HomeMy WebLinkAbout08-26-96 Personnel & Finance T +J
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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
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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.
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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
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