HomeMy WebLinkAbout09-07-04 Personnel & Finance i 7
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September 7, 2004, 2004 meeting of the Personnel and Finance Committee was
called to order by its Vice-Chairperson, Council Member David Varner at 5:30 p.m. in the
Council Informal Meeting Room.
Persons in attendance included Council Members White, Varner, Kelly, Kirsits, Pfeifer,
Puzzello, and Coleman; Mayor Stephen J. Luecke, Frederick B. 011ett III, Director of Budgeting
& Financial Reporting Tom Skarbek, City Clerk John Voorde, Morris Performing Arts Center
Executive Director Dennis J. Andres, Assistant Executive Director Sara Ermeti, Theater Event
Services Manager Denise Zigler, Accounting Manager Marika Hegedus and Kathleen
Cekanski-Farrand, Council Attorney.
Morris Performing Arts Center Fund# 101-0404 2005 Proposed$849,768
Palais Royale Fund# 101-0405 2005 Proposed $516,506
Moms Performing Arts Center Executive Director Dennis J. Andres made his
presentation on the "Morris Performing Arts Center Complex" is includes the Leighton Theater
a/k/a Morris Performing Arts Center, the Palais Royale which is the City's premier banquet
facility, the Morris Bistro and their tenant, the Vine Restaurant. Their goal is to be
self-sufficient with the use of proper marketing, brochures, event fliers, lobby posters, national
advertising, websites, church programs, etc.
Mr. Andres then identified three (3) problem areas, namely maintenance, parking and
rising costs. In the area of maintenance he noted that the daily maintenance of upkeeping an
historic building is intense. The ticket surcharge helps. With regard to parking, he noted that
other venues have large adjacent parking lots which are often free to the locals. He suggested
looking at the parking lot next to the former Senior Kelly's as well as the lot next to LaSalle
Hotel. The costs to operate the complex include costs for gas, water, insurance, stage hands,
security, cleaning, etc., all of which are continuing to rise. He cited an example of the rising
costs of the artist performing fee for Harry Conik, Jr. began at $50,000, was $75,000 for his 2nd
performance and his latest performance was$100,000. This resulted in a ticket price for the 2nd
event being$55 and rising to $75 for the 3rd performance.
Mr. Andres stated that it is a careful balance of being competitive and the chargeable
maximums. They look at ten (10) other venues when reviewing charges. Some of the special
needs included having more visible signage since 20% of ticket sales or 500 seats could be
generated by marquees. They are also looking at other funding sources and have been in contact
with State Senator John Broden about a food and beverage tax. He would favor such a tax.
Looking at a city tax on car and truck rentals would also generate more revenue.
Mr. Andres stated that he believes the proposed budgets are responsible. He stated that
the city administration's guidelines were followed in its preparation. He stated that he would
have like to attend three (3) more conferences next year, but is unable to do so and stay within
the guidelines. He noted that insurance costs have increased $80,000 over the previous two (2)
Personnel and Finance Committee Meeting of September 7, 2004 Page 1
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years. He then provided handouts which included a 4-page handout of his comments and
organizational chart; and a spiral bound brochure entitled "Looking Back Looking Forward
2004-2005" (copies attached). He then highlighted portions of the market research, awards,
newspaper articles, photos, Fridays by the Foundation, Palais Royale Set Up Plans, Marketing,
and the CVB Travel Planner. He noted that the handouts were produced specifically for this
Committee meeting. Mr. Andres stated that they try to "capture emails" as another marketing
tool.
Council President White inquired who maintains the websites for the Morris and Palais.
Mr. Andres stated that they outsource this to Elkhart Net. He noted that one can use their
website and pick your own ticket,noting that the website is updated daily.
Council Member Kelly inquired about the number of events. Mr. Andres stated that they
have ninety-two (92) events confirmed for the Palais, noting that some are booked already for
2010. He stated that Saturday bookings are fine, but that mid-week bookings are a challenge.
The average wedding ranges from$15,000 to$35,000.
Council Member Kelly inquired about doing their own promotions. Mr. Andres stated
that if everything works its is fine,however there are mixed risks. The shows must be right for it
to make sense.
