[1. CALL TO ORDER]
[2. AGENDA APPROVAL]
[6. RECOGNITION OF PERSONS WHO WISH TO ADDRESS THE COUNCIL]
[7. COUNCIL AND MAYORAL COMMENTS/OBSERVATIONS]
[8. CONSENT AGENDA]
[10.b. Land Use and Special Studies Committee]
[11.e. Economic Development Commission (Bi-annual – February, August)]
[11.h. Parks Department (Quarterly – February, May, August, November)]
[00:56:43]
OUR COMMUNITY T I THINK THOSE TIMES EXTEND PAST 6:00 P.M.. .A
[11.k. Report from the Center for the Performing Arts]
[00:56:47]
TH ANK YOU FOR YOUR TIME. MOVING ONTO THE NEXT ITEM IS A REPORT[00:56:53]
FOR THE CENTER FOR PERFORMING ARTS. WE HAVE A LOT OF PEOPLE[00:56:59]
HERE IN ATTENDANCE FOR THIS. WE WANT TO GIVE YOU TIME. WE WILL[00:57:03]
DO A BRIEF RECESS TO CLEAR OUT AND THEN A REPORT FROM THE[00:57:09]
CORRECTOR OF UTILITIES FROM THE RECENT NEWS. BUT WE WILL HAND IT[00:57:17]
OVER TO THE TWO JEFFS. >> THANK YOU, VERY MUCH
[00:57:29]
PRESIDENT AND CITY COUNCILMEMBERS. I'M JEFF[00:57:32]
MCDERMANT, PROUD TO SERVE OF THE FOR THE PERFORMING ARTS. I'M[00:57:36]
HERE ON BEHALF OF THE AFFILIATE ORGANIZATION THE GREAT AMERICAN[00:57:40]
SONG BOOK FOUNDATION AND THE SIX WONDERFUL RESIDENT COMPANIES WHO[00:57:44]
CALLED THE CAMPUS THEIR HOME. I WILL TRY TO BE AS EFFICIENT AS I CAN IN THE COMMENTS. WE HAVE A BIG CROWD HERE. I ASSUME MEPY ARE HERE FOR THE READING OF 2762 AND SO OUT OF RESPECT OF THAT, I'M GOING TO TROY TO KEEP THINGS MOVING ON HERE. I'M GOING TO START WITH A STORY, A STORY THAT HAS BEEN RETOLD A NUMBER OF TIME OVER THE YEARS BIMANY PEOPLE THAT MAY NOT BE TRUE. IT TAKES US BACK TO WORLD WAR II. THE BRITISH MINISTER OF DEFENSE CAME TO PRIME MINISTER WINSTON CHURCHILL AND ALERTED THE PRIME MINISTER THAT THE WAR EFFORT WAS NOT GOING WELL. AND THE PRIME MINISTER SAID WHAT DO YOU THINK WE OUGHT TO DO ABOUT THAT? AND HE SAID I THINK WE OUGHT TO DIVERT FUNDS FROM OTHER PLACES AND APPLY THEM TO THE WAR EFFORT. AND PRIME MINISTER CHURCHILL SAID WHERE DO YOU RECOMMEND WE DIVERT THE FUNDS FROM AND THE MINISTER OF DEFENSE SAID, WELL, I SUGGEST WE TAKE IT FROM THE ARTS. THE PRIME MINISTER REPORTEDLY SAID, THEN WHAT IN THE WORLD WOULD WE BE FIGHTING FOR? WHETHER THAT IS FACT OR FOLKLORE, IT MAKES THE POINT THAT I'M HERE TO MAKE TONIGHT ON BEHALF OF OUR ORGANIZATIONS. THE ARTS ARE VIBRANT IN THE COMMUNITY, A CULTURAL IMPACTER IN THE COMMUNITY, ECONOMIC IMING PACTER IN THE COMMUNITY. PART OF THE BRAND OF THE COMMUNITY. THERE IS SOMETHING THAT I THINK THE PEOPLE IN THE ROOM HERE CHERISH. I THINK THE PEOPLE ON THIS COUNCIL AND THE ADMINISTRATION CHERISHES. WE ARE PROUD TO BE AN A PART OF IT AND IT IS PLEASURE TO BE A PART OF IT AND TALK ABOUT T THE IMPACT OF ARTS OF THE STUDY THAT IS DONE. WE WILL TALK TO YOU ABOUT THREE PRIMARY THINGS. A NUMBER OF YOU WERE NOT ON COUNCIL. I'M NOT SURE ANY OF YOU WERE ON COUNCIL WHEN THE L.I. SOLUTION CENTER WAS BUILT. MOST OF YOU WERE IN THE COMMUNITY. MOST OF YOU KNOW IT IS TRULY PART OF THE CENTER OF THE COMMUNITY AND FABRIC OF THE COMMUNITY. SO I WANT TO SPEND A LITTLE TIME TALKING ABOUT STRUCTURE AND HISTORY. SECOND, I WOULD LIKE TO TALK ABOUT THE CULTURAL AND ECONOMIC IMPACT OF THE ARTS IN GENERAL AND IN PARTICULAR OUR RESIDENT COMPANIES, THE GREAT AMERICAN SONG BOOK FOUNDATION AND THE[01:00:03]
L.I. SOLUTION CENTER. THEN I WANT TO TALK ABOUT THE VALUE THAT WE BRING, THE ALLIED SOLUTIONS CENTER IS THE NIM OF THE CAMPUS AND THE NONPROFIT ORGANIZATION THAT I'M PRIVILEGED TO SERVE AS THE CEO OF. I WOULD LIKE TO SHARE A LITTLE OF THE VALUE OF THE MANAGEMENT WE BRING. I WILL START WITH SOME OF THE STRUCTURE OF THE CENTER. LET ME SEE IF I CAN MOVE ON TO MAKE THINGS WORK. OUR CAMPUS HAS THREE VENUES, THE PLAYEDIUM, STUDIO THEATER AND CARPINGTEN THEATER. THE OTHER TWO THEATERS OPENED DURING THE SUMMER OF 2011. THE COST OF THE CAMPUS WAS AROUND $180 MILLION. THAT WAS 15, 16 YEARS AGO. BY TODAY'S NUMBERS, IT WAS THE QUARTER BILLION DOLLAR RANGE THAT THE INVESTMENT HAS IN THE CAMPUS. AS I MENTIONED THE ALLIED SOLUTION CENTER IS THE NAME OF THE CAMPUS AND ALSO THE NAME OF OUR ORGANIZATION. WE ARE A NONPROFIT ORGANIZATION. WE HAVE A MISSION TO ENGAGE AND INSPIRE THE ENTIRE INDIANA COMMUNITY THROUGH ENRICHING ARTS COMMUNITY AND WE DO THAT IN A VARIETY OF WAYS. WE WILL TALK ABOUT THAT AS I MOVE ON. I'M HERE REPRESENTING THE ALLIED SOLUTION CENTER. I'M HERE REPRESENTING THE GREAT AMERICAN SONG BOOK FOUNDATION. I ALSO SERVE AS THE PRESENT AND CEO OF THAT ORGANIZATION. IT WAS FOUNDED 2007 OR 2008. IT CAME TO CARMEL, INDIANA, AND MADE CARMEL ITS HOME IN APPROXIMATELY 2010 OR 2011. IT WAS FOUNDED BY MICHAEL FEINSTEIN WHO HAS HAPPENED TO BE THE ARTISTIC DIRECTOR AT THE SOLUTIONS CENTER. IT IS A NATIONAL ORGANIZATION WITH A NATIONAL BOARD, NATIONAL REACH. MICHAEL FEINSTEIN IS A PERFORMER WHO HAS PERFORMED ALL OVER THE WORLD AND BRINGS GREAT RECOGNITION TO THE INSTITUTION AND TO THE CITY OF CARMEL ITSELF. WE ARE ALSO THE HOME AS I MENTIONED OF SIX OUTSTANDING RESIDENT COMPANIES. WE ARE VERY PROUD OF THOSE COMPANIES. GREGORY HANCOCK DANCE THEATER, SYMPHONY ORCHESTRA, ACTORS THEATER OF INDIANA, INDIANA WIND SYMPHONY AND THE INDIANA DANCE ENSEMBLE. THESE SIX RESIDENT COMPANIES ARE RESPONSIBLE FOR LITERALLY HUNDREDS OF PERFORMANCES THAT HAPPEN ON OUR CAMPUS EVERY YEAR. ALL SIX OF THESE COMPANIES HAVE BEEN WITH US FOR THE ENTIRE HISTORY OF THE CENTER. ALL SIX WERE INVITED TO BE RESIDENT COMPANIES PIE THE CITY OF CARMEL, 15, 16 YEARS AGO. A LITTLE BIT ABOUT THE FUNDING OF THE CENTER, WE HAVE ABOUT A $10 MILLION BUDGET, THAT DOESN'T COUNT THE BUDGET OF THE RESIDENT COMPANIES. BUT TEAKING TO THE SOLUTIONS COMPANY, WE ARE ABOUT $10 MILLION. WE EMPLOY NEAR 100 INDIVIDUALS. WE HAVE THREE PRIMARY SOURCES OF FUNDING, EARNED REVENUE WHICH INCLUDES TICKLE SALES, FOOD AND BEVERAGE, RENTABLE SPACES. WE HAVE CONTRIBUTED REVENUE WHICH IS INDIVIDUAL DONORS, CORPORATE SPONSORS AND GRANTING PARTNERS THAT CAN ALSO INCLUDE STATE PLANNING GIFTS, LEGACY GIFTS THAT PEOPLE MAKE TO US. THEN WE RECEIVE A MANAGEMENT FEE WITH THE CITY PURSUANT TO AGREEMENTS WITH THE CITY EACH YEAR. BETWEEN THOSE THREE, THAT MAKES ABOUT A $10 MILLION BUDGET. I WANT TO TALK A LITTLE BIT ABOUT THE MANAGEMENT FEE THAT WE RECEIVE.IT IS DONE PURSUANT TO ABOUT FOUR DIFFERENT AGREEMENTS. THE FIRST ONE BEING THE PROGRAMMING AND FACILITY MANAGEMENT OPERATIONS AND MAINTENANCE AGREEMENT SIGNED IN 2011. THAT PUT US IN CHARGE OF THE PALLADIUM FOR A 50 YEAR TERM. WE ARE RESPONSIBLE FOR MANAGING THAT. NOT JUST MANAGING TO MAKE SURE THE MAINTENANCE GETS DONE AND SECURITY IS TAKEN CARE OF BUT REALLY BRINGING IT TO LIFE AND MAKING SURE THE PROGRAMMING IS DONE AND MARKETING IS DONE. WE ARE RESPONSIBLE FOR THAT. AS THE OTHER THEATERS CAME ONLINE, WE BECAME RESPONSIBLE FOR THOSE.
WE THINK WE ARE GREAT STEWARDS OF THESE VENUES AND THE CITY'S RESOURCES. I WILL TALK IN A FEW MINUTES ABOUT A REPORT THAT I THINK BACKS UP OUR BELIEF THAT WE DO A FINE JOB STEWARDING THESE RESOURCES. ONE OF THE THINGS THAT THESE DO IS IT
[01:05:03]
ELIMINATES THE RESPONSIBILITY OF THE PERFORMING ARTS MANAGING THE PROPERTIES AND THE CITY OF CARMEL. THE CITY OF CARMEL, THIS COMMUNITY OWNS THESE FACILITIES. WE MANAGE THEM. WHEN I SAY WE MANAGE THEM, WE BRING THEM TO LIFE IN A VARIETY OF WAYS. WE MAKE SURE THINGS ARE TAKEN CARE OF. WE MAKE SURE THINGS GET FIXED WHEN THEY NEED TO BE FIXED OR REPLACED WHEN THEY NEED TO BE REPLACED. AS A PROPERTY MANAGER, YOU MIGHT EQUATE US TO HOW YOU WOULD EQUATE A MANAGER OF AN APARTMENT COMPLEX. SOMEONE OWNS THE COMPLEX BUT THEY HIRE SOMEONE TO MANAGE THE COMPLEX.IF THE HVAC SYSTEM GOES OUT, THE MANAGER CORDINATES THE REPAIR OF THE SYSTEM. BUT THE LANDLORD PAYS FOR IT. THAT'S HOW IT WORKS WITH US. WE MANAGE THE PROPERTIES AND WHEN THERE IS MAINTENANCE THAT NEEDS TO BE DONE, WE COORDINATE AND MANAGE ALL OF THAT. THE CITY PAYS FOR IT AS THE LANDLORD. I THINK THERE IS SOME CONFUSION THERE WHERE WE HEAR PEOPLE SAY WE RECEIVE MONEY FOR DOING THAT. WE DON'T RECEIVE INCOME FORKING DOING THAT. WE RECEIVE A PASS THROUGH. WE PAY FOR THE REPAIRS AND REPLACEMENTS AND THOSE ARE REIMBURSED BY THE CITY. THOSE NEVER SHOW UP ON THE INCOME STATEMENT. IT'S NOT INCOME TO US. WE JUST HANDLE IT FOR THE CITY. IT'S THE CITY' EXPENSE THAT WE HANDLE AND GET REIMBURSED FOR. ON AN ANNUAL BASIS IT'S ABOUT $1.7 MILLION FOR THESE THREE VENUES. NEXT I WANT TO TALK, THAT SORT OF GIVES YOU A LITTLE HISTORY OF THE STRUCTURE, HOW WE WORK IT TO MANAGE THE FACILITIES AND BRING THEM TO LIFE, A LITTLE HISTORY ON IT. I WANT TO TALK ABOUT THE CULTURAL AND ECONOMIC IMPACT OF A CENTER. I WILL SPEAK FIRST TO CULTURAL IMPACT. I THINK EVERYBODY WOULD AGREE WITH ME THAT THE ARTS BRING GREAT CULTURE TO THIS COMMUNITY. I THINK THAT THE COMMUNITY ITSELF HAS REALLY MADE THAT PART OF ITS BRAND. I KNOW THAT MAYOR FINK FEELS STRONGLY ABOUT THIS IN A POST SHE DID IN JUNE. SHE NOTED THE UNIVERSITY OF PENNSYLVANIA STUDY WHICH TALKED ABOUT THE IMPORTANCE OF THE ARTS AND THE VALUE, THE NONTANGIBLE VALUS THAT IT BRINGS TO ANY COMMUNITY.
WE WOULD AGREE WITH THAT AND I'M SURE THAT EVERYONE WOULD AGREE WITH THAT AS WELL. THE SYSTEM OF THE ARTS AND WE HAVE THE GREAT NONPROFITS THAT HAVE RUN MANY DIFFERENT TYPES OF VENUES AND ARTS OFFERINGS. ONE OF THE THINGS WE NOTICED IS THE CITY OF CARMEL HAS DONE AN INTERESTING REBRAND. WE ARE PROUD OF THIS. THE REBRAND ITSELF IS BASED ON THE ARTS IN THE SENSE THAT THE NEW LOGO OF THIS CITY IS DESIGNED OFF THE OCCULUS, SOMETHING WE ARE PROUD FOR AND IT DEMONSTRATES THE COMMITMENT TO THE ARTS AND THE CITY EMBRACING THE FACT THAT IT IS COMMITTED TO THE ARTS AND THIS IS IMPORTANT TO THE BRAND.
