REGULAR MEETING May 20, 2014

REGULAR MEETING May 20, 2014 The Common Council of the City of Michigan City, Indiana, met in Regular session on Tuesday evening, May 20, 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 Vice President Przybylinski. Roll call was authorized and the following were noted present and/or absent. PRESENT: COUNCIL MEMBERS Richard Murphy, Pat Boy, Joe Doyle, Don Przybylinski, Marc Espar, Ron Hamilton, Tim Bietry and Chris Schwanke (8). ABSENT: Duane Parry (1). A QUORUM WAS NOTED PRESENT. ALSO PRESENT: Jim Meyer Council Attorney, Gale Neulieb City Clerk and Kim Sliwa Deputy Clerk. APPROVAL OF MINUTES Vice President Przybylinski inquired whether there were any corrections, deletions, or additions to the minutes of the Regular Meeting of May 7, 2014 and the Executive Session minutes from May 14, 2014. Councilman Espar called a Point of Order advising the minutes need a motion and a second before being approved. Councilman Bietry made a motion to approve the Regular meeting minutes held on May 7, 2014 and Executive Session minutes and was second by Councilwoman Boy. The minutes were approved as printed. REPORTS OF STANDING COMMITTEES Vice President Przybylinski stated the Finance Committee met prior to the Council meeting advising Committee members Przybylinski and Bietry were present, and Committee member Parry was unable to attend, the Committee unanimously recommended approval for the Riverboat Fund #9000 in the amount of $160,489.99 and the Boyd Development Fund #0417 in the amount of $14,920.52. Vice President Przybylinski stated there was also a Finance Committee meeting held on May 12, 2014, advising Councilman Parry will present those minutes at the June 3, 2014 Council meeting. REPORTS OF SPECIAL OR SELECT COMMITTEES Councilman Bietry presented the following minutes from the Council s Select Committee on Human Rights Oversight meeting held on May 13, 2014:

Page 2 May 20, 2014 PRESENT: Chairperson Tim Bietry, Councilman Don Przybylinski, Human Rights Director Jeff Deuitch, Human Rights Office Manager SoJo Atwater, HRC member Jo Ann Engquist and Attorney Larry Arness. I. A. Mr. Deuitch stated that his office is completing investigations with no problem. As cases are brought to him, he is seeking input from Attorney Arness and proceeding accordingly. Ms. Engquist stated that the Commission is poised to resume its duties as well and that they are excited by the reviewed efforts and morale is good. Ms. Atwater is helping those in need to fill out the proper forms. B. Mr. Arness reminded the committee that there was some discussion at earlier meetings about possibly shrinking the number of commissioners. Commissioners are paid $50.00 for each meeting they attend. This is a bit over $7,000 a year if attendance is perfect. It was suggested that other cities in the region have fewer members. Mr. Deuitch stated that he will research this issue and report back. Other than that, the consensus was that no amendments seem necessary to Ordinance 3283. II. A. Mr. Deuitch stated that he has met personally with every contractor 3-4 times. He has also visited every construction site twice. Five contracts are currently active. Two are in compliance and two are not with one being beyond the provisions of Ordinance 4102. The committee is pleased to see that D&M and Woodruff & Sons are both in compliance. H&G Utilitites (LaPorte) and HRP are not in compliance but HRP is very close. H&G Utilities has shown contempt for the local ordinance. The consensus was that they need to respect the rules in place of work elsewhere. Overall, the attitude of contractors have been positive and progress has been made. B. There is still a need to look at creating additional sanctions for non-compliant companies. There was much discussion. Mr. Deuitch stated that some communities levy fines in lieu of can not work rules. He agreed to research this further and report back on what other communities are doing. III. A. As Training issues were not discussed in detail but all members of the community are aware of the stellar progress being made by Ms. Audra Peterson and the agreements with the carpenters union, NIPSCo, Ivy Tech, PNC and others. IV. Mr. Arness reminded the committee that there was some discussion in the past about assigning oversight responsibilities to City department heads. Neither Mr. Bietry nor Mr. Przybylinski believe that this is a good idea. It appears that the situation is being handled capably by Mr. Deuitch and his staff. Mr. Deuitch thought it would be a good idea to investigate whether we could ask people on the Registry to volunteer to take the Work Keys assessment. All thought this would be a good idea if funding issues could be resolved. A possible amendment allowing anyone living within the 46360 zip code to be eligible to count toward compliance was discussed but members feel this would erode the spirit of the ordinance. Mr. Deuitch is commended for starting a Human Rights Department face book page to track jobs and employers. He is also to be commended for his support and efforts to promote the Indiana Plan. The meeting was adjourned at 7:00 p.m. The next meeting will be scheduled when Mr. Deuitch has information to share on the two issues mentioned above. Vice President Przybylinski asked to back up on the agenda; asking if there were any reports of standing committees. Vice President Przybylinski commented on a letter received from Mike Palmer, member of the Michigan City Board of Public Works and Safety, (each Council Member received a copy of this correspondence) along with a request from Mayor Meer to schedule a workshop as soon as possible to review and discuss the Michigan City Itinerant Vendor Licensing, Handbill Ordinances as well as Door to Door Soliciting.

