>> ARE WE READY TO GO? GOOD EVENING, EVERYBODY. WE ARE GOING
[Affiliate Review Committee on February 25, 2025.]
[00:00:13]
TO CALL THE -- I WILL START AND WE WILL GO DOWN THE>> TERESA AYERS, CITY COUNCIL. >> BRIAN, CITY COUNCIL.
>> SHANNON MINNAAR, CITY COUNCIL.
>> FORMALLY ON CITY COUNCIL. >> THANK YOU VERY MUCH. NEXT ORDER OF BUSINESS ON THE AGENDA IS THE APPOINTMENT OF A COMMITTEE CHAIRPERSON. DO WE HAVE A NOMINATION?
>> I MOVED TO NOMINATE RYAN LOCKE AS CHAIR.
>> SECOND. >> WE HAVE A MOTION AND A SECOND. ANY DISCUSSION? ALL THOSE IN FAVOR SIGNIFY. THANK YOU VERY MUCH. RYAN, CONGRATULATIONS MY FRIEND. WITH YOUR APPROVAL I WOULD LIKE TO INTRODUCE THE NEXT ITEM ON THE AGENDA WITH THE DESCRIPTION OF THE AFFILIATE REVIEW COMMITTEE BY ME. AND THEN HANDED OVER FOR A DECK.
>> DURING THIS KIND OF DESCRIPTION WE WOULD LOVE YOUR INPUT OBVIOUSLY BUT MAYBE OPEN IT TO THE COMMITTEE TO DISCUSS WHAT WE ARE DOING, WHY WE ARE HERE. WHAT THE GOAL OF THE COUNCIL AND EXECUTIVE BRANCH GETTING TOGETHER.
>> SOUNDS GREAT. THIS BODY WAS FORMED WITH THE RESOLUTION CC 1118 2405 , IT WAS MIDDLE NOVEMBER, I DON'T HAVE AN EXACT DATE. I SIGNED NOVEMBER 19. THIS BASICALLY WAS TO CREATE A JOINT COMMITTEE BETWEEN THE LEGISLATIVE BODY WHICH IS THE CITY COUNCIL AND THE MAYOR'S OFFICE WITH THREE APPOINTEES EACH. ME SERVING AS ONE OF THEM. AND THREE CITY COUNSELORS IN TWO APPOINTEES OF MY CHOOSING TO REVIEW -- LET ME GET TO MY NOTES. TO BASICALLY REVIEW THE PURPOSE , GOVERNANCE AND TECH STRUCTURE AND RELATED PHYSICAL RISK ASPECTS OF ALL NONPROFIT CORPORATIONS COMMUNITY DEVELOPMENT CORPORATIONS AFFILIATED WITH THE CITY OF CARMEL. REMOTE CARMEL CORPORATE, COMMUNITY DEVELOPMENT, CITY CENTER. -THE PURPOSE OF THIS WAS SOMEWHAT NARROW BECAUSE IT IS PURPOSE, GOVERNANCE AND TAX -- ASPECT OF THE FUNCTION OF THESE COMMITTEES. WITH THAT, MR.
CHAIR? >> I LOVE TO TAKE A MOMENT OF DISCUSSION, OBVIOUSLY THIS IS THE FIRST TIME THE COMMITTEE HAS MET AND BEEN TOGETHER, TRYING TO FIGURE OUT HOW BEST TO PREPARE OPERATIONS IN THE CITY. OBVIOUSLY THERE ARE COUPLE OF BRANCHES, ONE BEING THE EXECUTIVE, THE ADMINISTERS GOVERNMENT THE HAS BEEN APPROPRIATED TO THEM AND SET UP BY ORDINANCES AND RESOLUTIONS THAT THE CITY COUNCIL, WHICH IS THE LEGISLATIVE BRANCH SETS. THE THOUGHT ON THIS BEING A NEW EXECUTIVE BRANCH AND COUNCIL WOULD MAKE SENSE FOR ALL OF US TO CONVENE AND TALK ABOUT THESE ORGANIZATIONS WITHIN GOVERNMENT THAT HAVE BEEN SET UP OVER TIME TO GIVE US THE INFORMATION NECESSARY TO UNDERSTAND WHAT WE'RE DOING WITH TAXPAYER DOLLARS. WHAT A OPERATIONS ARE OCCURRING WHAT WE NEED TO DO FROM A BUDGET PERSPECTIVE TO ENSURE THAT THE OPERATIONS NECESSARY FOR GOVERNMENT TO EXIST AND FOR THOSE THINGS WE NEED TO DO FROM A GOVERNMENT PERSPECTIVE ARE HAPPENING. THE GOL OF THIS COMMITTEE TRULY KIND OF FALLS TO A FULLY OBJECTIVE AND RATIONAL REVIEW. HOW CAN WE BEST SUPPORT WITH AN UNDERSTANDING OF WHAT WE NEED TO KNOW AND WHAT INFORMATION IS THERE IN THE BOOKS, WHAT WE ARE BEING PRESENTED FROM A LEGISLATIVE BRANCH PERSPECTIVE OF THE OPERATIONS OF THE EXECUTIVE BRANCH MOVING FORWARD, TO KNOW HOW OPERATIONS ARE GOING. AND THEN TRULY ASKING THE QUESTION, WHAT BEST PRACTICES ARE THERE IN MARKET FOR THE RELATIONSHIP BETWEEN MUNICIPAL GOVERNMENT AND ORGANIZATIONS THAT MAY RECEIVE DIRECT COMPENSATION OR PAYMENT AND/OR INDIRECT SERVICES FROM THAT CITY TO PERFORM AFFILIATED WORK OF THAT CITY. SO AGAIN, THE GOAL HERE IS TO BE AS OBJECTIVE, RATIONAL, RETROSPECTIVE IN OUR REVIEW OF HOW THINGS ARE SET UP. BUT PROACTIVE IN LOOKING AT WHAT INFORMATION WILL BE NECESSARY MOVING FORWARD TO ENSURE THE RIGHT FRAMEWORK OF OPERATIONS IS SET. SO I JUST WANT TO LEVEL SET THERE FROM A PURELY ONE PERSON ON THE COUNCIL OR COMMITTEES
[00:05:02]
PERSPECTIVE FROM A COUNCIL PERSPECTIVE. I WOULD LOVE THE OUTCOME OF THIS TO BE A FULL UNDERSTANDING OF WHAT AFFILIATED ENTITIES AND A LIST OF THE AFFILIATED ENTITIES THAT ARE RELATED TO CARMEL WOULD BE A GREAT PLACE TO START, WHETHER OR NOT THAT LIST IS FULLY CONFERENCE OF OF THE FOUR WE HAVE DISCUSSED, OR MAY NOT BE, IS A GREAT QUESTION. THERE MAY BE OTHER THINGS THAT FALL UNDER THIS CATEGORY THAT WOULD BE WORTHWHILE JUST TO LOOK AT. BUT AGAIN, TO PUT US AT AN END POINT OF UNDERSTANDING BETTER HOW WE ARE INTERACTING WITH THOSE THINGS THAT MAY NOT HAVE A DIRECT CONTRACT OR A BID PROCESS OR ARE PERFORMING A FUNCTION THAT IS RELATED TO SOMETHING WE CARE ABOUT THE CITIZENS AND AS A COUNCIL AND A COMMUNITY. JUST TO ENSURE WE HAVE THE INFORMATION TO BEST APPROPRIATE AND BEST TAKE CARE OF THOSE FUNDS. I SHARE THAT AND WILL OPEN THE FLOOR TO ANYONE ON THE COMMITTEE TO HAVE ANY KIND OF THOUGHTS OR FEEDBACK . FOR ME I THINK ONE OF THE THINGS I WOULD LOVE TO HONE IN ON TONIGHT WOULD BE WHAT IS AN AFFILIATE, WE USE THAT TERM, IT'S NOT DEFINED IN THE RESOLUTION. IT'S KIND OF BROAD.THERE ARE A BUNCH OF DIFFERENT STRUCTURES WITHIN THE GOVERNMENT THAT ALLOW US TO OPERATE WITH OTHER PARTNERS OR THROUGH OTHER PARTNERS IN A WAY, IT MIGHT BECOME A VALID CONVERSATION TO SAY WHAT THAT IS AND THEN MAYBE KNOCK OFF SOME OF THOSE FROM THE CONCEPT THAT THEY HAVE SPECIFIC GOVERNMENT STRUCTURES OR THEY FIND AN APPROPRIATION SOURCE THROUGH COMMISSION HAS OVERSIGHT OR SOME OTHER FUNCTION THAT ALLOWS US TO ENSURE THOSE FUNDS ARE BEING TAKEN CARE OF AND OVERSEEN IN THE APPROPRIATE WAYS. SO, THAT IS REALLY MY CALL TO ACTION REQUEST TONIGHT.
AGAIN, FIRST MEETING, I WOULD LOVE TO JUST MAYBE HAVE AN OPEN DISCUSSION OF WHAT THAT LOOKS LIKE SO WE CAN ENSURE WE ARE SETTING OURSELVES UP FOR SUCCESS IN THIS PROCESS. IF WE ARE GOING TO REVIEW, AGAIN, FROM A FIDUCIARY NATURE, THE BOOKS OF THE CITY, LET'S DO THAT SO WE CAN ALL MOVE FORWARD KNOWING WHAT WE ARE GOING TO GET OUT OF THIS. THOUGHTS, QUESTIONS? COMMITTEE MEMBERS, ANY FEAR, HESITATIONS OR TREPIDATIONS
BASED ON THAT? >> STRUCTURALLY SPEAKING, HOW ARE WE GOING TO RUN THESE MEETINGS? WILL THE AGENDA COME FROM THE EXECUTIVE BRANCH? WILL COME FROM THE CHAIR? HOW IS THAT GOING TO WORK? ALSO, WILL THIS BE SOMEWHAT OF A PUBLIC, WILL THERE BE PUBLIC INPUT ALLOWED AT THESE MEETINGS? OBVIOUSLY THERE WILL BE. WHAT STRUCTURE WILL THAT LOOK LIKE. AND, I THINK REALLY THOSE ARE MY BIG TWO QUESTIONS. WHERE WE ARE STRUCTURALLY FOR THE MEETING ITSELF GOING FORWARD.
