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HomeMy WebLinkAbout01-10-11 Finance Com MinutesDUBLIN CITY COUNCIL FINANCE COMMITTEE MEETING Monday, January 10, 2011 —5:30 p.m. Council Chambers Minutes of Meeting Mr. Gerber, Chair, called the meeting to order at 5:30 p.m. Finance Committee members present: Mr. Gerber, Ms. Chinnici - Zuercher and Mr. Keenan. Staff present: Ms. Gibson, Ms. Puskarcik and Mrs. LeRoy. Ms. Chinnici - Zuercher moved approval of the 11 -22 -10 meeting minutes. Mr. Gerber seconded the motion. Vote on the motion: Mr. Gerber, yes; Ms. Chinnici - Zuercher, yes; Mr. Keenan, abstain. Mr. Gerber stated that this meeting is for the purpose of reviewing the remaining four pending 2011 Hotel -Motel Tax Grant applications. APPLICANT PRESENTATIONS: • Kiwanis Club of Greater Dublin - 2011 Teen Driving Roadeo ($4,000) Walt Buss, Kiwanis treasurer, and George Coles, Kiwanis secretary, were present. Mr. Gerber noted that Kiwanis has submitted a revised budget since the last meeting. Mr. Buss stated that there was some misunderstanding regarding the budget they submitted for the first meeting; that was actually last year's budget. For tonight, they have submitted an updated budget for the current year. Mr. Gerber asked if the Township is contributing in any way for this event. Mr. Buss responded that the Township is not contributing money, but they provide a fire engine, officers and a booth for the event. Mr. Gerber stated that this is considered a Kiwanis signature event, but the donation from Kiwanis is $500, a rather small portion of the total budget. Mr. Buss responded that is correct. The intent is to primarily fund the event through sponsorships. Kiwanis Club will be donating 500 volunteer hours for the event, rather than money. Mr. Coles stated that the Dublin Police, Washington Township Fire Department, State Highway Patrol, and a number of companies have provided personnel time. Crown Auto has provided cars. Everyone who attends, including the parents, have expressed appreciation for the event. They are hopeful that the event can be made self- sustaining. If they can increase the interest and student participation, it will then be possible to secure sponsors such as Verizon, Goodyear, and other companies to support the event financially. Mr. Buss noted that they are hopeful that they can build the event, and that Dublin will be positively identified with hosting a Teen Roadeo. Finance Committee January 10, 2010 Page 2 Ms. Chinnici - Zuercher stated that the event has a commendable purpose and has been a success to date. It is unrealistic, though, to think that the event can be so substantially advanced in one year. The request for an additional $4,000 is for marketing. That is a significant amount to spend on marketing for a local event, especially when the primary marketing will occur in the three high schools. The schools should be providing the marketing at no cost. They have their own television and radio capabilities, and there is a channel on which substantial advertising could occur. Therefore, she cannot support that amount of additional money. Some additional money for marketing may be warranted, but so much of the marketing for teens is actually free. She also believes that Washington Township should participate financially, and should be approached with that request. Dublin is also donating personnel time. The township and school district are larger than the City of Dublin, so there are students from a greater region that would be interested. She believes it would be appropriate to meet with those entities to request additional funding. Mr. Coles stated that in the three years they have held the event that, regardless of the amount of support that they have had from the School District and students who previously participated, if they do not get to the parents, the kids don't attend. They need a broader appeal than that which is centered in the schools. The schools have been very supportive, producing a television commercial that runs for all three high schools. They are trying to find a way to reach the parents through fliers, signage, and at football games, where parents congregate. Ms. Chinnici - Zuercher noted that, fortunately, there are now several parent groups, such as PERC and ACT, which are composed of actively participating parents who are looking for opportunities for activities. They could provide advertising. Mr. Coles responded that they have approached every organization, including PERC, and the response has been tepid. They are a small organization; this chapter has existed only since 2006. They are 35 members who are trying to find a way to build an organization that can do something really noticeable for the community. They have found ways to generate independent funding to provide $1,000 scholarships to the three high schools in each of the five years they have been operational. They do not