Page 3 May 20, 2014 Vice President Przybylinski stated as reviewing the Council Committee Assignments he asked Councilwoman Boy who is chairperson to schedule the workshop as soon as possible, advising Councilmen Bietry and Doyle are also on this committee. Councilwoman Boy stated Sharon Carnes, Board of Public Works and Safety proposed a few dates and she will coordinate the workshop with them. Councilman Schwanke reminded Councilwoman Boy there is a workshop scheduled on May 28, 2014 at 6:00 regarding annexation procedures. REPORTS of OTHER CITY OFFICERS and DEPARTMENTS There were no reports of other city officers and departments. CLAIM DOCKETS Vice President Przybylinski stated the Claims for Fund #9000 Riverboat was $160,489.99 and $14,920.52 claims for Fund #0417 Boyd Development. Vice President Przybylinski stated $350.00 claim was to Reprographic Arts, Inc., for the signage for the Bruce Memorial, $8,466.25 claim was to Haas & Associates LLC, for the Cheney Run FIS review, $163.28 claim was to Menards/Michigan City, for a roll of black roofing, $1,500.00 claim was to American Concrete Raising, Inc., to fill voids, seal open expansion joints, $28.49 claim is to Lowe s Credit Services, for lava rock at the Bruce Memorial, $340.00 claim to the Bedrock and Boulders, Inc., for the volcanic rock a the Bruce Memorial, $4,072.50 claim to Haas & Associates LLC, for the Cheney Run FIS review, $3,600.00 claim to Sauers Ford Lincoln, for 2014 Task Force lease program,$120,131.07 claim was to Rieth Riley, for progress payments 1,2, & 3, $10,198.56 claim was to Haas & Associates, for Wastewater Plant Flow, $997.14 claim was to James Meyer & Associates PC, for legal services Beachwalk, $12,777.53 claim was to Global Engineering & Land, for Greenwood/Woodland Avenue sewer work, $6,515.69 claim was to HCC Insurance Company for Harman vs. CMC, and $6,270.00 claim was to ProlT Co. for project manager services. Vice President Przybylinski asked if there were any other comments and hearing none, a motion by Councilman Hamilton was made, second by Councilman Bietry, and was approved. Motion carried 8 0. Councilman Boy stated we skipped over reports of other City Officers and Departments. Vice President Przybylinski asked if there were any reports of any other City officers and departments and hearing none he advised we would move on. PETITIONS There were no petitions. COMMUNICATIONS The Clerk stated correspondence was received in the Clerk s Office on May 7, 2014 from Mr. Ray Wolff Chair of the Libertarian Party of LaPorte County regarding the MRAP vehicle received at the Michigan City Police Department. RESOLUTIONS The Clerk read the following proposed resolution by title only, MICHIGAN CITY COMMON COUNCIL RESOLUTION NO. 4570

Page 4 May 20, 2014 SUPPORTING THE ECONOMIC DEVELOPMENT ACTION INITIATIVE DEVELOPED BY THE ECONOMIC DEVELOPMENT CORPORATION MICHIGAN CITY WHEREAS, the Economic Development Action Initiative (Initiative) developed by the Economic Development Corporation Michigan City with the help of residents and stakeholders after a ten (10) month study and planning process, provides an extensive economic overview and analysis of Michigan City and a strategy to increase the tax base, promote continued investment, and create jobs in Michigan City over the next five (5) years; WHEREAS, on April 30, 2014, the Common Council held a workshop whereat the Economic Development Corporation Michigan City presented the Economic Development Action Initiative; WHEREAS, the Common Council has reviewed and understands the Initiative, which is attached hereto and incorporated herein as Exhibit A; and WHEREAS, the Common Council understands that this Initiative has received collaborative input from the community and generally represents the current goals of the citizens and businesses of the City of Michigan City and finds that it is in the best interest of the City and its citizens that the strategies in the Initiative be implemented. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Michigan City, Indiana that the Common Council hereby approves and endorses the implementation of the Economic Development Action Initiative dated April 11, 2014. 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/ Chris Schwanke, Member Michigan City Common Council /s/ Richard Murphy, Member Michigan City Common Council Councilman Murphy stated he is encouraged and enthusiastic about the leadership in Mr. Hulse and their Board in the direction they are taking Michigan City to on the economic development front. Councilman Murphy commented on their strategic plan that it is a business attraction and is related to an opportunity for a branding of Michigan City and all that we have to offer in terms of our natural resources, our infrastructure, our proximity, to Chicago and the fact we have a strong manufacturing base and tourism opportunities. Councilman Murphy stated he looks forward to working with the Economic Development Corporation to continue an open relationship to get this done. Councilwoman Boy stated it is good having an action plan in place rather than having another study. Councilman Bietry made a motion to adopt the proposed resolution, second by Councilman Schwanke. Vice President Przybylinski asked if there were any comments or questions by the general public or Council and hearing none, the resolution was adopted by the following vote: AYES: Council Members Przybylinski, Schwanke, Bietry, Boy, Doyle, Espar, Hamilton, and Murphy (8). NAYS: None. Vice President Przybylinski stated the resolution is approved and will be forwarded to the Mayor for his consideration.