>> HAPPY TO WEIGH IN ON THE THOUGHTS BUT I THINK IT WOULD BEHOOVE US AS A COMMITTEE TO SET UP WITH THE STRUCTURE WILL LOOK LIKE. ONE THING WE DON'T HAVE IS TRULY, WHAT IS THE FRAMEWORK OF INFORMATION THAT WOULD BE WORTHWHILE TO PICK. AGAIN I THINK THAT SHOULD BE AN OBJECTIVE, KIND OF PULLING THINGS SO WE HAVE AN OUTPUT . NONE OF US ARE SPECIFICALLY EXPERTS IN THIS. WE ALL HAVE TO INTERACT WITH IT IN THE RIGHT WAY. I KNOW THAT THE MAYOR HAS BROUGHT SOME OF HER TEAM TO KIND OF HELP US THROUGH THIS. I SEE THAT BEING AN INTEGRAL PIECE OF THE CONVERSATION. BUT WE MAY AS A COMMITTEE DECIDED SOME POINT WE NEED ANOTHER SUBSET OF PROCESSES WERE A FRAMEWORK BY WHICH TO BASE THIS INFORMATION ON. I THINK IT MAKES SENSE FOR THE COMMITTEE TO BE ABLE TO SET THAT AGENDA BASED ON THE SHAPE OF THE COMMITTEE. SPECIFICALLY IF WE ARE GOING TO PUT A REPORT OUT AT THE END HAS OUR STAMP OF APPROVAL OR A REQUEST FOR RECOMMENDATIONS. TO THE POINT OF PUBLIC COMMENT, I THINK THAT SHOULD BE LEFT UP TO THE COMMITTEE FOR STRUCTURE. AGAIN, THE GOAL HERE FROM THIS CHAIR, WOULD BE THAT THIS IS OBJECTIVE AND RATIONAL AND BASED ON A FIDUCIARY OVERSIGHT PERSPECTIVE.
THE GOAL WOULD BE THAT ANY TESTIMONY WOULD BE RELATED TO ENTITIES THAT ARE MOVING AND ON THAT WORK OF TRYING TO FIGURE OUT A BASELINE UNDERSTANDING OF HOW THE RELATIONSHIP SHOULD BE SET. TO KNOW HOW TO BEST SUPPORT NOT ONLY CITY OPERATIONS AND THEN POTENTIALLY APPROPRIATION COMING TO A LEGISLATIVE BRANCH IN THE END, BUT PUTTING AFFILIATES IN THE BEST RESPECTIVELY TO UNDERSTAND WHAT IS REQUIRED OF THEM OR HOW THEY WILL BE INTERACTING WITH THE CITY MOVING FORWARD IN A WAY THAT PUTS THEM IN A POSITION TO SUCCEED AS WELL. SO, I DO THINK PERSONALLY, A LITTLE PUBLIC TESTIMONY AT THE RIGHT TIME AND PLACE MAKES SENSE. BUT, RELATED TO AGAIN THAT OBJECTIVE, FIDUCIARY ROLE THAT THIS OFFSHOOT OF THE BUDGET AND
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FIDUCIARY OVERSIGHT COMMITTEE WILL HAVE.>> MR. CHAIR? WHAT WE HAD PREPARED TONIGHT , THIS WAS DONE IN CONJUNCTION WITH THE COUNCIL PRESIDENT IN LIEU OF HAVING A CHAIR YET. TONIGHT WAS GOING TO BE A REVIEW OF -- A GOVERNANCE REVIEW OF THE STRUCTURES, ENTITIES THAT WERE IN THE ORDINANCE. IN THE DISCUSSION FROM THAT WAS THAT IN MARCH, APRIL AND MAY WE REVIEW DO PROMOTE CARMEL FIRST. BECAUSE IT'S THE FIRST ONE WE TACKLED LAST YEAR. MART IN APRIL BECAUSE HER BOOKS CLOSE MARCH 31. IN THE CDC'S IN MAY.
THEY WOULD BE LONGER THAN ONE HOUR. IN THE ORDINANCE , INDISCERNIBLE ] THIS IS HOW WE HANDLE THAT WITH REVIEW OF THE
DOCUMENTS. >> ANOTHER PROCEDURAL QUESTION.
MAYBE YOU CAN HELP ME. MAYBE THE MAYOR CAN HELP ME. WILL YOU BE SENDING US ALL THE INFORMATION THAT WHAT WE REVIEWED DURING THE SPACE, WILL YOU BE SENDING A PACKET TO US, WHO WILL SEND THE INFORMATION ABOUT THE ENTITIES THAT WE ARE REVIEWING DURING THESE MEETINGS? WILL WE GET INFORMATION AND ENOUGH TIME FOR SOME OF US TO DIGEST AND RESEARCH AS WELL? AND WHEN WILL
THAT COME? >> MR. CHAIR? YOU WANT TO
ADDRESS THE INFORMATION >> TODAY I'M GOING TO PRESENT FOUR TYPES OF INFORMATION FOR EACH ONE OF THESE AFFILIATES.
BYLAWS, THE TAX-EXEMPT AN APPLICATION AND THE IRS INDISCERNIBLE ] LETTER. THREE OUR PUBLIC AVAILABLE AND YOU CAN FIND, ANYBODY THROUGH OUR COMMUNITY OR ANYWHERE CAN FIND THEM ONLINE. AND, THE ONLY OTHER THING WE REQUEST FROM EACH ENTITY WAS THE BYLAWS WHICH THE MAYOR'S OFFICE HAD THE BYLAWS FOR EACH ENTITY BECAUSE THESE ARE CITY AFFILIATES. AT THE SAME TIME, THE MAYOR'S OFFICE TOGETHER WITH THE COUNCIL PRESIDENT CREATED INFORMATION DOCUMENT REQUESTS TO REQUEST A LARGE SERIES OF DOCUMENTS FOR EACH ONE OF THESE PORTFOLIOS.
AND ASKED THAT THEY BE PROVIDED BY MARCH 1. THE MAYOR'S OFFICE DOES NOT HAVE THOSE DOCUMENTS YET. OUR GOAL IS TO USE AN OUTSIDE THIRD-PARTY THAT WILL HOST THEM IN THE CLOUD SO YOU CAN ACCESS THEM AND SEE THEM. THERE IS GOING TO BE A LARGE QUANTITY. I KNOW I HAVE A HARD TIME SENDING AN EMAIL WITH AN ATTACHMENT TO ANY CITY EMAIL BECAUSE IT GETS SENT BACK.
INDISCERNIBLE ] THE DOCUMENTS WE WANT TO MAKE THEM AVAILABLE TO ALL TO BE ABLE TO GO IN AND SEE ANY OF THEM, PRINT WHATEVER YOU WANT. BUT NOT HAVE TO EMAIL BACK AND FORTH THOSE MANY DOCUMENTS.
THEY ARE NOT IN-HOUSE YET, WE ASK THE BE PROVIDED BY MARCH 1.
IN ABOUT A WEEK ALL OF YOU SHOULD START HAVE ACCESS TO
THOSE. >> AS A FOLLOW-UP, YOU HAVE A COPY WAS SENT OUT TO THE ENTITIES?
>> YEAH. THE INFORMATION REQUEST WE PUT TOGETHER WAS REALLY FOCUSED ON WHAT WOULD AN AUDITOR ASK THE NONPROFIT FOR? IF AN AUDITOR WAS COMING INTO AUDIT THE BOOKS, WHAT ARE THE RECORDS AN AUDITOR WOULD ASK FOR? THAT FORMED THE BASIS OF WHAT THE REQUEST FOR DOCUMENTS WAS. HE ASKED EACH OF THE FOUR AFFILIATES TO PROVIDE EXACTLY THE SAME THING.
>> YES, SIR. >> AGAIN, FIRST, THANKS FOR ALLOWING ME TO BE ON THIS COMMITTEE. FULL DISCLOSURE, WHEN THE MAYOR CALLED ME ABOUT THIS I WAS LESS THAN ENTHUSIASTIC.
ABOUT GETTING PULLED BACK IN. BUT I THINK THE WONKY SIDE OF ME IS GETTING A LITTLE MORE EXCITED. CERTAINLY, I KNOW THE COUNCIL HAS SENT OUT AN AGENDA FOR THIS COMMITTEE. AND MAYBE IT'S KIND OF A STARTING POINT. ULTIMATELY I AM AND OUTCOMES PERSON. TO ME, THE PURPOSE OF PUTTING TOGETHER THIS COMMITTEE WOULD BE, WE HAVE A MEASURABLE OUTCOME WHERE OUR AFFILIATE ORGANIZATIONS ARE RUNNING MORE EFFICIENTLY, MORE EFFECTIVELY, AND MORE TRANSPARENTLY. AND ALL OF THOSE KIND OF RENT TOGETHER.