WE ARE FOCUSED ON MISSION ALL THE TIME. AS A NONPROFIT ORGANIZATION. WE HAVE A MISSION TO ENGAGE AND INSPIRE THE COMMUNITY. WE DO THIS IN A VARIETY OF WAYS. WE ARE KNOWN FOR PERFORMANCES. PEOPLE PAY TO GO TO OUR PERFORMANCES. WE DO A LITTLE BIT OF EVERYTHING. ONE OF THE THINGS THAT DISTINGUISHES US FROM FOR PROFIT VENUES IS ANYWHERE IN THE STATE AROUND THE COUNTRY. WE BRING A WIDE VARIETY OF PROGRAMMING, SOMETHING FOR EVERYONE. THE MONEY MAKERS ARE ARE THE POP, ROCK, COUNTRY BUT WE BRING MISSION SHOWS, CLASSICAL, JAZZ, SONG BOOK, INTERNATIONAL OFFERINGS RGS YOU NAME IT AND WE BRING IT. IT IS HARD TO COME UP WITH. A FEW YEARS AGO, I DID A SAGE WELCOME AND TALKED TO THE CROWD, BOASTING ABOUT THE VARIETY OF PROGRAMMING WE HAVE AND I SAID WHERE ELSE COULD YOU GO SEE THE FINEST LIVING VILNIST IN THE WORLD TO A SOLDOUT PERFORMANCE AND THEN SEE YANK VCH WHICH IS A SOLDOUT PERFORMANCE. WE ARE PROUD OF THAT, OFFERING SOMETHING FOR EVERYONE. WE HAVE GREAT EDUCATIONAL PROGRAMMING. WE HAVE OUR PB AND J PROGRAMMING. IN THE LAST YEARS WE HAVE HAD 25,000 PEOPLE PARTICIPATE IN OUR EDUCATIONAL PROGRAMMING. THOSE RANGE FROM YOUNGEST 18 MONTHS OLD TO 92. AND EVERYTHING IN BETWEEN. WE ARE VERY PROUD OF THAT. THE THING I'M MOST PROUD OF IS IT IS FREE TO THE PUBLIC OR HEAVILY SUBSIDIZED BY US. WE TALKED A LITTLE ABOUT THE PROGRAMMING WE DO, THE FREE MATINEE CONCERTS
[01:10:03]
AND THINGS LIKE THAT. WE HAVE ESTABLISHED A TRANSPORTATION FUND, REMOVING THE BARRIER FOR SCHOOLS FROM UNDERSERVED AREAS WHO DON'T HAVE IT IN THEIR BUDGET TO COME TO THE ALLIED SOLUTIONS CENTER TO SEE A GREAT PERFORMANCE BY A GREAT ARTIST.SO WE TAKE THAT AWAY FROM THEM -- TAKE THAT BARRIER AWAY FROM THEM AND EVERY SINGLE SCHOOL THAT HAS APPLIED FOR TRANSPORTATION GRANT WITH US HAS BEEN GRANTED THE TRANSPORTATION GRANT. THAT IS LARGELY FUNDED, FULLY FUNDED BY CONTRIBUTED REVENUE. WE ARE EXTREMELY PROUD THAT WE ARE ABLE TO DO THAT. OUR PUBLIC EVENTS, SOMETHING ALSO WE BRING INTO THE COMMUNITY, THESE ARE FREE. THE SHOWS COST PEOPLE MUP MONEY AND THE EDUCATIONAL PROGRAMS ARE FREE. WE HAVE MANY COMPLETELY FREE PROGRAMS FOR THE COMMUNITY IN GENERAL. THESE INCLUDE NATURALIZATION CEREMONIES. WE WILL HAVE UP TO 100 INDIVIDUALS WHO COME AND TAKE THE OATH OF CITIZENSHIP, BECOME A U.S. CITIZEN IN THE HALL AT THE PALLADIUM. WE LIVE STREAM THOSE SO FRIENDS AND FAMILY AROUND THE WORLD CAN WATCH THEM BECOME UNITED STATES CITIZENS. FREE MATINEES FOR STUDENTS AS I MENTIONED. FREE AND SUBSIDIZED EDUCATIONAL PROGRAMMING. WE HAVE MANY CITY EVENTS. MLK CEREMONIES HOLOCAUST REMEMERANCE EVENTS. WE HAVE FREE MILITARY CONCERTS EVERY YEAR WHICH BRING OUT MANY VETERANS IN THE COMMUNITY. OTHER PUBLIC EVENTS, WE HAVE HAD HAD A SCHOOL BOARD DEBATE, GUBERNATORIAL DEBATE, AND HEARINGS ON MATTERS OF SIGNIFICANT PUBLIC INTEREST WHERE THEY NEEDED A LARGER PLACE FOR PEOPLE TO ATTEND. AGAIN, THESE ARE THINGS THAT WE ARE ABLE TO DO FOR THE COMMUNITY BECAUSE OF THE SUPPORT THAT WE GET NOT JUST FROM THE CITY BUT OTHER DONORS AND THROUGH EARNED REVENUE. WE ARE ALSO STRONG SUPPORTERS OF OUR SIX RESIDENT COMPANIES. BY THAT I SAY THAT WE PROVIDE ALL SIX OF OUR RESIDENT COMPANIES WITH FREE RENT. SO FOR THEIR PERFORMANCES AND THEIR REHEARSALS, THEY DO NOT PAY US RENT. WE PROVIDE FREE RENT. THEY HAVE HUNDREDS OF PERFORMANCES FOR YEARS. WE WILL GET TO THIS IN A MOMENT BUT WE CALCULATED THE OPPORTUNITY COST FOR US.
ABOUT $760,000, A GRANT WE GIVE AWAY TO THEM. THEY ARE ALSO BRINGING SOMETHING IMPORTANT TO THE COMMUNITY AND IT IS HONESTLY AN HONOR FOR US TO BE ABLE TO SUPPORT THEM IN THAT WAY. WE ARE THANKFUL TO THE CITY OF CARMEL FOR THE PROGRAM. THEY GENEROUSLY FUND THE SONG BOOK FOUNDATION WITH GRANTS. WE HOPE THAT WILL CONTINUE AT CURRENT LEVELS. LET ME SWITCH NOW ON IMPACT AND TALK ABOUT THE ECONOMIC IMPACT OF THE ARTS IN THE COMMUNITY. BACK IN 2023, THE AMERICANS FOR THE ARTS CONDUCTED A STUDY OF ALL NONPROFIT ARTS ORGANIZATIONS IN CARMEL TO DETERMINE WHAT VALUE ECONOMICICALLY THEY BRING TO THE COMMUNITY. THEY DIDN'T SINGLE OUT ANY PARTICULAR NONPROFIT ARTS ORGANIZATION BUT WE KNOW FOR INSTANCE, THE SOLUTIONS CENTER WOULD BE THE LARGEST OF THEM,PLERLY WHEN YOU COMBINE THE SONG BOOK AND COMPANIES. IF YOU TAKE ALL OF THEM THAT ARE SUPPORTED IN PART BY THE CITY OF CARMEL, THEY GENERATE ECONOMIC ACTIVITY OF NEARLY $43 MILLION ON AN ANNUAL BASIS. THEY ALSO GENERATE LOCAL AND STATE TAX REVENUE OF $4.9 MILLION. AS MENTIONED WHEN TALKING ABOUT THE STATISTICS, HUNDREDS AND HUNDREDS OF JOBS AND OTHER IMPACT. THAT IS AGAIN, TAKE AWAY THE CULTURAL IMPACT WHICH WE CAN ALL AGREE IS AMAZING AND IMPORTANT TO THE COMMUNITY, THE ECONOMIC IMPACT IS STAGGERING. I TELL PEOPLE IF I COULD INVEST A FEW MILLION IN SOMETHING AND GENERATE $42 MILLION IN RETURN, I WOULD BUY THAT STOCK. WE WANTED TO KNOW WHAT PART OF THE $42 MILLION IS US. WHAT PART REALLY REPRESENTS THE CAMPUS FOR THE PERFORMING ARTS AND OUR RESIDENT COMPANIES. SO WE HIRED AN ORGANIZATION CALLED THE INDIANA BUSINESS RESEARCH CENTER, AFFILIATED WITH THE KELLY SCHOOL OF BUSINESS. THEY CONDUCTED A STUDY FOCUSED ON THE CAMPUS AND ORGANIZATIONS WHICH I MENTIONED. WHAT THEY DID WAS THEY CAME BACK AND WERE ABLE TO IDENTIFY FOR US, THE $43 MILLION IN IMPACT, OUR CAMPUS IS
[01:15:04]
RESPONSIBLE FOR OF IT ON AN ANNUAL BASIS, THAT IS IMPACT TO CARMEL ALONE. THE REST OF THE COUNTY, IT ADDS ANOTHER $4 MILLION, TAKING IT UP TO NEARLY $27.5 MILLION. WE GENERATE AS A CAMPUS NEARLY $4 MILLION IN STATE AND LOCAL TAX REVENUE, SOMETHING WE ARE VERY PROUD OF BUT SOMETHING THAT DEMONSTRATES SORT OF THE BRILLIANTNESS OF THE INVESTMENT STRATEGY BY THE CITY TO HAVE SUCH AN INVESTMENT IN THE ARTS AND KNOW THAT IT'S GOING TO PAY ITSELF BACK AT SIX, EIGHT, TEN FOLD EVERY YEAR. ONE OF THE THINGS THAT IS IMPORTANT TO UNDERSTAND, WE WENT THROUGH A STRATEGIC PLANNING PROCESS AND IDENTIFYING CHANGES IN THE INDUSTRY. WHAT ARE THINGS THAT WE NEED TO BE FOCUSED ON. ONE OF THE THINGS WE ARE SEEING ARE NEW FACILITIES GOING UP ALL OVER THE PLACE INCLUDING FISHER EVENT CENTER AS PART OF A FISHER DISTRICT DEVELOPMENT. THEY FIGURED OUT AT INVESTMENT IN THE ARTS WORKS AND THEY ARE MIMICKING WHAT WE ARE DOING. AND IN NOBLESVILLE, THEY ARE MIMICKING WHAT WE ARE DOING IN CARMEL BECAUSE IT WURGS. THE FACT THAT WE STUMBLED UPON THE STRATEGY OR BRILLIANTLY CAME UP WITH THE STRATEGY, AND BY WE, I MEAN THE CITY LEADERSHIP AND THIS COMMUNITY, IF IMITATION IS THE GREATEST FORM OF FLATTERY, IT IS BEING IMITATED IN COMMUNITIES AROUND THE COUNTRY. SO WHEN WE LOOK AT THOSE AND WE LOOK AT THE COMPETITION THAT IS COMING FROM THOSE, THE IMPORTANCE OF MAINTAINING ARTS FUNDING AT CURRENT LEVELS BECOMES MORE IMPORTANT NOT JUST TO PROTECT THE ALSIDE SOLUTION CENTER, THE GREAT AMERICAN SONG BOOK BUT TO PROTECT AT THIS POINT THE NEARLY QUARTER OF A BILLION DOLLAR INVESTMENT THAT THIS CITY HAS IN THE ARTS AS IT'S BRAND GOING FORWARD. ONE OF THE THINGS THAT WE ALSO MEASURE IS REALLY THE IMPACT OF EARNED MEDIA. I KNOW FOR THOSE OF YOU WITH ADVERTISING AND MEDIA BACKGROUND, YOU APPRECIATE THAT THE ADVERTISEMENT VALUE EQUIVALENT THAT IS MEASURABLE CAN BE DONE THROUGH THE ORGANIZATION. WE USE MELT WATER TO DETERMINE THIS. WHEN YOU LOOK AT THE MANY REWARDS THAT CARMEL RECEIVES, BEST PLACE TO RETIRE, BEST PLACE TO RAISE A FAMILY, THE COMMITMENT TO CARMEL TO THE ARTS IS ALWAYS, ALWAYS MENTIONS. IT GENERATES A HUGE AMOUNT OF MEDIA IMPACT AND EARNED MEDIA DOLLARS. I CAN TELL YOU THAT I BELIEVE IN THE CURRENT FISCAL YOUR WE ENDED FOR THE ALLIED SOLUTIONS CENTER K., WE HAD 200 MILLION VIEWS WITH WHAT WE ARE DOING WITH AN IMPACT OF 1.9 MILLION IN EQUIVALENT. WE HAVE A PICTURE OF MICHAEL FEINSTEIN UP HERE. ON JULY 27, HE WAS FEATURED AND THE GREAT AMERICAN SONG BOOK FOUNDATION AND THE CITY OF CARMEL WERE FEATURED ON THE CBS MORNING NEWS PROGRAM.YOU CAN LOOK IT UP. IT WAS A GREAT PIECE THAT WAS DONE.
CARMEL WAS FRONT AND CENTER, MENTIONED OVER AND OVER AGAIN.
THE AMERICAN SONG BOOK FOUNDATION WAS MENTIONED OVER AND AGAIN. THAT PIECE MOVING THROUGH VARIOUS MEDIUMS, OVER 340 MILLION REACHES WITH AN ADVERTISING VALUE OF $3.1 MILLION. THAT IS AN EARNED MEDIA VALUE THAT NOT ONLY THE GREAT AMERICAN SONG BOOK RECEIVED BUT THE ENTIRE CITY OF CARMEL BECAUSE CARMEL WAS SO PROMINENTLY DISPLAYED IN THAT PIECE. I SHOULDN'T FORGET TO MENTION THE HOTEL CAR MICHAEL.
THE CITY HAS A GREAT INVESTMENT IN THE HOTEL NEXT TO THE CENTER FOR PERFORMING ARTS. I THINK JAMIE WOULD BACK ME UP ON THIS.
WHEN WE HAVE BIG CONCERTS, EVENTS, WEDDING, HOTEL CARMICHAEL IS SOLD OUT. THE LOUNGE IS CROWDED WITH PEOPLE ENJOYING IT AND VIVANT IS VERY CROWDED. WHAT WE DO SUPPORTS THE CITY THROUGH SUPPORT AND CORDINATION WITH THE HOTEL CARMICHAEL. THAT'S WHAT I WANTED TO SAY ABOUT THE CULTURAL AND ECONOMIC IMPACT WE BRING. THE THIRD ITEM IS THE VALUE OF THE MANAGEMENT SERVICES. I TALKED ABOUT THE FACT THAT WE MANAGE THESE ON BEHALF OF THE CITY OF CARMEL AND THESE GREAT
[01:20:06]
VENUES. WE THINK WE DO A GREAT JOB BUT WE ARE BIASSED. WE WILL FIND OUT HOW GOOD OF A JOB WE ARE DOING. WE WENT TO HUNT PARTNERS WHO HAS DONE GREAT WORK FOR THE CITY AND A LOT OF GREAT WORK FOR SOME OF OUR NEIGHBORING COMMUNITIES. I THINK THEY WERE KIND OF A GOLD STANDARD IN THIS TYPE OF WORK. WE ASKED THEM TO REALLY HELP US REVIEW ASPECTS OF OUR OPERATIONS INCLUDING OUR REVENUE STREAMS, EFFICIENCIES OF OPERATIONS AND EXPENSE CONTROLS AND GIVE US A REPORT ON HOW WE ARE DOING. WHAT THEY CAME BACK WITH, I WILL PUT UP HERE, ARE FOUR MAIN AREAS. THERE ARE REALLY 10 KEY TAKE AWAYS THAT RELATE TO EACH OF THESE. THEY GAVE ABOUT A 70 PAGE REPORT. I SENT THAT TO YOU EARLIER. I DON'T ANTICIPATE ANY OF YOU READ THAT FROM THE TIME I SENT IT TO YOU UNTIL NOW BUT I WANTED YOU TO HAVE IT. WE WERE TWEAKING IT TODAY TO MAKE SURE IT WAS AS ACCURATE AS POSSIBLE. THERE WERE TEN KEY TAKE AWAYS. THEY SAID WE WERE COMPETITIVE WITH PEER VENUES ACROSS THE COUNTRY . NUMBER TWO, THEY SAID EWE WERE MORE EFFICIENT IN MANAGEMENT THAN ALMOST EVERY PEER VENUE ACROSS THE COUNTRY. WE OPERATE OUR VENUES AT A LOWER COST THAN IT WOULD COST THE CITY TO OPERATE THEMSELVES. AND MANY PERFORMING ARTS CENTERS ARE OPERATED BY MUNICIPALS. IT COSTS MUCH LESS TO HAVE THE CITY HAVE US OPERATE. IT COSTS LESS AS A NONPROFIT TO OPERATE IT THAN IT WOULD COST TO HIRE A FOR PROFIT COMPANY, LIKE A LIVE NATION TO OPERATE IT. SO WE ARE A GREAT VALUE AND WE DO A FINE JOB. NUMBER THREE, THE ALLIED SOLUTION OPERATES AT 81 MILLION LESS PER SEAT THAN PEER AVERAGE AND THAT HELPS CARMEL'S ANNUAL FINANCIAL COMMITMENT TO US. THEY SAID WE ENJOYED STRONG REBOUND IN VISITORS FOLLOWING THE FANDEMIC. ALL OF OUR VENUES ATTRACT A MEANINGFUL SHARE OFLONG DISTANCE AND REGIONAL VISITORS. THIS GOES TO THE FACT THAT WE ARE HERE SERVING PEOPLE FROM MUCH LONGER DISTANCES, TAKING PART IN RESTAURANTS AND HOTELS AND THAT AGAIN ADDS TO THE INVESTMENT THE CITY EHAS MADE. NUMBER SIX, AT THE CURRENT TWO AND A QUARTER MILLION WE RECEIVE FROM THE CITY HAS REMAINED FLAT OR DECREASED FOR A DECADE DESPITE INFLATION INCREASING. AS A RESULT, THE CITY'S INVESTMENT HAS BEEN DECLINING IN REAL DOLLARS. I BELIEVE THAT MANAGEMENT FEE WAS REDUCED IN ABOUT 2017 OR 2018 TO TWO AND A QUARTER MILLION DOLLARS. IT HAS REMAINED AT THAT LEVEL AND HAS ONLY GONE DOWN OVER THE YEARS. NUMBER SEVEN, CONTRIBUTED INCOME MAKES UP ABOUT 25% OF THE BUDGET. THIS YOUR WE ARE BUDGETING IT TO BE ABOUT 30, TO 32%. BUT THERE WOULD BE -- WE WOULD SEE A DECLINE OR THOSE CONTRIBUTED FUNDS WOULD DECLINE OR DISAPPEAR IF THE VENUES WERE OPERATED BY THE CITY OR A FOR PROFIT CORPORATION. THE ALLIED SOLUTIONS CENTER HAS BEEN IMMENSELY SUCCESSFUL IN GROWING COMMUNITY AND PERFORMANCE PROGRAMMING IN ORDER TO FULLY MAXIMIZE ITS VENUE. WE ARE OPERATING AT ABOUT A 77% RATE OF OCCUPANCY WHICH IS OUTSTANDING COMPARED TO ANY OF OUR PEER ORGANIZATIONS. THAT IS IN PART BECAUSE WE HAVE RESIDENT COMPANIES UTILIZING OUR SPACES SO WELL. NUMBER NENE THAT THE CENTER PROUDLY SUPPORTS ITS RESIDENT COMPANIES AND PROVIDES THEM WITH THE RENTAL SPACE AT A SIGNIFICANT OPPORTUNITY COST. FINALLY, THIS SUMS IT UP THE BEST. THIS MAY BE WHAT I HAND TO THE BOARD AT THE END OF THE YEAR WHEN IT COMES TO REVIEW TIME, CURRENT OPERATIONS DELIVERING NEAR OPTIMAL COMMUNITY VALUE, VERY PROUD OF THAT. I THINK THIS COUNCIL AND ADMINISTRATION AND CITY SHOULD BE PROUD OF THE FACT THAT THESE VENUES ARE BEING VERY WELL RUN AND PROFESSIONAL RUN BY OUTSTANDING NONPROFIT ORGANIZATION. I HAVE HAD A CHANCE TO MEET WITH EVERY MEMBER OF THE COUNCIL ABOUT THESE MATTERS. ONE OF THE QUESTIONS THAT HAS COME UP IS WE HAD GREAT PUBLICITY AND A GREAT FORTUNE IN HAVING SIGNIFICANT SPONSORS OVER THE LAST YEAR AND A HALF. ALLIED SOLUTIONS HAS BEEN A GREAT[01:25:03]
PARTNER TO SO MANY AND TO US. ALLIED SOLUTIONS HAS BECOME THE MAIN PARTNER OF THE ALLIED SOLUTIONS CAMPUS, THE CENTER AS WELL AS THE ORGANIZATION. PANE AND MCS HAVE NAMED THE PALLADIUM. THESE ARE GREAT SPONSORS THAT WE HAVE BENEFITTED FROM. I'M ASKED IF I CAN DISCLOSE WHAT THEY GIVE TO US FOR THE NAMING BUT I CAN'T. BY CONTRACT, IT IS CONFIDENTIAL. IF YOU UNDERSTAND HOW NONPROFITS WORK, UNLESS A DONOR OR SPONSOR GIVES YOU THE PERMISSION TO DISCLOSE WHAT THEY GAVE, YOU DO NOT HAVE THEIR PERMISSION. YOU HAVE TO KEEP THAT CONFIDENTIAL.SO I'M NOT ABLE TO TELL YOU THAT. BUT I CAN TELL YOU IN 2024, I BELIEVE THE CONTRIBUTED REVENUE WAS ABOUT 25 TO 26% OF OUR $10 MILL YP BUDGET. TODAY WITH THE EDITION OF CORPORATE SPONSORS AND A NUMBER OF NEW, WONDERFUL GRANTS WE ARE RECEIVED FROM FAMILY FOUNDATIONS, OUR CONTRIBUTED REVENUE ACCOUNTS FOR ABOUT 32% OF THE BUDGET. WHILE GIVE YOU SPECIFIC NUMBERS, I CAN TELL YOU THAT. WE HOPE THE GROWTH WILL CONTINUE. I CAN TELL YOU WE STARTED A LEGACY PROGRAM A FEW YEARS AGO. WE BELIEVE THAT THAT CONTINUES TO GROW. MANY PEOPLE LET US KNOW THAT THEY MADE ESTATE GIFTS. MANY PEOPLE DON'T LET YOU KNOW. YOU FIND OUT LATER. ONLY 15 YEARS OF AGE, WE ARE A LITTLE YOUNG TO RECEIVE ESTATE GIFTS BUT WE ANTICIPATE THOSE WILL BE COMING. I WANT TO CONCLUDE BY OFFERING A LITTLE INFORMATION ABOUT THE BUDGETING.