Page 5 May 20, 2014 The Clerk read the following proposed resolution by title only, MICHIGAN CITY COMMON COUNCIL RESOLUTION NO. 4571 OBJECTING TO THE SHIPMENT OF SHALE AND TAR SANDS CRUDE OIL ON THE GREAT LAKES WHEREAS, the Great Lakes are the largest surface freshwater system on the planet, accounting for 95 percent of the United States surface fresh water, 21 percent of the world s supply, and the drinking water for more than 40 million people throughout the Great Lakes basin, including Michigan City residents; and WHEREAS, the Great Lakes are virtually a closed system, finite, and vulnerable to depletion and degradation, with only one percent of the water in the Great Lakes being recharged each year; what we put, or spill, in the lakes affects the health of those 40 million people, and the development and survival of future generations; and WHEREAS, Congress has expressed its commitment to protecting the Great Lakes from pollutants and contaminants through the Clean Water Act and subsequent legislation; and the United States Environmental Protection Agency (EPA) and Environment Canada joined together in promulgating the Great Lakes Bi-national Toxics Strategy to eliminate the presence of persistent toxic substances in the Great Lakes basin; and WHEREAS, 327 IAC 2-1.5-3 states that the goal of the state is to restore and maintain the chemical, physical, and biological integrity of the waters of the state within the Great Lakes system, and it is the public policy of the state that the discharge of toxic substances in toxic amounts be prohibited; and WHEREAS, 327 IAC 2-1.5-5 (a) states that all surface waters of the state within the Great Lakes system are designated for full-body contact recreation; shall be capable of supporting a well-balanced, warm water aquatic community except those as described in 327 IAC 2-1.5-5 (a)(7); and the Indiana portion of the open waters of Lake Michigan are among those designated as salmonid waters that shall be capable of supporting a salmonid fishery; and that where multiple uses have been designated for a body of water, the most protective of all simultaneously applicable standards will apply; and WHEREAS, the Great Lakes are already plagued by pollutants such as mercury, PCBs, ammonia, DDT, alkylated lead, hexachlorobenzene, 2,3,7,8-Tetrachlorodibenzodioxin (TCDD), toxaphene, and others; mercury and PCBs cause fish consumption warnings; e. coli causes record numbers of beach closures; high amounts of ammonia contribute to algae blooms, and the subsequent algae die-off results in dissolved oxygen depletion that can threaten fish; and controversial mixing zones dilute toxic chemicals discharged into the Great Lakes system, that may be a threat to fish, wildlife, and humans, through the fish we eat and the water we drink; and WHEREAS, in 1972, the Great Lakes Water Quality Agreement, intended to restore and maintain the chemical, physical, and biological integrity of the waters of the Great Lakes basin ecosystem, with a broad range of pollution-reduction programs, virtual elimination of persistent toxic substances and a zero-discharge philosophy; and provided programs to restore the quality of open waters and beneficial uses in 43 of the most contaminated local areas in the basin; and WHEREAS, in 2006, the Michigan City Common Council introduced and passed a Resolution to protect the Great Lakes from Coast Guard exercises which would bring both the obvious dangers of live-fire exercises on the lakes, and the effects of lead, a persistent toxic substance with no safe level for humans or animals; and

Page 6 May 20, 2014 WHEREAS, in 2007, the Michigan City Common council introduced and passed a Resolution objecting to the increased discharge of industrial waste, specifically 54% more ammonia and 35% more suspended solids, into the Great Lakes by the BP Whiting plant; and WHEREAS, in 2008, the Council of Great Lakes Governors signed, and the US Congress and President enacted, an interstate agreement, the Great Lakes Compact, enabling the Great Lakes-St. Lawrence River Basin Sustainable Water Resources Agreement, an international agreement between the United States and the provinces of Quebec and Ontario in Canada; and WHEREAS, a healthy future for the Great Lakes is wholly reliant on the intervention of federal, state, and local governments, and on the support and cooperation of private business; therefore, we must insist that these entities work to protect the Great Lakes as an entity that spans across state and international boundaries; and WHEREAS, Calumet Specialty Products Partners, an Indiana company, is proposing to upgrade a dock next to a refinery in Superior, Wisconsin to enable shipping of surplus shale and tar sands heavy crude oil in barges over Lake Superior to the Midwest and Eastern U.S.; and WHEREAS, according to a report from the Alliance for the Great Lakes, any spill of heavy crude oil, which by its makeup of crude oil mixed with sand, clay, and other hydrocarbons, is heavier than water, would sink to the bottom and make cleanup difficult or even impossible; cleanup from a spill such as the pipeline spill in the Kalamazoo River which has taken three (3) years and more than one billion dollars, still leaving an estimated twenty percent (20%) at the bottom of the river; and their report shows that: 1. A recent U.S. Coast Guard and Department of Homeland Security report on spill-response protocols for submerged oil found current methods for locating and recovering submerged oil inadequate; and 2. A Worst-Case Discharge scenario developed by the Coast Guard involves a Great Lakes vessel carrying a type of oil that is much different, and less damaging to the environment, than tar sands crude; and 3. Limited resources are available to learn about the risk of oil spills by vessels and oil-spill management in the region; most information about spills is outdated or discontinued; and WHEREAS, as co-stewards of clean water in Lake Michigan, we must take action to prevent accidental oil spills or leaks; neither the Great Lakes shipping fleets nor the ports on the Great Lakes were designed to handle shipping such crude oil; and the most logical way to prevent accidental oil spills or leaks is to prevent shipping of such dangerous substances in the first place, at least until the regulatory framework is strengthened, serious gaps in oil-spill prevention policies are closed, and effective spill-response protocols for shale and tar sands crude are developed, if that is even possible. NOW THEREFORE BE IT RESOLVED by the Common Council of the City of Michigan City, Indiana that: 1. We appeal to the U.S. Environmental Protection Agency to improve coordination among federal agencies involved in large-scale spill prevention and response, with special emphasis on tar sands crude and other submerged oil spills; and 2. We appeal to Congress to increase funding for prevention, preparedness and response programs, and 3. All Great Lakes states must expand and enhance state laws to prevent and better protect their shorelines and lake bottoms from oil-shipping spills; and 4. Potential tar sands crude shippers must improve safety and maintain spill-prevention and response equipment; and 5. We appeal to the States of Indiana and Wisconsin, and all Great Lakes states, to reconsider and deny Calumet Specialty Products Partners and other proposals to ship shale and tar sands heavy crude oil in barges over any of the Great Lakes until above items 1, 2, 3, and 4 have been accomplished; and 6. We respectfully request the Clerk of the City of Michigan City, Indiana to forward a copy of this resolution to the following:

Page 7 May 20, 2014 Gina McCarthy, Administrator U.S. Environmental Protection Agency 1200 Pennsylvania Avenue, N.W. Washington, DC 20460 US Senator Dan Coats 493 Russell Senate Office Building Washington DC 20510 US Senator Joe Donnelly 720 Hart Senate Office Building Washington DC 20510 US Representative Peter Visclosky U.S. House of Representatives Washington, DC 20515 Wisconsin State Tribal Initiative 101 E. Wilson St., 9th Floor St., Rm. 206 Madison, WI 53703 Director Hala Kuss IDEM Office of Water Quality 330 W US Highway 30, Suites E & F Valparaiso, IN 46385 State Senator Jim Arnold Indiana State Senate 200 W Washington St Indianapolis, IN 46204 State Senator Karen Tallian Indiana State Senate 200 W Washington St Indianapolis, IN 46204 State Representative Tom Dermody Indiana House of Representatives 200 W Washington St Indianapolis, IN 46204 State Representative Scott Pelath Indiana House of Representatives 200 W Washington St Indianapolis, IN 46204 Wisconsin Governor Scott Walker 115 East Capitol Madison, WI 53702 Indiana Governor Michael Pence 200 W. Washington Indianapolis, IN 46204 Introduced by: /s/ Patricia Boy, member Michigan City Common Council Councilwoman Boy stated the proposed resolution was TABLED at the May 7, 2014 Council meeting; advising the City Clerk received the following letter from The Premier of Ontario: Dear Ms. Neulieb: Thank you for your letter providing me with a copy of Council s Resolution regarding nuclear waste. I appreciate your keeping me informed of Council s activities. As this issue would also be of interest to my colleague the Honorable Bob Chiarelli, Minister of Energy, I have sent him a copy of Council s Resolution. I trust that the minister will also take Council s views into consideration. Once again, thank you for the information. Please accept my best wishes. Sincerely, Kathleen Wynne, Premier Attorney Meyer advised the proposed resolution was withdrawn at the May 7, 2014 Council meeting not TABLED. Councilwoman stated she did withdraw it and that she is bringing the proposed resolution back this evening with amendments. Councilwoman Boy made a motion to adopt the proposed resolution, second by Councilman Murphy.

Page 8 May 20, 2014 Vice President Przybylinski asked if there were any comments or questions by the general public or Council and hearing none, the proposed resolution was adopted by the following vote: AYES: Council Members Schwanke, Bietry, Boy, Doyle, Hamilton, Murphy, and Przybylinski (7). NAYS: Councilman Espar (1). The Clerk read the following proposed resolution by title only, SUPPORTING THE ADVOCATION OF HYPERBARIC OXYGEN THERAPY AND OTHER MEDICAL TREATMENTS FOR TRAUMATIC BRAIN INJURIES (TBI) Introduced by: Pat Boy Councilwoman Boy stated she made a few Author s Amendments presenting the following: WHEREAS, funding for this issue is already being studied by the Indiana Legislature; 1. The Common Council urges the Federal Government, through Medicare and Medicad; the Veterans Administration; and Indiana State Government to provide appropriate funding and focus to provide results-orientated, evidencebased, proven treatment, including Hyperbaric Oxygen Therapy, for returning Indiana veterans and other patients that suffer the residual effects of TBI to a normal life. Councilwoman Boy advised these changes were requested by a few Council members at the May 7, 2014 Council meeting. Senator Jim Arnold commented on how serious this issue is and that it needs to be addressed as soon as possible so our veterans can receive the treatment they need, advising he fully supports this resolution; asking each Council member for their support. Councilwoman Boy thanked Senator Arnold for attending the meeting this evening and speaking on this issue. Councilman Bietry commended Councilwoman Boy for the amendments that she made to this resolution advising the language in the first proposed resolution didn t make sense to him; stating that he would be supporting it. Councilwoman Boy made a motion to adopt the proposed resolution, second by Councilman Murphy. Vice President Przybylinski stated he believes this is something Councilwoman Boy brought to the forefront to address this issue regarding treatment, the study regarding this issue and the proposed financing for such a dramatic injury; advising he would be supporting this resolution. Vice President Przybylinski asked if there were any comments or questions by the general public or Council and hearing none, the proposed resolution was adopted by the following vote: AYES: Council Members Bietry, Boy, Doyle, Hamilton, Murphy, Przybylinski, and Schwanke (7). NAY: Councilman Espar (1). Vice President Przybylinski stated the resolution was approved and will be forwarded to the Mayor for his approval. Councilwoman Boy made a motion to remove the following resolution that was tabled indefinitely at the May 7, 2014 Council meeting and bring it back to the Council: ASKING STATE AND FEDERAL LEGISLATORS TO INCREASE THE MINIMUM WAGE Introduced by: Pat Boy