HOW TO DO THAT I THINK IS AN OPEN QUESTION. I THINK IT IS A GOOD STARTING POINT JUST TO SORT OF SAY, ARTICLES OF INCORPORATION AND THINGS LIKE THAT, BUT NONE OF THOSE ULTIMATELY DRIVE BEHAVIOR, AND OUTCOMES. SO TO ME WHAT I WOULD LIKE TO SEE, AND MAYBE IT IS ASPIRATIONAL OR DOWNSTREAM, IS
[00:15:02]
ULTIMATELY, WHAT ARE BEST PRACTICES IN TERMS OF MANAGEMENT , OPERATIONS AND REPORTING OF THESE ORGANIZATIONS. NOT JUST WHAT ARE THE ARTICLES ET CETERA, WHEN I SAY REPORTING IT IS BOTH REPORTING TO STATE, FEDERAL AGENCIES AS WELL AS COUNCIL. ONE OF MY FRUSTRATIONS WHEN I WAS ON COUNCIL 'S WE DID NOT GET REGULAR REPORTS FROM ENTITIES RECEIVING HUNDREDS OF THOUSANDS AND SOMETIMES MILLIONS OF DOLLARS OF TAXPAYER MONEY. SO ULTIMATELY, I WOULD LIKE TO SEE A SCRIPT, BUT IT'S NOT JUST A SCRIPT OF, THIS IS THE ARTICLES OF INCORPORATION AND THE MANAGEMENT, BUT HOW INEFFECTIVE ARE THESE ORGANIZATIONS BEING MANAGED? HOW ARE THEY OPERATING? AND THE REPORTING SEQUENCE , BOTH AGAIN, MAKING SURE REPORTING AS THEY SHOULD BE TO INDISCERNIBLE ] ORGANIZATIONS BUT ALSO TO COUNCIL. AND ON COUNCIL REPORTING WHICH IS PUBLIC REPORTING, THERE SHOULD BE A SCRIPT ON WHAT THEY BRING FORWARD, WHAT THEY DISCUSS, WHEN THEY DISCUSSED AND HOW FREQUENTLY AS WELL. ALL OF THOSE THINGS DRIVE TRANSPARENCY. TRANSPARENCY IS A TOOL IN THE TOOLBOX FOR BETTER OPERATIONS. STATIONS THAT KNOW THEY ARE BEING VIEWED, AND I DON'T WANT TO SAY THERE'S ANYTHING WRONG BEING DONE, BUT IF YOUR FOCUS IS NOT WHAT YOU'RE GOING TO SAY AT COUNCIL AND HOW YOU'RE GOING TO JUSTIFY YOUR BUDGET AND WHAT YOU'RE DOING, THEN YOU'RE NOT GOING TO FOCUS ON IT. I THINK THE REPORTING ITSELF HAS SOME VALUE AS WELL. AGAIN, I WOULD JUST SAY, AS SOMEONE RELATIVELY LATE TO THE GAME, THAT ULTIMATELY, FROM AN OUTCOME STANDPOINT, WHAT I WOULD LIKE TO SEE THIS ORGANIZATION DO OR THIS COMMITTEE DO IS USE A STANDARDIZED SCRIPT TO ACTUALLY LOOK AT MANAGEMENT PRACTICES, OPERATIONS, AND REPORTING. USE THAT SCRIPT THEN AND COMPARE THESE AFFILIATE ORGANIZATIONS AGAINST WHAT IS BEST PRACTICE FOR MANAGEMENT REPORTING AND IT BECOMES AN OBJECTIVE, IT'S AN AUDIT SORT OF THING. AND, IF WE FIND THAT ANY OF THESE ORGANIZATIONS ARE NOT FOLLOWING WHAT HOPEFULLY WE COULD FIND WHAT ARE CONSIDERED TO BE BEST PRACTICES, THEN THAT IS REALLY WHAT WE FOCUS ON. HOW WE GET THEM UP TO SPEED? DO THEY NEED MORE RESOURCES? DO THEY NEED THAT ARE LEGAL ADVICE AND THINGS LIKE THAT AS WELL ? I THINK THAT WOULD IMPROVE NOT ONLY THE FOUR ORGANIZATIONS HERE BUT COULD BE APPLIED TO OTHER ORGANIZATIONS THAT ARE OUT THERE AS WELL. AGAIN, THAT IS SORT OF MIGHT VIEW TRYING TO THINK OF IT FROM AN OUTCOME STANDPOINT RATHERTHAN A PROCESS STANDPOINT. >> ANYONE ELSE HAVE THOUGHTS? I APPRECIATE THAT FEEDBACK. I DO THINK , I MEANINGFUL TRANSPARENCY, I HAVE NOT SEEN OR BEEN ABLE TO READ OTHER THAN RIGHT NOW THE REQUEST FOR INFORMATION. THE FRAMEWORK OF WHAT INFORMATION WE NEED. THIS CONVERSATION TODAY IN THIS PRESENTATION OF THESE FOUR ENTITIES, IDEA OF THE COMMITTEE COMING UP WITH THE FRAMEWORK WE ARE COMFORTABLE WITH, MOVING FORWARD, AND THE CONVERSATION OF WHAT WE SHOULD BE LOOKING AT, HOW CAN WE PRESENT THIS INFORMATION AGAIN. THE END RESULT IS A REPORT THAT THE SIX OF US WILL MAKE TO THE CITY INTO THE PUBLIC ABOUT HOW WE SEE KIND OF THESE RELATIONSHIPS MOVING FORWARD. THAT SHOULD BE SOMETHING THAT IS BENEFICIAL TO OPERATIONS. BENEFICIAL TO THE CITY COUNCIL AND THE AFFILIATES AND POTENTIAL FUTURE AFFILIATES.
THAT WE WILL ENLIST TO HELP SUPPORT OUR COMMUNITY. MY THOUGHT IS, MOVING FORWARD, MAYBE WE PIVOT BACK TO THE AGENDA, MAYBE AFTER WE GO THROUGH IT , AS WE THINK ABOUT IT FOR ME COMMITTEE PERSPECTIVE, WHAT OTHER INFORMATION, WHAT ARE WE LOOKING FOR? MAYBE WE CAN BUILD THAT FRAMEWORK AND THEN MAYBE A REQUEST AT THE END OF THIS MEETING COULD BE OTHER QUESTIONS WE HAVE OR TOPICS WE COULD ASK OF THE ADMINISTRATION.
AND POTENTIALLY TO AFFILIATES FOR WE ARE LOOKING FOR SO WE CAN BUILD THAT NARRATIVE AND STORY THAT CAN BE REPEATABLE FOR ALL OF THESE MOVING FORWARD. I'M HAPPY TO PIVOT IT BACK TO THE
AGENDA. >> THANK YOU. THAT WAS THE PURPOSE OF THIS INFORMATION REQUEST, TO BECOME PRINCE OF BUT NOT SO MUCH THAT IT OPERATIONS OF THE AFFILIATES. AND ALSO FOR CONSISTENCY. RIGHT? SO, MOVING ON, THE IS HERE TO REVIEW THE GOVERNANCE. GIVE AN OVERVIEW OF WHO YOU ARE AND THEN MOVE FORWARD.
>> THANK YOU FOR HAVING ME WITH YOU. MY NAME IS MARILEE SPRINGER. I AM A PARTNER WITH WHEN I PUT THIS TOGETHER I REALIZED I WAS A NONPROFIT TAX-EXEMPT LAWYER FOR 29 YEARS. IT IS MY ENTIRE CAREER. I
[00:20:01]
REPRESENT NONPROFIT TAX-EXEMPT ENTITIES HERE IN INDIANA, BUT ALSO NATIONALLY AND GLOBALLY. PROBABLY ABOUT 75% OF MY CLIENTS ARE OUTSIDE OF INDIANA. AND I DO THIS TYPE OF WORK FULL-TIME. AND I LOVE IT. MY CLIENTS ARE 501(C)(3) AND QUASIGOVERNMENTAL ENTITIES. THE AFFILIATES YOU'RE GOING TO SEE TODAY ARE RIGHT WITHIN MY WHEELHOUSE IN TERMS OF THE CLIENTS I REPRESENT. ALL MY CLIENTS ARE HIGHLY REGULATED AND MANY DIFFERENT WAYS, THEY ARE REGULATED AT THE STATE LEVEL, THE FEDERAL LEVER BY FUNDERS, BY GRANTS AND WE ARE GOING TO TALK ABOUT THE INTERSECTION OF STATE LAW, FEDERAL TAX LAW, REGULATIONS IN GENERAL AS IT RELATES TO THESE FOUR ENTITIES. SO, OUR GOAL TODAY IS TO LEVEL SET. WE WANT TO MAKE SURE IN THE RESOLUTION ONE OF THE THINGS THE COUNCIL SAID IS THE MAYOR WOULD DO AN INITIAL REPORT AT THE FIRST MEETING. I AM HERE TO DELIVER A VERY BASELEVEL UNDERSTANDING TO MAKE SURE WE HAVE THE SAME TOOLS RELATED TO THE CORPORATE GOVERNANCE AND TAX STATUS OF EACH OF THESE FOUR ENTITIES. AS I MENTIONED EARLIER, THIS IS REALLY FOCUSED ON FOUR DOCUMENTS. IN FUTURE MEETIGS WE WILL GET MUCH MORE DETAILED INFORMATION AND WE WILL BE ABLE TO DO A MUCH DEEPER DIVE ON EACH OF THESE FOUR ENTITIES. AND BEFORE I LEAN INTO THESE, I WOULD LOVE THIS TO BE INTERACTIVE. I WANT YOU TO ASK QUESTIONS, INTERRUPT ME. I WOULD LOVE NOT TO BE TALKING AT YOU.BUT RATHER HAVING A CONVERSATION WITH YOU. IF ANYTHING I SAY PROMPTS A QUESTION, PLEASE, PLEASE LET ME KNOW. SO THE FIRST AFFILIATE WE'RE GOING TO TALK ABOUT TODAY IS CARMEL CHRIS KING GO TO MARKET. IT WAS INCORPORATED APRIL 2017 AND IT APPLIED TO THE IRS FOR A 501(C)(3) STATUS GRANTED JULY 28 OF 2017. IT IS A VERY SPECIFIC TYPE OF CHARITY. IS A PUBLIC CHARITY AND IT IS EIGHT TYPE I SUPPORTING ORGANIZATION. I WANT TO TALK A BIT ABOUT WHAT THAT MEANS. BECAUSE OF THE FOUR ORGANIZATIONS ARE GOING TO HEAR ABOUT TONIGHT I'M GOING TO REFER TO IT AS CCI. THE OTHER THREE ARE NOT STRUCTURED LIKE IT. AND SO, AS A TYPE I REPORTING ORGANIZATION THERE ARE ESSENTIALLY FOUR FEDERAL TAX REQUIREMENTS THAT APPLY TO CCI.
IT CAN'T ALLOW ITS ASSETS TO BENEFIT ANY INDIVIDUAL. THIS IS A NON- PROFIT CORPORATION, IT'S NOT OWNED BY ANYONE. IT'S ON BY THE COMMUNITY. ITS ASSETS ARE OWNED BY THE COMMUNITY AS A WHOLE AND SO NO INDIVIDUAL CAN TREAT ANY OF THESE ENTITIES LIKE AN EQUITY OWNER AS IF THEY OWN THE ASSETS OR THE BUSINESS OR THE ACTIVITIES. THIS IS ALMOST LIKE A PUBLIC TRUST OVER THESE ASSETS. THE ORGANIZATIONAL TEST THAT CCI HAS TO BE EXPORTER -- ORGANIZED EXCLUSIVELY TO PERFORM THE FUNCTIONS AND TO CARRY OUT THE PURPOSE OF THE CITY OF CARMEL. THIS IS THE ONE ENTITY THAT MAY ONLY BENEFIT THE CITY OF CARMEL. IT WOULD VIOLATE ITS FEDERAL TAX STATUS IF IT WOULD TO BENEFIT ANYONE OTHER THAN THE CITY OF CARMEL. AND OPERATIONALLY, IT MAY ONLY ENGAGE IN ACTIVITIES THAT SUPPORT OR BENEFIT THE CITY OF CARMEL. AS IT IS CURRENTLY ORGANIZED IN THE TAX STATUS IT HAS, IF FORT WAYNE CAME AND SAID, WE WOULD LOVE TO HAVE A CHRISTKINDLMARKT, IT COULD NOT DO THAT. IS FOCUSED SOLELY ON THE CITY OF CARMEL. AND THE RELATIONSHIP IT SAID, IT'S IRIS DETERMINATION AND SEDIMENTS IT HAS TO BE OPERATED, SUPERVISED OR CONTROLLED BY THE CITY OF CARMEL. THE IRS REGULATION CALLS THAT VERBATIM A PARENT SUBSIDIARY RELATIONSHIP. FOR TAX PURPOSES, THE CITY OF CARMEL IS THE PARENT AND CCI IS A CONTROLLED SUBSIDIARY. I USE THIS LANGUAGE BECAUSE IT HAS TO BE OPERATED, SUPERVISED OR CONTROLLED BY THE CITY OF CARMEL. IT IS A CONTROLLED SUBSIDIARY AS A PARENT/CHILD
RELATIONSHIP. >> AS WE TALK ABOUT THAT STRUCTURE, ARE THERE ANY OTHER ORGANIZATIONS WITHIN THE CITY OF CARMEL THAT HAVE THAT SAME DESIGNATION OR SYSTEM , REGARDLESS OF WHETHER OR NOT
ONLY ONE THAT IS A TYPE I? >> I AM NOT AWARE OF ANY.