believe their outlook is overly aggressive. Young people from Pickerington and Gahanna have participated. There are enough students in this age group that it should be possible to have 400 -500 kids participating. In the three years they have held the Teen Roadeo, the participation has increased from 60 to 90 to 130. Mr. Buss clarified that the funding requested is to be used primarily for driving safety kits and educational materials, approximately $2,200. There would be only an element of the grant used for promotion. Mr. Keenan inquired if their organization is working with City staff to incorporate some of the distracted driving education into their program. Mr. Buss responded affirmatively. Mr. Coles noted that Verizon provided them some information regarding texting and driving, which worked well in the past. They anticipate Verizon will expand it this year. Finance Committee January 10, 2010 Page 3 Mr. Keenan inquired if there are active PTOs in the high schools. If so, they should be approached, as well. Mr. Coles responded that they had done so and received a similarly tepid response. Mr. Gerber noted he is surprised to hear that, as he has been involved with both PERC and ACT. Mr. Coles noted that the discussion of their event has not moved beyond an initial discussion at a PERC or ACT meeting. Mr. Gerber suggested that they contact Sue Burness, City staff member. She would be able to put him in contact with these organizations. Mr. Chinnici - Zuercher moved to recommend a grant in the amount of $2,200 for the driving safety kits and educational materials. Mr. Gerber seconded the motion. He believes that it would be appropriate for Washington Township and Verizon to also provide funding. Vote on the motion: Ms. Chinnici - Zuercher, yes; Mr. Gerber, yes; Mr. Keenan, yes. Mr. Keenan noted that the City should be able to promote the event on the City's website. The City also submits information in a weekly notice of City events to the various local newspapers, which would provide an additional message to the community regarding this event. Mr. Buss noted that the event occurs the last Sunday in September. • Dublin Area Art League (Rich Sharick) - 2011 Art Fair ($10,800) Rich Sharrick, 6671 Fallen Timbers Drive Dublin, presented the Dublin Area Art League Application. Mr. Gerber stated that the Dublin Area Art League (DAAL) has submitted a revised request for a lower amount of $10,800. Ms. Chinnici - Zuercher inquired if the managing organization they are working with helped to put this budget estimate together. Mr. Sharrick confirmed that they had. Ms. Chinnici - Zuercher stated that she appreciates their effort. She understands that they have engaged a firm that also manages a similar art event in the City of Granville. The Finance Committee had requested a plan to facilitate the event becoming self sufficient in the future. They have provided such a plan. Mr. Keenan noted that the larger number on the expense side is for the management fee. He is aware that the event has grown the last two years. It is a great event with good timing, taking place before and after other existing events in the City. Ms. Chinnici - Zuercher stated that they have provided what the Committee requested. DAAL has limited members to assist with organizing the event and obtaining the needed sponsorships to make the event self- sustaining. Their only option was to engage a management firm. She moved to recommend that Council approve the requests the DAAL has made for two years of funding, with the understanding that in the third year they would need to return to the Committee with any grant request. Finance Committee January 10, 2010 Page 4 Mr. Gerber inquired if that is consistent with previous grants. Ms. Gibson responded that the City has made similar two -year commitments in the past. Mr. Gerber moved to recommend approval of the request for $10,800 in 2011 and $5,000 in 2012. Mr. Keenan seconded the motion. Vote on the motion: Mr. Gerber, yes; Ms. Chinnici - Zuercher, yes; Mr. Keenan, yes. Ms. Gibson noted that the Committee also needs to address the event fee from 2010. The request is to waive that fee. It was the consensus of the Committee to recommend waiver of that fee. • Dublin City Schools - 2011 Outdoor Drama, Leatherlips ($13,000) Dan Stowell, Dublin Coffman High School stated that the Committee requested that they submit a plan addressing a goal to pursue other funding sources over the next few years with the goal of becoming self- sustaining. Mr. Gerber thanked him for the plan. He noted that if the plan could be aligned with the school year, the Schools would likely be able to provide a significant funding source. Mr. Stowell responded that the primary reason the decision was made to do this in the summer is that the schedules of the high schools are already very compacted. The students are too involved with other commitments to memorize lines. There