Page 9 May 20, 2014 Vice President Przybylinski asked if there was a second on the motion and hearing none, this resolution will stay tabled indefinitely. Councilwoman Boy advised since there wasn t a second on her motion, the Michigan City s Woman Commission will be sending their resolution regarding minimum wage in place of the City Council. ORDINANCE The Clerk read the following proposed ordinance on first reading by title only, APPROVING ADDITIONAL APPROPRIATION IN THE BUDGET OF THE BOYD DEVELOPMENT FUND TO PURCHASE CAMERAS FOR INSTALLATION AT GARDENA PARK Introduced by: Don Przybylinski Duane Parry (DECREASE: Boyd Development Fund # 0417 Unappropriated balance $ 15,635.84. INCREASE: ACCOUNT #0417 0000 04 443.007 Park Projects -$ 15,635.84) Vice President Przybylinski advised that Chief Swistek, Chief of the Michigan City Police Department and David Hutchinson, IT Department are present to answer any questions the Council may have. Mark Swistek, Chief of the Michigan City Police Department addressed the Council advising there has been 113 calls for service since the beginning of 2013 explaining several incidences that took place at Gardena Play Ground. David Hutchinson, IT Department explained what cameras would be installed and how they would work. Vice President Przybylinski stated that each Officer on duty will be able to observe what is happening at the park from their vehicles 24/7. Vice President Przybylinski stated there would be a formal public hearing at the June 3, 2014 Council meeting and that he would be referring the ordinance to the Finance Committee for their review and recommendation. Vice President Przybylinski stated several reasons he feels these camera s being installed will be a great application for our citizens and anyone from our community visiting Gardena Park. Vice President Przybylinski asked if there were any comments or questions by the general public or Council and hearing none, the proposed ordinance was held over until the June 3, 2014 Council meeting. The Clerk read the following proposed ordinance on first reading by title only, APPROVING ADDITIONAL APPROPRIATION FOR THE REINSTATMENT OF THE POSITION OF SECRETARY II IN THE MICHIGAN CITY PLANNING AND ZONING DEPARTMENT Introduced by: Rich Murphy (DECREASE: General Fund #0101 Unappropriated balance $19,447.26 INCREASE: ACCOUNT #0101 0079 01 411.001 - $15,960.00 Salaries & Wages 0101 0079 01 413.001 - $1,220.94 FICA 0101 0079 01 413.002 $2,266.32 PERF)

Page 10 May 20, 2014 Councilman Murphy advised there are representatives from the Planning and Zoning Department to answer any questions the Council may have. Vice President Przybylinski stated there would be a formal public hearing at the Council meeting held on June 3, 2014 and he would also be referring this ordinance to the Finance Committee for their review and recommendation. Craig Phillips, Michigan City Planning Director, state he was under the impression that Councilman Schwanke was also sponsoring this ordinance. Councilman Schwanke asked the Clerk to add him as a sponsor to the proposed ordinance. Vice President Przybylinski asked if there were any comments or questions by the general public or Council and hearing none, the proposed ordinance was held over until the June 3, 2014 Council meeting. The Clerk read the following proposed ordinance on second reading by title only, CREATING SECTIONS 2-401 IN CHAPTER 2 OF THE MICHIGAN CITY MUNICIPAL CODE TO ESTABLISH A DONATION FUND FOR THE HUMAN RIGHTS COMMISSION Introduced by: Tim Bietry Vice President Przybylinski asked if there were any comments or questions by the general public or Council and hearing none, the proposed ordinance was held over on third reading at the June 3, 2014 Council meeting. The Clerk read the following proposed ordinance on second reading by title only, APPROVING AND AUTHORIZING THE TRANSFER OF FUNDS PURSUANT TO HOME RULE Introduced by: Tim Bietry Rich Murphy (Note: This was tabled at the May 7, 2014 Council Meeting until the May 20, 2014 Council Meeting) Councilman Bietry addressed the Council regarding the Council s Finance Committee meeting that was held regarding this proposed ordinance; advising at that meeting the vote was also 2 1 to recommend passage of this ordinance. Councilman Bietry asked if there was no objection to have second and third reading this evening as well. Vice President Przybylinski asked if there was any objection in having second and third reading this evening and hearing none, requested the Clerk to read the proposed ordinance on third reading by title only, MICHIGAN CITY COMMON COUNCIL ORDINANCE NO. 4281 APPROVING AND AUTHORIZING THE TRANSFER OF FUNDS PURSUANT TO HOME RULE

