The City of New Castle, Indiana

COMMON COUNCIL 

FEBRUARY 17, 2009       7:00 P.M.

 

THE PLEDGE OF ALLEGIANCE WAS GIVEN BY ALL IN ATTENDANCE.

PRAYER WAS GIVEN BY FORMER MAYOR TOM NIPP.

 

ROLL CALL:

SANDY YORK                                              PRESENT                  

ANGIE GOODMAN                                      PRESENT

JAMES KIDD                                                 PRESENT

MARY MALONE                                           PRESENT

MARK KOGER                                              PRESENT                                     

VAUGHN REID                                              PRESENT

RICHARD HAHN                                           PRESENT

 

PRESIDENT YORK SAID THERE WAS TO BE AN APPOINTMENT MADE FOR THE HENRY COUNTY/NEW CASTLE CONVENTION AND VISITORS BUREAU.  SHE SAID SHE RECEIVED THE REQUEST THAT DON MOLL, YOGI BEAR CAMPGROUND, BE APPOINTED, SERVING FROM 1/1/09 TO 12/31/11. 

    PRESIDENT YORK MOVED TO APPOINT DON MOLL TO THE CONVENTION AND VISITORS BUREAU.   COUNCILMAN HAHN: SECOND   ROLL CALL VOTE: SEVEN VOTES AYE.  APPOINTED.

 

MAYOR SMALL INTRODUCED CHAD SALZBRENNER, ENGINEERING FIRM OF BONAR GROUP OF FORT WAYNE, LISA LEE, ATTORNEY FOR THE BOND COUNSEL FOR THE FIRM OF ICE MILLER AND JENNIFER BELL, REPRESENTATIVE OF CROWE HORVATH, OUR FINANCIAL ADVISOR..

      ATTORNEY LISA LEE, STATED THAT ORDINANCE #3556 IS A BOND ORDINANCE

THAT AUTHORIZES ONE OR TWO SERIES OF BONDS, THE CITY'S PORTION AND THE TWO ROAD PROJECTS, GARNER STREET AND THE EASTSIDE BYPASS.  SHE SAID ISSUING THE BONDS WOULD COST $37,000.00 IF DONE SEPARATELY OR $60,000. 00 IF DONE UNISON.  UNDER THE CITY'S PLAN, NO PROPERTY TAX DOLLARS WOULD BE USED IN MATCHING THE GRANTS.  SHE SAID THE PLAN CALLS FOR FUNDS FROM THE CUMULATIVE CAPITAL DEVELOPMENT AND LOCAL ROAD AND STREET FUNDS ARE TO BE USED AS MATCHING FUNDS.  SHE SAID THE ORDINANCE AUTHORIZES UP TO $1, 730, 000. 00 FOR BOTH PROJECTS WHICH INCLUDES $271,000.00 AS REIMBURSEMENT TO THE CITY FOR CCD FUNDS WHICH HAVE ALREADY SPENT FOR ENGINEERING OF THE PROJECT.  IF THE COUNCIL DECIDES NOT TO REIMBURSE THE CITY THOSE CCD FUNDS, YOU COULD LOWER THE BOND ISSUE BY THAT AMOUNT.  THE TERM OF THE BOND, 15 OR 20 YEARS WOULD BE UP TO THE COUNCIL.  SHE SAID IF THE CITY DECIDES TO MOVE FORWARD AND ISSUE BONDS, BECAUSE THIS MONEY IS NOT IN YOUR BUDGET, YOU WILL HAVE TO DO AN ADDITIONAL APPROPRIATION TO SPEND THAT MONEY.  YOU WILL HAVE A PUBLIC HEARING ON MARCH 2, 2009.

      COUNCILMAN REID STATED THAT HE FELT THE CITY HAS MAJOR CASH FLOW ISSUES AND THAT THE CITY COULD PAY FOR THE PROJECT WITHOUT BONDING AND RECOMMENDED FUNDING THE GARNER STREET PROJECT AND RECONSIDERING BONDING FOR THE EASTSIDE BYPASS NEXT YEAR.