Dr. Varner asked about the costs incurred for their website.
Mr. Andres stated that it was done approximately four (4) years ago and was under
$2,000. There is a monthly charge of$200 for the Morris and $50 for the Palais to maintain the
websites. There are many links some of which are "hot links", which are constantly being
updated. Mr. Andres voiced concern about the situation when the city's system goes down.
Freedom Link by SBC offers a wireless connection for computers. Often their needs are
instantaneous and there must be protections for the box office. A proposal from them is coming.
Mr. Andres noted that Clear Channel is twisting all arms and muscling in light of their
non-competition clauses starting to expire.
City Clerk John Voorde inquired about the marquee. Mr. Andres stated that the
Entertainment Board is involved. Underwriters costs is $750,000 plus an additional $300,000.
The Board has determined that $450,000 must be in hand to go forward. They are looking at a
design which would include radiant coils to keep the sidewalks dry, LED, and the possibility of
selling advertising.
Dr. Varner asked Mr. Andres to write up a proposal for the marquee and share it with
the Council. Mr. Andres stated that he would and added that he has shared this with the
Mayor.Dr. Varner thanked Mr. Andres for his presentation.
Personnel and Finance Committee Meeting of September 7, 2004 Page 2
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Park Department Fund#201 2005 Proposed $10,640,858 2.15% increase
Recreation Nonreverting Operating Fund Fund#203 2005 Proposed$810,506
At approximately 6:25 pm the Committee then was joined by Park Superintendent Phil
St. Clair, Administrative Director Betsy Harriman, Fiscal Officer Bill Carleton, Mark Bradley
who is in charge of Marketing/Promotions, Director of Recreation Susan O'Connor,
Maintenance Superintendent Mike Dyszkiewicz, Chad Kilmer who oversees golf operations, and
Potawatomi Zoo Development Director Jason Jacobs.
Park Superintendent Phil St. Clair welcomed the opportunity to provide information to
the Council. He stated that he would have each of his staff members to briefly review their area.
Fiscal Officer Bill Carleton then provided a 6-page handout addressing the proposed
budget summary report for fiscal year 2005 (copy attached). He summarized portions of the
handout noting that city guidelines were followed. The charts reflect that for Fund Nos. 201
and 203 personnel costs average 65% of the department's budget, with supply costs averaging
13-14% and contractuals averaging 19-20%. Revenues for Fund Nos. 201 and 203 are 69-70%
from tax revenues and 30-31% from user fees. For Fund# 201 property tax generates 70.7% or
$8,054,012 for 2005 for the park and recreation 2005 operations.
Mr. St. Clair stated that he would like to reserve 20 minutes or so at the end of the
Committee meeting to briefly discuss the Master Plan. Dr. Varner suggested that a separate
meeting be held on the Master Plan. Council Member Coleman suggested that at the end of the
meeting that the Master Plan notebooks be handed out and that he would call a separate PARC
meeting for its review and discussion. He noted that further discussions are also planned for
Summer in the City.
In response to a question from Council Member Puzzello, Mr. St. Clair stated that the
Master Plan does incorporate much of the discussions which were held throughout the city
including those held at Howard Park.
Park Administration#201-1100
Administrative Director Betsy Harriman then briefly described her administrative
functions, park security, public relations and marketing. She provided a 2-page handout (copy
attached) which summarized park security operations, summarized Riverside Drive/Dam/East
Bank Trail activities, noting that 27 bollard lights along the East Bank Trail have been destroyed
at the cost of$17,550, as well as an electric meter being destroyed by Leeper Street, and the
destruction of stone trash cans. Attendance at the Cove through August 2004 was 201,142, up
from 191,174 in 2003. Playground equipment continues to be installed at the King Center and
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LasSalle Park. Parks in 2005 which will get playground equipment include Alonzo Watson,
Sorin Mini,Hamilton,Walker,River Manor and Belleville.
Council Member Pfeifer inquired about maintenance of bridges, noting that the new
Jefferson Street bridge already has graffiti. She suggested that where there are ongoing
response teams which paint over graffiti within 24-hours, it helps curtain such activities. She
suggested that the city look at cooperating with the county and getting some paint so that this
could be done. Ms. Harriman stated that she would look into this. Mr. St. Clair stated that
he would look into a potential partnership with the county for the bridges.
