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The September 1, 2004 meeting of the Personnel and Finance Committee was called to
order by its Chairperson, Council Member Derek D. Dieter at 4:31 p.m. in the Council Informal
Meeting Room.
Persons in attendance included Council Members Dieter, White, Varner, Kelly, Kuspa,
Puzzello and Pfeifer; Mayor Stephen J. Luecke, Frederick B. 011ett III, Director of Budgeting &
Financial Reporting Tom Skarbek, Century Center Executive Director Brian R. Hedman,
Century Center Director of Finance Tom Davis,Executive Director of the Youth Service Bureau
of St. Joseph County Bonnie C. Strycker, Executive Director of the South Bend Regional
Museum of Art Susan R. Visser, Executive Director of the Studebaker National Museum
Rebecca J. Bonham,John Farrell,and Kathleen Cekanski-Farrand, Council Attorney.
Council Member Dieter welcomed everyone to the Committee meeting and noted that
the Committee is composed of Council Members Kelly,Puzzello, Varner and himself
Century Center (Fund#670) $3,184,271 1.7% increase
Century Center Executive Director Brian R. Hedman introduced Century Center Director
of Finance Tom Davis to the Committee. He noted that usually the President of the Century
Center Board or its Treasurer are present,but they were unable to attend but send their greetings
and regrets. It was noted that the Vice-President of the Board is present, Council Member
Roland Kelly.
Mr. Hedman noted that the last couple of years have been difficult and that there is a
$113,218 deficit projected for 2005. They are looking at beefing up sales and implementing
more efficiencies in order to decrease the deficit as much as possible. He noted that the
Commercial and Business Bureau (CBB) is part of the Chamber of Commerce, where in other
communities they are separate. The Century Center was able to get the CBB to agree to specific
goals. He added that CBB gets $600,000 while the Century Center gets $90,000 in funds.
Council President White inquired as to how many major conventions are held each year.
Mr. Hedman noted that in 2004 they will have more than 30, and in 2005 there will be
more than 40.
In response to a questions from Council Members Pfeifer and Dieter, Mr. Hedman stated
that their goal in expansion is that South Bend must be a destination site with major attractions
within a four mile radius. Another hotel in the downtown would help immensely since
conventions are not interested in booking hotels out on Grape Road. It has been suggested that
they go after getting a Hilton or a Weston in the downtown.
Mr. Hedman stated that the Century Center is over 28 years old. New "stuffers" in
mailings are using the theme"There's no place like home". He noted that 85% of their business
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is repeat business, adding that it was significant to change the airport's name from"Michiana" to
"South Bend"Regional. He noted that the Chamber's new theme is "It's South Bend, It's Notre
Dame and a whole lot more".
Council Member Puzzello inquired about partnerships with Notre Dame, and was
advised that there is alot of cooperation with regard to promoting the area with the university.
Council Member Dieter inquired about the security needs and the management fee
related to the Hall of Fame, and specifically asked for a breakdown of the$50,000.
Mr. Hedman stated that they take care of the Hall's interior and exterior groundskeeping,
boiler maintenance, etc.;but none of the Hall's programming.
Council Member Pfeifer suggested that they look into trying to host the regional and
national neighborhood associations. She also inquired about the cafe in the Century Center.
Mr. Hedman stated that the cafe is not run daily but is open during conventions.
Dr. Varner noted that last year the projected deficit focused on the increased costs for
health care. He inquired how the deficit will be addressed.
Mr. Hedman stated that they are looking at lower salary increases. They are also looking
at a structural study for the conventional hall, noting that conventions are booked 2, 3, and 4
years in advance. Their focus is on conventions. Local businesses book with a 6-month lead-in
typically. This year they will have 64 wedding receptions, which is the most ever. They also
have a kosher kitchen and have hosted a Tuesday Orthodox wedding. They are in contact with
Hindus in Chicago and Detroit to open up a new market. They have lost much of the RV
business since internet virtual tours have lessened the need for big conventions. Boats however
are big business and they utilize the docks.
Council Member Dieter inquired about the "Meet Me on the Island" series. Mr. Hedman
stated that it is very profitable with the average being 2,000 people in attendance.
Dr. Varner noted that the Century Center does not use property tax and asked Mr.
Hedman about the amount of money brought into the community because of the Century Center.
Mr. Hedman noted that approximately $38 million is generated, with 500 jobs being
dependent on it in such areas as hotels, the service industry, the food industry. He noted that
they used a factor of"2" in 2003 when calculating the effect. He stated that we are in an ideal
location being in the middle of the Great Lakes region. They would like to expand. He stated
that they do not want to be known as a"bingo house, a gun show house", etc.
Council Member Kelly stated that they are doing a great job and that their maintenance is
outstanding.
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Council Member Pfeifer stated that she is glad they plan to do a structural study.
South Bend Regional Museum of Art (Fund# 101-0408) $125,000
At 5:09 p.m. the Committee heard a presentation from Executive Director of the South
Bend Regional Museum of Art Susan R. Visser. She thanked the Council for the ongoing
financial support which helps pay for the occupancy fee and helps to retire the debt for
renovation.
Ms. Visser provided tickets to "Meet Me on the Island" for Friday night; the Fall/Winter
2004 brochure on exhibitions; and the Fall Class Schedule for 2004 (copies attached).
She noted that the "Murals in the Park" program was tremendously successful, noting
that art is introduced in different parks each summer. Council Member Deiter suggested that the
program be brought to Pulaski Park next summer. Council Member Kelly stated that the area
has been subject to many graffiti problems of late and that it would be good to start the kids off
in the right direction.