is also no available rehearsal time. The second reason is the park accommodation. An outdoor drama by definition is near the event which it is dramatizing. The result is that a summer production works best, even though it limits some School support, including the potential for financial support. Mr. Gerber stated that he is not prepared to look at 2012 — 2014 at this point. He would prefer to have the Schools providing some financial support for this event. Mr. Stowell responded that the Schools do not provide financial support for performances. They provide a stipend for school personnel to work as coaches for performances, but any funds for the performances must come from the receipts from the previous year's performance. Mr. Stowell noted that the request is larger than last year's because the attendance last year was much greater than anticipated. They had planned for an attendance of 600 -700, but 1,300 people attended on one night. When they applied for a grant of $9,000 for their first year, they did not know whether this would be a continuing event. However, the community response seemed to indicate that it should become a regular event. To that end, there are additional needs, such as a sound system. That acquisition must be spread out over the next few years. If they were to purchase a system such as that in Council Chambers, it would cost $20,000. They must also wean themselves off of the School's sound equipment by purchasing some of the equipment each year. Mr. Gerber inquired if the additional $4,000 requested over last year's request is for purchase of sound equipment. Mr. Stowell responded that it is for that and for many other costs, such as hiring more people to help with the revolving tasks. Finance Committee January 10, 2010 Page 5 Ms. Chinnici - Zuercher inquired why they do not charge an admittance fee, such as is charged for "Tecumseh." Mr. Stowell responded that he is the writer of the production, and he does not rise to the level of "world class writer." Also, last year's event resulted as a response to the City's request for a community event last year. Ms. Chinnici - Zuercher responded that the original purpose was for a community event celebrating the City's Bicentennial. The intent was not for the City to continue to contribute a substantial amount of money for the event to continue. It was a special event for last year. She is pleased that it was so well- attended, and her hope is that it now will continue and grow. Is there no volunteer force available, so there would not be a need to pay everyone to perform the tasks? Mr. Stowell responded that the desire is to grow to that point. Most of the volunteer force that were involved with last year's event either have other responsibilities or need to have summer jobs. The hope is that if this event is recognized as a continuing annual event, people will begin to plan their schedules accordingly. Some people do short -term contract work -- summer stock performances, and actively seek such work. Mr. Keenan inquired if any sound equipment they purchased would belong to Dublin Schools. This event is not put on by a separate entity; the applicant is Dublin City Schools. Mr. Stowell responded that it would belong to Dublin Schools. The Schools do not have portable, outdoor sound equipment that they will commit to this use. The sound equipment they used for the first performance belonged to his club, which was loaned to them. It is a large amount of equipment to borrow from a club that has no inflow /outflow of funds for the costs of sound equipment. Ms. Chinnici - Zuercher stated that it was not clear that Dublin Schools was the applicant. Is he also requesting funding from the Dublin Education Fund? Mr. Stowell responded that next week, he will submit a request to them for $1,500. Their grant guidelines prohibit funding for director or actor fees, but they can grant money for something tangible. They also are depending upon in -kind support. Mr. Gerber stated that the issue is that Dublin Schools is requesting funds from the City to buy equipment for the Schools. Mr. Stowell responded that is true. However, both the Schools and the City want to wean away from support of this event, and that is their goal — to move away from the support of both entities. The plan is to eventually develop into a 501 C3 organization. They are working on that framework. In the meantime, a team has not fully committed to the project until there are funds for it. Ms. Chinnici - Zuercher noted that it is not realistic to have decreasing bed tax funding for this, yet retain the same annual budget. Also, what staff is available within the group to spend the significant amount of time necessary to develop the level of sponsorship that will be needed? Mr. Stowell responded that there are two sources: first, all participants, because a requirement of their contract is that they be involved in seeking