[00:25:03]
>> I THINK IT GETS TO THE BROADER QUESTION OF, AFFILIATED, IS A DEFINITIONAL STANDPOINT. I AM NOT CERTAIN I HAVE A GRASP ON WHAT THAT MEANS, OR FROM A FISCAL PERSPECTIVE, OR THERE ANY OTHER TYPE ONES WE DO BUSINESS WITH A LADY TO A MISSION VISION
TIED TO CITY? >> TYPE ONES ARE VERY TYPICAL AND YOU SEE THEM EVERYWHERE. IS ONE OF THE MOST COMMON TYPES OF CHARITIES. YOU WILL SEE IT, IF YOU SEE A FOUNDATION THAT IS AFFILIATED WITH THE HOSPITAL, IT'S LIKELY A TYPE I. IF YOU SEE AN AFFILIATION WITH A COLLEGE OR UNIVERSITY, IT'S USUALLY TYPE I. IT IS NOT RARE. I THINK FOR ME, THE WORD AFFILIATE DOES NOT HAVE A LEGAL MEANING. THERE ARE TWO WAYS , AT LEAST TWO WAYS A NONPROFIT CORPORATION CAN ENGAGE WITH THE CITY. ONE IS A GOVERNANCE LITTLE LEVEL. MEANING YOU ARE RELATED TO EACH OF THE UNDER YOUR GOVERNANCE. THAT IS THE FOUR ORGANIZATIONS YOU SEE HERE. ANOTHER LAYER IS A SITUATION WHERE THE CITY FUNDS ARE GRANTS MONEY TO A NONPROFIT. THE CITY OF CARMEL HAS THE ABILITY TO MAKE GRANTS. THERE IS A BUDGET TO MAKE GRANTS AND THERE IS A MUCH BROADER GROUP OF CHARITIES THAT ARE RECEIVING GRANT FUNDING. AND SO, OBVIOUSLY WITH THIS FIRST MEETING WE HAVEN'T TACKLED THAT GROUP. BUT, I THINK IT WOULD BE A DIFFERENT INQUIRY OF WHICH WOULD BE WHAT ARE THE PARAMETERS OF THE COUNCIL WOULD WANT TO SET ON GRANT FUNDING? FOR THOSE ORGANIZATIONS, THEY ARE NOT AFFILIATES. THEY ARE NOT RELATED TO THE CITY IN TERMS OF GOVERNANCE.
>> OKAY, JUST TO FULLY CLARIFY AGAIN, THESE FOUR ENTITIES ARE RELATED BY AFFILIATION OF GOVERNANCE STRUCTURE THAT OVERLAPS WITH THE CITY ? THERE OTHER ORGANIZATIONS THAT MAY FULFILL SIMILAR PURPOSES THE DON'T HAVE SHARED GOVERNANCE STRUCTURES. I WONDER, AS A FOLLOW-UP REQUEST, BUILDING THE
>> OF UNDERSTANDING AND KNOWLEDGE, EVEN HAVING AN UNDERSTANDING, ARE THERE OTHER TYPE I ENTITIES WE ARE APPROPRIATING MONEY OR HAVE CONTRACTS WITH THE HAVE A DIFFERENT RELATIONSHIP TO US? THAT MIGHT BE AN INTERESTING SUBSET OF INFORMATION TO GET TO -- EX COUNSELOR, I DON'T KNOW IF THAT'S THE RIGHT -- HOW TO PUT THIS INFORMATION INTO A BUCKET OF UNDERSTANDING OF WHAT THOSE BEST PRACTICES COULD BE.
ULTIMATELY SOME MAY GIVE US KIND OF A GUIDANCE OR UNDERSTANDING OF HOW OTHER GOVERNANCE STRUCTURES ALLOW US TO HAVE A DIFFERENT REPORTING STYLE. I THINK FROM A LEGAL PERSPECTIVE, THE IDEA OF AN RFP AND A CONTRACT, YOU CAN HIRE INDISCERNIBLE ] FOR THAT SERVICE, IF THEY DON'T FULFILL THE OBLIGATIONS OF THAT CONTRACT, THERE IS A BREACH OF CONTRACT AND YOU CAN GO THROUGH AN RFP AND FIND ANOTHER SERVICE PROVIDER. BUT MAYBE REQUEST ALL THOSE NONPROFITS AND LIST OUT THAT WE ARE AFFILIATING WITH IN SOME CAPACITY COULD KIND OF GIVE US A STRUCTURE OF HOW TO DO THAT VIEW.
>> AGAIN, NOT DRAGGING THIS OUT BUT I THINK SOME INTERESTING POINTS ALREADY, UNDERSTANDING WHAT IS A TYPE ONE ORGANIZATION.
YOU MADE A COMMENT THAT THEY WERE VERY COMMON. THIS MAY BE JUMPING FAR AHEAD, BUT UNDERSTANDING WHAT THOSE STRUCTURES ARE OF THE AFFILIATED ORGANIZATIONS. AND LOOKING TO THE FUTURE, WHAT TYPE SHOULD BE ESTABLISHED. BECAUSE AGAIN, TO ME, IF THE CITY TAXPAYERS ARE FUNDING ALL OR MOST OF AN ACTIVITY FOR THE BENEFIT OF THE CITY, IT MAKES SENSE THAT IT SHOULD BE A TYPE ONE ORGANIZATION. AND THAT IS HOW THE TAXPAYERS GET ACCOUNTABILITY IN THE CITY HAS DIRECT GOVERNANCE OVER THEM. IT'S AN INTERESTING QUESTION. IF THIS IS A MINORITY OF AFFILIATED ORGANIZATIONS, THAT IS MAYBE A POINT OF CONTENTION FOR ANOTHER DISCUSSION DOWNSTREAM FOR FUTURE ORGANIZATIONS. IT COMES IS NEWS TO ME, I AM NOT A LAWYER, BUT I THINK A LOT OF PEOPLE IT MAKES PERFECT SENSE THAT CCI IS A TYPE I , I THINK THERE IS A LOT OF MISUNDERSTANDING OF WHAT IS NOT-FOR-PROFIT. I THINK USEFUL INFORMATION, THE WAY I'M THINKING IS IT'S IMPORTANT TO KNOW WHAT THE STRUCTURE IS AND IN THE FUTURE, THE NEXT CONTRACT, THE NEXT NOT-FOR-PROFIT, IT MAKES SENSE WE SHOULD MOVE IN THIS DIRECTION
WHERE APPROPRIATE. >> IF I MIGHT REFLECT BACK, TO LEVEL SET , FOR EVERY 501(C)(3), THE FIRST QUESTION IS IS IT
[00:30:04]
CHARITABLE? YES. IT'S A 501(C)(3). THE SECOND QUESTION IS, WHAT TYPE OF CHARITY IS THIS? THERE ARE THREE TYPES OF PUBLIC CHARITIES IN THE WORLD. THE FIRST TEST IS THE DEFINED TEST. WE CALL IT THE QUACK LIKE A DUCK TEST, YOU KNOW IT WHEN YOU DRIVE BY ON THE ROAD. A HOSPITAL, COLLEGE, SCHOOL, CHURCH. IT IS SOMETHING YOU KNOW. AND THEN OF THESE ENTITIES ARE THAT. THEY ARE NOT THAT DEFINED. THERE ARE TWO OTHER TYPES, AND YOU HAVE THEM HERE. ONE IS A SUPPORTING ORGANIZATION. THAT IS AN ENTITY THAT IS CONTROLLED BY ITS PARENT. AND, FROM THE CITY'S PERSPECTIVE, IT IS THE BEST WAY TO HOLD A CHARITY ACCOUNTABLE OVER THE SHORT AND LONG-TERM OUTCOMES. BECAUSE YOU ARE THE PARENT ORGANIZATION. I BELIEVE THAT IS WHY CCI WAS SET UP THAT WAY BECAUSE IT IS ACCOUNTABILITY RELATIONSHIP AND IT CAN'T WALK AWAY BECAUSE FOR THE REASONS WE ARE GOING TO DISCUSS IT IS ANCHORED TO THE CITY. THAT IS THE SECOND CATEGORY. THE THIRD CATEGORY OF CHARITIES HAS GROSS RECEIPTS FOR HUNDREDS OF THOUSANDS OF DONORS AND PEOPLE.IT IS ACCOUNTABLE TO THE PUBLIC, ATTRACTING FUNDING FROM SO MANY PEOPLE. I DON'T WANT TO SPOIL THE NEXT STEP BUT THAT IS PROMOTE CARMEL .
