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HomeMy WebLinkAbout08-22-18 Personnel and Finance (#4) � UT1i U� d Fi7\PE' CE a c x x 1865 OFFICE OF THE CITY CLERK KAREEMAH FOWLER, CITY CLERK PERSONNEL &FINANCE AUGUST 22, 2018 5:00 P.M. Committee Members Present: Karen White, Regina Williams-Preston, John Voorde Committee Members Absent: Gavin Ferlic Other Council Present: Jake Teshka, Tim Scott, Jo M. Broden, Sharon L. McBride Other Council Absent: Oliver Davis Others Present: Graham Sparks, Bob Palmer, Casey Colvin, Gabriel Murei Presenters: Jen Hockenhull, Aaron Perri, Jeff Jarnecke, Susan Visser, Patrick Slebonick Agenda: Venues, Parks &Arts Committee Chair Karen White called to order the Personnel and Finance Committee meeting at 5:00 p.m. She introduced members of the Committee and gave the floor to the City Controller. Jen Hockenhull, City Controller with offices on the 12th floor of the County-City Building, stated, I just wanted to take a quick minute because I know Aaron and his team have a great deal of information to get through toni ht.As Karen and I spoke today I was reminded of a few continuous improvements that have gone on in the last three(3)years since we have been working so closely with Council. So based on your requests,we really have taken those to heart.One(1)of the biggest things that we've done this year,just as a reminder,when I started this process about four(4)years ago, we would literally walk in and hand you guys this information. Based on the feedback we have gotten we are trying really hard to meet that forty-eight (48) hour deadline but there is a definite twenty-four (24) hour limit. Thank you for pushing that and we are definitely doing that. We are going to have a stand-alone meeting this year for the salary ordinance and that will be on September 19th, 2018. We will also have a mid-season budget update for next week. So next Wednesday, we will be passing out information that has every fund that we have. It will show you the summary of the revenues and the expenditures as well as the deficit and the surplus. We will have that for you next week and hopefully that will be helpful to the discussion on the reserves. We are also looking to have a stand-alone meeting on the Redevelopment and TIF Funds. We will also go ahead and talk about debt. Thank you for all of your feedback on the budget process so far. We do appreciate it and we do listen. Please continue to give us that feedback because we don't know what to change unless we hear from you. Ms.Hockenhull continued,So with regards to the cash reserves we talk about and deficit spending, every month Amy Shirk in our office puts a report together. We have had comments from Council about this report but it is emailed to you. She proceeded to hand out copies of the City of South INTEGRITY1 SERVICE1 ACCESSIBILITY JENNIFER M.COFFMAN BLANCA L.T mom JOSEPH R MOLNAR CHIEF DEPUTYIDIRECTOR OF OPERATIONS DEPUTY/DiRECTOR OF POLICY ORDINANCE VIOLATION CLERK EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Blvd.I South Bend,Indiana 466011 p 574.235.92211 f 574.235.9173 1 www.southbendin.gov CITY OF SOUTH BEND I OFFICE OF THE CLERK Bend Cash Reserves Summary with is available in the City Clerk's Office. She went on, We have had a lot of good changes to it. It is emailed to you but it is going to give you a lot of answers to a lot of the questions you may have. We do talk about reserve requirements,why we have them and how we calculate them.The City of South Bend reserve requirements are set by us. They are based on best practices but I can actually assure you they are actually higher than industry standards. Most folks save a fifteen percent(15%)cash reserve in most funds.The City doesn't have anything really less than twenty-five percent (25%) cash reserve in any of our funds. So this report walks you through what it means to have cash reserves, why they are either there or the fund is negative, and then you can see on every single fund where we stand and what our actual cash balance is. Outstanding encumbrances or outstanding purchase orders are also reflected in this summary. A lot of the time we start the year and we will know we are going to spend$1,000 with Cintas. That is going to be our limit for the year so we put a purchase order in and that is called an encumbrance. So that sits out there even though we will eat away at it throughout the entire year, it goes on the beginning of the year. That is why we call out these outstanding encumbrances because it can sometimes skew the cash reserve a little by stating we don't actually have that money. We do, we are just going to spend it throughout the whole year. She went on, It also gives you our available cash, our reserve requirement and then it talks about the variance. Councilmember Broden brought it to our attention to call out those Funds every month that aren't meeting the cash reserve and so we did. We moved those up to the top so you don't even have to dig through to see if we are missing anything. We are calling it out and it is right here on the top. As far as deficit spending in the Funds that have come up, Parks is a great example of what is going on. So every year we do conservative budgets. We think we will get $1 million in from property taxes and we will spend it and then go to the next year. Typically, we don't want to come in and say we hope we will get $2 million and then only get$1 million. So we budget conservatively on the revenue and then we budget conservatively on our expenditures as well so we think we will spend$1 million but sometimes we might only spend$900,000. So at the end of the year we actually walk away with$100,000 and that goes into the cash balance and then we move onto the next year. But we've already budgeted conservatively for the next year so these cash reserves tend to pool up. In Parks you will see about a $2 million deficit spend in 2019 but you will see, too, at the bottom of the page (referencing the summary) we talk about these cash reserves. So we state our cash balance at the beginning of the year, what we intend to spend, our cash balance at the end of the year and then the line following that is our cash reserve requirement. She continued, You are going to see, for Parks, we don't follow that cash requirement because of what we've gotten in property taxes we haven't spent all of our budget so every year the money pools up. That allows us to do big projects every couple of years. This isn't normal as we typically try to do balanced budgets for Parks. We definitely have balanced budgets for the General Fund, COIT and EDIT and you will see that next week in our overview. Part of the reason you haven't received that overview yet is because we just received, last week, from the DLGF, finally, a very good estimate of what our Local Income Taxes (LIT)will be. Before that,they gave us all sorts of random numbers. Our team called the DLGF and spoke directly with their legal folks over there and they finally said the numbers that we have are appropriate. So next week, we will be able to bring you balanced budgets for those Funds. Hopefully this quick update encompasses answers to many of the questions that have been brought up over the past couple of weeks but I am happy to answer any other questions you might have now or later. Committee Chair White stated, Thank you for your update. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building;227W.Jefferson Bvld I South Bend,Indiana 46601 p 574.235.9221 lf574.235.91731TTD574.235.55671wvww.southbendin.gov 2 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK Councilmember Tim Scott stated, I appreciate Amy in your department. We did get the Controller's Trustee Cash Report on Monday and we also got this Cash Reserves Summary on Monday. It is nice to see those early. Ms. Hockenhull replied, It is on the website as well. Councilmember Jake Teshka stated,A lot of these concerns have been the things I've been asking you about. Part of that is being new and then the other part is, I think, all of us are kind of a little on edge about what is going to happen in the future and that kind of stuff. So I think some of us are more weary of deficit spending and looking at those trends.Thank you for putting this together. Ms. Hockenhull replied, We also do a cash trends report and I think the trend is that is going up. My door is always open and please reach out to me. Venues, Parks & Arts Aaron Perri, Executive Director of Venues, Parks & Arts with offices located at 301 S. St. Louis Street, stated, I appreciate the opportunity to share our accomplishments and information on current things in progress as we move into 2019. Just as a reminder, I know the Council is always interested in tracking the organizational charts. That (referencing a slide of a presentation which is available in the City Clerk's Office) is our organizational chart, here. We have myself and a Deputy Director, we have got the Facilities and Grounds Division that oversee the care of all of our physical plants, the Recreation Division, Venue Operations, which primarily contains the Morris, Century Center and Palais, and then the Experience