sponsorships; second, a manager who is hired for the purpose of seeking out funding sources. Finance Committee January 10, 2010 Page 6 Mr. Gerber stated he would recommend that Mr. Stowell first determine if the equipment they propose purchasing would be titled to the Schools. If so, the funding should come from the Schools. Also, with the increased funding request, it is probably necessary to seek out some other funding sources to make this event happen. He does not want to deny the request, but he does not feel it is appropriate to recommend approval at this time. Mr. Stowell responded that the Schools do not have a funding category within which this performance fits, so they are unable to fund it. Ms. Chinnici - Zuercher stated that PTOs and Booster clubs typically have sufficient money to provide financial assistance. It is difficult to believe that there aren't other elements within the School District who could appropriately provide funding for property that they will then have for their use. The plan isn't for this equipment to be used exclusively once a year by this group. Mr. Stowell responded that actually is the plan. Mr. Keenan stated that it is difficult to understand that among the three high schools, there is no outdoor sound equipment. Mr. Stowell responded that is the situation. Even the graduations are now held downtown at another facility. Mr. Gerber stated that perhaps there would be an audio company in town that would like to sponsor this project. Mr. Stowell responded that in December, he met at the park with a representative from SoundCom and discussed this possibility. However, this purpose does not fit within their business plan. Mr. Keenan stated that he likes this event, and he would like to see it continue for the community. Consequently, he would like to provide some element of support, but one of the issues discussed tonight makes it difficult for the City to do that -- the fact that the applicant is the School District who should be funding this equipment. Ms. Chinnici - Zuercher inquired who an appropriate City staff contact would be to assist Mr. Stowell with the plan — what it should include; and assist him with how to approach the Schools for a shared experience versus requesting the City to fund it 100 %. Mr. Stowell inquired if the equipment items were removed from the request, would the request be appropriate. Mr. Chinnici - Zuercher responded that a longer term issue remains regarding proper planning for this purpose. Who would be the appropriate City staff member to assist Mr. Stowell? Ms. Gibson responded that it would not be her, but she would inquire as to who would be the right staff person to provide him assistance. Finance Committee January 10, 2010 Page 7 Ms. Chinnici - Zuercher stated that whether it is Ms. Ott, or someone else, they could assist him with having the conversation with the Schools, and then bring back a revised proposal to the Finance Committee. Mr. Gerber stated that he is hopeful that this does not take 90 days to accomplish. The Finance Committee can meet again, once he has the requested information. Mr. Stowell agreed to meet with the people, as identified. Mr. Gerber stated that the Finance Committee will delay decision on this application pending Mr. Stowe's sorting through the issues discussed tonight. Someone from City staff will meet with the Schools and determine how this can be made a shared experience. Mr. Stowell expressed his thanks. • Flight Team at The Ohio State University -National Safety and Flight Evaluation Conference 2011 (SAFECON) - ($25,000) Brad Hock, SafeCon 2011, Executive Committee president presented the application. Mr. Hock stated that the Dublin Convention & Visitors Bureau (DCVB) worked up an economic impact statement for the event. He has also compiled some information on the Airport customers that they send to Dublin businesses — they used 525 Dublin hotel rooms in the last six months. In the previous discussion, Committee members expressed concern because the event does not occur within Dublin. However, Dublin does not have an airport. Therefore, although it is an OSU airport, many Dublin businesses use the airport, such as Cardinal Health and Wendy's. Much additional commerce and many individuals use this airport, with a destination of Dublin, not Columbus. The coaches and advisors who will participate are coming to Dublin, not Columbus. Mr. Gerber inquired the amount of his revised request. Mr. Hock responded that he is not suggesting a specific amount. The Committee indicated that amount would align with the number of room nights used and the amount of hotel -motel tax revenue generated. Mr. Gerber stated that they received a $7,500 grant in 2002, and in 2006, a grant of $3,000. During their previous discussion, they indicated that the reason their request is for $25,000 is that they have lost a significant amount of sponsors, including Hyper, Cessna