In response to a question from Council Member Puzzello, it was noted that there is a
non-reverting fund for lease payments for the Cove. $75,000 is also provided for day-to-day
non-capital non-labor Cove needs.
Mark Bradley who is in charge of Marketing/Promotions provided an 8-page handout
entitled "Partnerships" to the Committee along with a copy of the "Activity Guide" (copies
attached). He noted that partnerships for programs, events and facilities have included receiving
$4,000 annually form Pepsi; $10,000 annually from Coca-Cola; and $3,000 from 7Up. State
Farm provides informational updates which are broadcast on WSBT 960 radio. Centennial
provides cell phones for summer programs as well as $500 for banners and T-shirts. He noted
that the Southeast Park received the 2004 Indiana Parks & Recreation Association Outstanding
Park Development award. The proposed master plan sets forth a five-year plan for operational
goals. They are working on accreditation of the department which is a 4-step process. They are
at the 3rd step which is the self-evaluation stage. The process is approximately 24 months total.
Accreditation will assist the city in obtaining needed grant monies.
Dr. Varner asked who hosts the department's website. Mr. Bradley stated that is was
SBC. Dr. Varner asked for a history of the monthly expenses for the maintenance of the
website as well as the costs to create it. Mr. Carlton stated he would get that information to
the Council.
Park Maintenance Fund#201-1101 $4,564,305 2.5% increase
Tom Skarbek provided replacement pages for this fund.
Maintenance Superintendent Mike Dyszkiewicz noted that his operations includes nine
(9) salaried employees, 47 FT hourly employees and 20-25 PT summer employees. The new
maintenance facility is a $2.5 million capital project. He is very pleased with the King Center
upgrades. Problems however include ongoing problems of graffiti. Bathrooms have been
destroyed and in general vandalism has hit the parks & recreation operations very hard. His
operations provide storm damage clean-up with the Street Department helping them during
major storms. Their focus will be on playground equipment during the next fiscal year.
Personnel and Finance Committee Meeting of September 7, 2004 Page 4
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Golf Courses Fund#201-1102 2005 Proposed $1,644,997 2.1% increase
Chad Kilmer who oversees golf operations stated that between season pass sales, green
fees, cart rentals, pro shop sales, driving range fees, concessions, GPS fees, and other
miscellaneous revenues they should have $129,778 in revenues over expenses. He provided a
2-page handout entitled"Historical Rates Increase Analysis-Golf'(copy attached).
City Controller Rick 011ett noted that in 2002 the city changed how the LPGA pro was
paid. The city is now proposing another change for this position. He noted in response to a
question from Dr. Varner that this position is being proposed to where it should be in 2005 if it
would have never been changed.
Mr. Kilmer noted that as part of their overall mission and vision, they try to provide golf
services at affordable rates with a great value. Customer service in 2004 shows that 88% of the
customers viewed the services as average or above and that the pro shop has a 90% showing of
average or above. The global positioning system (GPS) has added to the golf car fleet where
they can stand out among the competition. It has enhanced the overall experience and also helps
in improving the speed of play.
Mr. Kilmer then provided a flyer on the "Tiny Tots Golf' program which has been
developed by LPGA Pro Melanie Trowbridge and has been a tremendous success. He noted that
Studebaker Golf Course provides a real and needed services to the community. It provides a
place for people to learn how to golf, especially for youth and seniors. There has been a
significant reduction in the loss projections for Studebaker with the loss projected to be as low as
$10,000 by the end of this year. Merchandise sales are up 24%, however since these positions
are seasonal and without any paid benefits it may be difficult to keep these individuals.
He anticipates that at least $75,000 is needed for Elbel and believes the entire building
needs to be replace ultimately. Continuous cart paths would generate more revenues since the
per day loss is between$2-$4,000 when the courses are closed to carts.
The Park Board is looking at more stringent dress codes and may be prohibiting tank
tops. Non-resident senior rates are also being reviewed. He concluded his remarks by stating
that they would like to see"Blackthome as part of their mix".
