and proceed to negotiate the cleanup efforts if required with the seller." 3 4 Councilmember Dickman moved to approve the wording with a second by Councilmember Parker. 5 6 Councilmember Brookbank moved to suspend the rules and advance Ordinance No. 30 - 1993 to second 7 reading and read by title only,second by Councilmember McBride and carried by a unanimous voice vote. 8 9 The Clerk read Ordinance No.30 on second reading. 10 11 President Lundy announced Ordinance No.30 on public hearing. 12 13 Jerry Easley, President of Richmond/Wayne County Chamber of Commerce, urged the Council's favorable 14 consideration of the ordinance. 15 16 Hearing no other comments either for or against the ordinance, Councilmember McBride moved for 17 engrossment,second by Councilmember Hutton and carried by a unanimous voice vote. 18 19 Councilmember McBride moved to suspend the rules and move Ordinance No. 30 - 1993 to third and final 20 reading and read by title only,second by Councilmember Parker and carried by a unanimous voice vote. 21 22 Ordinance No.30-1993 was adopted by the following call of the roll: 23 24 Ayes:Elstro, Brookbank, McBride, Parker,Allen, Dickman, Hutton and Lundy(8) 25 Nays:Donat(1) 26 27 28 ADJOURNMENT 29 30 There being no further business, on a motion duly made,seconded and passed and carried on a unanimous 31 voice vote,the meeting was adjourned. 32 33 34 35 36 37 38 39 40 41 Etta J. Lundy, President 42 43 44 45 46 47 48 49 ATTEST: 50 Norma Carnes, City Clerk 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 •. . . . • 238 . . • • .• . . • • . . .• • • r.. . . •• • • . • . . • • • . . . .• .