and NetJets. Mr. Hock noted that Hyper and NetJets have completely withdrawn; Cessna has significantly reduced their sponsorship. He has spent close to 30 hours /week trying to secure new sponsors. Mr. Gerber suggested Honda be contacted. Mr. Hock responded that Honda is interested in participating with their new jet, but they do not want to provide any funding. Mr. Gerber suggested they be charged a participation fee for the event. Finance Committee January 10, 2010 Page 8 Mr. Hock responded that they are attempting to do so; however the fee, while appreciated, will not rise to the level that helps them sufficiently at this time. He noted that the economic situation for American aviation is difficult. They have been looking at taking a new direction, international aviation. There are international carriers who want American pilots, because the level of American training is much higher. They are looking into ways to interest international carriers, but, to date, they have not received much response. Mr. Keenan inquired if the number of room nights indicated during the past six months is an estimate or a hard number. Mr. Hock responded that it is an accurate number. Ms. Gibson stated that a conservative estimate of the bed tax revenue the City would receive on that number of rooms is $13,000 - $15,000. Mr. Keenan stated that he would support a lesser level of funding than that requested; however, he will defer to the Committee members who heard the applicant's previous presentation to recommend an amount. Mr. Gerber stated that the event does meet the bed tax criteria. He would also support a lesser amount. Ms. Chinnici - Zuercher moved to recommend a grant of $7,500. Mr. Keenan seconded the motion. Vote on the motion: Ms. Chinnici - Zuercher, yes; Mr. Gerber, yes; Mr. Keenan, yes. Mr. Gerber stated that the City appreciates the business they bring into the City, and wished him success with his effort to interest other aviation companies in providing financial support. • Discussion of Hotel -Motel Tax Grant Criteria Mr. Gerber requested Committee members' comments. Mr. Keenan stated that he believes the criteria as outlined in the packet materials are concise and easy to follow. He assumes this information will be incorporated into a promotional piece. In regard to the application process, the applicants are asked to provide 10 copies of their applications. Some of the applications are large. Is there a more practical way to do this, such as an electronic PDF submission? He does not want to unnecessarily burden some of the smaller 501 C3 applicants. Ms. Chinnici - Zuercher agreed, particularly now that City Council is in the process of moving to an electronic packet. Ms. Chinnici - Zuercher suggested that verbiage be included to indicate that a grant is to serve as "seed money" for an event, though another term may be more appropriate; that it is not to be perceived as an annual source of funding. Mr. Keenan agreed that it should be clarified that the event should eventually become self - sustaining. Ms. Chinnici - Zuercher suggested that the goal of an event that will become annual should be to become self- sustaining. Mr. Keenan requested that staff craft language to reflect that goal. Finance Committee January 10, 2010 Page 9 Ms. Chinnici - Zuercher stated that the multi -year grant applications should be demonstrating that goal, such as the revised applications this evening. Perhaps a form could be provided online to assist grant applicants who are not accustomed to the process. Mr. Gerber stated that, traditionally, hotel -motel tax grant applications are heard by Council in the fall. Is this the best time of the year for this process? Ms. Gibson responded that Council actually changed the application timeframe to the fall for the following reasons: (1) the operating budget for the next year is completed and the amount of available grant money is known; (2) the timeframe allows the event applicants to plan the following year's budget. Most of these events do not occur until the following spring, summer or fall. This timeframe allows them to know what amount of financial support they will have. Mr. Gerber inquired what occurs if someone becomes aware of an event in April to be held the same year. Are they told no additional grants are available for that year? Ms. Gibson responded that in the past they were told that, but that occurred in a year in which there was a limited amount of funds available. However, if the funding is available, i is Council's discretion to identify their preferred timeframe. Mr. Keenan stated that he would not want to review applications on an "as requested" basis, but it might be acceptable for the Committee to meet a second time in the year, if additional applications warrant it. However, the Committee has always had that discretion. Mr. Gerber concurred. The meeting was adjourned at 6:18 p.m. Clerk of Council