CATEGORY WOULD BE THE UNITED WAY. THE UNITED WAY GETS FUNDRAISING FROM HUNDREDS TO THOUSANDS OF PEOPLE. THAT IS CALLED PUBLICLY SUPPORTED. THAT IS AN ORGANIZATION NOT ACCOUNTABLE IN THE SAME WAY TO THE CITY AS A SUPPORTING ORGANIZATION. IN THE GOVERNING DOCUMENTS TO PUT A NEXUS THERE AT THE GOVERNMENT LEVEL, FOR CCI, THE FEDERAL TAX DESIGNATION IT HAS REQUIRES IT TO BE ANCHORED TO THE CITY IN THIS WAY. I REPRESENT MUNICIPAL ORGANIZATIONS AND STATE ORGANIZATIONS NATIONALLY. MOST GOVERNMENTAL ENTITIES WILL CREATE A NONPROFIT ORGANIZATION LIKE CCI WAS CREATED SO IF ANYTHING EVER HAPPENS, AND IT WALKS AWAY, AND THE GOVERNMENTS LEVEL AND TAX LEVEL THE MISCIBLE AUTHORITY CAN PLAYBACK. WHICH IS EXACTLY WHAT YOU WANT TO HEAR. IF YOU LOOK AT THE ARTICLES, AND I'M NOT GOING TO READ ALL OF THIS FOR YOU, IT IS AVAILABLE AND PUBLICLY AVAILABLE. CCI'S ARTICLES OF INCORPORATION, SPECIFICALLY USE THE LANGUAGE I SHOWED YOU EARLIER TO SAY THAT IT EXISTS EXCLUSIVELY FOR THE BENEFIT OF AND TO PERFORM THE FUNCTIONS OF AND CARRY OUT THE PURPOSES OF THE CITY. I REALLY WANT TO FOCUS ON THIS LAST PARAGRAPH. THIS IS CCI'S ARTICLES AND IT'S BEEN LIKE THIS SINCE IT WAS FORMED. IT'S CHARITABLE PURPOSE, WE KNOW THINK OF TO THE CITY, IT'S CHARITABLE PURPOSE IS TO BE DOING EDUCATIONAL AND CULTURAL ACTIVITIES IN GERMANIC CULTURE THROUGH LECTURES, STORYTELLING, DISCUSSIONS, MUSICAL PERFORMANCES, CULTURAL PRESENTATIONS AND AND AND WILL MARKET. THAT IS VERY INTENTIONAL BECAUSE NOT EVERYTHING IN THE WORLD IS CHARITABLE UNDER 501(C)(3). BUT CULTURAL HERITAGE AND EDUCATION IS. SO THIS LANGUAGE IS THERE TO SAY, THE PURPOSE IS MORE THAN PEOPLE COMING AND HAVING DINNER AND HAVING WINE. AND WALKING AROUND THE MARKET. IT IS A BIGGER AND BOLDER VISION. IT'S A CHARITABLE MISSION AND ITS EDUCATIONAL AND CULTURAL. SO, WHEN CCI APPLIED TO THE IRS IT USED EXACTLY THE SAME LANGUAGE.
YOU WILL SEE IN THE ARTICLES IT SAYS THIS IS WHAT WE ARE GOING TO DO, THIS IS THE LANGUAGE. AND WENT TO THE IRS, AND IT USED EXACTLY THE SAME LANGUAGE. NOW, ONE OF THE THINGS I THINK MAYBE A MISCONSTRUCTION IS WHETHER CCI OWNS THE MARKET. I WANT US TO THINK DIFFERENTLY. CCI IS A LEGAL ENTITY. IN THE MARKET IS PART OF WHAT IT DOES. THAT MARKET IS SITTING ON CITY PROPERTY, IT IS BEING SUPPORTED BY CITY EMPLOYEES. THE MARKET IS A THING, AND CCI IS A LEGAL ENTITY. A LEGAL ENTITY IS MUCH BIGGER. WHEN WE REVIEWED CCI'S FOR 1023 NEVER SAID IT WAS GOING TO OWN THE MARKET, BECAUSE THE MARKET WAS THE CITY'S, CCI WAS OPERATING. WE READ EVERY WORD OF THE IRS LOCATION AND THEY NEVER SAID THAT CCI WOULD ON THE MARKET. SO WHEN YOU LOOK AT THIS RELATIONSHIP REQUIRED, CCI'S DIRECTORS ARE APPOINTED BY THE MAYOR. VACANCIES ARE FILLED BY THE MAYOR. AND DIRECTORS MAY BE REMOVED WITH OR WITHOUT CAUSE BY THE MAYOR. THAT HAS BEEN IN PLACE SINCE CCI WAS FORMED. MAYOR BRAINARD HAD THAT RIGHT, AND MAYOR SUE FINKAM HAS THAT RIGHT. THAT IS THE TYPICAL RIGHT
[00:35:04]
THAT A PARENT ORGANIZATION WOULD HAVE, AS WE DESCRIBED, THE PURPOSE OF THIS CATEGORY IS IF THE ORGANIZATION STARTS TO WALK AWAY, THE CITY CAN PLAYBACK. IN THE WAY THE CITY PULLS IT BACK IS THROUGH BOARD APPOINTMENTS, REMOVAL POWERS, AND THEGOVERNANCE STRUCTURE. YES? >> QUESTION, I WOULD LOVE FOR THIS TO BE PROCESSED IN YOUR 29 YEARS OF EXPERT PROCESS , WHEN WE TALK ABOUT WALKING AWAY, WHAT ARE THE CHECKS AND BALANCES OR PROCESSES OR THINGS RELATED TO INFORMATION , IT GETS TO THE BROADER CONVERSATION, MAYBE IT'S NOT SOMETHING TO ANSWER NOW. THINKING FROM A BEST PRACTICE PERSPECTIVE, WHAT ARE THOSE TYPES OF OPERATIONS THAT A GOVERNMENT SHOULD DO OR HAVE OVER FROM A REPORTING REQUIREMENT TO SEE THOSE THINGS HAPPENING, IS THERE A STANDARD FOR THAT?
>> THERE ARE TWO. FIRST OF ALL, THE IRS REQUIRES ACCOUNTABILITY.
REQUIRES REGULAR ACCOUNTABILITY. WHEN WE BEGAN LOOKING AT THIS IN 2024, WE ASKED FOR A COPY OF THE MOU THAT CCI HAD WITH THE CITY.
WHAT WE RECEIVED WAS EIGHT TWO PAGE DOCUMENT WHICH HAD VERY LITTLE DETAIL. AND VERY LITTLE DETAIL ON THE REPORTING SIDE.
AND SO WE WORKED WITH THE MAYOR AND WE CREATED A TERM SHEET AND ULTIMATELY A MEMORANDUM OF UNDERSTANDING TO SAY, IF YOU'RE GOING TO RECEIVE THIS MUCH GRANT FUNDING, PAYMENT OF EXPENSES AND SHEER MANPOWER, THIS IS THE TYPE OF REPORTING WE WANT TO SEE. SO CONTRACTUALLY, IT SHOULD BE REQUIRED ANNUALLY. WHEN YOU TALK ABOUT BEST PRACTICES, ONE OF THE PEOPLE I KNOW PROFESSIONALLY, WHEN YOU TALK ABOUT BEST PRACTICES, THERE ARE VERY MUCH STANDARD MODELS FOR THE WAY THIS TYPE OF CONTROLLED NONPROFIT SCENARIO SHOULD REPORT TO THEIR PARENT.
>> IS THAT MOU IN THE PACKET OF STUFF?
>> NOT YET. I DON'T THINK THE MAYOR'S OFFICE HAS THAT TYPE OF
FINANCIAL INFORMATION . >> I'M LITERALLY JUST ASKING FOR THE MOU. THE CONCEPT OF THE MOU, DO WE HAVE OTHER MOU'S? THAT MIGHT BE OTHER QUESTIONS. ARE THERE OTHER OPERATING AGREEMENTS LIKE THAT WITH OTHER ENTITIES OR ARE WE LOOKING AT KIND OF, AGAIN, TRYING TO BASELINE WHERE WE ARE AND WHAT THESE RELATIONSHIPS LOOK LIKE. IF THERE ARE NO OTHER ENTITIES THAT WE NEED TO BE AFFILIATED OR THAT NEED IN MOU, STRUCTURALLY AS THE BUDGET, WE SEE THE MILLIONS OF DOLLARS THEY GET APPROPRIATED THROUGH NONPROFITS AND OTHER POTENTIAL PARTNERS, AGAIN, BEST PRACTICE, IF THERE IS SOMETHING, AND A FULLY AGAIN, BRENDA COUNCIL AND BRAND-NEW MAYOR TRYING TO FIGURE OUT WHAT WE SHOULD BE LOOKING AT AS WE GO THROUGH OUR PROCESS. WONDERING
IF THERE ANY. >> SO, FIRST OF ALL, YOU KNOW, YOU SHOULD, YOU THE CITY OF CARMEL, SHOULD BE RECEIVING COMPREHENSIVE FINANCIALS. AND, THAT INCLUDES A BALANCE SHEET AND INCOME STATEMENT. THERE SHOULD BE SOME FORM OF AUDITED FINANCIALS AND DEPENDING ON THE ASSET BASE, IT MAY NOT BE A FULL AUDIT, IT MAY BE IN AGREED-UPON PROCEDURES, THE CITY SHOULD ALSO BE RECEIVING MINUTES. LIKE A GENERAL UNDERSTANDING , THROUGH THEIR BOARD APPOINTEES, OF HOW THE CORPORATE GOVERNANCE IS GOING. BUT, ECONOMICALLY, AND FINALLY WHAT IS A CHARITABLE MISSION? FOR EVERY SINGLE ONE OF THESE ORGANIZATIONS THEY ARE DOING SOMETHING ON BEHALF OF THE CITY. AND THAT IS, DR. TIM HANNON, TO YOUR POINT, WE WANT TO KNOW IMPACT AND OUTCOMES OF THE CHARITABLE MISSION YOU HAVE BEEN GIVEN RATHER THAN JUST
ACTIVITY. >> AGAIN, I WANT TO MAKE SURE, EVEN THOUGH I KNOW THERE IS AN ORDER AND WE ARE STARTING WITH CCI, THIS DISCUSSION IS FROM ALL FOR THE BEGINNING. USED THE TERM, WALK AWAY. WE DON'T WANT AN ORGANIZATION TO WALK AWAY. TO ME IT'S NOT JUST PHYSICALLY WALKING, OR GOING TO TAKE THIS TO FORT WAYNE , BUT TO WALK AWAY FROM THE MISSION. I THINK THAT IS ONE OF THE PROBLEMS. AND THE CHAIRMAN AND I TALKED ABOUT THIS, AS FOR-PROFITS LIKE ANYTHING START OUT WITH THE PEOPLE WHO WERE THERE AT THE ITERATION, HAD GOOD INTENT, AND HAD GREAT IDEAS. BUT THE LONGER IT RUNS OR WITH MORE TURNOVER, A
[00:40:04]
VARIETY OF THINGS, THEY STRAY FROM THAT OR CAN STRAY FROM THAT. BACK TO OPERATIONAL AND FUNCTIONAL, THAT IS WHAT I WANT TO EVENTUALLY GET TO. NOT JUST THE WONKY REPORTING. GREAT, SO SHOWS YOUR PROFIT AND LOSS, BUT HOW ARE YOU ALLOCATING THESE FUNDS ? HOW ARE YOU MEETING THE MISSION? AND WHAT YOUR METRICS TO SAY YOU ARE MEETING NOT JUST AN ANNUAL CHRISTKINDLMARKT FESTIVAL, BUT TO CONDUCT EDUCATIONAL AND CULTURAL ACTIVITIES THROUGH LECTURES AND STORYTELLING. ALL OF THE THINGS IN THE CHARTER. THIS IS JUST AN EXAMPLE, HOW ARE YOU MEASURING THAT? HOW DO WE KNOW THE TAXPAYERS ARE GETTING RETURN? HOW DO WE KNOW YOUR MEETING OR MISSION STATEMENT AS WELL? AGAIN, THAT STRAYS FROM LEGAL REPORTING AND FINANCIAL REPORTING, BUT IT GETS TO THE HEART OF WHAT IS THE MISSION AND ACCOMPLISH IN THE MISSION OR MEASURING THE EFFECTIVENESS.>> ABSOLUTELY AGREE. HOW EACH OF THESE ORGANIZATIONS SPENDS THEIR CAPITAL IN THEIR BUDGET DIRECTLY IMPACT HOW MUCH THEY NEED FROM THE CITY. USING TAXPAYER DOLLARS. SO THE DECISIONS THEY ARE MAKING WITH THEIR BUDGET ARE DIRECTLY IMPACTING THE CITY.