AND MY UNDERSTANDING OF THE BUDGETING THAT YOU FOLKS ARE GOING THROUGH. MY UNDERSTANDING, THE CURRENT YEAR WE ARE IN, THERE IS A CURRENT BUDGET OF A LITTLE OVER $323 MILLION. THERE IS MANY FROM THE GENERAL FUND THAT MAKES UP $144 MILLION AND THE REST IS THE OTHER FUNDING, A LITTLE OVER $88 MILLION OF THAT.
THE TWO PRIMARY AREAS OF SUPPORT FOR THE ORGANIZATIONS THAT I'M REPRESENTING TONIGHT COME FROM THE MANAGEMENT FEE RECEIVED BY THE ALLIED SOLUTIONS CENTER, THAT REPRESENTS JUST UNDER 1% OF THE CITY'S BUDGET AND THE ARTS GRANTS FUND WHICH HAS BIP UP TO 1% OF THE GENERAL FUND. SO THAT IS ABOUT 1, 470,000 OF WHICH OUR SIX RESIDENT COMPANIES AND GREAT AMERICAN SONG BOOK FOUNDATION ARE PRIVILEGED TO RECEIVE A PORTION OF, NOT ALL BUT A SHARE OF IT. THEY ARE VERY GRATEFUL FOR THAT. ONE OF THE THINGS I HAD A CHANCE TO MEET WITH ZACH JACKSON TO HELP ME UNDERSTAND A LITTLE MORE ABOUT THE ARTS FUNDING. THE CURRENT YEAR SHOWS THAT UNDER THE CURRENT YEAR'S BUDGET FOR THE CITY, IT IS SHOWING $9 MILLION CONTRIBUTED TO THE ARTS. GOING BACK TO WHAT I TALKED ABOUT, YOU CAN SEE IN THE LOWER LEFT-HAND QUADRANT THERE, WE HAVE THE $2.25 MILLION THAT HAS BEEN BUDGETED THIS YEAR FOR SUPPORT OF THE MANAGEMENT FEE FOR THE ALLIED SOLUTIONS CENTER. AFTER THAT, YOU SEE SUPPORT FROM THE ARTS GRANT OF 1, 470,000. THOSE ARE ARE THE TWO ITEMS THAT TO MY KNOWLEDGE GO TO ARTS ORGANIZATIONS TO HELP THEM WITH THEIR PROGRAM. IF WE GO COUNTERLOCK WISE, YOU SEE UTILITIES MY UNDERSTANDING IS THAT IS THE ENERGY CENTER. I BELIEVE THAT IS THE ENTIRETY OF THE ENERGY CENTER WHICH I WOULD ARGUE SHOULD NOT ALL BE IN THE ARTS BUDGET. WE RECEIVE ENERGY FROM THE ENERGY CENTER. WE RECEIVE HEATING AND COOLING TO THE THREE VENUES, BUT THE ENERGY CENTER WHILE IT PROVIDES ENERGY TO THOSE THREE VENUES, IT ALSO PROVIDES ENERGY TO THE ICE RINK WHICH IS OWNED BY THE CITY. IT PROVIDES ENERGY TO THE REST OF THE JAMES BUILDING THAT THE TASHGINGTEN STUDIO IS IN BUT IT IS OPERATED BY LEASED COMPANIES.
IT PROVIDES ENERGY TO THE POLICE HEADQUARTERS TO THE FIRE STATION
[01:30:01]
HEADQUARTERS AND TO CITY HALL ITSELF. YET, THE ENTIRETY OF IT IS PUT IN THE ARTS BUDGET. I DON'T THINK ANYTHING NEFARIOUS IS GOING ON BUT I THINK IF WE ARE AS ACCURATE AS POSSIBLE AS THE BUDGETING PROCESS AND WHAT'S IN THE BUDGET, A RELATIVELY SMALL PORTION OF THE UTILITY NUMBER SHOULD BE IN THE ARTS BUDGET. IF I CONTINUE COUNTERCLOCKWISE, 1% OF $9 MILLION AS ASSESSMENT FEESISH I DON'T KNOW WHAT THAT IS. I'M GOING TO GO PAST THAT BECAUSE IT IS NOT MATERIAL. $4.5 MILLION IS ESSENTIALLY MAINTENANCE, BUILDING MAINTENANCE AND EQUIPMENT MAINTENANCE AND REPAIR. $1.7 MILLION THAT I REFERENCED EARLIER COMES OUT OF THE BUDGET. I COULD ARGUE THAT BELONGS IN THE GENERAL MAINTENANCE AND REPAIR BUDGET JUST AS I ASSUME FIRE STATIONS AND CITY HALL, THE CITY IS RESPONSIBLE FOR MAINTAINING AND REPAIRING ITS PROPERTIES, ITS BUILDINGS. BUT THEY HAVE TAKEN THE $1.7 MILLION THAT GETS REIMBURSED AND INCLUDES IT THERE. IT CERTAINLY HELPS THE ARTS BUT I WANT TO MAKE SURE THAT THERE IS A CLEAR UNDERSTANDING AND I'M SURE THERE IS WITH THE ADMINISTRATION AND COUNCIL AND THE PUBLIC AT LARGE THAT THE $4.5 MILLION IS NOT COMING TO THESE ARTS ORGANIZATIONS, NOT INCOME TO ANY OF US. $1.7 MILLION OF THAT, MY UNDERSTANDING IS THE COST OF MAINTENANCE AND THINGS LIKE THAT, SECURITY, HOUSE KEEPING AT OUR VENUES. I BELIEVE A SIGNIFICANT PORTION OF THAT RELATES TO THE MANAGEMENT OF THE JAMES BUILDING WHERE THE TARRINGTEN THEATER AND STUDIO ARE LOCATED. WE DON'T MAINTAIN THOSE BUILDINGS. THOSE BUILDINGS HAVE PRIVATE COMPANIES IN THERE AND THEY ARE MANAGED BY R.E.I. I'M NOT SAYING THEY RECEIVE ALL OF THAT BUT I DON'T THINK ALL OF THAT IS ARTS RELATED, EVEN IF YOU COUNT THE $1.7 MILLION THAT HELP REPAIR AND MAINTAIN OUR VENUES. MUCH OF THAT RELATES TO VENUES THAT ARE OCCUPIED BY FOR PROFIT COMPANIES THAT HAVE NOTHING TO DO WITH THE ARTS. I JUST WANTED TO CLEAR THAT UP AND MAKE SURE WE ARE DEALING WITH NUMBERS THAT EVERYONE IS IN AGREEMENT ON, I HOPE AS TO WHAT THEY ARE, WHAT THEY CONSTITUTE. IT IS IMPORTANT FOR US TO MAKE SURE YOU KNOW HOW APPRECIATIVE THEY ARE SO THE CITY, THE COUNCIL ADMINISTRATION SUPPORT OUR COMPANIES, SUPPORT THE GREAT AMERICAN SONG BOOK FOUNDATION, ALLOW US THE PRIVILEGE OF MANAGING THE VENUES AND BRINGING ART TO THE COMMUNITY. I WANT TO MAKE SURE THINGS ARE ARE NOT GETTING SKEWED OR MIXED UP IN BETWEEN. THANK YOU FOR YOUR TIME THIS EVENING. THE ARTS COMMUNITY APPRECIATES IT. WE HOPE YOU WILL LOOK AT THE INVESTMENT THE CITY HAS AND REALIZE IT IS A BRILLIANT INVESTMENT, A BRILLIANT STRATEGY. IT GENERATES FAR MORE ECONOMIC IMPACT THAN IT COSTS THE CITY TO PUT THESE DOLLARS OUT AND IT IS PART OF THE PRAND OF THIS COMMUNITY. I UNDERSTAND THAT YOU ARE GOING INTO YOUR BUDGET PROCESS. I THINK I HAVE SAID TO EACH OF YOU, I DON'T PROPORT TO KNOW EVERYTHING ON YOUR PLATE. I'M NOT STANDING IN FRONT OF YOU SAYING I THINK YOU SHOULD TAKE MONEY HERE AND DIVERT IT HERE. I'M TELLING YOU THAT THE ARTS MATTER, CULTURALY, ECONOMICALLY THEY PROVIDE TAX DOLLARS, GREAT IMPACT. IT'S A SOLID INVESTMENT, A GREAT BRAND FOR THE COMMUNITY. I UNDERSTAND THE BUDGET PROCESS, THE ADMINISTRATION, THE MAYOR, CFO ARE WORKING DILIGENTLY ON IT.YOU WILL BE PRESENTED WITH A BUDGET THAT WILL HAVE A NUMBER IN IT. I WANT TO URGE THE MAYOR TO PRESENT A BUDGET THAT MAINTAINS THE FOUR RESIDENT COMPANIES AND FOR THE ALLIED SOLUTIONS CENTER AT THE CURRENT LEVELS AND URGE YOU AS COUNCIL TO ACCEPT THAT FROM THE MAYOR AT THOSE LEVELS OR IF THEY DON'T COME TO YOU AT THOSE LEVELS TO ASK GOOD HARD QUESTIONS AND SEE IF WE MIGHT GET THERE. I'M HAPPY TO TAKE ANY QUESTIONS YOU
MAY HAVE. >> THANK YOU. OPEN UP FOR ANY QUESTIONS. DOES ANYONE WANT TO CUT COUNCILLOR SNYDER? .
>> I'M GOING TO DO THE PRIVILEGE OF CUTTING YOU OFF BEFORE YOU START. AS YOU POINTED OUT, THE DEVIL IS IN THE DETAILS. AS WE GO INTO THE BUDGET PROCESS, THE DETAILS AND PICKING OUT THE NUMBERS AND LOOKING AT LONGTERM ASSET
[01:35:01]
MANAGEMENT PLANNING FOR THE CITY IS GOING TO BE CRITICAL IN EVERY ASPECT OF THE CITY. AS YOU WERE SPEAKING YOU ORIGINALLY MENTIONED $1.7 MILLION AT THE BEGINNING OF THE PRESENTATION AS THE MANAGEMENT FEE FOR THE CITY AND THEN LATER YOU SAID $2.25 MILLION. I JUST WANT TO MAKE SURE I UNDERSTAND THOSE TWO NUMBERS. I WASN'T CLEAR. IF I DIDN'T GET IT, BUT FOR THE PUBLIC I WOULD LIKE TO MAKE SURE THAT IS UNDERABLE AND WE ARE NOT GOING BACK BETWEEN YOU SAID THIS AND YOU SAID THIS. I JUST WANTYOU TO CLARIFY THE NUMBERS. >> THANKS FOR THE QUESTION. I APPRECIATE THE OPPORTUNITY TO CLARIFY. WE MANAGE THE FACILITIES AND WE RECEIVE WHAT I WILL CALL REVENUE OF $2.25 MILLION FROM THE CITY. IT HAS BEEN THAT NUMBER FROM APPROXIMATELY 2017. THAT SHOWS UP ON OUR AUDITED STATEMENT AS REVENUE TO US , ESSENTIALLY IN PAYMENT FOR THE MANAGEMENT WE PROVIDE. THE $1.7 MILLION IS REIMBURSEMENT. THOSE ARE THINGS WE EARE PAYING FOR ON BEHALF OF THE CITY AND THE CITY REIMBURS US FOR THEM. I BELIEVE IN THE FIRST TWO YEARS, THE WAY IT WORKED, THE CITY PAID MAINTENANCE DIRECTLY, SECURITY DIRECTLY, REEPAIRS DIRECTLY. I BELIEVE IT WAS IN 2013 THEY CHANGED THAT AND THEY ASKED IF WE COULD PAY THEM AND THEN SUBMIT THEM FOR REIMBURSEMENT FOR THE CITY AND GET PAID BACK.
THE $1.7 MILLION IS NOT INCOME. IT IS MONEY WE ARE SPENDING ON THE CITY'S BEHALF. IT IS FOR FIXTURES AND THINGS THAT GO FOR THE BENEFIT OF THE CITY'S BUILDING.
>> THANK YOU. THAT HELPS ME WITH LONGTERM ASSET MANAGEMENT AS WE
MOVE FORWARD WITH THE PROJECT. >> COUNCILLOR SNYDER, AND COUNCILLOR GREEN, AND THEN POINT TO ME IF YOU WANT TO GET IN
LINE. LOCKE AFTER THAT. >> THANK YOU. A COUPLEAL OF
POIGNANT QUESTIONS. >> CAN I GRAB A SEAT?
