HomeMy WebLinkAbout10-14-06 Personnel & FinancePERSONNEL & FINANCE COMMITTEE
Saturday, October 14, 2006 8:00 -10:00 p.m.
Council attending: Charlotte Pfeifer, Chairperson, David Varner, Erv Kuspa, Ann
Puzzello, Derek Dieter, and President Timothy Rouse
Others: Eric Brown, Steve Luecke, Catherine Fanello, Sharon Kendall, Patti Glascoe,
Dick Nussbaum, Traci Grimm, Rick Walls, Linda Wolfson, Bill Egan, Marty Wolfson,
Gary Gilot, Greg Jones, and City Clerk John Voorde
Charlotte Pfeifer called the meeting to order at 8:05 a.m. Chairperson Pfeifer stated the
purpose of the meeting was to discuss budget ' 07 issues relating to Project Future and
under miscellaneous, the College Football Hall of Fame. Referring to Project Future,
Pfeifer stated a desire to review Project Future's goals and objectives and the
composition of board specifically with regard to its diversity.
Derek Dieter interjected he was on personal time, not an police duty.
Tim Rouse read into the record a letter from Project Future withdrawing, their request for
a resolution endorsing a 5 year financial commitment from the city. It also thanked the
Council for the '07 support in the amount of $11 D,000 dollars while stating a desire for
much better communication in the future.
(David Varner was recognized to discuss the Hall of Fame)
Varner proceeded to distribute a four page handout that covered the key points of the
second interitxz agreement between the City and the National Football Foundation
concerning the College Football Hall of Fame. The handout included a chart and a graph
illustrating the city's funding of the Hall of Fame since its inception in 1995. Varner
stated that he had no problem with the Hall of Fame, only its funding. He also felt the
Council has been circumvented in the past having had no input in the interim agreements
or on the joint committee responsible for administering the finances ofthe Hall of Fame.
Varner's pertinent points are a part of his handout. (See Attached)
Tim Rouse said he felt the National Football Foundation had shown a spirit of
cooperation with the Council as evidenced by their sponsorship of the "Play it Safe"
program in South Bend high schools.
Charlotte Pfeifer expressed a concern that the perceived animosity between the Council
and the Hall resulting from funding issues at annual budget reviews were not at all
productive. She suggested a fresh start noting the Council's long standing concerns. She
noted the city does own and is responsible for the Hall of Fame building. She restated the
notion that everyone wants the Hall of Fame to succeed. Derek Dieter suggested an
economic impact study might be of value. Sharon Kendall said the economic impact
while apparent, was difficult to measure.
Charlotte Pfeifer again expressed a disdain for an annual process that is not productive.
Varner said South Bend actually pays for the "Play it Smart" program. He said the city
pays the operational costs and capital expenses afthe Hall. Further, he said the NFF has
shown little inclination to help, is enjoying a "free ride," and will not came to the table
unless forced to do so. Dieter complimented President Rouse for his efforts to persuade
the NFF to sponsor "Play it Smart"; but said it was not effective the way it is
administered. He said he would provide facts later.
Erv Kuspa expressed frustration with the incomplete financial data for the Hall of Fame
provided far Council review each year. He also wondered if all colleges had a stake in
the success at the Hall of Fame.
Ann. Puzzello recounted that the whale idea of how the Hall of Fame was to be funded
that was portrayed in 1995. She is disappointed with the way finances have played nut
since.
Tim Rouse pointed to an apparent consensus for more dialogue. He asked is there was
agreement on funding for '07 with a mandate for change.
Varner stated the Council need not by law approve dollars for the Hall of Fame until 12-
31-06. He felt the Council not the Joint Commit#ee should approve expenditures on a
case by case basis not a 1.1 million dollar blind appropriation.
Charlotte recognized the Mayor to speak.
Mayor Luecke began by allaying fears that dollars were missing at DTSB. He said all
funds were accounted for. He then refuted Varner's "cost to the city figures," challenging
the source and amount of dollars on the chart and graph. He pointed out that by law the
Hotel-Motel Tax Board is responsible for appropriating Hotel Motel tax monies not the
City Council. Further mare he said the Professional Sports Development fund (377) was
under the purview of the Council. Turning to Dieter he asked if Dieter said that "Play it
Smart" program was of no value. Dieter said as it was presently administered the answer
was yes.