Division which is our marketing, events and development arm. We will start off a little bit different from your packet regarding the order of presenters. We will go straight to the Venues presentation. Jeff Jamecke is our Executive Director of Venues. Jeff Jarnecke, Executive Director of Venues with offices located at 120 Dr. Martin Luther King Jr.Blvd., stated,My understanding is that,historically,this has been presented by the Venues team with reminders that you are all invited, with only two (2) Fridays left, to join us at Fridays by the Fountain at the Morris. To help you with that, here are some lunch bags to bring your lunch and join us. He then passed out lunch bags to all the Council Members. He continued, You will also hear from our partners and friends at the South Bend Museum of Art and the Studebaker Museum as part of this presentation. We are happy to share that in 2017 the Morris had almost a $6 million economic impact on the community. We are pleased to see that grow and we have every expectation that it will continue. Even more so on the Palais side, there was nearly $3 million of economic impact on the community in 2017. Part of that, and as a result of that good work is our rebranding efforts and our re-imagination of some of our space. There is much more to come and you will hear more but the marquee is up and is brighter than ever. The work being done on Michigan and Colfax is just incredible. We have one hundred and three (103) total events for 2018 which is a twenty percent (20%) increase year over year. There are many more changes to come. He went on, So getting into the budget for this ye , we anticipate nearly $1.2 million of revenue and then a net deficit of$194,000. While it is still more than what we want it to be,that is actually EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 227W.Jefferson BvldI South Bend,Indiana 466011p574.235.9221 if574.235.91731TTD574.235.5567 www.southbendin.gov 3 CITY OF SOUTH BEND I OFFICE OF THE CLERK $25,000 less in terms of loss for this coming year. That is being driven by a goal that we will have one hundred and fifteen (115) events within the Morris this coming year, which is an increase. And our goal for two (2) years from now is to have one hundred twenty-five (125) events. We believe we need to run more events through that building and we will continue our effort to do so. That $25,000 ends up being through a tightening of our operation and with working to be more efficient with what we are doing as well as growing revenue. While we still see the increase of two percent (2%) on the salary side and four percent (4%) on the benefits side, we are able to chip away at that by bringing in more events. We are proud of that and the good work that team is doing. There is no new head count but just a new and concerted effort to bring more events. He continued, This (referencing a slide of the presentation) will give you a historical look where we have been with revenue and expense. It has definitely been a net revenue over the last number of years. 2016 stands out for a couple of reasons. That was a longer run on the Broadway Theater side with Wicked. I wouldn't call that an anomaly because, frankly, that is where I expect that to be in a number of years. So while it is outside the norm, our intention and goal is to have more years that look like 2016 as compared to where we have been.The Palais is anticipating a$190,000 deficit this year. That is slightly increased year over year. That is due in part to how we are accounting for positions which has been above and below the line in the past as well as a new operating deal with the folks at Navarre Hospitality. That has been renewed through 2020. It changed slightly and it will increase that deficit as well as there are fewer mid-term bookings for 2019. So we are working aggressively with the team at Navarre to close that gap. He went on,The Century Center is not asking for any dollars from the General Fund at all.Through our allocation from the St. Joseph County Hotel-Motel Tax Board, we have funding as well as through our event revenues. In 2017, the Center had almost a $12 million economic impact and that is considerably more than the economic impact from 2012 when that was previously conducted. We will now run the economic impact each year going forward. We are excited about what that means. Through our operating budget and through a consolidation and reorganization of that agreement with SMG, who is the event management, food, beverage, sales and marketing contractor,we have done a terrific job over the last five (5)years. We are pleased to renew that for three (3) years. That will expire in 2020. We were able to largely hold flat our expenses while reinvesting in our operation. We reinvested to the tune of $100,000 in a new Business Development Fund that we are able to attract new business,buy-down events or whatever the case may be. That is something new for this coming year. He continued, In gross,there is an anticipated$4.5 million in revenue this coming year. There are fewer events and people so we are working hard to get to that number. Fewer long-term bookings is the reason for that to stay flat so we will close that gap through more local business,which, isn't necessarily our main mission and focus but it is a short-term strategy for us to ensure we get that $4.5 million in revenue. We are moving forward with a balanced budget as we anticipate $4.5 million on the expense side. Here (referencing a slide in the presentation) you can see the breakdown on that. We are asking the Hotel-Motel Tax Board for $1.26 million for capital and $1.275 on the operating side. That has been flat for the last number of years. And as a little bit of perspective, there are no dollars coming in from the City and their General Fund. We are actually trending up, too. SMG has worked hard to bring more events into that building to see revenues increase. You will see in 2015 when it didn't hit that trend line. The reason for that is much of our space was offline to make improvements. The resulting impact of those improvements is apparent EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 1 TTD 574.235.5567 I www.southbendin.gov 4 CITY OF SOUTH BEND I OFFICE OFTHE CLERK as well as it attracted more business. We will continue to see those revenue numbers increase on our part going forward. He went on, The feasibility study is a chance for us to imagine a building that is forty-one (41) years old and imagine what the next forty-one (41) years should be. That study will help us take a look at whether we are optimizing our space. It will also capture the potential and see what the market can bear if we expanded. We are still working through that process with the respective boards. There will be more to come on that in the coming months. Lastly, we want to give a brief overview on the parking side. There are roughly 1,400 parking spaces we have within the downtown environment. The difference in net revenue in 2019 and beyond is that, while we are operating within two (2) of the garages at more than one hundred percent (100%) capacity, we need to invest back in the garages. We need to finish getting elevators up to par, some aesthetic and cosmetic things, and we think if we push through this coming year, and that is why you will see a net operating loss this year paid for out of cash reserves, we will be able to have a longer- term strategy with potential for a rate increase. While we are certainly still competitive and less expensive than some of the other private solutions out there for parking options, I think there is an opportunity to provide dynamic pricing in the future. Committee Chair White opened the floor to questions from Committee and Council Members. Councilmember Tim Scott asked, Are we seeing more movement with the new hotels coming online? Mr. Jarnecke replied, Without question. Certainly on the Century Center side. That has taken us to six hundred eighteen (618) hotel rooms in the downtown environment. It takes us a bit of time to catch up as we are already talking about conventions in 2021 and beyond, it has really changed our position in the marketplace. We have, in the short-term,realized incremental gains from three (3) or four(4) events we wouldn't have otherwise had without the extra hotel space. Councilmember Scott followed up, Is there any type of detriment to the Century Center parking lot? There are bottlenecks getting in and out of that. Mr. Jarnecke replied, We are far from optimized from a convenience standpoint. Not only do we feel that on the parking side but also when folks come into the Center for a show. So for the consumer shows in Janu , February and March you will actually see the side doors closed and force the pedestrians and traffic to go through the front doors off of MLK for ticketing and then exit through those doors. So it is not great. It is also a challenge for pedestrians and traffic to comingle. We are looking at that and the feasibility study will help us with that. Councilmember Scott stated, The South Bend Cubs is a major compliment to the City but the Morris is second(2"d).There