Ms. Visser stated that in October the first ever strategic planning process will begin
where they will use a consultant from Montana. There will be an opportunity for community
input. She noted that the community has changed alot in the 56 years that the museum has been
in existence and she hopes that once the planning process is complete that the museum will be
even stronger.
Dr. Varner asked when the buy out will be paid off and Mr. Skarbek stated it will be paid
off at the end of 2005.
Youth Services Bureau (Fund# 101-0407) $75,000
At 5:23 pm the Committee heard a presentation from the Executive Director of the Youth
Service Bureau of St. Joseph County Bonnie C. Strycker
Ms. Strycker provided a copy of the July 20, 2004 letter to Mayor Luecke and a copy of
the YSB 2003 Annual Report(copies attached) to the committee. She then highlighted some of
the programs of YSB such as Safe Station, Safe Place Program, Street Outreach Program, Young
Moms Self Sufficiency Program, and Youth As Resources Program which are summarized in the
attached letter. In the new program year they plan to create a telephone help line, expand the
street outreach program, host a semi-annual meeting on meeting the needs and issues of older
teens and young adults, expand the Young Moms Self Sufficiency Program, and implement a
web based data management system.
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In response to a question from Council Member Puzzello, Ms. Strycker noted that most
teens are not in danger when coming to Safe Stations and Safe Places however their staff is
prepared if a situation would occur. She noted that there are many children who are moving
from hone to home. They have had 900 contacts this year. They are working on having
information translated into Spanish.
Council Member Dieter inquired about Weed& Seed interaction and Ms. Strycker stated
that they work in partnership centers and that she is on the Board of Weed & Seed. It was also
noted that tennis was the only organized sports activity this past year.
In response to a question from Council Member Kuspa, Ms. Strycker stated that she
requested$80,000 of assistance for next year, and that they do alot of fund raising activities and
use alot of volunteers.
Council Member Pfeifer asked about health challenges of the youth. Ms. Strycker stated
that they work with Aids Ministries. A physical exam at the Indiana Health Center on Western
can be used. Dental health is a huge issue for those under 18 years of age.
Council Member Kelly stated that this is a tough job which Ms. Strycker and her
organization do very well.
Studebaker National Museum Fund# 101-0409 $247,842
The Committee then heard a presentation from the Executive Director of the Studebaker
National Museum Rebecca J. Bonham who provided a copy of her August 28, 2004 letter to the
Mayor(copy attached). John Farrell, Treasurer,was also present.
Ms. Bonham stated that they are cataloging and making an inventory of the collection
before it is moved. This year they have 100 new members and fund raising has raised $11,000.
They have had 176 motor coach groups and four (4) special exhibits. Challenges include the
boiler and utility bills. The museum will be down for part of 2005 in order to pack and move to
their new facilities.
John Farrell stated that the building came in $200,000 less than projected, with October
1, 2005 being the projected move-in date.
The Studebaker National Museum is working with the Center for History. They have a
federal grant to house the archives of $900,000 however it has a $225,000 local match
requirement.
In response to a question from Dr. Varner,Ms. Bonham stated that they are looking at the
Street Drivers Club who have "come around" and are asking them to honor their original
commitment of$750,000.
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Ms. Bonham stated that they are asking for help for the cost to move, although they do
not know what that cost will be, noting that the city owns one-half of the collection. She sees
this as a one-time allocation. Their current campaign goal is$2.9 million.
Council Member Pfeifer inquired whether the museum will incorporate articles like the
recent one which was in the South Bend Tribune on black employees of Studebaker.
Ms. Bonham stated that they are planning a display on Studebaker employees including a
focus on immigrants and how they were taught English and would look into the article she
referenced. She added that they are working closely with Local No. 5 and persons like Les Fox.
Dr. Varner asked if they have a proposed operating statement for the museum. He also
inquired about the 3-4 agreements which were in the process of being negotiated last budget
year.
Mr. Farrell stated that they have a 7-year plan which has not been updated. One
agreement is still being worked on which addresses the ground lease for $1 per year lease
payments.
Council Member Pfeifer inquired about the projected moving costs.
Ms. Bonham stated that the state museum move cost$140,000 and that last year a rough
estimate from North American Van Lines was $66,000. She believes that the cost would be in
the $80,000 range. They will be writing an RFP so that the bid can be awarded competitively.
Dr. Varner noted that Wayne Reis had engine test equipment and was put in contact with
the curator as to whether the museum would be interested. He noted that time past and he was
not contacted,even though he may have donated the equipment.
In response to a question from Council Member Pfeifer as to whether the city would be
paid back, Ms. Bonham stated that the 1st campaign in 2000 was 1 1/2 million dollars with
approximately one-half of that amount being raised. They are now trying to raise the rest. She
added that they will need money in the endowment. The archives should be a revenue center.
In response to a question from Dr. Varner, it was noted that there will always be a
subsidy from the city and he stressed the need for an endowment. He suggested that being
obligation free from the city should be a part of their plan.
It was also noted that they are still working on a management agreement.
The licensing agreement is$250,000 gross per year.
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Copies of all agreements were requested which Ms.Bonham agreed to produce.
Council Member Dieter thanked every one for their presentations. He then adjourned the
meeting at 6:20 p.m.
Respectfully submitted,
Council Member Derek D. Dieter, Chairperson
Personnel and Finance Committee
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Attachments
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