       THE INDIANA DEPARTMENT OF TRANSPORTATION IS OFFERING $1,742,000.00 FOR THE GARNER STREET PROJECT AND $2,071,200.00 FOR THE EASTSIDE BYPASS, BUT IS REQUIRING THE CITY TO ADD $770,000.00 FOR GARNER STREET AND $730,000.00 FOR THE EASTSIDE BYPASS.

       SOME COUNCIL MEMBERS ASKED HOW LONG THEY COULD DELAY THE PROJECT

WITHOUT LOSING THE GRANTS.

       MR. SALZBRENNER SAID A NEW FISCAL YEAR COULD BRING SHORT FUNDS FOR INDOT AND LESS INTEREST IN THE PROJECTS.

       COUNCILMAN MARK KOGER STATED THAT HE THOUGHT IF THE FUNDS WERE AVAILABLE FROM INDOT; IT'S TOO GOOD TO PASS UP.

       MAYOR SMALL EXPLAINED THE PROJECTS.  THE EASTSIDE BYPASS WOULD RUN FROM ROAD 200S TO Q AVENUE, JOG WEST AND CONTINUE NORTH TO GRAND AVENUE NEAR THE TRANSITION TO DUBLIN PIKE.  HE SAID THAT THIS WAS NOT JUST A ROAD THROUGH A CORN FIELD.  THIS COULD BRING NEW INDUSTRY ON THAT VERY VALUABLE LAND.  THIS PROJECT WILL MOST LIKELY BRING ECONOMIC DEVELOPMENT.

       COUNCILMAN HAHN ASKED IF THERE WOULD BE ANY HINDRANCE OR ANYTHING IN THE FORESIGHT IF WE DID JUST GARNER STREET NOW AND DO EASTSIDE AT A LATER DATE?

       MR. SALZBRENNER SAID FIRST, THE LONGER YOU WAIT, THE HIGHER THE CONSTRUCTION COSTS.  INDOT WANTS THE CITIES TO TAKE THE MONEY AND COMPLETE THE PROJECT WITHIN A TWO YEAR PERIOD.

       ATTORNEY COPENHAVER SAID WHAT THE COUNCIL HAS IN THIS BOND ORDINANCE, IT AUTHORIZES TWO ISSUES.  THE EASTSIDE BYPASS WOULD NOT BE DONE UNTIL THE MONEY WAS NEEDED.  HE SAID THE QUESTION MIGHT ARISE AS TO WHY WE HAVE BOTH OF THEM IN THE SAME ORDINANCE.  IT SAVES MONEY.  IT SAVES COSTS THAT OCCUR IN SEPARATE ORDINANCES.  THE MONEY OWED ON THE SECOND ONE, WILL NOT BE BORROWED UNTIL IT IS NEEDED.  NO INTEREST UNTIL THEN.  IF THERE IS LESS MONEY NEEDED, TO DO THIS PROJECT, YOU CAN'T USE THIS MONEY FOR ANYTHING ELSE.

 

     PRESIDENT YORK MOVED TO PASS THIS ORDINANCE.  COUNCILMAN KIDD: SECOND

DISCUSSION:   COUNCILMAN REID SAID THE CITY IS IN A CASH FLOW CRUNCH.  WE HAVE BEEN TOLD BY THE STATE BOARD OF ACCOUNTS THAT THE CITY CAN TEMPORARILY

BORROW FROM ONE FUND TO ANOTHER AS LONG AS YOU PAY IN BACK.  DOES THE SAME THING APPLY WITH THE BOND?  SAY WE BORROW A MILLION FOR THE PROJECT.  CAN THAT BE DONE? 

      MS. LEE SAID THAT THE MONEY HAS TO BE DEDICATED TO THE PROJECT THAT

YOU AUTHORIZE IT FOR.

      PRESIDENT YORK ASKED IF THE BOND ORDINANCE IS PASSED AS IT IS WRITTEN RIGHT NOW, DOES THAT BETTER OUR CHANCE OF THE BOND BEING ISSUED ON THE EASTSIDE PROJECT BECAUSE WE ALREADY HAVE THIS?  IF WE SPLIT THEM, IS THERE A CHANCE THAT INDOT MAY NOT HAVE THAT FUNDING?