>> YOU MIGHT. I WANT TO PREFACE THIS SO I DON'T SOUND LIKE AN AS. I HAVE LOST TWO PEOPLE IN MY LIFE THAT I TRULY LOVE. I LOST MY MOTHER A COUPLE OF WEEKS AGO AND A LITTLE OVER A YEAR AGO AND LOST RON MORTON. 26 YEARS AGO, I WAS EMPTYING TRASH CANS AT RON'S DANCE STUDIO TO PAY FOR MY DANCE LESSONS, ABOUT 60 POUNDS AGO. THROUGH THAT EXPERIENCE, I HAVE WORKED FOR THREE OF YOUR RESIDENT COMPANIES, CIVIC, ART MUSEUM, GREG OR HANCOCK, I WORKED WHEN I WAS 16 YEARS OLD. I BUILT HIS DANCE FLOORS. A.T.I.I LOVE. I HAVE WORKED WITH GREAT NOW RETIRED KILLIAN WHO DID THEIR SET DESIGNS AND DESIGNED THE COURSE AND SURVIVAL LIFE AT THE CLAYTON BUILDING. I HAVE BEEN IN THE THEATER MOST OF MY LIFE AND I LOVE IT. I'M A PASSIONATE PERSONAL SUPPORTER OF IT. WHERE THE PALLADIUM AND THE CENTER I BELIEVE HAVE A PROBLEM IN CARMEL IS THAT NONE OF US BUT WE WERE HANDED THIS. IT IS NOT LIKE I MENTIONED EARLIER, A DISTRICT WITH A NAME. WE HAVE BEEN HANDED THIS MONUMENTAL $180 MILLION EXPENSE. I DON'T THINK THE PUBLIC AS A WHOLE ALL SHARE THE SAME PASSION I HAVE. IN EITHER CHANGING THE MINDSET THAT THIS IS BEYOND THEATER AND PERFORMANCES, IT IS INSTITUTIONS, A MUSEUM TOALIST LIFE TIMES, I DON'T THINK WE HAVE DONE A GOOD JOB OF THAT. BECAUSE PEOPLE WHO ARE HUNG UP ON IT STILL, STILL THINK ABOUT THE ISSUES. HOW IT WAS FUNDED, THE PRICE INCREASE AS IT WENT, VERY LITTLE COMMUNITY INPUT IN IT. BUT NOW HERE WE ARE AND WE HAVE THIS. WE CAN'T JUST BOARD IT UP. WE CAN'T STOP PAYING YOU. WE HAVE CONTRACTS. EVEN THOUGH WE COULD BREAK THEM, THAT WOULD NOT BE THE RIGHT THING TO DO. YOUR REIMBURSABLES, NONE OF US CAN SAY THAT WAS NEEDED OR THAT WASN'T NEEDED. YOU NEED TO UPGRADE. YOU NEED TO UPDATE. BUT AT SOME POINT, EITHER YOU NEED TO CONVINCE THE COMMUNITY THAT
[01:40:02]
THIS IS NEVER GOING TO MAKE MONEY AND LET THEM KNOW OR FIGURE OUT A WAY TO MAKE MONEY. NOW THE PALLADIUM DOESN'T HAVE ENOUGH SEATS TO MAKE MONEY. THE PERFORMANCES DON'T HAVE A BROAD ENOUGH REACH. IT'S A NICHE THING. TAR KINGTEN IS A SERVICEABLE THEATER BUT YOU ARE NOT GETTING A BROADWAY SHOW IN THERE. THEN YOU HAVE THE EXPERIMENTAL THEATER WHICH IS FUN AND LIVELY AND MIGHT HAVE THE ABILITY TO MAKE A FEW DOLLARS. BUT THE UNFORTUNATE THING FOR PEOPLE WHO WANT TO BE FISCALLY CONSERVATIVE WITH MONEY, WHERE SOME SEE AN ISSUE, OTHERS SEE IT IS JUST THE COST OF A WORLD CLASS ASSET. FOR THOSE WHO SEE IT AS AN ISSUE, THE ONLY WAY TO FIX IT IS TO SPEND OUR WAY OUT. WHAT I MEAN BY THAT IS, INVEST IN SOMETHING THAT YOU CAN ACTUALLY GENERATE REVENUE OFF OF T.. I'M NOT ADVOCATING FOR THAT. I'M NOT SAYING THAT'S THE SOLUTION BUT WE CAN'T CONTINUE TO HAVE THIS CONVERSATION EVERY SINGLE YEAR BECAUSE AT THE END OF THE DAY, SOMEONE IS GOING TO GET WORN OUT AND SOMEBODY IS GOING TO BE THE LOSER. I DON'T WANT TOSEE SOMETHING WE HAVE $180 MILLION STARTING OUT, I'M SURE THAT HAS DOUBLED IN INVESTMENTS BE ANYTHING LESS THAN SPECTACULAR.I DON'T HAVE ANY MAGIC SOLUTION EXCEPT THAT THE PERSPECTIVE THAT THE COMMUNITY SEES THE PALLADIUM THROUGH IS NOT ALWAYS WHAT THEY MIGHT LOOK AT OTHER THEATERS THROUGH, WHERE THEY HEAR PERFORMANCES THAT ARE FAMILIAR AND CATCHY AND CAN SEAT A LOT OF PEOPLE, THAT MAKE MONEY. I LIVED IN A DRESSING ROOM FOR LONGER THAN I CARE TO SHARE. THEY DO WELL BECAUSE THEY DO THINGS THAT ARE FAMILIAR. YOU GUYS ARE ABOVE THAT. I WOULD LOVE FORRIA TO DO THAT BECAUSE IT WOULD LATCH ON . BUT WHAT I DON'T THINK IS DONE VERY WELL, IF YOU GO THROUGH ALL OF YOUR RESIDENT COMPANIES, THEY ARE THE PAYTON MANNINGS OF THE INDUSTRY. I'M NOT GOING TO GO THROUGH THE LIST BUT THEIR ACCOLADES, THEIR ACCOMPLISHMENTS ARE SUPERIOR TO MANY OF THE PEOPLE THAT WE ADORE AND ARE IN THE NEWS ALL THE TIME BUT BECAUSE THEY DON'T DRAW IN THE MEDIA AND BIG DOLLARS, WE DON'T SEE IT. I THINK HELPING THE COMMUNITY RECOGNIZE THAT WHAT WE HAVE BRINGS IN QUITE LITERALLY SOME OF THE BEST IN THE WORLD. FURTHER MORE, I THINK YOU GUYS NEED TO PUT TOGETHER A PLAN AN HONEST PLAN FOR THE NEXT FIVE, TEN, 20 YEARS. IF IT SHOWS TAXPAYERS PUTTING MONEY IN EVERY YEAR, SO BE IT. THAT'S A DECISION THAT NEEDS TO BE MADE.
SO THERE IS LESS UNCERTAINTY. SO WE KNOW IT IS 2.25 FOR A CONTRACT, REIMBURSABLE, $1.7 MILLION SO WE KNOW AND THE WHAT WE ARE GETTING OUT OF IT AND THE WHYS. PART OF THAT WOULD BE UNROLLING OR SOME OF THE FUTURE THINGS GIFTS THAT YOU WOULD EXPECT FROM ORGANIZATION AT THIS CALIBER AND THIS AGE WHAT YOU MIGHT SEE ROLL IN. FINALLY, WHILE ALL OF THAT IS VERY IMPORTANT TO US, A MUCH LESS COMPLICATED PRESENTATION THAT CAN START BE -- I TALK TO JEFF, I BRING THIS UP QUITE A BIT BUT HE DID A REALLY GOOD VIDEO ON THE CITY'S DEBT. IT JUST SIMPLIFIED TO THE POINT WHERE IT WAS HARD TO ARGUE. I WOULD LOVE TOSEE YOU DO THAT AND EXPLAIN HERE'S WHY IT'S IMPORTANT.
HERE'S WHAT WE WILL BE DOING. I DON'T THINK ANYONE CAN DISPUTE THE IMPORTANCE OF THE ARTS. THAT HAS BEEN A NONARGUMENT FOR 2,000 YEARS. BUT IT IS A CONCERN WHEN THERE ARE OTHER THINGS IN THE COMMUNITY THAT NEED DOLLARS. AND MATCHING UP WHERE CAN A FINIGHT
[01:45:01]
AMOUNT GO. I WANT TO CLOSE THAT WE ARE IPTHIS SITUATION BECAUSE OF THE STATE LEGISLATURE AND THE RIDICULOUS SENATE BILL 1 THAT IS OVER COMPLICATED AND SCREWED UP THE LIVES OF EVERY MUNICIPAL IN THE STATE AND YOU ARE JUST ANOTHER VICTIM OF IT. PERHAPS YOU WON'T BE A VICTIM BUT IT IS A PERCEIVED VICTIM AND THAT'S WHY YOU ARE HERE TODAY AND WE ARE HAVING TO REHASH IT AGAIN.FOR THE COMMUNITY, ONE SUBSET LOVES IT BECAUSE IT IS A PERFORMANCE VENUE OR IT IS A MUSEUM TYPE ICON. THEN YOU HAVE A SUBSET THAT DOESN'T LIKE THAT WE SPEND MONEY ON IT. I DO WANT TO SAY, THEY ARE NOT GRANTS. WE ARE GIVING YOU MONEY, PAYING YOU FOR SERVICES AND REIMBURSING EXPENSES THAT GO ALONG WITH THEM. BUT I THINK THE EDUCATION PIECE OVER THE PAST DECADE HAS BEEN POOR IN EXPLAINING THAT. I DON'T WANT TO SEE ANYTHING HAPPEN TO YOU, YOUR ORGANIZATION OR ANY OF YOUR RES KNTDANT COMPANIES. BUT I THINK MOVING FORWARD, AN OPEN HONEST DIALOGUE, EVEN IF IT IS JUST ONE SIDED WITH THE PUBLIC EXPLAINING THIS. I HAD NEVER SEEN THE CONTRACT UNTIL ABOUT TWO MONTHS AGO BECAUSE I WOULD NEVER HAVE THOUGHT THAT, NOR HAS MANY OTHER PEOPLE. HOW THIS PLAYS OUT OVER THE NEXT COUPLE OF MONTHS, I HAVE NO IDEA. I SUPPORT THE ARTS BUT THERE ARE NINE OF US AND A MAYOR UP HERE WHO HAVE A LOT OF OTHER IMPORTANT THINGS TO GET DONE. I DO THINK WE ARE VERY CREATIVE AND INTELGENT AND PROACTIVE PEOPLE WHO WILL EXPLORE EVERY MEANS NECESSARY TO DO THE MOST GOOD FOR THE MOST NUMBER OF PEOPLE IN THE COMMUNITY. THOSE ARE MY ASKS, A PLAN THAT SHOWS THE MILE STONES OVER THE NEXT YEARS, A LESS COMPLICATED DISPLAY THAT DRIVES INTO THE PUBLIC WHERE MONEY NEEDS TO BE SPENT SO YOU CAN GENERATE REAL REVENUE TO OFFSET SOME EXPENSES. AND BROADENING THE REACH TO THE BEST OF YOUR ABILITY. BUT I APPRECIATE YOU, THE BOARD AND ALL OF YOUR SUPPORTERS.
>> THANK YOU, IF I COULD ADDRESS SOME OF THAT BRIEFLY. A BIT IS BASED ON A FALSE PREMISE THAT WE HAVE A PROBLEM THAT WE NEED TO FIX. THIS IS SOMETHING THAT WAS SET UP 15 YEARS AGO BY THE CITY.
SO TO YOUR QUESTION, YOU DON'T KNOW WHAT WE NEED TO DO TO BE PROFITABLE. THE REPORT I GAVE YOU MAKES PRETTY CLEAR THAT PERFORMING ARTS CENTERS ARE NOT PROFITABLE BAUDZ BECAUSE OF THE NATURE OF THEM. THEY ARE BUILT WITH FEWER SEATS. YOU CAN'T HAVE THE MEGA STARS THAT CAN COME IN AND FILL UP AN ARENA. SO YOU ARE NOT GOING TO MAKE THAT KIND OF REVENUE. IT IS MORE NICHE THAN THAT BUT THAT IS HOW IT WAS DESIGNED, NOT BY US BUT THE CITY. ABOUT 40% OF OUR SHOWS WE WOULD CONSIDER COMMERCIAL SHOWS. WE HAVE CHANGED THAT SINCE ABOUT 2016 WE STARTED TOCHANGE THE MAKE UP OF SHOWS. WE HAD A LOT OF DANCE, JAZZ, AMAZING THINGS, BUT NOT PARTICULARLY PROFITABLE, MORE MISSION DRIVEN. WE DETERMINED WE NEEDED MORE COMMERCIAL SHOWS. WE DO MORE MISSION SHOWS THAN WE USED TO AND WE ARE ABLE TO DO IT, SOME ARE PROFITABLY ON THAT SIDE OF THE LEDGER BECAUSE WE ARE ADDING MORE COMMERCIAL SHOWS. THERE ARE ONLY A CERTAIN NUMBER OF ARTISTS THAT YOU CAN GET AT A CERTAIN LEVEL AT A 1500 SEAT THEATER. WE ARE UTILIZING THE FACILITIES REMARKABLY EFFICIENTLY TO GENERATE REVENUE. THERE ARE FEW PERFORMING ARTS CENTERS IN THE COUNTRY THAT CAN EXIST WITHOUT SUPPORT. THE REASON YOU HAVE TREASURE IN A COMMUNITY LIKE THIS IS THE SAME REASON YOU HAVE A GREAT SCHOOL, SAME REASON YOU HAVE A GREAT FIRE DEPARTMENT, POLICE DEPARTMENT, GREAT ROADS. ROADS DON'T GENERATE INCOME. FIRE DEPARTMENTS AND POLICE DEPARTMENTS DON'T GENERATE REVENUE. SCHOOLS DON'T NECESSARILY GENERATE REVENUE. BUT YOU HAVE TO HAVE THEM TO HAVE A GREAT COMMUNITY. WE ACTUALLY GENERATE REVENUE BUT WE ARE ALSO A LUXURY THAT CITIZENS OF CARMEL ARE PRIVILEGED TO HAVE. MOST DON'T HAVE A GIFT THAT WAS GIVEN TO THIS
[01:50:03]
COMMUNITY. I THINK WE MANAGE IT WELL AND I THINK WE ARE GENERATINGING MORE AND MORE REVENUE ALL THE TIME. THE CONTRIBUTED REVENUE CONTINUES TO COME IN. I OFTEN SAY PEOPLE DON'T GIVE US MONEY BECAUSE WE HAVE GREAT SHOWS. THEY BUY TICKETS BECAUSE WE HAVE GREAT SHOWS. THEY CONTRIBUTE TO US BECAUSE WE HAVE GREAT EMGICATIONAL PROGRAMS. THEY CONTRIBUTE TO US BECAUSE WE DO GREAT THIPGS FOR THE COMMUNITY LIKE FREE MILITARY CONCERTS. IF THE CITY WERE RUNNING THIS OR IF A FOR PROFIT COMPANY WERE RUNNING THIS, IT WOULD BE ABOUT $3.2 MILLION CONTRIBUTED REVENUE THEY WOULDN'T HAVE. I USED TO WORK FOR A LAWFIRM. WHAT A GREAT THING TO BE A NONPROFIT. NO ONE GAVE US MONEY BECAUSE WE LIKE WHAT YOU ARE DOING HERE. BUT THEY DO THAT BECAUSE WE ARE A NONPROFIT AND WE ARE DOING GREAT THINGS FOR THIS COMMUNITY. SO IT IS SOMETHING I THINK WE ARE GREAT STEWARDS, SOMETHING WE ARE WORKING AT. AGAIN, I RESPECTFULLY SUGGEST THAT I DON'T THINK WE ARE ADDRESSING A PROBLEM. WE ARE ADDRESSING A REALITY PUT IN PLACE BY SOME VISIONARY LEADERS 15, 20 YEARS AGO AND THAT I THINK WE ARE DOING A PRETTY EXTRAORDINARY JOB GENERATING. I GO BACK TO COUNSELOR GREEN'S POINT, THEIR KIDS ARE NOT USING THE WATER PARK ANYMORE BUT OTHER KIDS ARE. NOT EVERYONE LIKES WHAT IS HAPPENING AT THE ALLIED SOLUTIONS CENTER BUT NEARLY 2 MILLION PEOPLE ENJOYED IT. THAT IS JUST THE PERFORMANCES, LETALONE THE OTHER THINGS. >> THE PASSION AND EVERYTHING YOU SAID FROM WHEN YOU RESPONDED TO ME TO YOU BROUGHT UP TONY UNTIL THAT POINT, THAT IS THE MESSAGE THAT NEEDS TO BE DELIVERED. THAT WASN'T A BUNCH OF COMPLICATED DATA. THAT WAS SIMPLIFIED DATA PRESENTED IN A PASSIONATE WAY. I THINK THAT'S WHAT THE PUBLIC NEEDS TO WRAP THEIR HEAD AROUND. AND I LOVE THAT AND I UNDERSTAND THIS BUT MOST PEOPLE, A LOT OF PEOPLE DON'T. EDUCATING THE PUBLIC ON WHAT WE HAVE IS NOT JUST A BUILDING. IT'S A COMPLICATED BUILDING. IT HAS A BUZILLIAN MOVING PARTS. THAT'S A CRITICAL FACTOR AND IF YOU DO WHAT YOU
JUST NOW DID. >> I APPRECIATE THAT. I PRESENTED TO THE COUNCIL IN THE PAST BUT THIS IS THE FIRST TIME I THINK THE COUNCIL INVITED ME. I THINK MAYOR FINK WAS THE PRESIDENT. THIS IS THE FIRST YEAR WE WERE NOTIFIED OF POSSIBLE CUTS IN THE FUNDING. SO I GREATLY APPRECIATE THE PRESIDENT INVITING ME TO SPEAK TO THIS POINT. I HAVEN'T NECESSARILY FELT THE NEED TO DO THAT UNTIL THIS YEAR WHEN WE LEARNED THERE WAS A POSSIBILITY OF FUNDING CUTS NOT JUST TO US BUT THE COMPANIES AND THE FOUNDATION AND POTENTIALLY TO OTHER NONPROFIT ARTS ORGANIZATIONS IN THE CITY. VERY GRATEFUL GIVEN THE OPPORTUNITY TO SPEAK.
