02-07-77 Council Special Meeting Minutes

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RE SPECIAL MEETING FEBRUARY 7, 1977 He then discussed the dual ownership of the facility by the Board of Public Works and the Civic Center Building Authority. He said the latter is responsible for forty percent of building cost emanating from the 5.4 million dollar bond sale. He said the Board of Public Works acts as the owner and funnel for the money coming from Civil City Bonds, Revenue Sharing, private fund drive etc. He said the Civic Center Board of Managers is responsible for the operation of the Center. He said the Building Authority, who were appointed by the Circuit Court, function similar to a school board, and are not involved in the building management. Charts of labor and construction costs were shown, and projected a $10.9 million total with 60% going for salaries in the South Bend area. Breakdown information on specific work done by local workers was given. Estimated material costs are $4,360,000.00 and of that figure 89% is obtainable locally. One hundred and twenty laborers per day, per month was quoted as being the high. A chart regarding the break- down of funds was presented in detail. Obligated costs, those costs already tied up in contrac on the facility to date total roughly $12,715,528. He indicated that that was an estimated cost. Obligated revenues to offset the costs to date is approximately $4,892,000 from the bond sale, with the total obligated at $12,923,000. He said this leaves a $208,000 contingency for t City's portion of the building. He then gave a summary on the aspects of the bond sale, quoting total proceeds, interest rates, and annual revenues to offset the obligation. Further charts on fund disbursement breakdowns were then shown. He then explained the outstanding items, those which have not been contracted, but must be done in order to open the Center. He said kitchen equipment would total approximately $180,000; convention furnishings $170,000. He said both of these would be funded out of the Hotel -Motel tax. He said museum furnishings would be $100,0 which covers the initial building of display areas. He said theatre equipment would be roughly $72,000, of which approximately $50,000 has been raised, and the balance would be covered either by grant or a special drive. He said parking, landscaping and the driveways would be appoximate $250,000, one half of which will be funded by a grant, and hopefully the second half would be funded through participating labor on the part of the City, as opposed to a cash match. Mr. Fred Kahn, member of the Civic Center Board of Managers, indicated his presentation dealt wi the fourth category on the agenda, primarily the administrative structure and the responsibiliti of the people involved. He said that in 1973 an ordinance was passed creating the Civic Center Authority with membership of nine representatives to be appointed by the Mayor and the Council. He said it functioned until 1975, when the name was changed to the Civic Center Board of Manager He said the City had adopted a resolution creating the Civic Center Building Authority, whose purpose was financing, acquiring, constructing, equipping and leasing back to the City a buildin or buildings for civic purposes. He stated that the law granted the City the power to sign into a lease agreement in advance of construction, but without rent until after occupancy. He said the law further states that the Building Authority, the Council and the Mayor must all agree on all terms and conditions pertinent to the Center. He said the Board of Managers must prepare a budget for each year showing all projected expenses and estimated income which must be submitt to the Common Council. He said the City Controller is directed to act as controller for the Board of Managers. He said provisions of the law called for the development of a master lease and subleases. He said under the master lease the Building Authority sold the bonds and signed a lease with the City for usage of the buildings for twenty -five years. He said the rental cost per year to the City for tweny -five years is $456,000. r Mr. McMahon covered item five on the agenda relating to the operational costs for the Center. said this would encompass energy, maintenance and cleaning requirements. He said that $260,000 on an annual basis was allotted for this purpose. He said in addition, $25,000 was set aside f trash removal, custodial supplies, window washing, etc. Mr. Peter Mullen, City Controller, presented an income projection sheet to the Council. He said the projection was formulated from bookings already known and those which have been anticipated within the next six to eight months. He noted that sheets were made available on the anticipates expenditures for 1978, as well as the anticipated gross income, less expenses of $214,000. He then indicated the breakdown of income on the sheets. He said by adding this anticipated income, figures for 1978 should be 20% higher than 1978, with expenses only going up 10 %; for 1980 a 10% increase was given for income and 5% for expenses. He quoted the same percentage for 1981. Mr. Rosenthal indicated that the 1978 budget calls for seven full -time staff members, along with twelve security guards, and twelve maintenance and janitorial people. He said the full -time hel would be funded out of.direct budget, and the security guards, maintenance and janitorial help, which would be part -time, would be funded out of CETA. Council President Parent opened the meeting to the public at 8:15 p.m. Mr. Maurice Cohen, 725 E. Eckman St., questioned a$40,931 figure for demolition of the old power house on Sample. Mr. McMahon stated he erred, w and it was the Olive power generating station. Mrs. Karen Gleason, Executive Director of Civic Planning, asked Mr. Rosenthal about the operatio cost budget figure of $300,000. She noted that utilities are $260,000 which leaves a $40,000 figure. She asked if that was for staff members alone. Mr. Rosenthal indicated she was referri to the 1977 budget, and since the Center would not be operating but only three months there woul be relatively few of the seven staff members on board. Mrs. Gleason indicated she had some conc over the fact that CETA monies were heavily relied upon, and they might not be available. Mr. Rosenthal said there was no indication that CETA moneys would not be available. Mrs. Gleason expressed concern that the Center not be underfunded. Mr. Al Langel, 4033 Huron Circle, asked a question not pertinent to the Century Center and was ruled out of order by President Parent. Council Member Dombrowski made a motion to recess, seconded by Council Member Serge. The meeting adjourned at 8:25 p.m., and reconvened at 8:40 p.m. it n Iwas