      MS. LEE SAID IT SHOWS INDOT THAT THE CITY INTENDS TO PROVIDE THE MATCHING FUNDS AND HAVE COMPLETED ALL THE LEGAL PROCEDURES NECESSARY TO ISSUE THE BONDS AND  HAVE THAT MONEY READY WHEN THEY ARE READY, AS OPPOSED TO THEM LOOKING AT YOU ON EASTSIDE AND YOU SAY, YEAH WE ARE GOING TO DO THAT BUT WE HAVE TO GO THREW ALL THESE PROCEDURES FIRST.  HOW THEY WOULD LOOK AT THAT WOULD BE A GUESSING GAME.  IF YOU DO IT NOW, YOU DON'T HAVE TO ISSUE THOSE BONDS UNTIL YOU ARE ABSOLUTELY READY, ONE YEAR OR TWO FROM NOW.

      COUNCILADY GOODMAN ASKED THE OTHER COUNCIL MEMBERS JUST HOW DID THEY FEEL.  SHE AND COUNCILMAN KIDD AGREED WITH MAYOR SMALL THAT THE COUNCIL NEEDS TO PLAN FOR THE FUTURE BY OPENING NEW LAND FOR INDUSTRIAL DEVELOPMENT.  SHE SAID, "WE'VE GOT TO DO IT IF WE'RE GOING TO DO IT."

      COUNCILMAN REID SAID PUTTING THESE TWO PROJECTS TOGETHER WAS NOT GOOD PLANNING.  MAYBE THEY SHOULD HAVE BEEN SPACED OUT 5 OR 10 YEARS APART.  HE SAID HE WAS SERIOUSLY CONCERNED.  HOWEVER, WITH THE FACT THAT THE CITY IS ALREADY CASH STRAPPED, THE UTILITIES ARE GOING TO HAVE TO HAVE MORE FUNDING, AND HOPEFULLY WE DIDN'T SPEND ALL THAT MONEY ON THE UTILITY RATE STUDY WAS FOR.  WE ARE GOING TO HAVE TO RAISE THE RATES EITHER NOW OR NEXT YEAR.  THAT WILL REQUIRE A NEW STUDY AND THAT IS ANOTHER ISSUE.  THE UTILITIES ARE GOING TO HAVE TO HAVE A LOT OF FUNDING TO DO THE SANITARY SEPARATION PROJECT.  FUNDING FROM THE STATE LOOKS LIKE IT IS DECREASING.  THAT MEANS WE ARE GOING TO HAVE LESS CASH FLOW TO WORK WITH.  WE HAVE MAJOR, MAJOR, MAJOR CASH FLOW IN THE CITY OF NEW CASTLE.  HE SAID HE THOUGHT IT WAS A VERY UNWISE DECISION, EVEN THAT BOTH OF THESE PROJECTS HAVE MERIT.  IF WE CAN'T PAY FOR THEM WITH MONEY ON HAND, OR MONEY OUT OF POCKET OR A SHORT TERM TAX WARRANT LOANS, IT IS A BAD DECISION ON THE PART OF THE COUNCIL BECAUSE WE ARE FURTHER STRAPPING THE CITY FINANCIALLY.  HE SAID HE WAS NOT CONVINCED THAT WE CAN PAY THE BOND SERVICE PAYMENTS ON THIS AND STILL CONTINUE TO FUND OTHER THINGS.  MAYBE FOR A YEAR OR SO, LET THE POT HOLES GO OR BUY LESS SALT.  TRYING TO DO THAT FOR THE NEXT 15 OR 20 YEARS IS A BAD IDEA.  HE SAID WE CAN DO GARNER STREET THIS YEAR AND PUT EASTSIDE ON HOLD UNTIL NEXT YEAR, THEN LOOK AT IT AGAIN.