The Mayor then cited ways in which the NFF has raised funds far the Hall of Fame
Namely the new donated gridiron turf valued at $150,000 + ,the speakers luncheon, and
the 1 S story condo wanting to locate adjacent to the Hall of Fame. He then pointed out
the Hotel-Motel Tax, the Professional Sports Development Fund, and the capital reserve
fund were all good business, not based upon local taxpayer support. The Mayor said the
Hall of Fame should be viewed as a landlord {City), tenant {NFF} relationship. The city
owns the building and is responsible far its upkeep. The Mayor then referred to the
Fanello (Controller's) chart detailing accurate levels of dollar support.
Varner countered by claiming the current arrangement gives the Hall of Fame an open
line of credit and would like to see contractual changes because, in fact, the city's support
is growing.
Charlotte Pfeifer again called for productive discussion on the best way to move forward.
Rick Walls director of the Hall of Fame, said he cannot dispute the past; but pledges to
work cooperatively for the benefit of all, the NFF, the city, the Hall of Facne, and
downtown. He said all Hall of Fame revenue stay here, some $600,000 dollars last year.
He went on to cite ways in which the Hall of fame was working hard to help itself
succeed. Namely, reducing expenses, helping find sponsors far the growing success of
the enshrinement festival, developing a Hall of Fame Website that received 600,00 hits
this year, and claiming attendance of 62,000 this year. Also Keith Jackson has made a
promotional public service announcement at no cost. And Centerplate has made 30-40
thousand dollars on 300-400 thousand revenue directly generated by the Hall of Fame.
Additionally, the Hall of Fame is working with the SBCSC to develop a program for all
school kids with free admission as it is for all residents on Tuesdays.
Speaking for the Hall of Famc, former City Attorney Dick Nussbaum offered to give all
the history of how the Hall of Fame came to South Bend. He said the "blame game"
should stop. He then stated from its inception there was no intent to circumvent the City
Council or cut it out of dollar decisions. The Join Committee includes Council
representation. The NFF is willing to come to South Bend in the spirit of cooperation to
make the Hall of Fame succeed. He admitted the NFF needs to step-up efforts to raise
endowment dollars for the Hall of Fanrze.
Charlotte closed the Hall of Fame portion at 9:30 a.m., thanked all and looked forward to
productive discourse in the future.
Moving on to Project Future issues, Charlotte reiterated the Council's position that a
multiyear commitment to Project Future was "off the table," even without Project
Future's letter withdrawing the request for same. Charlotte also reiterated her desire to
have 5 or 6 appointments to Project Future's Board of Directors. While recognizing the
Council Attorney's opinion that the City Council did not have authority to appoint
Project Future board members, dollar support from the City Council could be tied to that.
Furthermore, Charlotte asked Project Future to report on business' leaving South Bend,
where they went, why, and Project Future's role in their decision.
David Varner echoed her call, saying we needed an economic development report card.
President Rouse felt Roland Kelly as chair of the Community and Economic
Development Committee should be part of the discussion. He then read a letter from
Project Future regarding their recent efforts to include minority business representation of
Project Future's Board.
Charlotte suggested both the Personnel & Finance Committee and the Community and
Economic Development Committee work together to formulate a resolution reflective of
City Council consensus of requirements before the '08 round of budget hearings next
summer.
Charlotte Pfeifer then recognized others in attendance to speak:
Greg Jones said Project Future has a structural flaw in that it was not a 50-C3
Organization which if so would make them more accountable.
President Rouse said Project Future does not qualify to be a SO-C3.
Greg Jones said in any case the Project Future board should have more oversight and
should outline the mission of Project Future.
Sharon Kendall said these were good and appropriate questions. We should know haw
the board fiznetions and what the board responsibilities are.
Eric Brown said Project Future uses public dollars and should be publicly accountable.
Charlotte asked President Rouse to schedule joint Personnel and Finance and Community
and Economic Development Committee meetings, preferably on Wednesday afternoons,
well before the end of the year.
The meeting of the Personnel & Finance Committee adjourned at 9:52 a.m.
Respectfully submitted,
Charlotte D. Pfeifer, Chairperson
Personnel & Finance Committee
Attachments