are so many people from outside South Bend that bring up the Morris and they love seeing shows there. You are getting that draw from outside the City and it is really a gem. Mr. Jarnecke replied, We appreciate you saying that. That was also recognized by Polstar, one (1) of the industry's entertainment divisions,we are number sixty-seven(67)out of two hundred(200) in terms of gross ticket sales. That outpaces our regional competition. We have an attendance goal this coming year of 125,000 to 130,000. We want to ensure that every child and resident has an EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building,227W.Jefferson Bvld I South Bend,Indiana 46601 p 574.235.9221 l f574.235.9173ITTD 574.235.5567 www.southbendin.gov 5 CITY OF SOUTH BEND I OFFICE OF THE CLERK opportunity to come to the Morris. We are looking at the mix and genre of our line up to be sure we are speaking to different audiences and different groups. Councilmember Jo M. Broden asked, Are there any changes in the Hotel-Motel tax either in allocations or formula? Mr. Jarnecke replied, I think that is on the table for discussion. Currently it is at six percent (6%) which is quite low across the country and certainly even regionally. Regarding our allocations, we've been at that$1.275 million as our base number.The Hotel-Motel Tax Board is quite engaged in the sense of wanting to see the Century Center deliver more. There is data out there that we e at a higher contribution and we see an uptick in that as well.There are a number of levers should b g p and triggers to evaluate as we consider the feasibility study. There are no immediate plans to address that but I know that has been on the radar of the Board over that last few meetings. Committeemember John Voorde asked, How do you measure the satisfaction of people who have had events at either the Morris or the Century Center? Mr. Jarnecke replied, On the Century Center side, we send a post-event survey to that event's organizer. We are pleased to share that we have a fifty percent(50%)response rate to those surveys and that is unheard of. Industry says it should be closer to seven or eight percent (7% - 8%) and we are at fifty (50%) percent. That survey results in creating a net promoter score. The folks at SMG have a goal that is associated with their performance and they are hovering close to eighty (80) for that number. That is also incredible as it means people are having a positive experience here. We are quick to respond to anyone who has had an issue along the way. Certainly there have been challenges time to time but overall the feedback from an event standpoint is tremendous. On the Morris side, as well, through the various social channels we have available, though it is not formalized, it certainly is real-world and real-time. We now have a time that is dedicated on show nights to respond, in real-time, to any concerns we have through our listening tools. Committeemember Voorde followed up, The Indiana City Clerks were here for the first(1St)time in, I think, a dozen years and it was because of the additional rooms. I attended most of the events and the feedback, anecdotally, was real positive from these folks. Councilmember Sharon L. McBride stated, I just want to compliment you all. I actually attended a wedding this weekend at the Morris and Palais. The staff was amazing, the food was great and the atmosphere was too. That was my first time going to a wedding there and it was good. Mr. Jarnecke replied, Thank you two (2)very much. Susan Visser, Executive Director for the South Bend Museum of Art with offices located at 120 South Dr. Martin Luther King Jr. Boulevard, stated, Thank you very much for inviting us to talk a little bit about the South Bend Museum of Art. She then proceeded to provide handouts to the Council Members which are available in the City Clerk's Office. She continued, We have done this presentation many times and it is always a little bit different. He went on, So I will talk a little bit about our programming and then at the end we will talk about our budget break down and the City's allocation. So our American Series is a program we started in 2007 and it has been incredibly successful. It brings in some of the key artists in artistic EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173(TTD 574.235.5567 lwww.southbendin.gov 6 CITY OF SOUTH BEND I OFFICE OF THE CLERK movement created in the American Art Legacy. It has given us an opportunity to really give a progressive and in-depth education about American Art. It is a really wonderful opportunity, as you will see in your handout, to collaborate. We put together many community partners for this each year. The Destination Latin America Show is coming up this fall and that is our 2018 edition of our American Series. Partners onboard so far are La Casa de Amistad, South Bend Latin Dance, Radio Sabor Latino, Indian Latino Institute,the National Museum of Mexican Art in Chicago and the University of Notre Dame. We also have several sponsors already. We have the l5t Source Foundation, Electronic Incorporated, The Community Foundation of St. Joseph County and we are very pleased to announce the receiving of a grant from the National Endowment for the Arts. It is a great opportunity to learn about Latin American Art. We are going in-depth into the culture. We are looking at food, dance and visual arts. That will be a great event. She continued, Biennial Twenty-Nine (29), as you can tell by the title, is going to be happening for the twenty-ninth(29th)time. That started in the 1960s and it gives us an opportunity to present contemporary and cutting-edge works of art by artists from the region. It also has been an opportunity for us to build our permanent collection of art. We have a support auxiliary called The Art League. They support us each year with a purchase award. We have had the opportunity to collect, over the years, some wonderful contemporary art from the region. This has been one (1) of the staples of our programming. It is also an opportunity to represent the local and regional artists as it is a wonderful opportunity for those artists. The other strong opportunity we have are the exhibitions we do in the Art League Gallery. We do three(3)to four(4)exhibitions every year. Again,that represents local and regional artists. She went on, The Scholastics Art Awards is one (1) of our great prides and joys. We have been presenting The Scholastics Art Awards Exhibition since 1985 and in 2012 we became the regional affiliate. There was a danger of losing the Scholastic Art Awards to the Fort Wayne region because the Committee that had been running it locally was just burning out. We adopted the program and started a very aggressive fundraising tactic and it has gotten stronger every year. The entries grow and it supports eighteen (18) counties in northeast Indiana and southwest Michigan. It is a competition for high school and middle school students. This year we had almost 4,000 submissions from high school and middle school students. That was then juried by professional artists down to about nine hundred (900) entries which are then hung in the gallery. All of those represented in the gallery are award winners but those who have a portfolio and gold key awards then go on to a national completion in New York. Our region has traditionally been one(1) of the most awarded regions in the Country. We are very proud of that but I think it is more of a tribute to the students and teachers in the schools in the region. We are very proud to present that nationally. She continued, We are in our thirtieth (30th) year of Meet Me on the Island. I brought this to the table to Century Center and WBPE in 1988 and it is still going strong. It really hit the deck running. Even the first(ls) year we were getting 1,500 to 2,000 people in attendance. It continues to draw sometimes up to 3,000, especially for the 4th of July. In 2017 we had almost 8,000 people attend. It has been a great event. It is a good community event, public relations event and is a bit of a revenue source for Century Center. It has been a win-win-win. Committeemember Voorde asked, Is the artwork from the Scholastic Awards for sale? EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227W.Jefferson Bvld South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 I TTD 574.235.5567 iwww.southbendin.gov 7 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK Ms. Vasser replied, Sometimes they are. It is a little tricky because you have to buy them directly from the student. So you have to get in touch with us, we have to get in touch with the teacher, then the teacher has to get in touch with the student. But yes, some have sold some of their work with that show. Committeemember Voorde stated, I bought one (1). I bought it five (5) years ago. Ms. Vasser replied, Good. Did you find the process complicated? Committeemember Voorde replied,No, but I ran into that person down in Bloomington. She was a senior and recognized me as the guy that bought the artwork. It's the best ash tray I've ever had. Ms. Vassar went on, So this (referencing a presentation which is available