>> COUNCILLOR GREEN, COUNCILLORER LOCKE AND THEN
COUNCILLOR MINNAAR. >> THANK YOU. I AGREE WITH MOST OF WHAT COUNCILLOR SNYDER SAID AND WHAT YOU SAID. THE VALUE FROM THE ARTS IS A HUGE PIECE OF MAKING CARMEL A GREAT CITY. NOT ONLY THE VALUE OF THE ARTS BUT THE ECONOMIC DEVELOPMENT PIECE IS A HUGE ASSET, BIG PLUS. LIKE YOU SAID, WHETHER IT WAS A FAILED BUSINESS PLAN OR SOMETHING INTENTIONALLY DONE, IT WAS DONE 15 YEARS AGO KNOWING IT WOULD ALWAYS BE PUBLICLY SUBSIDIZED. DECISIONS COULD HAVE BEEN MADE 15 YEARS AGO NOT TO PUT THE SIT EY IN THAT SITUATION. WHETHER THE CITY KNEW ALL OF THE FACTS BACK THEN AND WOULD HAVE MADE THAT TYPE OF DECISION OR NOT, I APPRECIATE THE TRANSPARENCY THAT HAS COME SINCE THEN TO THE CITY KNOWING THAT I THINK IT IS OBVIOUS THAT WE WILL ALWAYS HAVE TO SUBSIDIZE IN SOME PART OF PERFORMING ARTS.
GOING BACK TO SOME THINGS YOU HAD ON THE SLIDE, $10 MILLION BUDGET, EARNED REVENUE, SOUNDS LIKE THERE IS A CEILING ON HOW MUCH EARNED REVENUE THERE COULD BE?
>> WE ARE LOOKING AT ADDITIONAL WAYS. CREATIVE EARNED REVENUE.
WE ARE LOOKING AT ADDITIONAL WAYS TO DARK DAYS. WE DON'T HAVE PERFORMANCES ON MONDAY, TUESDAY, WEDNESDAY. WE HAD SOME SUCCESS USING IT AS A RECORDING STUDIO. THERE ARE ALWAYS CREATIVE WAYS.
AS A PRACTICING LAWYER WHO BILLED BY THE HOUR, ANY TIME YOU
[01:55:02]
COULD BILL A DIFFERENT WAY BECAUSE THERE ARE ONLY 24 HOURS IN A DAY, YOU TRY TO THINK OUTSIDE THE BOX.>> OKAY. IT WAS BROUGHT UP EARLIER, THE COMPETITION THAT EXISTS TODAY THAT DIDN'T EXIST 15 YEARS AGO, HAS THAT HAD AN EFFECT ON -- YOU SAID THE OCUPANCY RATE IS GREAT. BUT DOES THAT HAVE AN IMPACT ON POTENTIAL FOR EARNED REVENUE?
>> WE ARE KEEPING AN EYE ON THE COMPETITION. THERE IS AN ASPECT OF IT, RISING TIDES FLOAT ALL BOATS. I THINK THERE IS SOMETHING TO BE SAID BY THAT. I DON'T THINK THEY BUILD PLACES SAYING WE WILL GIVE IT A TRY. THEY WILL NOT INVEST $150 MILLION WITHOUT DOING DUE DILL JENS TO SEE IF THERE IS A MARKET. THE FACT THAT THEY ARE DOING IT SUGGESTS THERE IS A MARKET OR THEY WOULD NOT MAKE THAT KIND OF INVESTMENT. ON TOP OF THAT, THEY MAKE THE INVESTMENTS KNOWING THEY ARE COMPETITION FOR US. WE ARE CONCERNED AND WE HAVE TO FIND WAYS TO DISTINGUISH OURSELVES. AS A NONPROFIT AND MOST OF THOSE ARE FOR PROFIT VENUES. THEY ARE ONLY DO ONE OR TWO TYPES OF GENRES. WE ARE DIFFERENTIATED IN THE FACT THAT YOU HAVE ABOUT EIGHT OR TEN DIFFERENT GENRES YOU BRING IN ON A YEARLY BASIS.
WE HAVE THE MOST BEAUTIFUL VENUE IN THE CITY OF INDIANA. IT'S A DIFFERENT EXPERIENCE WHEN YOU COME AND ENJOY A PERFORMANCE THERE VERSUS ONE SOME PLACE ELSE. FINDING WAYS TO DIFFERENTIATE OURSELVES TO PEOPLE LOOKING TO ELEVATED
EXPERIENCE IS IMPORTANT TO US. >> HOPEFULLY WE DON'T GET CUT OFF IN 3 MINUTES. DID YOU SEE THE GUY?
>> ONE MORE THING. I KNOW EVERYONE HAS QUESTIONS BUT I AGREE WITH THE LONGTERM PLAN THAT THE PUBLIC NEEDS TO SEE, KNOWING WE WILL PROBABLY BE SUBSIDIZING, SO WHAT'S THE
LONGTERM PLAN. >> I WOULD ARGUE AGAIN WHEN YOU TALK ABOUT SUBSIDIZING, IT IS ALMOST SUGGESTING THAT MONEY IS BEING GIVEN TO US FOR NO REASON. AGAIN, WE WORK FOR THE MONEY WE RECEIVE. WE CAN DISCUSS WHAT THAT AMOUNT SHOULD BE WHICH IS PART OF WHAT I'M HERE FOR TODAY BUT I TAKE A LITTLE ISSUE WITH
CALLING IT A SUBSIDY. >> OKAY. BUT THERE IS NOTHING WRITTEN IN THE CONTRACT ABOUT A SPECIFIC NUMBER. IT WAS A FLOATING WHATEVER WE GOT, WE GIVE YOU.
>> WE DIDN'T DRAFT THE CONTRACT.
>> OKAY AGAIN, WHATEVER WAS DONE 15 YEARS AGO WAS DONE. BUT CAPITAL IMPROVEMENTS. THE CITY OWNS THE BUILDING. IT'S A GREAT BUILDING. WE HAVE INVESTED A LOT. WHO IS ON THE HOOK TO KEEP MAINTAINING IT, GIVEN SENATE BILL 1 AND ALL OF THESE 36 MILLION BONDS FOR THE PARKS THAT PROBABLY NEEDED SOME FROM SOMEWHERE. IS THERE A CAPITAL IMPROVEMENT PLAN LONGTERM?
>> YES, THERE IS. AND WE HAVE BEEN WORKING WITH THE CFO OF THE CITY AND OTHERS. WE STARTED TO PUT TOGETHER A CAPITAL IMPROVEMENT PLAN SIX OR SEVEN YEARS AGO PRESENTED IT TO THE ADMINISTRATION BACK THEN. I PRESENTED IT AGAIN TO THIS COUNCIL, A DIFFERENT MAKE-UP OF THIS COUNCIL A FEW YEARS AGO. IN FACT WAS QUESTIONED BY KEB TIM HANNON AS TO WHY WE HAD NOT BROUGHT IT SOONER BUT WE SAID WE BROUGHT IT A FEW YEARS AGO. IT APPARENTLY HAD NOT BEEN DISSEMIINATED. CREATED A CAPITAL IMPROVEMENT PLAN LONG BEFORE MANY DEPARTMENTS HAD PLANS. THE ANSWER IS AND AGAIN WE DIDN'T DRAFT THE CONTRACTS BUT WE SIGNED THEM. MY PREDECESSORS DID. UNDER THE CONTRACTS, THESE ARE THE CITY'S BUILDINGS AND THEY ARE RESPONSIBLE FOR THE IMPROVEMENTS AND REPAIRS JUST LIKE THE OWNER OF AN APARTMENT COMPLEX WOULD BE RESPONSIBLE. THE MANAGER DOESN'T PAY FOR THOSE BECAUSE THE MANAGER DOESN'T OWN THE BUILDING. WE MANAGE THEM. IF SOMETHING NEEDS TO BE REPAIRED, WE ASSESS IT, DUE DILL JENS AND GET THE QUOTES AND THEN WE GETO THE CITY AND SHARE IT AND DETERMINE THE BEST COURSE OF ACTION. WE DON'T MAKE UNILATERAL DECISIONS BUT WE MANAGE IT AND MAKE DECISIONS AS TO WHAT HAS TO BE DONE, WHAT CAN WAI UNTIL A LATER PERIOD OF
TIME. >> COUNCILLOR LOCKE, MINNAAR.
>> SO I'M JUST GOING TO PUT A BOW ON WHAT YOU SAID. THE ANOLOGY OF AN APARTMENT COMPLEX, WHICH I WOULD NEVER COMPARE THE
[02:00:06]
PALLADIUM TO AN APARTMENT. FIRST OF ALL, I WANT TO SAY ONE THING TO EVERYONE WHO IS IN THE AUDIENCE. I SEE MANY FAMILIAR FACES, RESIDENT COMPANIES, BOARD OF DIRECTORS, STAFF, IT SAYS A LOT ABOUT HOWIA FEEL ABOUT THE COMMUNITY AND ARTS AS WELL WHICH IS SOMETHING I SHARE WITH ALL OF YOU. SOME OF MY FRIENDS ARE HERE FROM THE CARMEL SYMPHONY AND I WANT TO THANK YOU FOR COMING, BILL CULPEPPER ESPECIALLY. GOING TO CALL YOU OUT. NANCY SUTTEN, SORRY, THIS IS OUR CSO BOARD. I WANT TO THANK YOU FOR COMING AND STANDING IN SUPPORT OF THE ARTS BECAUSE AGAIN, I DO AS WELL SUPPORTIA VERY MUCH AND YOU KNOW THAT. I DON'T THINK ANYONE WOULD ARGUE WITH THE TYPE OF WORK YOUR BOARD, YOUR STAFF HAS DONE. I'M NOT GOING TO ASK ANY MORE QUESTIONS. I JUST WANTED TO MAKE A STATEMENT AND TONY ASKED THE QUESTION AND MATT SAID SOME OF THE THINGS I WANTED TO SAY SO I WILL LET OTHER PEOPLE TALK, SOJUST A GENERAL THANK YOU. >> COUNCILLOR LOCKE.
>> I WILL START WITH TWO OVER ARCHING CONCEPTS AND THEN GET INTO THE MEAT OF QUESTIONS I HAVE BUT THEY ARE PRETTY NORMAL FOR ME. ONE IS THE DIFFERENTIATION BETWEEN BUILDING SOMETHING TO MAKE A PROFIT AND BUILDING SOMETHING THAT IS A THING WE ARE BUILDING FOR THE CITY. I THINK IT IS A MASSIVE DISTINCTION WHERE WE ARE NOT GOING TO PUT MONEY IN AND WE WILL INVEST IN SOMETHING FOR SOMEONE ELSE TO MAKE A TON MONEY OUT OF. THIS IS SOMETHING WE INVEST IN TO BE A STAPLE OF THE QUALITY OF LIFE WE WANT TO BE. WHILE WE TALK ABOUT TT THE PROFIT MOTIVE A LOT, AND GOVERNMENT GETS INTO THIS KIND OF CYCLE OF TALKING ABOUT HOW DO WE RECEIVE THIS MONEY BACK THAT WE PUT INTO THIS STUFF. IN SOME CAPACITY, IF THAT WAS THE CASE, IF YOU WOULD BUILD A PALLADIUM FOR $180 MILLION AND MAKE A TON OF MONEY, SOMEONE ELSE WOULD HAVE DONE IT. BUT YOU CAN'T. THE THING THAT I LIKE ABOUT TONIGHT BEFORE WE GET INTO BUDGET PROCESS AND THE NEXT CONVERSATION WE WILL HAVE ABOUT UTILITIES WHICH IS A DIFFERENT HIERARCHY OF NEEDS, THIS IS ABOUT THE TYPE OF PRIMATES WE WANT TO BE. AND I SAY THAT, WE ARE TRULY TRYING TO CREATE A WORLD AROUND US , WHETHER IT IS PARKS, ARTS, OR WATER INFRASTRUCTURE, IT IS HOW DO WE WAN TO LIVE TOGETHER IN A COMMUNITY AND WHAT DO WE WANT TO BE SO THE QUALITY OF LIFE, THE ONE CHANCE WE GET ON THE PLANET TOGETHER FROM 18 MONTHS TO 92 YEARS, WHAT DO WE WANT IT TO BE.
SO THOSE ARE MY TWO THINGS. OE, PROBABLY LESS FREE MARKET CAPITALIST THAN I SHOULD SOUND INTO A MICROPHONE BUT SOME THINGS YOU HAVE TO DO BECAUSE IT IS WORTH DOING AND THAT'S WHAT GOVERNMENT DOES. COLLECT ASSETS AS TAX DOLLARS AND BUILD SOMETHING THAT WE ALL WANT TO HAVE. IF WE WANTED TO MAKE A BILLION DOLLAR BUSINESS, WE COULD DO THAT BUT THAT'S NOT WHAT WE WANTED. WLT WE STARTED LOOKING AT IS THE STRATEGY FROM THE AGREEMENT AND DEVIL IN THE DETAILS AND CAREFUL WHAT YOU WISH FOR AS YOU WRITE AGREEMENTS. YOU BUILD HOURS, YOU UNDERSTAND IT. WHAT DO WE WANT TO SEE 15 YEARS FROM NOW? WHAT ARE WE GOING TO LOOK AT? I PULLED YOUR REPORT UP AS YOU REFERENCED IT. DIDN'T SEE IN THE REVENUE DATA, JUST THE OVER ARCHING REVENUE, BROKEN DOWN BY PERCENTAGE. I STARTING PULLING FOR THE OTHER NONPROFITS BECAUSE I LEARNED HOW TO DO THAT THIS YEAR BUT DIFFERENT STRUCTURES ON HOW THE FUNDING WORKS. YOU SEE $52 MILLION WITH THE WALTEN FOUNDATION WITH THAT PERFORMING ARTS CENTER WHICH IS A WHOLE DIFFERENT GAME. SOME OF THEM HAVE ENDOWMENTS AND THERE IS A REVENUE MODELAL AND FROM DIRECT GOVERNMENT SUPPORT BUT TO BUILDING UP A SUBSET OF CASH THAT GENERATES INVESTMENT REVENUE THAT BECOMES OPERATIONAL EXPENSES TO HAVE WHAT WE WANT OR DESIRE. I'M SURE WE CAN PIVOT TO 365 NIGHTS OF YANK VICH AND CUT ALL OF THAT DOWN BUT THAT'S NOT WHAT WE WANT AS A COMMUNITY. MY QUESTION OF AS YOU WENT TO PULL THE DATA TONIGHT TO TELL US WHY $2.25 MILLION PLUS THE APPROVAL OF OUTSTANDING REVENUE THAT COMES THROUGH IS SOMETHING WORTH WHILE TO FUND, DID YOU LEARN ANYTHING FROM THE
[02:05:02]
EXERCISE? DID YOU GET INSIGHT ON OTHER THINGS WE COULD DO? CAN WE START TO TELL THAT STORY FROM A LONGEVITY CONCEPT, PUT IN $150 MILLION TO FUND THIS THING THAT WE ARE PAYING $2.25 MILLION TO PAY REVENUE THAT PAYS FOR ITSELF IN 50 YEARS OR CAN WE SEE A PATH WHERE THAT SUPPORT STARTS TO SHIFT SO WE CAN THEN TAKE THAT SUPPORT AND PAY FOR NEW PIECES OF GREETH GROWTH TO THE ECOSYSTEM BECAUSE THE INVESTMENT WE EHAVE MADE HAS BUILT SOMETHING THAT CAN NOW HELP US BUILD SOMETHING NEW. I LOVE THE CONCEPT OF GETTING EXTRA STUDY, LOOKING AT THIS NOW WITH WHAT WE ARE GOING INTO FROM A BUDGET PERSPECTIVE BUT TO START TELLING THE STORY OF WHAT IS NEXT AND HOW WE CAN ALL AS A COMMUNITY OF PEOPLE THAT CARE ABOUT THIS START TO LOOK AT HOW DO WE BUILD THIS TOGETHER SO IT CAN BE MORE SUSTAINABLE AND ELIMINATES THE HARM OF POLITICAL CHANGES AT A CITY LEVEL, STRENGTHEN THE RELATIONSHIP SO THAT WE KNOW WHERE THAT'S GOING AND THEN WE START TO POOL THE SUPPORT MECHANISMS TO GET WHERE WE WANT TO BE WHICH IS A PLACE WITH THE BEST PARKS IN THE WORLD, THE BEST PERFORMING ARTS CENTER IN THE WORLD, WITH THE COOLEST ROUND ABOUTS OF ALL TIME BUT WE CONTINUE TO ADD TO THAT AS OPPOSED TO GETTING BOGGED DOWN IN THE MINUTIA OF WE ARE FIGHTING OVER PENNIES IN A BUDGET THIS YEAR AND WE NEED TO FIGURE OUT WHAT TO TRADE. CAN WE BEGIN TO TELL THAT STORY?>> I THINK TO A DEGREE WE ARE TELLING THE STORY ALREADY IN TERMS OF SUCCESS. I WAS ONE OF THE FOUNDING BOARD MEMBERS IN 2010. THERE WAS TALK THEN BY THE ADMINISTRATION AT THAT TIME, IT WAS A WING AND A PRAYER THAT A CORPORATION WOULD STEP UP PUT DOWN A SINGLE, HUGE SET OF MONEY THAT WOULD PUT DOWN AN ENDOWMENT TO NAME THE CENTER IN PERPETUITY. THAT WAS NEVER GOING TO HAPPEN. THERE WAS NO STUDY AS TO THE VALUE WOULD BE. WE HIRED A GREAT COMPANY OUT OF CHICAGO TO HELP US ANALYZE WHAT IS THE VALUE OF THE NAMING PARTNERSHIP. AND WE HAD SOMETHING TO BACK IT UP, PLAYING MONEY BALL WITH DATA. THERE WAS THAT. BUT NO COMPANY WILL COME WITH A BRAND NEW CENTER AND PUT A BIG CHUNK OF MONEY DOWN AND NAME IT WHEN THEY HAVE NO IDEA IF IT WILL SUCCEED OR FAIL. YOU HAVE TO BUILD UP CONFIDENCE AND YOU HAVE TO SHOW IT IS A STAUG THAT IS RISING. MANY PEOPLE KNOW THAT IN THE FIRST COUPLE OF YEARS, THERE WERE BUMPS AND BRUISES WITH WHAT WAS THEN THE CENTER FOR PERFORMING ARTS. AS WE GOT INTO 2018, 2019, PROGRAMMING HAD TAKEN OFF IN POSITIVE WAYS, MIXED UP THE PROGRAMMING IN WAYS THAT WAS MORE EXCITING TO THE COMMUNITY, OUR EDUCATIONAL PROGRAMS WERE TAKING OFF. WE WERE DOING MORE THINGS FOR THE COMMUNITY FREE OF CHARGE. WE ANNOUNCED WE WERE LOOKING FOR A NAMING PARTNER AND WITHIN TWO WEEKS WE GOT ONE. WE HAD THE CONTRACT DONE AND READY TO BE SIGNED AND COVID HIT AND THAT PARTNER BACKED OUT. AND FRANKLY, THEY DID THE RIGHT THING. THEY HAD OTHER THINGS TO BE DOING. WE HAVE EVERY OTHER ORGANIZTION HAD TO RETOOL. UNLIKE MANY ORGANIZATIONS, WE DIDN'T CLOSE. WE KEPT OUR PEOPLE EMPLOYED. WE PIVOTED. I STILL HATE THAT WORD BUT WE PIVOTED OUR MISSION TO STREAMING AND WE SUPPORTED LOCAL ARTISTS WHEN AUDIENCE COULDN'T ATTEND. WE LOST THE OPPORTUNITY IN 2019 FOR THE NAMING PARTNER.