BECAUSE THAT MAY MEAN THEY NEED MORE SUBSIDY. ONE OF THE EXAMPLES, AND THIS WAS IN ANOTHER STATE, I REPRESENT THE PUBLIC UNIVERSITY AND THEIR AFFILIATED FOUNDATION. THE BOARD TRY TO MAKE A DECISION IT WAS ALL OF A SUDDEN GOING TO START SUPPORTING FREE PUBLIC UNIVERSITIES. AT THE ALUMNI OF ONE UNIVERSITY HAD GIVEN THE FUNDING. YOU CAN SEE HOW THAT WOULD BE A PROBLEM. WHEN I SAY WALK AWAY, IT CAN BE FROM THE CHERVIL MISSION, IT CAN BE FROM THE ACCOUNTED -- ACCOUNTABILITY TO THE PARENT ORGANIZATION. TONIGHT REPRESENT TYPE I SUPPORTING ORGANIZATIONS I ALWAYS SAY, YOUR NUMBER ONE STAKEHOLDER IS YOUR PARENT ORGANIZATION. IT'S THE MOST IMPORTANT RELATIONSHIP YOU HAVE. BECAUSE YOUR ANCHOR TO IT FOR ALL OF THESE DIFFERENT REASONS, BUT YOU HAVE GIVEN IN THIS SITUATION A VERY IMPORTANT PROGRAM AND YOU ARE ACCOUNTABLE BACK TO THE CITY AND HOW YOU EXECUTE ON THAT.
>> ONE MORE PROCEDURAL QUESTION. BROADLY, AND MOU LIKE THIS DEFINES KIND OF A REPORTING STRATEGY AND STRUCTURE WHETHER IT BE TYPE I OR DIFFERENT, A DIFFERENT KIND OF FUNDING STRUCTURE ALTOGETHER. WONDERING, FROM AN ACCOUNTABILITY PERSPECTIVE OR STRUCTURE, IF THERE ARE BEST PRACTICES, I WOULD LOVE TO SEE THOSE HOLISTICALLY AND SEPARATE FROM THE RELATIONSHIP TO SEE IF THERE IS, IN PERFECT WORLD, YOU PICTURE SOMEONE IN THE LEGAL DEPARTMENT BEING THE COMPLAINTS PERSON WHO HAS A TURNKEY OPERATIONAL SYSTEM TO COLLECT THESE RELATIONSHIPS IN A WAY THEY CAN BE PRESENTED. NOT ONLY TO THE ADMIN STREET OF BRANCH, TO KNOW WHAT DIRECTION TO GO, ALSO THEN VERY CLEARLY FREE UP THE BUDGET DISCUSSION, THIS IS WHO WE ARE, THIS IS WHERE WE ARE GOING. WONDERING, THINKING MOU
-- >> I LIKE TO DISTINGUISH TWO THINGS. MOU AND GRANT. THE CITY HAS BOTH OF THEM. A GRANT IS TRANSACTIONAL. IS, I AM GIVING YOU THIS MUCH MONEY THIS YEAR FOR THIS ACTIVITY. IT IS ONE WAY AND YOU'RE GOING TO DO IT AND AT THE END YOU'RE GOING TO TELL ME I DID IT AND HERE'S MY REPORT. IN MOU IS RELATIONAL. IT IS A CONTRACTING MODEL WE DO WHEN OUR RELATIONSHIPS ARE GOING BACK AND FORTH ALL YEAR LONG.
IT'S NOT JUST MONEY. AS YOU'RE GOING TO SEE, IT WAS 8000 HOURS IN A YEAR OF CITY EMPLOYEE TIME. THAT IS RELATIONAL. IS YOUR DIGGING INTO THIS, PUT THE NONPROFITS IN TWO BUCKETS. THE RELATIONAL BUCKET NEEDS IN MOU. BECAUSE ALL YEAR LONG THOSE RELATIONSHIPS A RUNNING BACK AND FORTH. AND THEY ARE BURIED. SOME ORGANIZATIONS ARE RECEIVING A GRANT. IT'S TRANSACTIONAL AND THE BOTTOM LINE IS IF YOU DON'T EXECUTE THIS YEAR YOU'RE NOT GETTING A GRANT NEXT YEAR. THAT IS VERY DIFFERENT THAN THE MARKET. THAT IS EMBEDDED INTO OUR COMMUNITY. THAT IS IN MOU.
>> SO JUST QUICKLY, BY THE WAY, THE OTHERS ARE GOING TO GO QUICKER BECAUSE I SET THIS UP AND I'M GOING TO TELL YOU DIFFERENTLY. MINIMUM OF THREE DIRECTORS APPOINTED BY THE MAYOR. THE OFFICERS ARE ELECTED BY THOSE DIRECTORS. DIRECTORS ARE APPOINTED BY THE MAYOR. OFFICERS ARE ELECTED BY THE FELLOW DIRECTORS. NOW, I WANT TO TALK A BIT ABOUT THE OWNERSHIP OF THE MARKET. I KIND OF DID THIS EARLIER, BUT GETTING IN MAY 2024 THE CITY REINFORCED TO CCI THAT THE CITY MUST CONTINUE TO OWN THE MARKET WELL CCI IT WOULD OPERATE THE MARKET AND BE SOLELY RESPONSIBLE FOR THE CHARITABLE AND EDUCATIONAL PROGRAMMING AT
[00:45:01]
THE MARKET. REMEMBER WHEN I SHOWED YOU THEIR LANGUAGE, THERE WAS A LOT OF CULTURAL AND EDUCATIONAL, CCI HAS ALWAYS RETAINED 100% OF THAT, THE CITY HAS NEVER MADE ANY REQUESTS OR DEMANDS RELATED TO THAT. AS IT RELATES TO THE OWNERSHIP OF THE MARKET BEGINNING IN MAY 2024, I PERSONALLY GOT VERY SPECIFIC ABOUT THE OWNERSHIP OF THE MARKET. THE REASON WHY DID THAT IS A LEGAL REASON. THAT IS GHOST EMPLOYMENT. GHOST EMPLOYMENT IS A CRIMINAL STATUTE IN INDIANA. IT SAYS THAT CITY EMPLOYEES, MUNICIPAL EMPLOYEES HAVE LIMITS ON THEIR ABILITY TO WORK FOR ANYBODY OTHER THAN THE CITY. IT IS A CRIMINAL STATUTE. THE STATE LAW PERMITS A CITY TO ALLOW THEIR EMPLOYEES TO WORK FOR A NONPROFIT AS LONG AS IN THIS CASE, THE MAYOR, BUT THE DEFINITION ABOUT HOW MUCH WORK CAN BE DONE. YOU UNDERSTAND WHY THE STATE LEGISLATURE DID THAT. THEY DON'T WANT TAXPAYERS PAYING FOR EMPLOYEES AND THEN HAVING THE EMPLOYEES WORK FOR SOMEONE ELSE AND NOT THE CITY. THE STATE STATUTE SAYS YOU CAN'T CAN ALLOW POTENTILLY VOLUNTEER TIME FOR THEM IN DISABILITY. AND MAYOR BRAINARD DID THAT. HE ISSUED AN EXECUTIVE ORDER IN 2007 AND HE SAID CITY EMPLOYEES WERE ALLOWED TO PERFORM NO MORE THAN 75 HOURS IN A YEAR FOR NONPROFITS. THAT IS NONPROFITS, PLURAL, ACROSS THE ENTIRE CITY. THE PROBLEM WE DEFINED REALLY EARLY IN 2024 WAS THAT THE STREET DEPARTMENT HAD COMMITTED ALMOST 1000 HOURS IN SUPPORT OF CCI . AND WHEN WE LOOK AT THAT ON AN EMPLOYEE LEVEL, THERE WERE 37 EMPLOYEES THAT HAD EXCEEDED THE 75 HOUR THRESHOLD JUST FOR THE MARKET , NOT TAKING INTO ACCOUNT CARMEL FEST, FARMERS MARKET AND OTHER NONPROFITS. THE AVERAGE NUMBER OF HOURS OVER 75 WAS 131. THAT LED US TO CONCLUDE-- QUESTION? >> THAT LED US TO CONCLUDE A COUPLE OF THINGS. FIRST OF ALL, THE CITY HAD ALWAYS OWNED MARKET. CCI HAD NOT. THEY HAD NOT STATED TO THE IRIS THEY OWNED THE MARKET. BUT FROM A LEGAL PERSPECTIVE IN THE STATE OF INDIANA, THE CITY MUST ON THE MARKET. IN ORDER TO ALLOW THE CITY EMPLOYEES TO PROVIDE THE SHEER MAGNITUDE. BECAUSE THE BOTTOM LINE IS, THE REASON WHY THE STREETS DEPARTMENT IS SETTING UP AND TEARING DOWN AND PROVIDING THE SERVICES AT THE MARKET IS BECAUSE IT IS THE CITY'S MARKET. IT IS ON THE CITY'S REAL ESTATE, CCI IS NOT PAYING RENT OR UTILIZING INDISCERNIBLE ] FOR TWO MONTHS OUT OF THE YEAR. THE CITY EMPLOYEES PROVIDE WHATEVER SERVICES THE CITY DESIRES WITH NO LIMIT BECAUSE IT IS A CITY EVENT. IF IT WAS NOT CITY EVENT,
IT MEANS -- >> WE WENT HERE," ASKED THE QUESTION, THE CONCEPT OF GHOST EMPLOYMENT, OBVIOUSLY, THE IDEA THAT THE CITY MARKET IS PART OF A CITY OPERATION, SO THERE IS NO GHOST EMPLOYMENT, ILLUMINATES THE APPLICATION OF THAT. YOU BROUGHT UP TO OTHER EVENTS. FARMER'S MARKET, AND THE CARMEL FEST WHICH ARE NOT ON THIS AFFILIATE LIST BUT ARE AFFILIATED RELATIONSHIPS IN SOME CAPACITY THAT WE ARE APPLYING CITY SERVICES TO, WONDERING IF THERE HAS BEEN AN ANALYSIS OF GHOST IMPLEMENT APPLICATION TO THOSE TWO, AND WONDERING AGAIN, FROM A PURELY BEST PRACTICES PROCEDURE, HOW DO WE MITIGATE THAT WHICH TENUOUS LEGAL FRAMEWORK, HOW DO WE ENSURE THAT NUMBER IS THERE I SEE IT FROM A COMPLAINTS OR PERSPECTIVE, TYPE I IS THE CLOSELY RELATED ORGANIZATION AND WE HAVE TO OVERCOME THAT ARGUMENT FOR THAT. ANYTHING BELOW THAT THRESHOLD YOU WOULD THINK WOULD BE CLOSER TO -- I WONDER AGAIN, BUILDING BACK TO THE QUESTION OF WHAT ARE THESE ENTITIES, CAN WE START WITH MAYBE THE APPROPRIATION SIDE? THE SERVICE SIDE? THE DIRECT AND INDIRECT COST TO ALL THE POTENTIAL ENTITIES AND THEN WORKING BACK FROM HOW TO BEST OPERATIONALIZE. I SEE SOME OF THOSE, LIKE THE FARMERS MARKET, LEHMAN PERSPECTIVE TO ME SEEMS TO BE DIRECTLY CORRELATED ENTITY OF CARMEL. I KNOW THERE IS A NONPROFIT SET UP TO RUN THAT. BUT IT'S NOT ON THIS LIST OF FOUR. I'M ASSUMING BECAUSE WE DON'T HAVE --
>> I THINK IT'S A GREAT QUESTION. I THINK YOU ARE RAISING GOOD QUESTIONS FOR FURTHER DUE DILIGENCE.