      PRESIDENT YORK SAID WE CAN'T COMPLETE GARNER STREET BY WAITING ON THE FUNDS TO COME IN.  WE HAVE TO HAVE THE MONEY UP FRONT. SO WE ARE GOING TO HAVE TO BOND, ONE WAY OR ANOTHER.

      COUNCILMAN REID ASKED IF WE COULD BORROW MORE TAX WARRANTS MONEY. 

      ATTORNEY COPENHAVER SAID YOU CAN'T BORROW FROM TAX WARRANTS, WHAT YOU CAN PAY BACK AT THE END OF THE YEAR.

      COUNCILMAN REID SAID HE THOUGHT WE COULD PAY IT BACK AT THE END OF THE YEAR.  IT WOULD BE TIGHT BUT WE CAN DO IT.

      MS. LEE SAID YOU CAN'T BORROW MORE THAN YOUR DEFICIT AND YOU CAN'T BORROW MORE THAN YOUR LEVY COLLECTIONS.  IF YOU'RE LOOKING TO PAY IT BACK FROM ANOTHER SOURCE OTHER THAN THE PROPERTY TAXES LEVY, YOU CAN'T DO THAT.

      MAYOR SMALL STATED THAT A CITY OUR SIZE, INDUSTRY BEARS ABOUT 60%

OF THE TAX BURDEN.  THE RESIDENTS, ABOUT 40%.  WITH THE MAJOR LOSS OF INDUSTRY,  IT HAS FLIPPED FLOPPED.  THE RESIDENTS ARE NOW BEARING THE 60% EVEN WITH THE TAX REDUCTION AND INDUSTRY 40%.  HE SAID THIS ROAD, THE EASTSIDE BY PASS IS NOT JUST A ROAD TO GET FROM 200 SOUTH TO GRAND AVENUE, IT WILL OPEN UP 90 ACRES OF PROPERTY THAT IS IN THE COUNTY NOW BUT WILL BE ANNEXED INTO THE CITY AND PUT ON THE TAX ROLL.  WITHIN 2 YEARS, SHOULD BE AVAILABLE FOR INDUSTRY TO CARRYING ITS FAIR SHARE OF THE LOAD.  WE HAVE NO OTHER PLACES IN NEW CASTLE TO GET SIGNIFICANT INDUSTRY.  DELAYING THIS PROJECT, WE ARE DELAYING ANY CHANCE OF INDUSTRY INTO THAT VERY VALUABLE PROPERTY.  WE OWE THIS TO THE CITIZENS OF NEW CASTLE TO GET BUSINESS AND INDUSTRY AT THAT PARK AS SOON AS POSSIBLE.

      COUNCILMAN HAHN ASKED THE COUNCIL TO HAVE A VISION IN THE FUTURE OF NEW CASTLE AND DO WHAT IS BEST FOR THE CITY AND RESIDENTS.

      ROLL CALL VOTE:  SIX VOTES AYE.     ONE VOTE NAY (REID)   PASSED AND ORDERED.

 

PRESIDENT YORK MOVED TO PASS THIS ORDINANCE.   COUNCILMAN KIDD: SECOND

ROLL CALL VOTE:  SIX VOTES AYE.   ONE VOTE NAY (REID)   PASSED AND ORDERED.

 

PRESIDENT YORK MOVED TO PASS THIS ORDINANCE.   COUNCILADY GOODMAN; SECOND

ROLL CALL VOTE:  SEVEN VOTES AYE.   PASSED AND ORDERED.

 

PRESIDENT YORK MOVED TO PASS THIS ORDINANCE.   COUNCILADY GOODMAN: SECOND

DISCUSSION:

COUNCILMAN HAHN ASKED ABOUT THE LOCATIONS MENTIONED IN THE ORDINANCE.

      COUNCILMAN REID SAID IF HE UNDERSTOOD THE ORDINANCE, IT IS TO REQUIRE ANY RENOVATION. OR ANYTHING LIKE THAT.