WE CAME BACK FROM COVID WELL. OUR TICKET SALES HAVE GROWN THE LAST FEW YEARS. WE ANNOUNCED THAT IT IS TIME WE WILL TRY TO DO THIS. PRETTY MUCH IMMEDIATELY, ALLIED SOLUTIONS CALLED AND SAID WE WOULD BE INTERESTED IN DOING THAT. THEY HAVE BEEN A LONGTERM PARTNER AND THAT HAPPENED. FOLLOWING THAT, THE PAYNE FAMILY CAME FORWARD AND SAID THEY WERE INTERESTED IN NAMING PALLADIUM. WE ARE HOPING WITH THAT BEHIND US AND THAT AMOUNT OF SUCCESS WE HAVE NOW AND THE MOMENTUM OF THAT CONTINUES TO BRING IN NEW SPONSORSHIPS, NEW DONORS. THE OTHER THING WE DID IS STARTED A LEGACY PROGRAM. WE ARE A RELATIVELY NEW ORGANIZATION BUT ENDOWMENTS ARE BUILT ON THOSE TYPES OF SINGULAR GIFTS THAT CAN COME, LITERALLY FROM HEAVEN.
[02:10:05]
THAT'S THE TYPE OF THING THAT AS WE CONTINUE TO BUILD UP, WE DON'T HAVE WHAT WE CALL A TRUE ENDOWMENT. WE CALL IT A BOARD DESIGNATED FUND WHICH GIVES THE BOARD SOME CONTROL TO ACCESS IT.WE THINK IT IS PRUDENT TO DO. WE THINK IT IS THAT TYPE OF MOMENTUM THAT IS BUILDING ON ITSELF. YEAH I DO SEE A POINT IN TIME WHERE WE'VE GOT THAT KIND OF LONGTERM SUSTAINABILITY FROM MORE SPECIFIC ENDOWMENTS. SOME OF THE THINGS YOU SAW IN THE STUDY, SOME OF THOSE ARE APPLES TO ORANGES. SOME ARE BROAD WAY HOUSES. IF WE WERE BROADWAY HOUSES, THAT WOULD CHANGE THE STRUCTURE. WE ARE TRYING TO BE AS PRUDENT AND THOUGHTFUL AND CREATIVE WITH THE RESOURCE WE HAVE TO CONTINUE TO
GROW IT. >> JUST FINAL NAIL ON THAT AS WE GET DEEP INTO BUDGET WISE, AS WE CONTINUE, IT GOES TO PARKS TOO.
WE TALK ABOUT PARKS AND YOU GUYS ARE GREAT BUT TO KIND OF CHANGE IT FROM A NARRATIVE PERSPECTIVE, WE GET INTO THIS AND WE LOOK AT EVERYTHING AS NOT US. IT IS FIGHT FOR THIS OR THAT. THESE THINGS OUTSIDE OF OUR GOVERNMENT ADMINISTRATION ARE EASY TO PUT OUTSIDE OF OUR DIRECT LINE OF OVER SIGHT. BUT THIS IS THE BEST STRUCTURE TO DO THIS THING. JUST AS WE ARE STEWARDS OF OUR CITY COUNCIL AS ELECTED OFFICIALS AND WE ARE HERE IN THAT CAPACITY, YOUR BOARD HAS BEEN TASKED AS A STEWARD OF THE CITY FOR THIS ASSET THAT WE BUILD COLLECTIVELY TOGETHER. I MAKE THAT CALL AS WE REMEMBER WE ARE HOLDERS OF THIS WHILE WE HOLD IT. OUR GOAL IS TO MAKE SURE WHEN WE LET IT GO WHICH WE HAVE TO BECAUSE WE ARE NOT THE THING. THE THING IS WAY BIGGER THAN WHAT WE WILL BE AS INDIVIDUALS, IT IS IN A BETTER SPOT SO THE NEXT PERSON CAN TAKE IT. I SAY THAT FOR ARTS, PARKS, CITIES, ALL OF THE THINGS WE OVER SEE, IF WE CAN REMEMBER TO GET BACK TO THE GRASS ROOTS, A PLACE TO LIVE TOGETHER, TO DO THINGS WE WANT TO DO TO CREATE THE PRIMATE EXISTENCE THAT IS MOST LIKE SHARE AND LORD OF THE RINGS, THAT GOAL IS A SHARED MISSION. THEY ARE NOT ANCILLARY.
THEY ARE NOT SECONDARY. JUST BECAUSE SOMEONE DECIDED TO DO IT 15 YEARS AGO, WE DECIDED TO DO IT. SO THE FACT TO GET IN AND SAY WE SHOULDN'T HAVE DONE IT, WELL IT HAPPENED. THAT'S HOW IT WORLD WORKS. WE NEED TO MAKE SURE WE TAKE CARE OF THE THINGS WE GOT. THANK YOU FOR COMING UP HERE. THANK YOU FOR DOING IT ON A MONTHLY, QUARTERLY, WHATEVER IT IS BASIS. AND THE REST OF YOU, KEEP MAKING THE PLAY FOR WHAT WE NEED. AS A CITY, THERE MAY BE GIVE AND TAKES, YEARS OF AUSTERITY THAT WE HAVE TO FIGHT THROUGH BUT WE CAN DO IT TOGETHER BECAUSE WE ARE ALL DOING THE SAME THING CARING FOR OUR PLACE.
>> OKAY, THE LAST COMMENTER IS COUNCILLOR AND PROBABLY WON'T DO A SECOND BITE OF THE APPLE TONIGHT, I APOLOGIZE.
>> I CAN'T WAIT FOR THE BREAK SO I WILL NOT TAKE LONG. I WAS HERE NOT ONLY 15 YEARS AGO BUT PROBABLY 18 YEARS AGO AND REMEMBER THIS ROOM BEING OVER FLOWING WHEN THE VOTE WAS TO BE TAKEN BY THE CITY COUNCIL. BACK IN THOSE DAYS, THERE WAS NO FISHERS, THERE WAS NO WESTFIELD, THERE WAS NO NOBLESVILLE BREATHING DOWN OUR NECKS. WE WERE UNIQUE. WE WERE ASPIRATIONAL. WE DESIRE TO DO SOMETHING THAT WOULD MAKE OUR COMMUNITY STAND OUT. WHEN YOU LOOK AT THE RATINGS AND THE TALK ABOUT CARMEL IN LOCAL AND NATIONAL MEDIA, I THINK THAT THE CENTER FOR PERFORMING ARTS IS A BIG REASON. I DON'T RECALL A FAILED BUSINESS PLAN. MAYBE THERE WAS ONE. I DON'T RECALL THAT. BUT I DO RECALL THIS WAS ABOUTQUALITY OF LIFE. FOR ME, THESE DECISIONS DO NOT HAVE ANYTHING TO DO WITH WHETHER OR NOT I'M A SUPPORTER OF THE ARTS OR I'M A SUPPORTER OF THE PARKS, OR I LIKE PERFECTLY PAVED ROADS. THIS IS ABOUT QUALITY OF
[02:15:09]
LIFE AND SOMETHING THAT CARMEL, INDIANA, CHOSE TO FOCUS ON. IT COULD HAVE BEEN SPORTS, IT COULD HAVE BEEN G-LEAGUE BASKETBALL, ANYTHING. BUT THIS IS WHAT THE LEADERSHIP AT THAT TIME OFFERED TO THE COMMUNITY. THE COMMUNITY ACCEPTED IT AND HERE WE ARE.I'M SO THANKFUL TO COUNCILLOR LOCKE FOR RAISING THE ISSUE OF THE TALK ABOUT PROFIT AND EXPENSES. BECAUSE THERE ARE JUST SOME THINGS LIKE OUR WONDERFUL PARK SYSTEM THAT WE DO THAT NEEDS INVESTMENT, AND NEEDS SUPPORT. WE HAVE MEMBERS OF THIS COUNCIL WHO ARE EXTREMELY PASSIONATE. WE HAD A GREAT CONVERSATION TONIGHT FROM COUNCILLORS WHO ARE EXTREMELY PASSIONATE. BUT I WOULD BE VERY CAUTIOUS TO MY COLLEAGUES IN SAYING THE COMMUNITY DOES NOT APPRECIATE THE ALLIED SOLUTIONS CENTER FOR THE PERFORMING ARTS. I THINK THAT IS AN OVERSTATEMENT AND IDISDPREE AGREE WITH IT. THERE ARE SOME MEMBERS THAT DO NOT APPRECIATE IT. SO I HAVE ALWAYS SAID WHEN I FIRST RAN FOR OFFICE THAT I WOULD MAKE DECISIONS BASED ON SPECIFIC THINGS. ONE OF THOSE THINGS IS HAVING FACTS AND DATA. I RESPECT ROB HUDEN AND THEIR TEAM. THE RESUME IS UNBELIEVABLE. I VALUE THE INPUT AND THE REPORT YOU SPENT THE MONEY ON. WE ALSO HAVE THE ECONOMIC DEVELOPMENT DATA THAT CAME IN, INDEPENDENTLY SHOWING THE TREMENDOUS AND FANTASTIC AND PROBABLY AN AMOUNT THAT OTHER COMMUNITIES DIE FOR. THEY WOULD LOVE TO BE IN OUR POSITION. THIS IS GOING TO BE ABOUT FACTS AND DATA. AND UNDERSTANDING WHAT THE SITUATION THAT WE ARE IN. NOW MY UNDERSTANDING IS, I GUESS YOU HAVE ALREADY BEEN WARNED ABOUT SOMETHING. I'M NOT PRIVY TO ANY OF THE CONVERSATIONS OR ANY KIND OF CUTS MIGHT BE. BUT I CERTAINLY WILL BE IN THERE WANTING TO KNOW, WHAT IS THE SITUATION AS IT STANDS TODAY REGARDING THE FINANCES OF OUR COMMUNITY, AND SHOULD OUR DECISIONS HAVE TO BE MADE, THAT WILL BE BASED ON FACTS AND DATA AND I APPRECIATE IT. RIGHT NOW, I WOULD SAY THAT I WANT TO APPLAUD YOU. I THINK YOU RUN A GREAT ORGANIZATION. I HAVE BEEN, I WAS HERE WHEN THE VOTES WERE TAKEN. I HAVE BEEN A DONOR. I HAVE BEEN A PATRON AND I HAVE BEEN A FUND RAISER FOR YOU. I HAVE SEEN THE INNER WORKINGS AND I RESPECT THE JOB YOU DO. I DO NOT WANT TO SEE US JUMP OVER DOLLARS TO PICK UP NICKELS WHEN WE HAVE 15 YEARS OF EXCELLENT DATA TO SHOW WHAT THIS ASSET IS TO OUR COMMUNITY. NOW REGARDING THING FACT THAT SOME PEOPLE DON'T KNOW ABOUT HOW GREAT THE CENTER FOR THE PERFORMING ARTS IS OR YOU HAVE TO DO AN A BETTER JOB, I HAVE A COUPLE QUESTIONS.
WHO DO YOU MEET WITH OPA REGULAR BASIS? WHAT DOES THE DIALOGUE LOOK LIKE? HOW MUCH DOES THE SIY KNOW ABOUT YOU? HOW MUCH DO YOU KNOW ABOUT THE CURRENT ECONOMIC SITUATION FROM THE CITY? MAYBE I WILL STOP AND ASK IF YOU CAN SHED SOME LIED ON.
>> I REGULARLY MEET WITH DONORS, SPONSORS, NAMING SPONSORS, GET A LOT OF INPUT FROM THEM. MANY OF THEM HAD INFLUENCE INTO THE NEW STRATEGIC PLAN. MEET ABOUT EVERY FOUR TO SIX WEEKS WITH THE MAYOR WITH MY TWO BOARD CHAIRS FROM THE GREAT AMERICAN SONG BOOK FOUNDATION AND ALLIED SOLUTION CENTER. WE PROVIDE REPORTS TO THE MAYOR OF WHAT WE ARE DOING. WE PROVIDE FINANCIAL DATA TO THE CITY EACH YEAR BASED ON THE MANAGEMENT AGREEMENTS THAT CALL FOR THAT. THE 990S ARE OPEN TO EVERYONE ON OCCASION. THEY ARE AVAILABLE AND CAN BE LOOKED UP ANYWHERE. I THINK THREE MEMBERS OF THE COUNCIL, COUNCILLOR MINNAAR AND JOSHI I CONSULTED WITH AND ASKED FOR INPUT, ASKED THE MAYOR FOR INPUT AND GOT GREAT INPUT FROM EVERY ONE OF YOU INCLUDING MAJOR DONORS AND
[02:20:03]
SPONSORS. >> SO I'M GLAD TO HEAR YOU ARE MEETING. HAVE YOU BEEN NOTIFIED OR INFORMED THAT YOU ARE NOT DOING SOMETHING CORRECTLY OR THERE ARE THINGS THAT THE CITY WOULD LIKE TO SEE YOU DO INSTEAD? IS THERE ANY OF THAT
GOING ON? >> NOT THAT I THINK OF.
>> THE OTHER COMMENT I WOULD MAKE IS IF WE ARE ARE GOING TO AS A COMMUNITY, AND OF COURSE THAT'S THE JOB OF THE BODY AND I WOULD POINT TO THE MAYOR, THERE HAS TO BE LEADERSHIP FROM THIS BODY AND THE ADMINISTRATION. IF THIS IS AN ASSET THAT IS IMPORTANT TO THE COMMUNITY, THEN SHAME ON ME THAT I'M NOT TOUTING THAT, PROMOTING THAT, THAT I'M NOT SAYING I'M READY TO FIGHT FOR THIS. NOT, HOW MUCH HAIR CUT CAN I GIVE YOU BUT THAT THIS IS IMPORTANT TO OUR COMMUNITY. IF IT REALLY IS.