>> BACK TO I THINK, MY OPENING STATEMENT, I WOULD HOPE, EVEN IF WE ARE JUST SCRATCHING THE SURFACE, I'M TRYING TO PROVIDE
[00:50:02]
SOME ORDER TO THESE FOUR ENTITIES, AGAIN, JUST UNDERSTAND THE GOAL HERE , CERTAINLY FROM MY STANDPOINT, IS HOW WE MAKE THEM FULFILL THEIR MISSION THAT ARE. CAN THEY BE MORE EFFICIENT OR ACCOUNTABLE, ET CETERA? BUT THERE IS NO DOUBT THAT IF WE DO THIS RIGHT, AND STANDARDIZE IN AN OBJECTIVE WAY, CAN BE APPLIED TO OTHER ORGANIZATIONS AS WELL. I GUESS THAT IS A COUNCIL QUESTION OR A COUNCIL AND MAYOR QUESTION, BECAUSE YOU ESTABLISHED THE COMMITTEE. WHETHER THE SCOPE IS JUST THESE FOUR, , IF THAT IS THE CASE, THEN I WOULD HOPE THAT FINDINGS AND HOPEFULLY OUTCOMES OF THIS COULD THEN BE APPLIED TO OTHER ORGANIZATIONS AS WELL. I WILL ALSO SAY, EDITORIALIZING A BIT, THIS IS A GREAT TIME TO BE DOING THIS. AS YOU MENTIONED, AS GRANTS ARE A TRANSACTIONAL THING, WE'RE GOING TO GIVE YOU A GRANT THIS YEAR, AND UNLESS YOU DO WHAT YOU SAID YOU'RE GOING TO DO IN THE GRANT, YOU'RE NOT GOING TO GET IT NEXT YEAR. I HAVE NO CONFIDENCE THAT OF ALL THE GRANTS HANDED OUT OVER 20+ YEARS IN THE CITY, THAT THERE IS A BEEN A CHECK AND BALANCE THAT SAYS WE GIVE YOU $6000 LAST YEAR, COME AND TELL US WHAT YOU DID, SHOW US WHAT YOU DID. DEMONSTRATE YOU DID BEFORE WE DO IT AGAIN. I THINK THAT NEEDS TO BE SOMETHING BUILT IN GOING FORWARD AS WELL. IF TAXPAYERS ARE, THROUGH THE COUNCIL, PROVIDING NOT FOR PROFITS FUNDS, THERE NEEDS TO BE AN ACCOUNTABILITY TO BE ABLE TO SHOW THE TAXPAYERS ARE GETTING WHAT THEY WANT. AND AGAIN, THAT WOULD BE PART OF THE REVIEW PROCESS. IF YOU'RE COMING BACK AGAIN THIS YEAR AND YOU WANT THE SAME AMOUNT OF MONEY OR MORE, IT SHOULD BE MORE THAN WE HAVE ALWAYS GIVEN IT TO, IT SHOULD BE WE REVIEWED YOUR PERFORMANCE OVER THE LAST TWO YEARS AND YOU HAVE DONE GREAT THINGS MEASURABLY. I THINK, IS DISCRETIONARY FUNDS GET MORE CHALLENGING, SORRY MAYOR, THERE IS NO WAY THAT'S NOT GOING TO HAPPEN, HAVING AN OBJECTIVE TOOL TO BE ABLE TO SAY, THESE ORGANIZATIONS ARE FOLLOWING OUR BEST PRACTICE GUIDELINES IN TERMS OF REPORTING GOVERNANCE, OVERSIGHT, ET CETERA. IT MAKES THAT DECISION FOR DISCRETIONARY FUNDING, I WOULD THINK, EASIER.>> THAT WAS A GREAT POINT. WHICH SEGUES ME INTO THE OTHER, I'M GOING TO MAKE THIS SHORT AND SWEET, FOR MY OWN SELFISH REASONS, WHEN LOOKING AT THIS PROCESS AND HAVING THAT GOAL SET IN MIND, WHEN IT COMES TO THE BUDGETING PROCESS, NEXT YEAR, WHEN WE START, THIS WILL SIMPLY MAKE IT MUCH EASIER FOR THE LEGISLATIVE BODY TO MAKE THOSE DECISIONS, IF WE HAVE THOSE GUIDELINES IN PLACE. SO RATHER THAN SPENDING FOUR HOURS ON THE DAIS HAVING THE DISCUSSION, WE CAN HAVE IN FRONT OF US PRIOR AND THEN POSSIBLY CREATING A REVIEW COMMITTEE WORKSHOP PRIOR TO BUDGETING SEASON. WAY DOWN THE ROAD. BUT SOMETHING TO THINK
ABOUT. >> WE ACTUALLY, I THINK THAT THE CITY CFO QUERIED THE DIFFERENT DEPARTMENTS TO GET ESTIMATES OF HOW MUCH TIME AND THE VALUE OF THAT TIME HAS BEEN CONTRIBUTED.
A ROUGH ESTIMATE IS $7.9 MILLION. THE DEPARTMENTS HAD NOT PROVIDED THAT TYPE OF REPORTING. THE MAYOR'S BUILDING INFRASTRUCTURE HERE THAT WOULD NOT EXIST IN TERMS OF REPORTING THIS TIME, BEING RESPONSIBLE FOR IT. MOST OF US, MY EMPLOYER HAS A VOLUNTEER POLICY, WE CAN VOLUNTEER. I HAVE TO ACCOUNT FOR THAT TIME. AND SO, I THINK THE CITY IS GOING TO NEED TO START HAVING POLICE ACCOUNT FOR THE TIME. TO YOUR POINT. FOR CCI WE HAVE CONCLUDED IT IS A CITY EVENT. WE DON'T NEED TO WORRY.
THEY DON'T NEED TO USE THEIR 75 HOURS THERE. BUT, FOR OTHER ORGANIZATIONS THAT ARE NOT CITY EVENTS THEY WILL NEED TO USE THAT. I KNOW WE ARE GETTING CLOSE, AND I THINK I CAN DO
PROMOTE CARMEL REALLY QUICKLY. >> I THINK IT'S GOOD TO DO ANOTHER ONE. JUST TO SEE THE PROCESS YOU WANT TO GO TO. THINK IT WOULD BE GOOD TO HOLD THIS INCOME I LOVE TIME AT THE END, I KNOW WE HAVE THE MOST WONDERFUL COMMITTEE AFTER THIS, THE CLIMATE ADVISORY COMMITTEE, BUT, I LOVE TO TALK ABOUT NEXT STEPS AND SEE FROM A RECOMMENDATION STANDPOINT, ANY OTHER RECOGNITIONS THE COMMITTEE MEMBERS WOULD LIKE TO SEE.
>> I WOULD LIKE TO SAY, AND I KNOW THERE IS AN AGENDA SET, I THINK THE MOST IMPORTANT THING WE CAN DO TONIGHT IS HAVE THAT DISCUSSION, RATHER THAN QUICKLY BLOW THROUGH ANOTHER ORGANIZATION. THAT WOULD BE MY RECOMMENDATION . IF WE HAVE
LITERALLY FIVE MINUTES. >> I APPRECIATE THAT. IF THE
REST OF THE COMMITTEE DOES TOO. >> THAT'S FINE. WE JUST HAVE TO
[00:55:02]
REVISIT FUTURE MEETINGS. WE HAVE TO GO THROUGH THIS FOR THE ORDINANCE. THIS IS TIME-LIMITED BECAUSE OF TRYING TO GET A MEETING ON THE BOOKS TO KEEP THIS MOVING. WE HAVE TO MAKE SURE THE NEXT MEETING CAN COVER THE REST OF THIS SO WE ARE COMPLIANT WITH THE PURPOSE AND FUNCTION OF THIS RESOLUTION. IHAVE NO PROBLEM WITH NEXT STEPS. >> THANK YOU SO MUCH FOR THIS.