Page 11 May 20, 2014 WHEREAS, as a result of the ongoing tax collection issues in LaPorte County, Indiana (the County ), the City of Michigan City, Indiana (the City ), is experiencing delays in receiving tax distributions from the County, having not yet received the full amount of the 2013 distributions, and experienced substantial shortfalls in tax distributions during 2007-2012 and, as result, the City has experienced significant operating cash flow shortfalls in 2014; and WHEREAS, the City recently received its 2014 Budget Order that reduces the budgets for the General Fund, Park Fund and Barker Civic Center Fund by $8,457,798, $1,153,293 and $78,898, respectively, and certain other Funds are expected to be overdrawn at the end 2014 as a result of the shortfalls in property tax collections and distributions due to the property tax issues in LaPorte County; and WHEREAS, Indiana Code 36-1-3 authorizes political subdivisions to carry out rules and take certain actions under home rule that do not conflict with other laws of the State of Indiana; and WHEREAS, the City has done temporary transfers and interfund borrowings from the Riverboat Fund and Boyd Development Fund to the City s General and other Funds to provide operating funds in lieu of not receiving property tax distributions on time since 2007 and temporary transfers and interfund loans will be repaid back to the respective funds prior to the proposed action authorized by this Ordinance occurs; and WHEREAS, the Common Council of the City of Michigan, Indiana has determined that it is in the best interest of the City and its taxpayers that permanent transfers from the Riverboat Fund and Boyd Development Fund be made to the City s General, Park, Motor Vehicle Highway, Barker Civic Center, Aviation, and Cumulative Capital Development Funds in order for the City to be able to operate at its anticipated budgetary levels during 2014 and end the year in a balanced position or better based on the most accurate information provided to the Common Council by the City Controller s office and the City s financial advisor, Cender & Company, L.L.C. pursuant to the City s Home Rule under Indiana Code 36-1-3; and WHEREAS, the Council has declared an emergency to exist to allow the repayment of the 2013 temporary transfers described above to be delayed to June 30, 2014 and the Council finds that a continuing emergency exists due to the delayed distribution of taxes and uncollected taxes which, in combination with the greatly reduced budgets required by the Budget Order for 2014, results in the City not being able to pay for expenses in the amount of the approved 2014 City Budget, taking into consideration those expenditure reductions already implemented by the Mayor and City Controller. NOW, THEREFORE, BE IT ORDIANED, by the Common Council of the City of Michigan City, Indiana, as follows: 1. That it authorizes the repayment of outstanding interfund transfers back to the City s Riverboat and Boyd Development Funds of amounts at least equal to the amounts of the permanent transfers authorized in Section 2 below. The balance of any outstanding interfund loans are anticipated to be repaid on December 31, 2014 after receipt for the second distribution of 2014 property taxes. 2. That, after the repayment of temporary interfund transfers pursuant to Section 1, above, it authorizes the permanent transfer of $11,500,000 to the General Fund, $700,000 to the Park Fund, $130,000 to the Motor Vehicle Highway Fund, $80,000 to the Barker Civic Center Fund, $80,000 to the Aviation Fund, and $60,000 to the Cumulative Capital Development Fund from the City s Riverboat and Boyd Development Funds (amounts from each respective fund to be determined by the City Controller) totaling not more than $12,550,000 3. That the Council has determined that the above permanent transfers are in the City s best interest and are necessary for the City to be able to operate at its anticipated budgetary levels, as reduced by the Mayor and Controller, during 2014 and end the year in a balanced position.

Page 12 May 20, 2014 4. That the Council has determined that the City is in an emergency situation and so hereby authorizes and approves these actions to be implemented upon the effective date of this Ordinance. This Ordinance to 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: /s/tim Bietry, Member Michigan City Common Council /s/ Richard Murphy, Member Michigan City Common Council Councilman Espar advised a formal public hearing was held at the Council s May 7, 2014 meeting. Councilman Murphy made a motion to adopt the proposed ordinance, second by Councilman Bietry. Vice President Przybylinski asked if there were any comments or questions by the general public or Council and hearing none, the proposed ordinance was adopted by the following vote: AYES: Council Members Boy, Doyle, Hamilton, Murphy, Przybylinski, Schwanke, and Bietry (7). NAYS: Councilman Espar (1). The Clerk read the following ordinance on second reading by title only, APPROVING AND AUTHORIZING THE ESTABLISHMENT OF A RAINY DAY FUND PURSUANT TO INDIANA CODE 36-1-8-5.1 AND CREATING SEC. 2-402 IN THE MICHIGAN CITY MUNICIPAL CODE Introduced by: Tim Bietry Rich Murphy Note: This was tabled at the May 7, 2014 Council Meeting until the May 20, 2014 Council Meeting) Councilman Bietry stated this also was discussed at the Finance Committee meeting held on May 12, 2014, advising he feels strongly that the Rainy Day Fund is needed and the money should not be put back in the General Fund. Councilman Bietry stated he didn t feel there was a need to have third reading this evening advising the vote on this ordinance at the Finance Committee was also 2 1. Council President Parry asked if there were any comments or questions by the general public or Council and hearing none, the proposed ordinance was held over on third reading until the June 3, 2014 Council meeting. The Clerk read the following proposed ordinance on second reading by title only, APPROVING REDUCTION OF APPROPRIATION AND ADDITIONAL APPROPRIATIONS IN THE CITY S 2014 ANNUAL BUDGET Introduced by: Rich Murphy Tim Bietry (INCREASE General Fund #0101 Unappropriated balance $511,461 DECREASE MAJOR BUDGET CLASSIFICATION: Personal Services $294,373 Supplies $58,843 Other Services & Charges $158,245.INCREASE Motor Vehicle Highway Fund #0708 Unappropriated balance $142,061