AND I THINK THAT IS UP TO MY COLLEAGUES TO DECIDE. FOR ME IT IS. I'VE SEEN WHAT HAPPENED. OUR DOWNTOWN CORE IN CARMEL, INDIANA IS THE ENVY OF EVERY OTHER COMMUNITY. THAT'S WHERE THE BUSINESS WANTS TO MOVE. IT'S BECAUSE OF THE CAMPUS AND WHAT HAS BEEN CREATED IN DOWNTOWN CARMEL. BECAUSE WE WANT A BREAK, I WILL END IT THERE BUT I WOULD HIGHLY RECOMMEND IF THERE IS ANYONE I CAN MEET WITH ON THE COUNCIL THAT WOULD LIKE TO KNOW ABOUT MY EXPERIENCE OR WHY I FEEL PASSIONATE ABOUT THE ASSET OR WHY I'M NOT AS CONCERNED ABOUT WHAT'S GOING TOHAPPEN IN THE FUTURE OR THE COMPETITION AROUND US, I'M CONFIDENT IN THE MANAGEMENT. I WOULD ASK YOU WITHIN OUR PURVIEW TO DO THE WORK AND MAKE A DECISION AS TO YOUR SUPPORT OR BELIEF THAT THIS IS IMPORTANT TO OUR COMMUNITY JUST AS ROADS, PARKS, POLICE, FIRE, ET CETERA, THANK YOU.
>> THANK YOU. I JUST WANT TOSAY ONE THING BEFORE WE BREAK. YOU KNOW PART OF THE REASON THAT MANY OFFIA MIGHT KNOW, PEOPLE ARE FORGETTING , I USED TO OWN A RESTAURANT IN CARMEL FOR ABOUT 11 YEARS. IT HAS BEEN CLOSED FOR FOUR YEARS NOW. BUT WHEN WE OPENED, IT WAS THE SAME YEAR THAT THE PERFORMING ARTS CENTER OPENED. IT WAS ONE OF THE THIPG THINGS THAT DID ATTRACT US TO THE COMMUNITY THINKING IT WOULD DRAW PEOPLE TO MY RESTAURANT. I KNOW WE WERE NOT THE ONLY ONES. I KNOW A LOT OF BUSINESSES HAVE COME BECAUSE OF THE ECONOMIC DEVELOPMENT THAT HAPPENS FROM THE CENTER FOR PERFORMING ARTS. MAYBE I DON'T LIVE HERE IF THAT DOESN'T HAPPEN. MAYBE I DON'T JOIN THE COMMUNITY IF THERE WAS NOT ECONOMIC DEVELOPMENT SUCH AS YOURS HAPPENING IN THE SDMUVENLT SO I THINK IN SOME WAYS, IT MAY HAVE CHANGED THE TRAJECTORY OF MY LIFE. A LOT OF POINTS WITH WESTFIELD, NOBLESVILLE, A LOT OF THEM HAVE NOTICED THE STRATEGY. WE SEE ARENAS BEING OPENED UP. I THINK WE HAVE TO MAKE SURE TO LOOK AT A LOT OF PEOPLE ARE TRYING TO BE CARMEL AND TRYING TO BE OUR EXAMPLE. IT BOGGLES MY MIND THAT WE WOULD RUN FROM OUR IDENTITY. WHY WOULD WE RUN FROM THE STRATEGY WHEN THEY ARE TRYING TO DUPLICATE OUR STRATEGY? I WILL LEAVE IT AT THAT. WE WILL TAKE A RECESS BATHROOM BREAK. IF YOU ARE LEAVING, IT'S NOT RUDE. TRY TO KEEP IT 10 MINUTES. WE HAVE A
[Additional Item]
. >> ALL RIGHT, FOLKS TAKE A SEAT.
WE WILL RESUME THE MEETING. WE HAVE A REPORT FROM CARMEL UTILITIES. OTHER COUNCILLORS WILL BE COMING IN. YOU CAN GO
AHEAD AND GET STARTED. >> THANK YOU, PRESIDENT AASEN.
AND COUNCILMEMBERS, PARTICULARLY COUNCILMEMBERS JOSHI AND GREENE WHO I HAVE NOT HAD A CHANCE TO MEET YET. I WAS HOPING THE FIRST TIME BEFORE THIS GROUP WOULD BE FOR SOME OTHER REASON BUT HERE WE ARE. LET ME TAKE THIS TIME TO WALK THROUGH WHAT HAPPENED A WEEK AGO AND GIVE YOU SOME CONTEXT. BEFORE WE DO THAT, I WANT TO SAY, PEOPLE DON'T ALWAYS THINK OF THIS BUT WE ARE FIRST PUBLIC HEALTH AND SAFETY ORGANIZATION. CHIEF, WE PARTNER WELL WITH THEM, HIS TEAM TO DO GREAT THINGS THEY DO, THERE NEEDS TO BE WATER IN THE SYSTEM. WE HAVE A GREAT PARTNERSHIP. WE
[02:25:03]
ARE THAT. BUT WE ARE A UTILITY. I SHARE THAT BECAUSE COMING FROM EVANSVILLE, I HAD TO DO SOME EDUCATION QUITE A BIT WITH COUNCILLORS AND REALLY OUR CUSTOMERS. WE ARE NOT A LARGE UTILITY. WE ARE NOT CENTER POINT. WE ARE NOT DUKE ENERGY.WE ARE NOT THE LARGE CORPORATE ENTITIES. WE ARE A MUNICIPAL ENTITY. WE HAVE 110 EMPLOYEES FUNDED BY THE 32,000 CUSTOMERS WE HAVE, THAT'S IT. A LOT OF DISCUSSION ABOUT BUDGET TONIGHT, WE ARE NOT PART OF THE GENERAL FUND. WE RUN SOLELY ON RATES AND THE INVESTMENT WE CAN PUT BACK INTO THE SYSTEM FROM THAT. I SHARE THAT JUST HELPING PEOPLE, A LOT OF PEOPLE I GOT, A LOT OF EMAILS I GOT, I WAS EXPECTING. UTILITIES OF A WORLD CLASS CITY SHOULD HAVE A, B, AND C. SO I THINK IT IS AN IMPORTANT TO UNDERSTAND WHAT WE ARE. WE HAD AN ISSUE THAT WE HAVEN'T HAD IN 17 YEARS WHICH IS AMAZING. I WAS FROM EVANSVILLE AND SOMETIMES IT WAS EVERY MONTH THAT WE WOULD HAVE A BOIL ADVISORY. THAT WAS PART OF LIFE RGS SO MANY MAIN BREAKS. THE FACT T THAT THIS COMMUNITY HAS NOT HAD ONE IN 17 YEARS, I WANT OUR CUSTOMERS AND CITIZENS TO KNOW WE HAVE A GOOD WATER SYSTEM. I WANT THEM TO HAVE CONFIDENCE IN THE WATER SYSTEM EVEN THOUGH WHAT HAPPENED WAS SOMETHING WE HADN'T EXPECTED. I KNOW MY PREDECESSOR, THIS WAS HIS NIGHTMARE, WHAT HAPPENED. THIS WAS HIS NIGHTMARE THAT THIS 36 INCH MAIN, SOMETHING WOULD HAPPEN TO IT WHEN WE HAD THE LEAST AMOUNT OF WATER AND HAD TO GET IT OUT THERE. WE LIVED THROUGH THIS NIGHTMARE. I HOPE WE WILL LEARN FROM THIS NIGHTMARE. I KNOW WE WILL GET BETTER BECAUSE OF IT.
ONE THING I WANT TO ACKNOWLEDGE, I THINK OUR DEEM DID AN AMAZING JOB MAINTAINING PUBLIC HEALTH. I WANT T OUR CITIZENS TO KNOW THAT. I GOT A LOT OF EMAILS FROM CITIZENS WHO ARE NERVOUS AND SCARED. I'M A FATHER AND I HAD EMAILS FROM NEW MOMS WHO SAID I JUST MADE FORMULA WITH THE WATER, IS MY BABEGOING TO BE OKAY. I WANT YOU TO HEAR I UNDERSTAND THAT. WHILE WE MAINTAIN PUBLIC HEALTH, WE DIDN'T COMMUNICATE IT VERY WELL. WE WEREN'T T ABLE TO GET THAT OUT TO YOU. WE WILL BE BETTER. I JUST WANT TO START WITH THAT. BECAUSE THAT WAS THE BIG ISSUE RGS BEING ABLE TO GET IT OUT. WE WILL DO BETTER. YOU HAVE BEFORE YOU A FOUR PAGE DOCUMENT. SORRY FOR THE CROWD, I DON'T HAVE THIS ON THE SCREEN. I WILL START ON PAGES TWO.
>> BLAIN, YOU CAN PUT IT ON, YOU CAN -- WE HAVE A CAMERA THAT LOOKS DOWN. WELL, LET'S DO THAT. THERE WE GO. SO I WILL START ON PAGE FOUR. THAT IS THE APPENDIX. CAN YOU HEAR ME? I WILL START WITH THAT. WHAT I WILL DO IS I WILL WALK US THROUGH WHAT HAPPENED. YOU WILL NOTICE ANYTHING IN BLACK IS OPERATIONAL RESPONSES WE DID, THINGS THAT WE WERE JUMPING ON AND ANYTHING IN RED IS RELATED TO A LINE ON COMMUNICATIONS SO YOU KNOW. AT 8:08, THE SYSTEM SHOWED THAT WE WERE PRODUCING NORMALLY, WE WERE GETTING THE WATER BACK OUT. ONE THING I WANT PEOPLE TO UNDERSTAND, ESPECIALLY ON A MONDAY MORNING, THIS IS A MONDAY MORNING, IT WAS THE PERFECT STORM. MONDAY MORNING IS OUR HIGHEST DEMAND MORNING. THAT DEMAND IS LARGELY DRIVEN BY AUTOMATIC IRRIGATION ON THE WEST SIDE. WHEREAS WE PRODUCE ABOUT, AND OUR CUSTOMERS USE ABOUT 8 MILLION GALLONS OF WATER A DAY FOR NORMAL LIVING, IN THE SUMMERTIME, IN IRRIGATION TIME, WE CAN GO UP TO 20, 22 MILLION GALLONS IN A DAY. THE ONLY DIFFERENCE IS IRRIGATION. THAT DAY WE HAD 20 MILLION GALLONS
[02:30:03]
THAT WE HAD BEEN PRODUCING, 8 MILLION OF THAT IS FOR CONSUMPTION. 13 MILLION OF THAT IS IRRIGATION. IT IS AUTOMATIC, MUCH OF IT IS AUTOMATED. IT TURNS ON AT 3:00 IN THE MORNING WHILE PEOPLE ARE ASLEEP AND SHUTS OFF AT 7:00. WE DON'T HAVE A LOT OF CONTROL OVER THAT. THAT'S SOMETHING WE CAN TALK ABOUT LATER. WE COME INTO MONDAY MORNING, NORMAL OPERATIONS AND WE WERE STARTING TO BUILD IN OUR WEST TOWER. OUR WEST TOWER THAT HOLDS 2 MILLION GALLONS, WE WERE STARTING TO BUILD THE VOLUME BACK IN THAT TANK. THAT WAS AT 8:08, 37% FULL. AT 8:09, ALARMS GO OFF AND WE HAVE LOW PRESSURE. SHORTLY AFTER, 8:10, A SAFETY MECHANISM THAT WORKED WHICH IS GREAT, THE THREE PUMPS PUSHING ALL OF THE WATER SOMEWHERE AROUND 15,000 GALLONS A MINUTE TO GET AS MUCH WATER TO THE WEST SIDE AS WE CAN, THOSE SHUTOFF BECAUSE THEY DIDN'T HAVE POSITIVE PRESSURE AGAINST THEM BECAUSE SOMETHING HAD FAILED IN THE 36 INCH MAIN. WE KNEW SOMETHING WAS WRONG. WE START GETTING CALLS, WE CALL OUT TO THE DISTRIBUTION THAT SOMETHING IS GOING ON, DISTRIBUTION IS OUT THERE AT 131ST AND SHELDEN, THAT'S WHERE THE WEST TOWER IS.THEY HAD NO WATER AT THE BUILDING. WE KNEW SOMETHING WAS GOING ON. WE HAD A CREW AROUND THE CORNER, THE MOST EXPERIENCED CREW, WHEN THEY GOT THE CALL, THEY SAID LET'S LOOK FOR BREAKS OR SOMETHING ON THE 36, EAST OF PLANT ONE WHICH IS WHERE IT IS BEING PRODUCED AT GRAY AND 106. THEY COME AROUND THE CORNER, COME AROUND HAFBER, TURN WEST ON 106 AND BETWEEN HAVER STICK AND LAKE SHORE EAST IS A SMALL GEYSER BECAUSE A WATER HYDRANT HAS BLOWN OFF OF THE 36 INCH MAIN. THAT WAS THE ISSUE. THE 36 INCH MAIN IS PUSHING WATER AT 36PSI. NORMAL PRESSURE IS 60 TO 80, 60 NORMAL. SOME PLACES ARE 40 OR 50. THAT IS PUSHING AT 150PSI. THAT IS A LOT OF PRESSURE. SOMETHING HAPPENED IN THAT HYDRANT AND I WILL GET TO THAT LATER AND IT BLEW OFF. SO ALL OF A SUDDEN, ALL OF THE WATER THAT IS GOING WEST, THERE IS NO WATER BECAUSE THE PUMPS SHUT OFF, THERE IS NO WATER PUSHING. SO WATER IS COMING BACK BECAUSE THE SYSTEM IS PRESSURIZED AND THE OPENING IS AT THE FIRE HYDRANT. SO WATER IS WORKING BACK. IT IS STILL KIND OF, NOT IRRIGATION RUSH BUT IT IS NORMUSAGE ON THE WEST SIDE. WITHIN 10 MINUTES THE TANK WENT FROM 37% FULL TO EMPTY E. THAT IS BASICALLY PEOPLE SHOWERING, MORNING ROUTINE. WE DIDN'T LOSE THAT MUCH WATER AT THE SITE OF THE INCIDENT. THAT WAS JUST WHATEVER PRESSURE THE TANK WAS ABLE TO HOLD, PEOPLE WERE USING IT THROUGHOUT THE WHOLE WESTERN PART OF THE CUSTOMER BASE AND THAT TRAINED THE TANK.
THANKFULLY THE TEAM DID AN AMAZING JOB LOCATING IT SO IN 20, 25 MINUTE TIME, WE LOCATED, EVALUATED, AND ISOLATED THE PROBLEM. THE WAY WE ISOLATED IS WE SHUT OFF THE VALVES SO THAT NOW THE VALVE HEADING WEST ON THE 36 AT LEAST IS CLOSED. THAT CAN HOLD THE WATER PRESSURE AND LET IT BUILD BACK UP FROM THE OTHER SOURCES AND THEN WE CAN START FIXING THE PROBLEM. THE NEXT MORNING, I WOKE UP AND READ IN THE WALL STREET JOURNAL THAT THE THIRD LARGEST CITY IN NEW JERSEY HAD BEEN UNDER A BOIL ORDER FOR FOUR DAYS BECAUSE OF A BREAK IN THEIR 30 INCH MAIN.