BEING ABLE TO GO THROUGH AT LEAST SEE THE PRESENTED INFORMATION BEFORE THE NEXT WILL BE HELPFUL ON THAT FRONT. TO THE DISCUSSION STANDPOINT, AGAIN, FOR MY PERSPECTIVE, I THINK A HOLISTIC DATA OR STRUCTURE POLL, WHETHER FROM FINANCE OR LEGAL, JUST WHAT ALL OF THESE DIFFERENT RELATIONSHIPS ARE. I LOVE THE CONCEPT OF UNDERSTANDING THE INDIRECT SERVICES WE ARE PROVIDING , THAT IS A BRILLIANT ADDITION TO THE REPERTOIRE OF THE CITY. I GIVE KUDOS TO THE MAYOR AND HER TEAM FOR TRYING TO OPERATIONALIZE AGAIN, TO DR. TIM HANNON'S POINT, THIS IS A NEW PROCESS. NEW EXECUTIVE AND LEGISLATIVE BRANCH, AND REALLY TRYING TO NORMALIZE BEST PRACTICES IN THE FUTURE . THIS IS A SOPHISTICATED CITY. I THINK BUILDING A BASELINE UNDERSTANDING OF EVERYTHING UP THERE ON THE BOARD FOR US TO SAY, THAT MAKES SENSE, THAT GOES FOR THE ARTS COMMISSION. THE GRANT TO SET UP. THERE IS A PROCESS AND IF IT'S NOT A GOOD ONE THEY DON'T DO IT AGAIN NEXT YEAR. ALL OF THOSE THINGS BECOME PART OF A BROADER UNDERSTANDING IN A SENSE. SO, NEXT MEETING, LET'S GO THROUGH THE OTHER THREE WE HAVE HERE. KIND OF IN THE CONTEXT OF WHAT WE TALKED ABOUT TODAY. I THINK, REQUESTING A MORE SOLID -- CAN BE A 7000 LINE SPREADSHEET IF IT HAS TO BE -- INFORMATIONAL SUBSET OF THOSE OTHER THINGS THAT CAN POTENTIALLY POTENTIALLY BE AFFILIATED WITH THE CITY WILL BE
GREAT. >> AGAIN, THANKS. TRAINEE, I AM SURE NEXT TIME WE WILL GET THE PACKET AHEAD OF TIME AND MOVE THROUGH IT MORE QUICKLY. I THINK WE CAN MAKE UP FOR THAT LOST AROUND, SO TO SPEAK. IN THE SAME THING I'M REQUESTING, ASPIRATION IN THE FUTURE, THAT ALL OF OUR NOT-FOR-PROFIT AFFILIATED ORGANIZATONS REPORT IN A STANDARDIZED MANNER,WOULD ASK YOU TO DO THE SAME THING, IN ADDITION TO HAVING THE POCKET -- PACKET AHEAD OF TIME, I KNOW IT'S HARD BECAUSE WE ARE HERE FOR THE FIRST TIME, I AM A SPREADSHEET KITE TOO. SOMETIMES THINGS POP OUT MORE TO ME WHEN YOU LINE UP, YOU KNOW, POSITIONAL TYPE REPORTING OR WHATEVER SORT OF MAJOR CATEGORIES ARE GOING THROUGH YOUR MIND, IF WE CAN IN ADDITION TO THE PRESENTATION HAVE THAT EXECUTIVE SUMMARY AND VISUAL SO WE CAN SCAN ACROSS IT AND IT DRAWS IT TO HER EYE. THE OTHER THING THAT HELPS IS WE ARE DOING REPORTING BY EXCEPTION. WE ARE NOT TALKING ABOUT THE THINGS WE'VE ALREADY COVERED THAT ARE STANDARDIZED, BUT WHAT THINGS ARE UNUSUAL, GOOD OR BAD? WITH REGARDS TO THAT ORGANIZATION STRUCTURE. AGAIN IT WOULD CERTAINLY HELP ME TO GET THE INFORMATION AHEAD OF TIME. IN TERMS OF REPORTING, NOT JUST THE POWERPOINT, BUT THINKING SORT OF STRUCTURALLY THROUGH OUR SPREADSHEET OR WHATEVER, THE KIND OF CATCHES RI WHEN WE'RE LOOKING AT DIFFERENCES. AND MAYBE YOUR COMMENTS, THIS IS THINGS THAT I THOUGHT WERE UNUSUAL AND AGAIN COULD BE A GOOD THING. AS WELL AS BAD.
>> BECAUSE THERE ARE SOME THINGS. THE WERE SOME THINGS THAT CAUGHT OUR ATTENTION. WE WILL MAKE SURE WE BRING THIS UP
TO. >> I WANT TO REITERATE INTENT .
THE REASON I WAS COMFORTABLE BEING PART OF THIS COMMITTEE ON THE FRONT END, THE GOAL OF THIS WILL BE KIND OF OBJECTIVE RATIONAL FRAMEWORK WHICH TO COLLECT THE INFORMATION, RECOMMENDATIONS. HOPEFULLY WE WILL BE MAKING AT THE END. AND WE CAN VOTE , AND THE VOTING AND WITH A LOOK LIKE. I VIEW THOSE AS BEING LIKE A BEST PRACTICE STRUCTURE. AND ORGANIC, HERE'S THE BEST WAY TO DO THIS IF THERE'S A TYPE ONE OR RECOMMENDATION, THIS IS HOW WE SHOULD BE COLLECTING INFORMATION MOVING FORWARD BECAUSE THAT IS THE BEST PRACTICE. OR IF WE ARE MAKING A GRANT, EVEN IF IT'S $5000 THROUGH A PROCESS, THAT WE UNDERSTAND THE FRAMEWORK FOR HOW BEST TO REVIEW THAT. AND TO KNOW THAT FROM AN OPERATIONAL STANDPOINT RECEIVING INFORMATION FROM WHATEVER SOURCE THE RIGHT WAY TO MAKE THE RIGHT DECISION.
I WANT TO JUST SAY THAT I DON'T VIEW THIS IN ANY WAY BEING RECOMMENDATIONS RELATED DIRECTLY TO ANY INDIVIDUAL ENTITY. WE ARE USING THE FOUR THERE ON THE LIST TODAY BECAUSE THEY ARE THE ONES WE HAVE GOVERNANCE OVERSIGHT OF. BUT ULTIMATELY THE REAL GOAL FROM A PROCEDURAL STANDPOINT CAN BE SO MUCH MORE OBJECTIVE AND BROAD THAN THAT FROM THE STANDPOINT OF, THESE ARE BEST THINGS WE CAN DO MOVING FORWARD WHICH CAN GET US TO THE POINT THAT BUDGETING AND RELATIONSHIPS CAN BE FASTER. WE CAN SEE IF
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THERE IS A MISALIGNMENT. WE CAN HAVE THE CONVERSATION WITH OUR PARTNERS WHO ARE DOING WONDERFUL THINGS FOR THE CITY. THE OUTCOME , AND AGAIN, RECOMMENDATION PROCESS, AS IT OBJECTIVE IS PART OF AN OPERATIONAL FRAMEWORK THAT WILL HELP US MOVING FORWARD.>> I WILL THROW IN, LESS RISK, BETTER OUTCOMES , BETTER ACCOUNTABILITY. I THINK WE CAN DO ALL OF THAT GOING FORWARD IF
WE DEVELOP A TEMPLATE . >> I THINK OTHER CITIES ARE GOING TO WANT TO DO WHAT YOU DID. I CAN'T TELL YOU HOW MANY I WORK WITH THEIR TRYING TO ADDRESS AN ISSUE AND THEY DON'T STEP BACK AND DO WHAT YOU'RE DOING. I APPLAUD YOU FOR DOING IT. YOU'RE GOING TO COME OUT OF IT WITH STANDARD OPERATING PROCEDURES ON HOW YOU STRUCTURE , HOW YOU RELATE, AND HOW YOU INDISCERNIBLE ]. I THINK IT'S GOING TO BE HELPFUL FROM A MANAGEMENTS TO REPENT -- STANDPOINT AND FRANKLY FOR ME COMMUNITY STANDPOINT IN TERMS OF ACCOUNTABILITY WITH THE OUTCOME IS FOR EACH OF THESE ORGANIZATION, RESIDENCE BEING
ONE OF THEM. >> ONE OF THE THINGS I THINK HAS HAPPENED IN THE PAST IS, ANYTIME AN ENTITY NEEDED A NONPROFIT, OUR LEGAL DEPARTMENT WAS SETTING THEM UP AND OFTENTIMES NOT TURNING THEM OVER. I THINK THAT IS A TREMENDOUS AMOUNT OF RISK.
RELATIONSHIP, I THINK THE COMMUNITY AND COMMITTEE MEMBERS NEED TO MANAGE THROUGH THAT THEMSELVES. FOR THE NEXT MEETING IN THE INTEREST OF TIME, I'M HAPPY TO PRODUCE THE AGENDA FOR YOU TO REVIEW. MR. CHAIRMAN. A REVIEW OF THE OTHER THREE WE HAVE READY TO GO. FROM THE GOVERNMENT'S PERSPECTIVE, A LIST OF THE OTHER NONPROFITS, AND YOU WANT GRANTEES? BECAUSE THAT IS ALSO, ARTS GRANTS REVIEWED BY THE CARMEL ARTS COMMISSION AND THERE IS AN AGREEMENT IN PLACE. THAT WAS UPDATED THIS YEAR. WITH MARILEE'S AND SAMANTHA'S
INPUT. >> I THINK WOULD BE GREAT CONTEXT IN THE PROCESS TO RUN US THROUGH ANOTHER GOVERNMENT FUNCTION THE COULD GIVE CREDENCE TO THE CONVERSATIONS.
>> DO YOU WANT TO TAKE THAT IS A SEPARATE MEETING?
>> WE COULD. >> I THINK THAT IS SOMETHING WE DO AT THE END. BECAUSE WE HAVE THESE FOUR TO START AND AT THE END WE CAN REVIEW ALL THE GRANTEES, THE PROCESS AND THE FORMS. VERSUS COMING THROUGH THESE. WOULD THAT BE OKAY?
>> IT SEEMS REASONABLE. >> THERE ARE 20-ISH GRANTEES THROUGH THE ARTS COMMISSION, I FEEL LIKE THAT IS A DIFFERENT
ASH >> IF THEY COULD BE ON THE
SPREADSHEET. >> TALKING ABOUT THE PROCESS, A SEPARATE MEETING, IF WE CAN HAVE MAYBE LAUREL CAMPBELL HERE IS CHAIR OF THE COMMISSION, AND ALSO PROMOTE CARMEL FINANCIAL REVIEW. LIST THE OTHER THREE, THE OTHER NONPROFITS AND THE SPREADSHEET AND THEN THE PROMOTE CARMEL PRESENTATION. ANYTHING
ELSE IN THE AGENDA? >> IT SOUNDS GOOD TO THE CHAIR.
WE NEED TO FORMALLY VOTE DURING THIS COMMITTEE TO RECOMMEND THAT
>> WE CAN. >> CAN YOU HEAR ME?
>> I THINK IT WOULD BE APPROPRIATE JUST TO HAVE THAT ON
RECORD. >> I MOVE WE COVER THE NEXT THREE ENTITIES, GOVERNANCE STRUCTURE , A BRIEF DESCRIPTION OF THE SPREADSHEET PROVIDED WITH A LIST OF ALL THE NONPROFITS, AND THEN REVIEW THE PROMOTE CARMEL /ALL THINGS CRIMINAL
RELATED FINANCIALS. >> SECOND.
>> I HAVE A MOTION AND A SECOND. ANY DISCUSSION? SEEING NONE, I WILL ASK FOR VOTES. ALL THOSE IN FAVOR?
>> AYE. >> OUR MEETING NEXT TIME, TWO
HOURS? >> WITH THAT I WILL CONCLUDE BUSINESS AND WE ARE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.