Page 13 May 20, 2014 Personal Services $131,581Supplies $2,500 Other Services & Charges $7,980 INCREASE Barker Civic Center Fund 001Unappropriated balance $2,700 Supplies $175 Other Services & Charges $2,525 INCREASE Park Fund #1301 Unappropriated balance $129,624 DECREASE MAJOR BUDGET CLASSIFICATION: Personal Services $90,831Supplies $7,400 Other Services & Charges $31,393 INCREASE Aviation Operating Fund #2102 Unappropriated balance $3,046 Supplies $1,745 Other Services & Charges $1,301 INCREASE Cemetery Operating Fund #2120 Unappropriated balance $8,941 DECREASE MAJOR BUDGET CLASSIFICATION: Supplies $1,900 Other Services & Charges $7,041 INCREASE Park Concession Fund #1315 Unappropriated balance $19,225 DECREASE MAJOR BUDGET CLASSIFICATION: Other Services & Charges $19,225 INCREASE Golf Fund #1314 Unappropriated balance $71,227 01 Personal Services $43,469 03 Other Services & Charges $27,458 INCREASE Riverboat Fund #9000 Unappropriated balance $1,700,000 04 Capital Outlay $1,700,000) BE IT FURTHER ORDAINED by the Common Council of the City of Michigan City, LaPorte County, Indiana, that for the expenses of the City the following additional sums of money are hereby appropriated out of the Fund named and for the purpose specified, subject to the laws governing the same: DECREASE General Fund #0101Unappropriated balance $7,946,337 INCREASE MAJOR BUDGET CLASSIFICATION: Personal Services $7,546,328 Supplies $79,300 Other Services & Charges $320,709 DECREASE Barker Civic Center Fund #1001 Unappropriated balance $76,198 INCREASE MAJOR BUDGET CLASSIFICATION: 1001 000 Barker Civic Center 01 Personal Services $76,198 DECREASE Park Fund #1301 Unappropriated balance $1,023,669 INCREASE MAJOR BUDGET CLASSIFICATION: Personal Services $740,626 Supplies $116,250 Other Services & Charges $166,793) Note: This was tabled at the May 7, 2014 Council meeting until the May 20, 2014 Council meeting. Councilman Bietry stated this is the important companion ordinance to the Home Rule Ordinance that was just adopted; asking if there is no objection to have second and third reading this evening. Vice President Przybylinski asked if there was any objection by the Council to have second and third reading this evening and hearing none, second and third reading will take place; asking the Clerk to read the proposed ordinance by title only on third reading. The Clerk read the following ordinance on third reading by title only, MICHIGAN CITY COMMON COUNCIL ORDINANCE NO. 4282 APPROVING REDUCTION OF APPROPRIATIONS AND ADDITIONAL APPROPRIATIONS IN THE CITY S 2014 ANNUAL BUDGET WHEREAS, it has been demonstrated to the Common Council that certain existing appropriations in the City s 2014 Annual Budget have unobligated balances that will not be needed in 2014 for the purposes for which they were appropriated; and WHEREAS, on May 20, 2014, the Common Council passed Ordinance No. 4282 authorizing the permanent transfer of funds from the Riverboat and Boyd Development Funds to, among others, the General Fund, Barker Civic Center Fund, and Park Fund and those transfers have been implemented by the Controller s office; and WHEREAS, it has been demonstrated to the Common Council City that it is necessary to appropriate more money than was appropriated in the 2014 Annual Budget to restore cuts made by the