in the City Clerk's Office) is a new event. We have a poetry event called An Ekphrastic Event for Sharing the Muse. It is based on our permanent collection. We invited community members of all ages to take a work of art from our permanent collection and use that has a spring board for creating a poem. We have people write their own poetry and then they come to the gallery and recite their own poetry. It really has been a great event and one (1) of the things I love about it is that it has been organized the last two (2) years by two (2) of our Board members. They work together and they make this thing happen. It is a whole new audience for us and whole new group of people than who usually visits the museum. She continued,We are a community-based organization and have been since our founding in 1948. We pay attention to what the community wants, needs and is interested in. That is one (1) of the foundations of our programming. Collaboration is our preferred way to work. Here (referencing a slide in the presentation) are three (3) demonstrations of some of our community events. Downtown for the Holidays was a collaboration with DTSB. We hosted the competition for the gingerbread houses and also some cookie decorating. It increased our attendance throughout the holiday season and I can't quote that number but it was remarkable with how much it increased our attendance. People came through the gallery and it was wonderful. The Festival of Banners is a collaboration, again,with DTSB as well as the City. We do a call for banners and kids as well as adults design a small design. Then if they are accepted into the competition they come in and they paint the banner. The banners are then hung around Au ust and are up through October. They are up right now and don't miss them. There are some great ones this ye . The theme this year was `Out of this World' so a lot of them are based in space and all that sort of great stuff. It is really fun. She went on, Then Kid Beat is one (1) of our newest community projects. It is the kid portion of Art Beat which of course just finished. It is the second (2nd) year for Kid Beat and it is wildly successful. We create hands-on projects for kids but there are a lot of adults who participate too. That takes place all throughout Art Beat. Galley Rentals is another way we bring new audiences into the museum. We collaborate with the Century Center on the catering and the set up for that. Then this (referencing a slide in the presentation) is a pie chart that shows our public and private funding. Our greatest percentage contribution is from earned income, grants, sponsorships and contributions with a slightly smaller percentage coming from public sources and then the next slide breaks that down. So the City of South Bend contributes toward seven point five percent (7.5%) of our total budget. Of course,that has been $65,000 a year for the last several years which is part of the funding mechanism that was set up when the Convention Cultural Complex was built. That EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building's 227 W.Jefferson BvldI South Bend,Indiana 466011p574.235.9221If574.235.9173 TTD574.235.55671www.southbendin.gov 8 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK recognizes the dual use of the building. The City of South Bend has been kind enough to support the museum's occupancy in the building for the last forty-one (41) years. She continued, We do get significant funding from South Bend Schools through a property tax levy. Sponsorships are also very significant. The American Series increased our sponsorship revenue from about $55,000 a year in 2006 which is the year before we started the American Series. In 2017 it was about$140,000. It has increased to be about seventeen percent(17%) of our budget. Earned income includes tuition fees and retail. More than 49,000 visitors came and used the museum in 2017. A significant portion of that number was made up of children and adults that participated in the educational programs. About 2,500 youth came through on school tours. 1,000 participated in studio programs. Another approximately 4,000 participated in family days or other outreach programs. Then more than 33,000 visited to view exhibitions. All those statistics are on our website. Lastly, we have been working with Century Center for the last several years on a project called Sightlines. It places large-scale sculptures and paintings throughout the Century Center. I have had discussions with Aaron Perri about possibly extending that to roundabouts so you might see that in the coming years. Committeemember Voorde asked, What is the truth to some of the rumors there have been of relocating the Museum of Art somewhere else? Ms. Vassar replied, I don't think any of that was official. That would be a huge undertaking and I don't really have any information on that. Committeemember Voorde followed up, I hope not because as the Museum was originally conceived, it was supposed to be exactly what it is today. That vision has proven to hold up rather well. I think it is a vital part of the community and a neat place for both people who are in the community and for those who come and visit. Ms. Vassar replied, Thank you for those comments, John. Committeemember Voorde then asked, What happened to the Michiana Council of Arts? Ms. Vassar replied, Really, the Community Foundation has done a much better job than the Michiana Council ever did because they had money to establish a very serious endowment. I think the original thought and dream has really come true. I think the Community Foundation really fills that need. Mr. Perri stated, We have one (1) more presentation before I proceed. Patrick is the Executive Director of the Studebaker National Museum. Patrick Slebonick, Executive Director of the Studebaker National Museum with offices located at 201 Chapin Street, stated, I will go ahead and hand these out. He then passed out handouts to the Council Members which is available in the City Clerk's Office. He continued, This is a little handout we have prepared for you all. To begin the presentation I will just remind everyone about the partnership between the Studebaker National Museum and the City. Thirty-seven(37)vehicles of the original collection which make up some of the core components of our collection are actually the City of South Bend's property. That was a gift from the Studebaker Corporation to the City when the company closed. We are now also fortunate enough to operate within a City-owned EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 227 W.Jefferson BvldI South Bend,Indiana 46601 p574.235.9221 f574.235.9173ITM574.235.55671www.southbendin.gov 9 CITY OF SOUTH BEND I OFFICE OF THE CLERK building. The 201 Chapin Street location is a City-owned facility. So we are very fortunate for the partnership. He went on,2017 was,by far,a record year on a number of counts.Most impressively,our museum attendance beat the previous attendance record by over five percent(5%) and beat the year before by ten percent(10%). We are thrilled with that. Our visitors lasts also came from all fifty (50) states as well as fifty-eight (58) different countries. Museum visitors are estimated to have an economic impact of$8 million on the community.Last year the museum also introduced a number of new educational programs which cover topics of broad appeal. They include everything from different social issues to things under the hood where we would actually allow museum visitors to see under the hood which is something a little bit difficult. He continued, Last year over 2,000 community members and local residents had access to the museum for free on different discounted days for the museum. We do have an admission fee normally as we think it is an important part of our responsibility as a community's cultural resource to have days that offer free admittance. In one (1) day and in one (1) evening, over 1,200 children visited the museum for our Trunk or Treat event. We set up trick or treating stations throughout the entire museum and we do a scavenger hunt. 2018 has been a really exciting year for the museum.Not only did we receive really exciting press coverage but we also launched our first(1St) ever Concord Elegance Cop Show Home. That is a partnership between the History Museum and us. That even had 1,500 paid attendees in one(1)day. That set a single day paid attendance record for the Museum. We were thrilled. He went on, Our staff has been realigned over the last few years.This is my third(3rd)time making this presentation. I as well as our Board have'been really focused on increasing our programmatic functions and resources. So in the last, we shifted another ten percent (10%) of our staffing budget from administrative functions to actual program functions like being able to offer educational programs for children. We have set a media impression record for itself and we are only in August. We are very thrilled with how everything is going at that museum. Looking ahead, we just opened Ten (10) Cars that Changed the World. That is a collaboration with the Society of Automotive Historians. Those