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HomeMy WebLinkAbout08-26-96 Personnel & Finance T +J 4Comaiticir t: Personnel and Finance Committee go the Common Council of tie Clip of foutb The August 26, 1996 meeting of the Personnel and Finance Committee was called to order by its Chairperson, Council Member Steve Luecke at 4:45 p.m. in the Council informal meeting room. Persons in attendance included Council Members: Luecke, Kelly, Varner, 7akrzewski, Coleman, Broden,Washington, and Pfeifer; Richard Nussbaum, Kevin Horton, Louanna Hummel, Don Porter,Jim Czerzniak, Bernie Kisch,Marge Shalman, Chief Luther Taylor, and Kathleen Cekanski-Farrand. The first item on the agenda was to review Bill No. 67-96 which would amend Ordinance No. 8269-92 regarding ambulance/medical user fees. Chief Taylor made the presentation. Chief Taylor noted that the bill would increase the quarterly and annual transfers from the EMS Capital Fund to the General Fund from $38,500 to $62,500. This would result in the annual transfer of being raised from $142,000 to$250,000 each year. Chief Taylor noted that the South Bend Fire Department now provides all 911 service to the University of Notre Dame through a contractual arrangement. Council Member Zakrzewski questioned why the change was needed. He was advised that this was discussed between the Fire Department and the City Controller's office and is directly related to a percentage of total revenue anticipated each year. It was also noted that the collection rate for ambulance bills is approximately 76% with the national average being 68%. Following discussion, Council Member Coleman made a motion, seconded by Council Member Pfeifer, that Bill No. 67-96 be recommended favorably to Council. The motion passed. Kevin Horton noted that further information with regard to these funds would be given during the budget reviews which will begin on or about September 4. Chief Taylor also noted that the headphone sets which were demonstrated to the Common Council approximately 6 to 7 weeks ago have been very positively received by the department and that the firefighters are very excited about this upcoming purchase. The committee then reviewed Bill No. 68-96 which would appropriate one-half million dollars from the City of South Bend General Fund to the College Football Hall of Fame Operating Fund. Kevin Horton made the presentation. He noted that the Football Hall of Fame is continuing to be develop a business planning process for the past several months. The City overestimated the fundraising targets as well as the nature of sponsorships. Currently renting is preferred over purchasing by associations. He stated that the Football Hall of Fame must have more national exposure. In order to do this there must be a development fund and customer service representative, a stronger national promotion campaign,other markets must be tapped,and the NFF must become a willing partner. The NFF has committed to provide $1,000,000 over the next two years. Mr. Horton also noted that educational programs are needed and better marketing to all school systems. Ticket surcharges on a rotating game basis are also ideas being considered. He stressed • r Y Committee Report Personnel and Finance Committee August 26, 1996 Page 2 that the liability would only compound if the City does not make an investment at the current time. He also noted that the U.S. Postal Services, Coca Cola,Alka Seltzer and Burger King have made a commitment with regard to sponsorship which he believes will continue into the future. Mr. Bernie Kisch stated that the monetary commitment he would consider to be a sacred trust. Richard Nussbaum stated that there would be an equal sharing of profits rather than by the terms of the original agreement with further details being worked out. Mr. Horton further noted that there will be an amended budget for 1996 which will be submitted to the Common Council. Dr. Varner noted that it was his understanding that this arrangement would be in lieu of bond guarantees. That over time, the total obligation would be approximately $27,000,000. He questioned how much money was being earmarked for capital reserves and was revised that at the current time none is being dedicated. He stated that he believes the Common Council should have access to the draft of the business plan and believes that there's too much after the fact financing by the City. Dr. Varner suggested that this Bill be tabled, however noted that he was not on the Personnel and Finance Committee. Under the public portion, Marge Shalman questioned whether the NFF has paid $500,000. She was advised by Mr. Horton that the payment has been received and with this payment the City was able to make the three payment test, She noted that with the appropriations at tonight's meeting, that there would be interest on interest resulting. Mr.Jim Czerzniak voiced concern with regard to bond guarantees now being off the table and spoke against the proposed appropriation. Louanna Hummel noted that she has two sons in the Football Hall of Fame and is a sports fanatic. She stated that she believes the general public has been misinformed and believes that money could be better spent for such things as Kennedy Pool since the children need such activities. Council Member Washington agreed that West Side and Kennedy Pool need to be addressed, however, cautioned that the cost is prohibitive in light of the status of the Kennedy Pool. Council President Kelly stated that the City did overestimate, however, there was no misrepresentation. He stated that we must stay with the Football Hall of Fame so that it can be success. Mr. Horton noted that the Football Hall of Fame is not on the tax levy and that reserve monies would be going into the appropriation. He is making this recommendation so that the Football Hall of Fame would not be on the tax levy. Dr. Varner stressed that a business plan is critical and necessary. Council Member Luecke stated that he believes the appropriation would be appropriate and necessary in order to make a further investment with the NFF in the marketing effort. Council Member Coleman stated that two elements basically aggressive marketing and a partnership with the NFF is necessary for the Football Hall of Fame to be a success. • Committee Report Personnel and Finance Committee August 26, 1996 Page 3 Council Member Zakrzewski questioned the plan and its projections for the next two years. He stated that he would like to see this information as part of the budget. Mr.Horton noted that at least$900,000 in revenue is needed each year and that in 10 years the payments will increase to 1.3 to 1.5 million dollars to address the larger debt service. Council Member Pfeifer spoke in favor of the Bill and strongly suggested that further diversity of citizensbe utilized in support groups with regard to the Football Hall of Fame. Following further discussion, Council Member Coleman made a motion seconded by Council Member Pfeifer that Bill No. 68-96 be recommended favorably to Council. The motion passed. There being no further business to come before the Committee the meeting was adjourned at 6:00 P.M. Respectfully submitted, Council Member Steve Luecke, Chairperson Personnel and Finance Committee Attachments