Page 14 May 20, 2014 Department of Local Government Finance to the 2014 Annual Budget; and WHEREAS, the City Controller has determined that, due to the permanent transfers authorized by Ordinance No. 4282 and the reductions in appropriations authorized by this Ordinance, sufficient unappropriated funds are available in the specified Funds to be appropriated for that purpose. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of Michigan City, LaPorte County, Indiana, that the following existing appropriations are hereby reduced out of the Fund named by the following amounts: AMOUNT REQUESTED AMOUNT REDUCED INCREASE General Fund #0101 Unappropriated balance $511,461 01 Personal Services $294,373 02 Supplies $58,843 03 Other Services & Charges $158,245 INCREASE Motor Vehicle Highway Fund #0708 Unappropriated balance $142,061 01 Personal Services $131,581 02 Supplies $2,500 03 Other Services & Charges $7,980 INCREASE Barker Civic Center Fund #1001 Unappropriated balance $2,700 02 Supplies $175 03 Other Services & Charges $2,525 INCREASE Park Fund #1301 Unappropriated balance $129,624 01 Personal Services $90,831 02 Supplies $7,400 03 Other Services & Charges $31,393 INCREASE Aviation Operating Fund #2102 Unappropriated balance $3,046 02 Supplies $1,745 03 Other Services & Charges $1,301 INCREASE Cemetery Operating Fund #2120 Unappropriated balance $8,941 02 Supplies $1,900 03 Other Services & Charges $7,041 INCREASE Park Concession Fund #1315 Unappropriated balance $19,225

Page 15 May 20, 2014 03 Other Services & Charges $19,225 INCREASE Golf Fund #1314 Unappropriated balance $71,227 01 Personal Services $43,469 03 Other Services & Charges $27,458 INCREASE Riverboat Fund #9000 Unappropriated balance $1,700,000 04 Capital Outlay $1,700,000 BE IT FURTHER ORDAINED by the Common Council of the City of Michigan City, LaPorte County, Indiana, that for the expenses of the City the following additional sums of money are hereby appropriated out of the Fund named and for the purpose specified, subject to the laws governing the same: APPROPRIATED AMOUNT REQUESTED AMOUNT DECREASE General Fund #0101 Unappropriated balance $7,946,337 INCREASE MAJOR BUDGET CLASSIFICATION: 01 Personal Services $7,546,328 02 Supplies $79,300 03 Other Services & Charges $320,709 DECREASE Barker Civic Center Fund #1001 Unappropriated balance $76,198 INCREASE MAJOR BUDGET CLASSIFICATION: 1001 000 Barker Civic Center 01 Personal Services $76,198 DECREASE Park Fund #1301 Unappropriated balance $1,023,669 INCREASE MAJOR BUDGET CLASSIFICATION: 01 Personal Services $740,626 02 Supplies $116,250 03 Other Services & Charges $166,793 This Ordinance to be effective upon passage by the Common Council, approval by the Mayor, any necessary publication, and any necessary approval by the Indiana Department of Local Government Finance. INTRODUCED BY: /s/tim Bietry, Member Michigan City Common Council /s/ Richard Murphy, Member Michigan City Common Council Vice President Przybylinski and member of Council s Finance Committee stated he voted

Page 16 May 20, 2014 in favor to adopt the proposed ordinance along with Councilman Bietry; advising he would be supporting this ordinance. Councilman Bietry made a motion to adopt the proposed ordinance, second by Council members Boy and Murphy. Vice President Przybylinski asked if there were any comments or questions by the general public or Council and hearing none, the proposed ordinance was adopted by the following vote: AYES: Council Members Doyle, Espar, Hamilton, Murphy, Przybylinski, Schwanke, Bietry, and Boy (8). NAYS: None. Vice President Przybylinski stated the ordinance has been approved and will be forwarded to the Mayor for his consideration. The Clerk read the following ordinance on third reading by title only, APPROVING ADDITIONAL APPROPRIATION FOR THE REINSTATEMENT OF THE POSITION OF TRANSIT DIRECTOR IN THE MICHIGAN CITY CENTRAL SERVICES DEPARTMENT Introduced by: Pat Boy (DECREASE: General Fund #0101 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) Vice President Przybylinski stated there was a formal public hearing at the May 7, 2014 Council meeting. Councilwoman Boy made a motion to adopt the proposed ordinance, second by Councilman Murphy. Council President Parry asked if there were any comments or questions by the general public or Council and hearing none, the proposed ordinance failed by the following vote: AYES: Council Members Murphy and Boy (2).). NAYS: Council Members Espar, Hamilton, Przybylinski, Schwanke, Bietry, and Doyle (6). UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS There was no new business. COMMENTS FROM THE PUBLIC Josh Coudle (628 Southwind Drive), Wallace Stewart (614 Southwind Drive), Kathleen Dull (606 Southwind Drive) and John Dull (606 Southwind Drive) addressed the Council regarding the Lake Henry issue and water/sewage seeping in their basements. Mayor Meer commented on the status and updates of the Lake Henry issues. Chief Mark Swistek of the Michigan City Police Department addressed the Council regarding correspondence received from Ray Wolf, Chair Libertarian Party of LaPorte County and the vehicle his department received from the military government (MRAP); stating several reasons why this vehicle is an asset to our community and the police department.

Page 17 May 20, 2014 Discussion ensued among Chief Swistek and Council members Bietry, Hamilton, and Boy. COMMENTS FROM THE COUNCIL Vice President Przybylinski thanked the Michigan City Inspection Department and Building Inspector Russ Hatfield for pursuing and getting the home at 300 Chestnut Drive demolished; stating this has been an issues for years in that neighborhood. ADJOURNMENT A motion by Councilman Hamilton, supported by Councilman Doyle and there being no further business to transact, Vice President Przybylinski declared the meeting ADJOURNED (approximately 7:58 p.m.) Gale A. Neulieb, City Clerk