programs have allowed us to bring in top-notch speakers within the community from around the world that focus on the ten(10)most influential vehicles as voted on by the Society. Unfortunately no Studebakers made the list. That being said, it is a really great opportunity for us to showcase different marks. The lectures have been incredibly popular. For instance, a number of veterans came out for a lecture on the Jeep which was instrumental for its role in World War Two (2) and beyond. That was one (1) of our most attended lectures in the last three (3) years. He continued, We are also going to roll out, starting this fall, new Living History Programs. And then one(1)pilot program which happened with the Design Studio during the Concord which was sold out for both performances. The Design Studio actually allowed people to meet random low- integrate Studebaker designers. They were able to design their own cars and features and some really fantastic things came out of that. It was great and people loved it so then in the fall, we will give the opportunity for people to meet President Lincoln and President Grant who, both of their carriages are part of the original collection of City property. Lastly, our peers from the National Association of Automobile Museums just voted to come to South Bend for their annual conference. National groups and people recognizing some of the great things that are happening at the museum and because of that are coming here to learn. The theme of the program is going to be to give more EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If574.235.9173I TTD574.235.5567Iwww.southbendin.gov 10 CITY OF SOUTH BEND I OFFICE OF THE CLERK underway but we are still doing a lot of work nevertheless. Just last night there was a great story on the City Cemetery. We trained some of our team as we had drought conditions this So our mowing crew was left without a lot to do and so we retrained them how to reset the headstones in the City Cemetery. There are over 1,000 that need resetting due to either vandalism, storm damage or actually groundhogs. We've done close to two hundred(200) already. We are also cutting new paths, both walking and driving paths. There has been some street scape work happening and that is all in preparation for the new entry work that will happen down the road. We are really investing in the property because it is important. He continued, Leeper Park is seeing some upgrades. The Rose Garden got irrigation and there are some new benches around Leeper Park. We recently rededicated the Powell House Foundation. It was burnt down, vandalized and over grown to the point that we didn't even know it was there. We've installed some new dugouts out at Veteran's Memorial Park. That is a public-private partnership with IUSB. They use it about six(6)weeks a year and we, the public, get it the rest of the year. Just _yesterday, we unveiled the Center for Learning Information Connectivity and Knowledge (CLICK) SB at the Martin Luther King Jr. Center. Our team built out this space. IT worked with the partnership between the library and MetroNet to get high speed internet out there and now it is a great computer lab for youth and the seniors. It is at no cost to the City as it is really run by the library. We will be opening that same CLICK SB site at the Charles Black Center. He went on, All the old Safetyville structures were removed at Rum Village and new pathways and new landscaping is being put in. We are a matter of weeks away from introducing that to the public. Kelly Park is also a matter of weeks away from celebrating its Grand Opening. It is a real gem and great story about the two(2)women's efforts for that park. It has been quite a community effort. The Blacksmiths of Indiana made the sign as well as the bike racks for this park. And that is what makes our parks special is when people invest in them. Sometimes some of the things that we can do is just only enough to keep up with what I call the orthodox level. When residents come together is when we see some special things unfold. The Charles Black Center is slated for a mid- October opening. That is a $4.5 million project. So we are finishing up that as well as the other projects. We are getting close on the Erskine Clubhouse. That building has a lot of history. That is a TIF funded project. He continued, The work on the downtown riverfront parks and trails is actually scheduled to be awarded at next Tuesday's Board of Public Works meeting. On deck in terms of major projects we have Pulaski, Leeper, Pinhook, Coal Line Trail, the O'Brien and then all the neighborhood parks and partnerships. So this (referencing a slide in the presentation) is sort of our legend here. There are a lot of basketball and tennis courts that need upgrading. He then showed a map with different symbols denoting the different improvements slated for different areas and parks throughout the City. He stated, Your packet doesn't have Ravina Park but it is in this presentation, so, pencil in Ravina Park. Then the new parks and partnerships, if you'll remember this (referencing a slide in the presentation) map, this is the park score map. This lets us know where people don't have a park, really, in their neighborhood. Usually those are areas with a higher density of children. They are tricky areas and in some instances they become areas that can't have a park because it is house after house after house. We are trying to address three(3)of the four(4) areas we have identified. We know we are still missing one (1) but that area is so challenging. I literally rode my bike up and down every street and there are no parcels of land. But we will still address some of the partnerships in that area. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227W Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 1 TM 574.235.55671 www.southbendin.gov 13 CITY OF SOUTH BEND I OFFICE OF THE CLERK passionate about what they do so sometimes they have to just sit down and think about all of those things. That has been really important for us. He continued, We finished the five (5) year strategic plan and have brought in over $2.1 million in private fundraising. We had the second(2nd) Best. Week. Ever. and it had 2,000 attendees. The program was actually awarded the most innovative program by the Indiana Parks and Recreation Association. My SB Parks and Trails actually got awarded earlier this ye as the most inclusive program of excellence. The data that fed into that program and the amount of community feedback on that program was deemed to be extremely inclusive. So much so that we received that award. The Capital Re-accreditation Process was initiated this year. This will be our third (3rd) accreditation and it is up every five (5) years. We received a favorable review. They were here in June. We received it and it is scheduled to be awarded at the National Association Conference which is in Indianapolis in September. The final stages is an interview with the Executive Director and as long as I don't screw it up,they shake my hand and say congratulations. He went on, This (referencing a slide in the presentation which is available in the City Clerk's Office) has been the first (1st) full year of the Ecological Advocacy Committee in its full impact. They unveiled this year the Natural Resources Management Plan.That is a set of guiding principles for how we treat some of our more ecologically diverse properties. In terms of cost recovery, for the most part, everything VPA does is free. About eighty percent (80%) of the things we do are free but then there are things we do start to charge money for. It is kind of a pyramid and I won't go into the whole methodology of it but some things we just try to recover a little bit of the cost, others we try to break even on and other things we actually try to make money on such as our concessions. Our target is to get our cost recovery up to forty percent (40%). I hope I can tell you next ,year that we are there but it might be one (1) more year. It has been a tough process but we are doing it the right way. He continued,A new safety program went into effect this year in terms of the way we inspect our playgrounds and all our fiscal properties. If you come by any of our facilities you will notice all the doors labeled for public safety. All of our staff is in the process of being trained in Active Shooter policies and procedures as well. River City Basketball saw increased attendance this,year. We also introduced Spark the Mascot. It is a lightening bug which was recently deemed our State insect. We are using spark as a term throughout all of our things. It is also one (1) of the only female mascots you will encounter by the way. The female lighting bugs are the ones that usually light up to attract the males.Talk about inclusivity,right?Our Sky Diggs Soldiers Basketball Team were the Midwest regional Champions. That is affiliated with the Jr. WNBA. Coach Mo Scott was able to take this team for a free trip all the way down to Orlando and Disney World to compete in the National competition. We finished amongst the top teams but did not win the tournament. He