      DAVID NANTZ, MEMBER OF THE PRESERVATION AND CONVERSATION COMMISSION SAID NO.  HE SAID ALL THEY HAVE RIGHT NOW IS THE DOWNTOWN PRESERVATION.  THIS IS A CONSERVATION DISTRICT.  THE DIFFERENCE IS THE ONLY THING THAT IS REQUIRED IS IF THEY ARE BUILDING OR TEARING DOWN.  IF SOMEONE IS GOING TO DEMOLISH A PROPERTY, THAT WOULD HAVE TO BE PRESENTED TO THE BOARD.  SAME THING IF THEY ARE BUILDING.  ANYTHING ELSE CAN BE DONE.

      ATTORNEY COPENHAVER SAID THAT WITH THE PRESERVATION OF DOWNTOWN, A 50% GRANT WAS AWARDED TO THOSE DOWNTOWN.  THIS IS A BRANCH OF CITY GOVERNMENT.

      COUNCILMAN HAHN STATED THAT HE THOUGHT THAT MR. NANTZ AND HIS ORGANIZATION WAS DOING A FINE JOB.

      NORMA DISHMAN ASKED ONE QUESTION.  SHE SAID IF SHE HAD A HOUSE AND WANTED TO TEAR IT DOWN, SHE'D TEAR IT DOWN.  SHE SAID TOO MUCH AUTHORITY WAS BEING GIVEN TO THIS COMMISSION, OVER PRIVATE PROPERTY OWNERS.  SHE SAID WHAT SHE DID WITH HER PROPERTY WAS HER BUSINESS, NO ONE ELSE'S.  SHE SAID THAT IS WHY WE HAVE A BUILDING COMMISSIONER.  SHE ASKED IF SHE HAD TO GET A PERMIT FROM THE BUILDING INSPECTOR TO TEAR DOWN HER HOUSE.

      BUILDING INSPECTOR RIGGS SAID YES.

      RON HALE SAID HE TOTALLY AGREED WITH MRS. DISHMAN.  HE ALSO STATED HE WAS TOTALLY AGAINST THE STREET DEPARTMENT HOURS.  HE WAS CONCERNED ABOUT THE MEN THAT HAD TO GO TO WORK IN THE DARK AND HE WAS CONCERNED ABOUT THEIR SAFETY.

      ROLL CALL VOTE: SIX VOTES AYE    ONE VOTE ABSTAIN (REID)  PASSED AND ORDERED.

 

PRESIDENT YORK SAID THAT COUNCILMAN REID HAS RESIGNED FROM THE ECONOMIC DEVELOPMENT COMMISSION.  COUNCILADY MARY MALONE WILL REPLACE HIM.

 

PRESIDENT YORK SAID SHE HAD RECEIVED A LETTER FROM THE HENRY COUNTY WATER AND SOIL CONSERVATION DISTRICT.  THEY ARE HAVING A MEETING NEXT TUESDAY, FEBRUARY 24^TH AT 6:00P.M. AT THE GREENSTREET ELEMENTARY SCHOOL CAFETERIA.  ALL COUNCIL MEMBERS ARE INVITED.

 

COUNCILADY GOODMAN SAID SHE AGREED WITH MR. HALE ABOUT THE CONCERNS FOR THE MEN AT THE STREET DEPARTMENT.  SHE DISCUSSED THE OVERTIME WHICH WAS SUPPOSED TO BE SAVED BY MOVING THE MEN TO DIFFERENT SHIFTS, BUT DID NOT SAVE ANY.  SHE TOLD OF THE CONCERNS OF THE MEN WORKING IN THE DARK, PICKING UP TRASH BAGS WITH NEEDLES THAT THEY CAN NOT SEE AND THAT EARLY IN THE MORNING, THE TRUCKS ARE SLICK WHEN A MAN GOES TO GRAB ON AND IT COULD CAUSE A BAD ACCIDENT.  SHE SAID HER MAIN CONCERN WAS THERE SAFETY.   SHE SAID SHE HAS READ THE AFSCME CONTRACT AND THERE ISN'T ANY PROVISIONS FOR INCLIMATE WEATHER.  THERE IS A PUBLIC SAFETY ISSUE.