Recreation Division Fund#201-1103 $1,553,422 1.7% increase
Recreation Nonreverting Operating Fund#203 $810,506 -10.6% decrease
Director of Recreation Susan O'Connor provided a 9-page handout entitled
"Accomplishments for 2004" (copy attached). She noted that programs in her operations are
self-supported. They have eliminated skateboard park concessions since they were never able to
cover the salary costs of the person working concessions.
Personnel and Finance Committee Meeting of September 7, 2004 Page 5
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Dr. Varner requested an operating statement for the skateboard park. It was noted
that revenue for 2004 is approximately $12,000 and expenses are approximately $8,200. From
March 22, 2004 they have had 3,460 residents and 755 non-residents.
Council Member Pfeifer requesting an operating statement for the skateboard park for
the 2003 calendar year.
Council Member Pfeifer inquired about junior baseball at the King Center. Ms.
O'Connor stated that they do not offer junior baseball there. Council Member Kirsits noted that
nationally participation is down.
Ms. O'Connor then highlighted proposed increases/decreases in the 2005 proposed
recreation budget. She summarized the 2004 playground/lunch program at the various parks and
noted that due to budget cuts in 2003 this program was not offered at seven (7) parks. She then
reviewed the page setting forth the playground costs per park which average $5,925 and if the
park has junior baseball the cost is$9,318.
Ms. O'Connor then highlighted programs which are NOT included in the proposed 2005
budget such as an after school program at six(6) sites for a cost of$190,628.46 and projected
revenue of$319,200; year-round aquatic complex activities and proposed membership increases
for the O'Brien Fitness Center.
Council Member Pfeifer inquired about the former LaSalle High School pools. Ms.
O'Connor stated that it has one (1) pool which is being used by Adams students. She noted that
all pools are being used.
Mr. St. Clair stated that he does not believe that the city can rely on the South Bend
Community School corporation for such activities in the long run. He noted that doctors are
referring clients to O'Brien for rehab. He stated that they have outgrown the fitness center and
are at the maximum amount of memberships.
Dr. Varner suggested that the city look into getting certified for rehab at O'Brien and
that they may be able to get additional revenues.
Council Member Pfeifer inquired whether the city has ever looked at partnering with
the YMCA, since she understands that they are interested in moving west.
Personnel and Finance Committee Meeting of September 7, 2004 Page 6
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Potawatomi Zoo Fund#201-1104 $1,624,326 2.3% increase
Potawatomi Zoo Development Director Jason Jacobs provided a 4-page handout entitled
"The Potawatomi Zoo--Good Stuff in 2004" (copy attached). He noted that last year
approximately 189,000 came to the zoo. This year they are down about 7,000 visitors because of
the bad weather. He then highlighted items from the handout. Zoo Boo will be held on October
28, 2004 with 15,000 people expected. The train will open shortly before Zoo Boo which is a
1/3 scale model steam engine resulting from a partnership with the National Parks and
Recreation Association. An area of concern is the greenhouse which costs $18-$20,000 per
month to heat in the winter months. They have an intern program in place where students from
Bethel, St. Mary's IUSB,and Notre Dame participate.
In response to a question from Dr. Varner, Mr. Jacobs stated that the tax allocation is
from the property tax levy.
Special Events Nonreverting Operating Fund#272 $109,717 -34,6% loss
Summer in the City brought in $73,000 and had expenditures of $109,000. They are
looking at a number of different options for next year to make sure that it is a safe environment.
Council Member Kirsits noted that the walkway has experienced alot of vandalism. It
was also noted that the city has not looked into the use of blue call lights often used on college
campus and has not looked at using cameras expect at the skateboard park.
Council Member Kirsits thanked the park and recreation staff for all of their assistance
during the year.
There being no further business to come before the Committee, Council Member Deiter
adjourned the meeting at 8:15 p.m.
Respectfully submitted,
Council Member Derek D. Deiter,Chairperson
Personnel and Finance Committee
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Attachments
Personnel and Finance Committee Meeting of September 7, 2004 Page 7