02-26-18 Personnel and Finance - Laserfiche WebLink

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working through it with a public-private partnership that we had with SMG and the Civic Center Board of Managers. Since, it has been fully approved by the Civic Center Board of Managers, on which, Councilmember Dr. Varner sits. We have slated April 2"d, 2018 as the transition date. The major moves that will happen are expressed in the Organizational chart.Primarily,everyone in the orange color will be City of South Bend employees and that represents eight (8) positions that were historically contract employees through SMG. We are moving them back to the City payroll. Those who have been around for a while know that Century Center was, at one point in time, entirely City employees. We contracted that out and we are now reversing half of that decision. We will continue to partner with SMG and those are the green colored employees on the chart. They provide food, beverage and sales services. Those are things that, I think, the City doesn't specialize in and things we don't necessarily have a desire to specialize in. The positions in orange are the things we already do in the City so we are talking about IT, accounting, general asset care, and other skill-trade type things. That is a combined team with the Morris and Palais. We still do have a contract at the Morris and Palais for food and beverage,those are the blue employees. What this really boils down to is there are eight (8) positions that will be shifting from contract labor to full-time City employees. To make that official,we have to reopen the salary ordinance and make sure they are inserted in there. Those employees are already at the Century Center but will just be moving over to become City employee on April 2"d, 2018. These are not net new positions, they already exist and have been approved as a part of the budget process. The funds are already allocated. Committee Chair White asked, So there are no new positions at all? Mr. Perri replied, They are new to the City but not new to the budget. Committeemember Regina Williams-Preston asked, So this reorganization actually saves us money? Mr. Perri replied, That is probably the most important question. When all is said and done, we anticipate there will be approximately $200,000 to $300,000 of annual savings. That comes primarily from management fees. We look to reinvest those savings into the Convention Center primarily though capital improvements but also a possible Business Development Fund. I should note that those are not City funds, these are Hotel-Motel Tax dollars. A Business Development Fund is something that a lot of marketplaces our size have. It is a tool that allows us to attract conventions, conferences and tradeshows that might otherwise look past a City of our size due to various constraints that exist like travel, logistics, size,proximity of hotel rooms and other things. We look forward to that tool being available to us. Councilmember Oliver Davis stated, You said they were budgeted from the contract side. When they were budgeted on the contract side, did that include benefits? Mr. Perri replied, Yes, that is correct. It would have been through SMG. Now they will be paid through the City of South Bend. Councilmember Davis followed up, So they will have City benefits? And will that be the same cost? 2