      MAYOR SMALL SAID THE DRIVING FORCE IS TRYING TO SAVE OVERTIME MONEY.  HE SAID THERE WASN'T ANY OVERTIME DURING THE TWO MAJOR SNOWS BECAUSE WE HAD THESE 16 HOUR DAY SHIFTS.  BEST JOB EVER DONE IN CLEARING THE STREETS.  THIS WAS A TRIAL AND WE WILL BE GOING BACK TO THE SUMMER HOURS ON APRIL 1^ST.

      COUNCILMAN REID SAID THE $60,000.00 FIGURE CAME FROM THE STREET SUPERINTENDENT'S MOUTH.  HE SAID THE SUPERINTENDENT IS THE ONE THAT TOLD HIM ABOUT THE SAVINGS.  HE SAID HE DID NOT THINK ANY MONEY WAS BEING SAVED PER HIS CALCULATIONS.  BECAUSE OF THE DARKNESS, THE TRASH IS NOT BEING PICKED UP EFFECTIVELY.  HE SAID HE WAS CONCERNED ABOUT THE SAFETY OF ALL THE STREET EMPLOYEES WORKING IN THE DARK.

      COUNCILMAN KOGER ASKED IF THERE WAS A SECOND TRUCK THAT FOLLOWS THE FIRST.

      MAYOR SMALL SAID YES.

      A TRASH TRUCK DRIVER WAS IN THE AUDIENCE AND SAID THERE ISN'T ANOTHER TRUCK FOLLOWING OR BACKUP.

      COUNCILMAN KOGER ASKED ABOUT THE STREET SWEEPER SWEEPING IN THE RAIN.

      MAYOR SMALL SAID IT WAS MUCH EASIER TO GET UP THE SAND BEFORE IT GOES DOWN THE DRAINS.

       COUNCILMAN HAHN SAID HIS MAIN CONCERN WAS ABOUT ONE OF THE EMPLOYEES FALLING IN THE BACK OF A TRASH TRUCK WHEN HIS HANDS SLIPPED OFF THE TRUCK DUE TO ICY OR SLIPPERY CONDITIONS.  HE SAID SAFETY WAS HIS MAIN CONCERN.  HE SAID SINCE WE KNOW SOMEONE FELL OFF THE BACK AND INTO THE TRASH TRUCK, IF SOMETHING LIKE THIS WOULD HAPPEN AGAIN, WOULD YOU CHANGE YOUR MIND MAYOR BEFORE APRIL SO WE

WON'T GET SOMEONE HURT?

      MAYOR SMALL SAID HE APPROVED IT BECAUSE OF SNOW PLOWING.  HE SAID HE WOULD LOOK INTO IT.

     COUNCILMAN KIDD SAID HE WANTED TO SEE AN ORDINANCE THAT WILL KEEP PEOPLE FROM THROWING NEEDLES IN PLASTIC BOTTLES OR TRASH BAGS.

      COUNCILMAN REID THANKED THE FEW MEN WHO CAME TO THE COUNCIL MEETING THAT WORK AT THE STREET DEPARTMENT.  HE SAID HE HEARD THAT THE MEN WERE TOLD NOT TO SPEAK OUT ABOUT THIS OR THEY MIGHT LOOSE THEIR JOBS.  HE SAID THAT IS A RUMOR AND HE HOPED IT WASN'T TRUE.

MAYOR SMALL SAID THE DRIVING FORCE BEHIND GARNER STREET IS TO GET AMBULANCES TO THE HOSPITAL AS QUICKLY AS POSSIBLE, WITHOUT GOING THROUGH DOWNTOWN.

 

KATHY HAMILTON INVITED ALL THE COUNCIL TO TAKE PART IN A MEETING AT THE METHODIST CHURCH ON   SATURDAY, FEBRUARY 21^ST, "`CHOOSE TO BE HOPEFUL."

 

COUNCILMAN HAHN MOVED FOR ADJOURNMENT.

PRESIDENT YORK: SECOND