went on, So to speak on some highlights for 2019, we will continue unpacking all of the My SB Parks and Trails Capital improvements. These things are all funded from previous years. I just want to show you a couple of highlights for that project. This was funded by one third (1/3) of private money,one third(1/3)of Redevelopment funds and then one third(1/3)by the Parks Bond. There will be fifty (50) different project sites throughout the City. We ran into a little bit of delay due to the flood damage. That took a lot of resources and it made us rethink some of the plans because of the new data set we have associated with it all. The team is working hard with Engineering,FEMA and Admin and Finance to recoup some insurance money and possibly some National Disaster Fund relief. So some of the things we hoped would be underway are not quite EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 ITM574.235.5567 www.southbendin.gov 12 CITY OF SOUTH BEND I OFFICE OF THE CLERK underway but we are still doing a lot of work nevertheless. Just last night there was a great story on the City Cemetery. We trained some of our team as we had drought conditions this year. So our mowing crew was left without a lot to do and so we retrained them how to reset the headstones in the City Cemetery. There are over 1,000 that need resetting due to either vandalism, storm damage or actually groundhogs. We've done close to two hundred(200) already. We are also cutting new paths, both walking and driving paths. There has been some street scape work happening and that is all in preparation for the new entry work that will happen down the road. We are really investing in the property because it is important. He continued, Leeper Park is seeing some upgrades. The Rose Garden got irrigation and there are some new benches around Leeper Park. We recently rededicated the Powell House Foundation. It was burnt down, vandalized and over grown to the point that we didn't even know it was there. We've installed some new dugouts out at Veteran's Memorial Park. That is a public-private partnership with IUSB. They use it about six (6)weeks a year and we, the public, get it the rest of the year. Just yesterday, we unveiled the Center for Learning Information Connectivity and Knowledge (CLICK) SB at the Martin Luther King Jr. Center. Our team built out this space. IT worked with the partnership between the library and MetroNet to get high speed internet out there and now it is a great computer lab for youth and the seniors. It is at no cost to the City as it is really run by the library. We will be opening that same CLICK SB site at the Charles Black Center. He went on, All the old Safetyville structures were removed at Rum Village and new pathways and new landscaping is being put in. We are a matter of weeks away from introducing that to the public. Kelly Park is also a matter of weeks away from celebrating its Grand Opening. It is a real gem and great story about the two (2)women's efforts for that park. It has been quite a community effort. The Blacksmiths of Indiana made the sign as well as the bike racks for this park. And that is what makes our parks special is when people invest in them. Sometimes some of the things that we can do is just only enough to keep up with what I call the orthodox level. When residents come together is when we see some special things unfold. The Charles Black Center is slated for a mid- October opening. That is a $4.5 million project. So we are finishing up that as well as the other projects. We are getting close on the Erskine Clubhouse. That building has a lot of history. That is a TIF funded project. He continued, The work on the downtown riverfront parks and trails is actually scheduled to be awarded at next Tuesday's Board of Public Works meeting. On deck in terms of major projects we have Pulaski, Leeper, Pinhook, Coal Line Trail, the O'Brien and then all the neighborhood parks and partnerships. So this (referencing a slide in the presentation) is sort of our legend here. There are a lot of basketball and tennis courts that need upgrading. He then showed a map with different symbols denoting the different improvements slated for different areas and parks throughout the City. He stated, Your packet doesn't have Ravina Park but it is in this presentation, so, pencil in Ravina Park. Then the new parks and partnerships, if you'll remember this (referencing a slide in the presentation) map, this is the park score map. This lets us know where people don't have a park, really, in their neighborhood. Usually those are areas with a higher density of children. They are tricky areas and in some instances they become areas that can't have a park because it is house after house after house. We are trying to address three (3)of the four(4) areas we have identified. We know we are still missing one (1) but that area is so challenging. I literally rode my bike up and down every street and there are no parcels of land. But we will still address some of the partnerships in that area. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.91731 TM 574.235.5567 I www.southbendin.gov 13 CITY OF SOUTH BEND I OFFICE OF THE CLERK Committeemember Regina Williams-Preston asked, What is going on with the Jefferson Boulevard park created by the Edmonsons? Mr. Perri replied, They've contacted us a couple of times. It is a private project we helped them get mulch. Committeemember Williams-Preston stated, Thank you for that. Committee Chair White then paused the presentation and opened the floor to questions from Council Members. Committeemember Voorde stated, This isn't a question as much as it is a comment. My personal opinion is to please not allow any more carved trees like you see in Potawatomi and please find a place for that guy's boulder. Where ever it is. Mr. Perri replied, We are working on it. Mr. Perri went on, So you will see a lot of work in 2019 on all of those capital projects. The mobile experience vehicle will be here late this ye. This (referencing a slide in the presentation) is the final rendering. This is a way to enhance neighborhood parks. It is two (2) sided. This is a way to activate neighborhood parks that don't have major amenities already in them. We know we can't have something like this in every park, so we thought to have a mobile one (1). Ice skating will resume at Howard Park in late 2019. So the budget reflects some of those staff coming back online. There are no full-time staff but we are talking about rink guards and cashiers. We don't anticipate any fee increases. We will continue this ye our deferred maintenance projects. We are committing $250,000 a year from our operating budget to a lot of those things. We are going to work on shifting from site-specific programing to a need-based programing. We don't have to do things in only one (1) part of the City. We are really focusing on partnerships. We don't have to be the experts on everything. He continued, Our Park Health Score is something our Facilities and Grounds team is working on. It helps us understand how healthy the parks are. Things like the lights working, the grass being mowed, graffiti and such. The final highlight I wanted to make sure we have time to talk about here,today, is the new fifteen(15)year partnership that we will be engaging with the Potawatomi Zoological Society (PZS). The first (1St) public-private partnership agreement is set to expire at the end of this year on December 31St, 2018. So late last year, two (2)members of our Park Board started working with the PZS to start thinking about what a new agreement would look like. The Zoo came to the table with their capital plan that I think the Council has seen. We hope this new agreement will help tackle some of those things. We went back and forth on negotiations and we came up with a plan that will help make a better zoo for the community while also reducing the City's obligation to the zoo over the course of time. Marcy Dean, Executive Director of the Potawatomi Zoo with offices located at 500 South Greenlawn Avenue, stated, So Aaron asked me to come speak toni t in regards to what our 2019 Capital Plan looks like with the numbers that were negotiated in the new public-private partnership agreement. Just like Aaron said, we did have a really successful negotiation period. We came up with a fifteen(15)year plan. So as many of you may remember,we negotiated our first(1St)public- private partnership agreement back in 2013 and I'm pleased to say we've had a very successful EXCELLENCE ( ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building I 227W Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 TTD574.235.55671www.southbendin.gov 14 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK last five (5) years. We think things are working very well and have gotten good feedback from VPA and the City. I'm extremely pleased we are now extending to fifteen (15) years. That also works really well with our associations using aquariums and our accreditation timeline. Ms. Dean continued, So I just want to talk for a few minutes as to what the $3.7 million capital investment will cover. The first (1s) slide you will see here (referencing a presentation which is available in the City Clerk's Office) shows that it will be $2.2 million in deferred maintenance. So we are up for, in 2019, The Association of Zoos and Aquariums (AZA) accreditation. For those of you familiar with that process, it is every five (5) years. So the last time we were accredited was 2014. It is also the first (lst) year that the Potawatomi Zoological Society (PZS) took over the management of the Zoo from a day-to-day perspective. We've had several different maintenance items pop up. I started talking to Aaron last summer and we came up with the idea of actually conducting a deferred maintenance audit. I brought in a team of professionals and they did several visits. We then came up with what this plan looks like and identified our needs and priorities as well as timeframes. The first (1st) priority items are absolutely necessary in order for us to get reaccredited next ye . Ms. Dean went on, I would like to highlight what a few of those things are. We first (1st) need to repave guest pathways. There are yellow lines for insurance purposes. We need new carnivore containment for the Leopard and the Lion and that means current standards per AZA. What that means the containment which is now iron or steel has to become SS-woven mesh. It is more visitor friendly and is sturdier. We have rust issues with the current containment. Rust issues can become bigger issues. A big chunk of the $2.2 million is devoted to that change. We will also have new roofs,new HVAC and electrical systems,new patron fence throughout the entire Zoo.We do know in our last accreditation in 2014 they called out our patron fencing. It was noted that if we don't change it before the next inspection that we will be citied for it. We also plan to have new animal containment all throughout the East Barn. That is our largest holding facility on the grounds and right now all of the exterior needs to be torn down and completely replaced. It is not safe containment. We also need to get new fencing through the Zoo farm. That is really just scratching the surface of things we need to do. Ms. Dean continued, We will literally touch every building with that $2.2 million between now and next June. Then, the Zoo entrance is important to note as well. I'm excited to announce that the first (1st) phase of that fifteen (15) year plan is underway in terms of planning and we are breaking ground this fall. The first (1st) phases of the front entrance project are funded through private dollars. It is a$3 million capital project. I call it a true community partnership because we are actually leveraging the$1.5 million in private funding we have raised as the first(1 sh phase so we are able to break ground. We also leveraged$450,000 in Regional Cities money. Welhave had a first (1st) landmark gift of$500,000 from a private family. That was huge for us. It is a true testament to us delivering on increasing the private capital and operational investment in the Zoo. The new entrance is designed to accommodate more guests per year and improve the flow. Since 2014, we have raised over$3.5 million in private funding for new capital projects. Ms. Dean went, The entrance will include ADA compliant bathrooms and thoroughfares, a new Point of Sale system, a new gift shop experience and we are doubling our education space. That is huge for us because right now we have one (1) education space. It is down front in the Learning Center and we are actually having to turn away birthday parties and cannot effectively provide educational programing in the manner of which we could with a second (2nd) facility. That will EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building J 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 1 TM 574.235.5567 I www.southbendin.gov 15 CITY OF SOUTH BEND I OFFICE OF THE CLERK come available with this entrance project. We will also, finally, have a dedicated group and field trip entrance. As Aaron experienced one (1) day on our busiest field trip day, it is crazy and not necessarily safe. So as part of the $3.7 million, $1.5 million will go to finishing the entrance next year. Mr. Perri stated, I suggest we pause to talk about the Zoo before I conclude the presentation but I did want to show one(1)more slide to help people understand the mechanism for this funding and where we have come from. So,pre-2014,the City ran the Zoo in-house with their own employees. It was costing us just over$1 million in operating expenses and about$230,000 in capital expenses. We were pushing$1.3 million pre-2014 so we essentially lost that money each year. This past five (5)year agreement was structured as such from$900,000 down to $700,000 on the operating side, and then a consistent $100,000 a year in capital. So if you average that out over the course of the five (5) year agreement, we were spending $890,000 on average. The new agreement includes some continued de-escalation on the operating side from $700,000 to $250,000. That is in exchange for moving some upfront capital. The idea is that the Zoo really believes that if they can address a lot of these deferred maintenance items, that will not only attract more guests but it will attract more revenue. The Zoo is very confident that the upfront capital means more to them today than it will in operating down the road. It is incumbent on the Zoo to keep bringing those private dollars to the table because it will never cost less to operate the Zoo in the future. I show this (referencing a slide in the presentation) not only so you can understand the deal that was negotiated, but to understand we are bringing you a good deal as it will cost us less as a City to finance that package over the term of the agreement. Committee Chair White asked to pause the presentation and opened the floor to questions from Committee and Council Members. Councilmember Broden asked, That $810,000, is that inclusive of any bond expenses or fees? What does that encompass? Mr. Perri replied,That would actually increase the amount. I think the bond is just over$4 million. So you add that in there over the fifteen(15)year agreement and that is another$500,000.Dividing that over fifteen (15), we'll be looking at another $40,000 a year. That is a great point. However, it is still less than where we were before. I don't know exactly where that $1.1 million will come from but once that gets fully baked in the budget,we will bring that back. I know we could do cash as that is a small amount or there could be TIF. That is a few years down the road. Councilmember Scott stated,Karen and I were the only ones,that are here,when we approved the first (1St) plan. The idea was that private funding would come. Do you see that not coming in the way you might have expected back in 2014? The idea was that this would be worked out by the end of this agreement. Ms.Dean replied,Actually I think we've done better than what we had thought. We've raised$3.5 million in private capital investment since 2014 and that definitely shows success. We've had increases in operational revenues as well. I think as far as the upfront capital investment goes, it is in large part due to the deferred maintenance and that is tough to fundraise for. Mr. Perri stated, They adopted that from us. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 TTD 574.235.55671www.southbendin.gov 16 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK Ms.Dean continued, So that was sort of the bigger piece then the $1.5 million was to help us kick- off the master plan and take care of the larger part of the front entrance that is in desperate need of repair as well. Councilmember Scott stated, The main point of the last deal was that you guys would be able to be a lot more versatile with raising corporate sponsorships. Frankly, at the time, the management of the City Parks was barely maintaining things with absolutely no game plan. I'm glad with everything we are doing now because it reflects the quality of life. The Zoo was barely maintained back then and I understand that. Looking at this, we kind of stuck you with a product that was already inferior in my opinion. Mr. Perri stated, And it is still the City Zoo. I'm a fan of public-private partnerships. I think they work and we have seen some great examples. We talk about Four Winds Field or the Conservatory or the Aerial Adventure Park and I think they work pretty well. It is still the City's assets. We still spend money in all of those assets and I don't think we will ever be out of the Zoo. Councilmember Scott stated, And it is part of our City life. We talk about places to live and we want assets like this. They are crucial. Councilmember Teshka asked, That $4.2 million figure, does that include principle interest and financing? Ms. Hockenhull replied, It includes financing charges but also includes the debt service reserve which is the last payment we would have to make. We have to set that aside. That might change if we structure it a little bit different but when we come before Council, Bond Counsel will be here and they will be able to walk through the technical things. The $4.2 million includes the debt service reserve so should we restructure and not need a reserve,that will go down. Councilmember Teshka followed up, Then the $3.7 million upfront this year, how is that funded? Mr. Perri replied, It's not. That will all come when the bond financing package gets fmalized and brought to you. It is scheduled to be paid out of EDIT but when Bond Counsel comes before you, they can get into the nitty gritty with you. You will not see it in our budget this.ye. Councilmember Teshka stated, Thank you for your leadership on that and, Marcy, thank you for your leadership with the Zoo. My family has a Zoo membership and we love the Zoo. Thanks for what you do. Councilmember Broden asked,Are there any other public partners? Ms. Dean replied, At this point, there are none. We've been working on that,though, since 2014. We've had different conversations with both the County Council and Mishawaka's Council. As you'll remember,we were kind of the initiators of potentially bringing the Food and Beverage Tax in to help us. We are hard at work trying to figure out how to bring more public dollars in as well as private dollars. We did get Regional Cities money for the entrance and we think that is a good first(1St) step. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION ( EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221If 574.235.9173 TTD 574.235.5567 www.southbendin.gov 17 CITY OF SOUTH BEND OFFICE OF THE CLERK Councilmember Broden followed up, There is a Fund Development position that has happened, correct, since 2015? Ms. Dean replied, We've added several new positions since 2014, which, I anticipated we would as we took over the day-to-day management. When we were just the Society, I was the Chief Fundraiser for the Zoo. When I became Executive Director, obviously I still f indraise for the Zoo but we did bring a full-time Director of Development. We also added a Director of Business and Operations. Since then, we've added a couple more animal care positions. We recently brought back an employee as well. And as our animal collection has grown, we added an Animal Care Manager as well as doubled the staffing in our education department. When we took over the City was only funding one (1) full-time educator and we now have three (3). That is all part of trying to increase our educational programming. We've also brought on a Marketing and Communications Manager as well. So we've actually increased staffing in several places because as we grow, we understand there is a need in all different departments to keep us moving forward. We've pretty much doubled our staff.We have a full-time events person now and that is imperative to revenue generation. Councilmember Broden followed up, Could you address the difference between being accredited and not being accredited? Ms. Dean replied, Really the difference between that, and there are just over two hundred (200) AZA accredited facilities and we are one (1) of them amongst 2,500 USDA permitted exhibiters, is that AZA accredited institutions are held to the highest standards of animal care and quality of life of the animal. They look at everything from animal and vet care to maintenance and deferred maintenance,governance,financial sustainability,education and conservation. They really run the gamut. If we lose the AZA accreditation, we would lose probably close to seventy-five to eighty percent (75% - 80%) of our animal collection. We are afforded the opportunity to exhibit the rare and critically endangered animals that we exhibit and breed because of the accreditation.We would also lose funding. I am big on telling donors that they are giving to an AZA accredited institution. I also think it is a big piece of the partnership with the City. You guys want an AZA facility. We would become a roadside zoo without that. It also gives a peace of mind to the 240,000 plus guests that visit us every year that we are held to the highest standards of quality and care. Our animal are enriched,well taken care of,health and active,all of our exhibits are safe and are up to standard and we are doing the best in terms of educational programs as well. Councilmember Broden replied, Thank you and I am glad I asked that question. Ms. Dean stated, That is why that deferred maintenance piece is so important because that is a huge part of the accreditation. Councilmember Broden then stated, I want to get some updated figures on the Food and Beverage Tax. I think that is important. Committeemember Voorde asked, What do you do about security for the Zoo? Ms. Dean replied, We actually have a security staff on site from 5:00 p.m. until 7:00 a.m. They take care of the Zoo after hours. Then we have several procedures in place for both security and safety. Part of our accreditation makes it so that we go through so many trainings and such per EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld I South Bend,Indiana 46601 p574.235.9221 f574.235.9173)TTD574.235.55671www.southbendin.gov 18 CITY OF SOUTH BEND I OFFICE OF THE CLERK year, we have to have safety and security standards. We have Active Shooter training and go through an Active Shooter drill. We also have a shoot team on site. We always want to dart an animal first (ls� so we also have a dart team. Councilmember Broden asked, Does the agreement include need-based programming? Mr. Perri replied,I don't know if that is spelled out in the agreement but there is strong educational programming. Ms. Dean stated, We've tried to keep our educational programming fees relatively low compared to other facilities because we understand that not everyone can afford the same things. Since 2014, and this is my brain-child, we also kicked off a field trip scholarship program that we get grants and private contributions for. I'm happy to announce that last year, that topped $15,000 and we can give that to Title-One (1) schools, preschools and other schools that are in need of field trip help. We help thousands of kids in the Michiana area. That continues to increase every year. Councilmember Teshka asked, When is the giraffe slated to come? Ms. Dean replied, We are starting to look at fundraising for a giraffe. That will be one hundred percent (100%) funded with private donations. We know there is big demand for a giraffe. It is coming. It is a matter of getting this entrance finished first (15). That will actually put us on par with the other zoos because we are one (1) of the few that doesn't have a giraffe. That will be a game-changer for us. Committee Chair White then opened the floor to members of the public wishing to speak. Sue Kesim,4022 Kennedy Drive,stated,I would like to say a couple of things. I would love to see the list of programs for seniors. I know I make a lot of suggestions but I would like to see what you've finalized and have decided on. I would like to see friendship benches made out of recycled plastic. Trash recycling in the parks would be great. People have commented there are a lot of needles in the park and they are afraid for their kids to play there. I don't know if there is a way of maybe taking a magnet over it to pick those up. Parking garage security, my friend's car was broken into while it was in a parking garage and as part of redoing the garages,I hope you beef up security a bit. Then I didn't hear anything about the greenhouse and is it going to be combined with the zoo? Lynn Collier, 1400 West Washington Street, stated, This was a wonderful presentation. I was wondering though, what is the status of the planetarium at Kennedy? Is it still open? Mr. Perri replied, That is owned by the School Corp. Ms. Collier followed up,Ok,I just wondered. In Chicago they have one(1). Is that under the Parks Department? Does anybody know? The planetarium wasn't in use when we had all those events. Where is Keller Park? Councilmember Broden replied, On Riverside Drive on the curve behind Brown Middle. Ms. Collier replied, Ok. Ok. What is the status of the Walnut Street? EXCELLENCE ( ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 46601:p 574.235.9221 If 574.235.9173 1 TTD574.235.5567 www.southbendin.gov 19 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK Mr. Perri replied, That is a major project. That one (1) is over $1 million. It is under contract for design and construction will start in the spring of 2019.That might get painted as part of the Pulaski Park project. Ms. Collier replied, Ok, I just hadn't heard anything about it and I was just wondering. Councilmember Scott asked about an area of the map referenced in the presentation that depicted parts of the City and the corresponding proximity to public parks. He asked, Why is that?How are we addressing that? Mr. Perri replied, Because of the way the entrance to the park is, it is that color. So if we open a trail,that would make some of the orange go away. With no further business,Committee Chair White adjourned the Personnel and Finance Committee meeting at 6:59 p.m. Respectfully Submitted, 9;-Xe-1 •641,41114 Karen White, Committee Chair EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221,f 574.235.9173 TTD 574.235.5567 www.southbendin.gov 20