WITHIN TWO HOURS, WE HAD OUR SYSTEM PRESSURIZED AND BACK. SO I'M SUPER PROUD OF OUR TEAM ABOUT T THAT. IT WAS AN AMAZING RESPONSE. AND OUR PUBLIC HEALTH WAS MAINTAINED. BUT WE REALIZED THAT WE WERE -- WE HAD THE PRESSURE LOSS THAT SAID WE ARE PRETTY SURE, BASED ON SOME SENSORS OUT IN THE SYSTEM, WOE HAD THEM AT 111 AND COLLEGE, THE FIRE STATION 46 HAS A PRESSURE CENSOR, THERE IS ONE AT 136, WEST OF 131, ALL OF THOSE SHOWED
[02:35:07]
WE HAD DIPS IN THE PRESSURE. WE KNEW AS FAR WEST AS THE DISTRIBUTION CENTER THAT WE HAD ENOUGH PRESSURE TO GET WATER IN THE BUILDING. WE WERE CONFIDENT WE DIPPED BELOW THE 20PSI THAT YOU HAVE TO MAINTAIN IN ORDER TO FIX AND REPAIR WITHOUT BOIL ADVISORY. WE HAD TO DO A BOIL ADVISORY. I WON'T GO INTO IT BUT THERE IS A BIG DIFFERENCE BETWEEN A BOIL ADVISORY AND BOIL ORDER. WE WERE CONFIDENT NO CONTAMINANTS ENTERED THE SYSTEM BECAUSE OF THE WAY THE PRESSURE WORKS. BUT BECAUSE WE DIPPED BELOW 20PSI, REGULATIONS SAY WE HAVE TO ISSUE THIS BOIL ADVISORY SO WE DID. THE ROONS WE DID THAT IS THERE COULD BE TIMES THERE IS A SMALL FISSURE IN A PIPE AND THE POSITIVE PRESSURE IS KEEPING THAT TAKEN CARE OF AND WHEN THE PRESSURE DIPS, THERE COULD BE THINGS EXTERNAL TO THE PIPE THAT COULD WORK ITS WAY IN. THAT IS A POSSIBILITY THAT WE JUST HAVE TO BE ABLE TO COMMUNICATE TO CUSTOMERS. WE ADVICE THIS BECAUSE OF THE PRESSURES. WE DON'T BELIEVE WE WERE COMPROMISED. WE KNOW THAT THE DISINFECTANT SYSTEM THAT MAKES THE WATER CLEAN WAS CONSTANTLY WORKING. WE WERE CONSTANTLY PUSHING, FRESH, CLEAN WATER OUT.EVEN IF THERE WAS A LITTLE BROWN WATER GOING IN, THE CLEAN WATER WAS GOING TO CONSUME THE WATER. BECAUSE IT WAS A LITTLE BROWN WATER TIME, THE LIKELIHOOD OF THAT GETTING INTO THE SYSTEM IS PRETTY REMOTE. SO WE KNEW WE HAD PROTECTED PUBLIC HELP AND WE WERE GOOD. WE HAD TO UNDERSTAND HOW TO GET PRESSURE BACK IN THE SYSTEM. WE GO ON SITE WHERE THE PROBLEM HAPPENED . AND NOW I'M PROBABLY AT PAGE 5. YEAH, TOP OF PAGE 5 HERE I I WANT TO SAY WE NOTIFIED, WE STARTED GETTING PUBLIC NOTICE OUT, WE PUT A NOTICE ON OUR WEBSITE AT 8:41 THAT WE HAVE A PROBLEM. WE DIDN'T HAVE ALL OF THE DETAILS OF WHAT IT WAS BUT WE WERE LETTING PEOPLE KNOW WE WERE AWARE OF THE PROBLEM. WE STARTED OUR CRITICAL CUSTOMER LIST WHICH IS HOSPITALS, SCHOOLS, DIALYSIS PROVIDERS, DAY CARES, LONGTERM CARE FACILITY RGS STARTED LETTING THEM KNOW WE HAVE LOW PRESSURE. IT LOOKS LIKE WE GOT IT OPERATIONAL FIXED AND THEN WE HAD TO FOCUS ON HOW TO GET THE MESSAGE UP. I WAS ON SITE WHERE THE HYDRANT BLEW OFF AS WAS THE FACILITIES DIRECTOR. THEY HAD SIX SCHOOLS FULL OF CHILDREN ON THE WEST SIDE, NO WATER. ADMINISTRATION HAD TO DECIDE WHAT TO DO. I SAID HOLD ON, LET ME TALK TO THE TEAM QUICKLY TO UNDERSTAND HOW QUICKLY CAN WE GET FIXED AND GET WATER BACK IN THE 36 INCH MAIN TO PRESSURIZE THE SYSTEM. IT WAS SLOWLY REPRESSURIZING BY OTHER WATER MAINS BUT IT WASN'T GOING TO BE FAST ENOUGH TO GET US BACK TO NORMAL PRESSURE. THEY SAID IT WOULD TAKE 2 TO 3 HOURS MINIMUM AND I KNEW WE WOULDN'T GET THAT. WE KNEW OF THE BACKUP PLAN. I CALLED OUR CITIZENS IN WESTFIELD AND SAID WE ARE GOING TO NEED -- THEY GOT AHOLD OF THE OPERATIONS TEAM AND WITHIN TEN MINUTES THEY WOULD OPEN UP THE VALVES AND PUTTING WATER INTO THE SYSTEM. WITHIN ANOTHER 10
MINUTES WE HAD PRESSURIZED. >> SORRY TO INTERRUPT. JUST BECAUSE I WANTED TO FOCUS ON SOME OF THIS, I TALKED WITH THE COUNCILLORS ABOUT THIS, I'LL BE HONEST. COUNCILLORS I TALKED TO AND PUBLIC I TALKED TO, I HAVE NOT HEARD CRITICISMS FROM WHY DID THE BREAK HAPPEN OR HOW QUICKLY DID YOU FIX IT. I'M NOT SURE THAT'S WHY WE CALLED YOU HERE TONIGHT. SOME OF THE THING THAT MADE SOME OF O US FURIOUS AND THE WHOLE THING THAT ANGERED ME IS THE COMMUNICATION BEING UNACCEPTABLE WHEN IT COMES TO THE BOIL ADVISORY. YOU MENTIONED THE DIFFERENCE BETWEEN THE BOIL ADVISORY AND ORDER, PEOPLE DON'T KNOW THE DIFFERENCE. IT WAS NEVER EXPLAINED TO THEM. HEARING YOU EXPLAIN THE WAYS YOU
[02:40:01]
DO IT NOW, ALMOST MAKES ME MORE UPSET BECAUSE WE SHOULD HAVE EXPLAINED IT THIS WAY IN THE FIRST PLACE. I THINK VAGUE POSTS ON NOT EVEN JUST GETTING THE CONTENT OUT TO THE RIGHT NUMBER OF PEOPLE BECAUSE I DON'T THINK WE USED THE TOOLS AT OUR DISPOSAL TO LET THEM KNOW WHAT WAS HAPPENING BUT THE CONTENT OF THE MESSAGING WAS SO VAGUE THAT WE UNNECESSARILY CREATED A PANIC IN OUR COMMUNITY. I HAD PEOPLE SAY THAT I HAVE STOMACH CRAMPS.I HAVE HAD PEOPLE SAY, YOU MENTIONED, TRYING TO FEED THEIR CHILD. AND THEN WHEN I MADE PHONE CALLS, WHAT I LEARNED WHICH WAS NEVER CONVEYED TO THE PUBLIC IS THE ODDS OF CONTAMINATION WERE QUITE LOW. I UNDERSTAND THEY WERE NOT ZERO AND WE HAVE TO TAKE CAUTION BUT THE VAGUE COMMUNICATION MADE IT SOUND LIKE THERE WAS A HIGH CHANCE PEOPLE WOULD GET SICK AND THAT WAS NEVER THE CASE. I THINK WOE COULD HAVE CALMED THE
COMMUNITY. NOT TO INTERRUPT. >> THAT'S OKAY. YOU HIT IT ON THE HEAD. WE CAN JUMP TO THE FIRST PAGE AND THEN I WOULD SAY JUMP TO PAGE 2 BECAUSE I THINK THE THINGS WE TALKED ABOUT AS FAR AS WHAT WE DID WELL OPERATIONAL KIND OF MATTER TREMENDOUSLY BECAUSE WE DID MAINTAIN PUBLIC HEALTH. BUT IN SOME WAYS, AREN'T ABLE TO MATTER AS MUCH BECAUSE NO ONE UNDERSTOOD THAT. SO I AGREE 100% . I CAN TALK ABOUT A LOT OF THINGS. LET ME SAY THE ONE THING THAT WE WEREN'T ABLE TO DO AND THE THINGS WE LEARNED ABOUT COMMUNICATION. LET ME TALK ABOUT THAT A LITTLE BIT. THIS WAS A SURPRISE TO ME COMING HERE. IN EVANSVILLE, WE HAD THIS CAPACITY. WE DON'T HAVE IT HERE. WE DON'T T HAVE THE CAPACITY TO GET A DIRECT TEXT OR EMAIL TO OUR CUSTOMERS. WE DO NOT HAVE THAT CAPACITY. WE WOULD HAVE TO DO INDIVIDUAL EMAILS OR TEXTS. WHEN WE KNEW THERE WERE 15,000 CUSTOMERS AFFECTED, THERE WAS NO WAY THAT WOULD GET OUT IN ANY KIND OF TIMELY FASHION. NOW WE HAVE INVESTED IN SOFTWARE THAT WILL GIVE US THAT CAPACITY. IT WAS DUE TO ROLL OUT IN JULY BUT SOME BUGS ARE GETTING WORKED OUT OF THE SYSTEM THAT WE WOULD HAVE BEEN ABLE TO DO THAT RIGHT AWAY. WE WOULD HAVE EVERY CUSTOMER HAD GIVEN THE CELL PHONE AND EMAIL, WE COULD HAVE TARGETED THE MESSAGE WITH A LOT OF WHAT YOU ARE TALKING ABOUT.
THAT IS THE BIGGEST THING THAT WE DIDN'T HAVE THAT WE NEEDED.
>> CAN I ASK A QUESTION? THANK YOU MR. PRESIDENT. I WANT TO CLARIFY. THE COMMENTS I WAS GETTING IS WELL, I GET AN EMAIL FROM THEM WITH MY BILL. WHY COULDN'T THEY TELL ME THERE IS A BOIL ALERT. CAN YOU GO INTO THAT? WE HAVE A THIRD PARTY BILLING SOFTWARE COMPANY THAT ONLY GENERATES COMMUNICATE VIA A BILL BEING GENERATED. THEY ARE NOT A -- WHAT'S THE -- MAIL CHIMP. IT IS NOT LIKE WHERE THEY HAVE ALL OF THE INFORMATION. YOU CAN CUSTOMIZE IT. IT IS ALL TIED INTO OUR BILLING SYSTEM AND ISSUING INVOICES. AND ATTACHING AN INVOICE. SO THEY DON'T PROVIDE THAT KIND OF A SERVICE TO US THAT WE COULD HAVE GIVEN THEM THAT KIND OF INPUT. THAT'S WHAT THE NEW SYSTEM WILL ENABLE US TO DO BUT WE DIDN'T HAVE IT WITH THIS SYSTEM.
>> COUNCILLOR MINNAAR, AND THEN COUNCILLOR.
>> SO THIS NEW ONE WILL BE LIKE I WILL USE DUKE ENERGY SO WE WERE ALL GIVEN PUSH NOTIFICATIONS FROM DUKE. IS THIS THE TYPE OF SERVICE YOU WILL PROVIDE? I KNOW WHEN I SIGNED UP FOR DUKE YOU HAD TO OPT INTO THE PROGRAM.
>> THAT IS CORRECT. >> I THINK PART OF THE COMMUNICATION ONCE THIS ROLLS OUT IS PEOPLE UNDERSTAND THEY
HAVE TO OPT INTO. >> IF THERE IS A SILVER LINING TO THIS WHOLE THING IT WILL BE THAT I HOPE WHEN THE SYSTEM IS READY, EVERYONE WILL OPT IN, EVERYONE WILL GIVE US THE INFORMATION AND ALLOW US TO GIVE US THE NOTIFICATIONS. THAT WILL BE THE QUICKEST WAY WE CAN GET IT THERE ARE RULES WHERE WE CAN'T JUST SEND. THE CUSTOMER HAS TO OPT IN.
[02:45:02]
>> SO IN EVANSVILLE YOU HAD THIS BECAUSE YOU HAD THESE CONSTANT
ISSUES. >> CONSTANT ISSUES ALL THE TIME.
PEOPLE OPTED IN. AND IN THE EVANSVILLE SYSTEM, I THINK THE G.I.S. AND THINGS, WE CAN DOVE TAIL INTO THIS. YOU WOULD CLICK ON A LINK, PULL UP A MAP, YOU ARE IN IT OR OUT OF IT. THOSE ARE THE KIND OF THINGS WE WILL BE ABLE TO DO IN THE FUTURE WITH
OUR SYSTEM. . >> TO JUMP IN, I KNOW YOU MENTIONED YOU ARE NOT A PART OF THE GENERAL FUND. YOU ARE A CITY
>> YOU ARE A CITY EMPLOYEE. >> YEAH.
>> THIS IS A CITY DEPARTMENT. YOU COMMUNICATED WITH THE MARKETING DEPARTMENT. THEY HAVE EMAIL LISTS. THEY WERE NOT UTILIZED. THE CITY DID NOT SEND OUT AN EMAIL FROM THE CITY EMAIL LIST. THE CITY RESHARED SOME STUFF ON SOCIAL MEDIA FROM CARMEL UTILITIES. BUT WE HAVE SO MANY TOOLS AT OUR DISPOSAL TO GET OUT MESSAGING AND IT WAS LIKE WE TRIED TO LET PEOPLE THINK IT WASN'T PART OF THE CITY. LIKE THIS IS CARMEL UILITIES. THIS ISN'T ANYTHING TO DO WITH US. WHEN IT IS A CITY DEPARTMENT. THE MAYOR HAS THE ABILITY TO HIRE AND FIRE UTIL TEZ DIRECTOR. IT BOGGLES MY MIND THAT THERE WERE NOT MORE HELP TO RESOURCES THAT HAVE WAYS TO REACH PEOPLE. WE TALK ABOUT T WE WILL HAVE THIS NEW SYSTEM. NOT ONE THING ABOUT THE CONTENT OF THE MESSAGING WHICH WAS A HUGE PART OF THE PROBLEM BECAUSE WE
CREATED A PANIC. >> SO I WANTED TO GO TO THE SYSTEM FIRST AND THEN DISCUSS THE FACT THAT WE DID NOT HAVE --THE BIGGEST FAILURE OUTSIDE OF THE SYSTEM WAS WE DIDN'T HAVE THE COMMUNICATION. THAT IS SOMETHING WE LEARNED FROM. WE WILL GET BETTER AT THAT. IT WAS NOT INTENTIONAL. WE WERE TRYING TO GET THE MESSAGE FORMED. THE MESSAGE WASN'T READY AT 9:05.
IT WOULD TAKE A COUPLE OF HOURS TO UNDERSTAND WHAT HAPPENED, THE EXTENT OF ITS IMPACT THROUGHOUT THE SYSTEM BECAUSE WE HAD TO START LOOKING AT PRESSURES AND ALL THAT. WE WEREN'T ABLE TO DO ANYTHING UNTIL WE PUT THE ADVISORY OUT UNTIL AROUND 10:00, 10:15 WHEN THEY DID THAT. THAT IS NOT AN EXCUSE BUT WE HAD TO TAKE TIME TO CRAFT WHAT DO WE SAY AND WE USE THE LANGUAGE OF WHAT A BOIL ADVISORY IS AND TRIED TO GET THE INFORMATION OUT. WE DIDN'T HAVE, IN HINDSIGHT WE WOULD HAVE TAKEN ONE PAGE, TAKE TIME OF WHAT I SAID, I'M ABLE TO SAY THAT NOW . IN REALTIME, THAT MORNING THERE WERE A LOT OF THINGS GOING ON, A LOT OF MOVING PARTS, O OF HOW DO WE MAKE SURE THEY KNOW AND WE COMMUNICATE WHERE WE FAIL. WE DIDN'T HAVE THAT WHERE THEY WOULD TAKE OVER AND THINK ABOUT COMES WHILE I WAS THINKING OF PUBLIC HEALTH AND RESTORING. SO YOU'RE RIGHT. I CANNOT REALLY ARGUE WITH THAT OR GIVE YOU ANYTHING OTHER THAN THAT'S
WHAT HAPPENED. >> I DO NOT THINK THEY ARE FULL-TIME, FULLY OURS.
>> COUNSELOR SNYDER? >> THANK YOU. I HAVE SPENT MOST OF MY CAREER INSTALLING WATER LINES I WANT TO SAY IT IS AN ABSOLUTE MIRACLE IT IS BEEN 17 YEARS, THIS HAPPENS ALL THE TIME. WE ARE BLESSED TO HAVE THE INFRASTRUCTURE WE HAVE. SOME COMMUNITIES HAVE REPRESENTED IT IS MULTIPLE DAILY. WE ARE BLESSED. I DO NOT THINK THE FAILURE IS ANYBODY'S FAULT. I THINK YOUR RESPONSE TO FIX IT WAS INCREDIBLE. I DO SHARE ADAM'S FRUSTRATION WITH THE COMMUNICATION. WE DO HAVE IT. A PHONE CALL TO THE COMPANY DEMANDING THE EMAIL LIST AND
[02:50:03]
FIVE MINUTES TO SET UP A MALE CHIP ACCOUNT, I THINK THERE COULD HAVE BEEN THINGS BUT IN THE HEAT OF THE MOMENT, OKAY. A FEW THINGS THAT I DO HAVE CONCERNS ABOUT IS WHY WE LET OUR WATER TOWER GET DOWN TO 37%, EVER. AND BLAMING IRRIGATION, I DO NOT ACCEPT THAT. THE WATER VERSUS AN OPEN HYDRANT THE FIRE DEPARTMENT, STREET DEPARTMENT, CONTRACTORS BLOW OFF NEARLY DAILY IS - -. THE IRRIGATION, YOU SEE A DIP BUT THE DIP IS A PERCENTAGE OF TOTAL VOLUME IF YOU HAVE THE FULL VOLUME IT WOULD BE A NEGLIGIBLE DIP. ONE QUESTION, WHY DON'T WE HAVE ANOTHER WELL ON THE WEST SIDE. SEEMS LIKE A LOGICAL THING. I KNOW WE HAVE PRODUCED A CRAP TON OF WATER ON THE EAST SIDE BUT MORE AND MORE ARE STARTING TO TAP INTO THE AQUIFER. NOT ONLY WOULD BE PRUDENT TO START LOOKING AT WATER ON THE OUTSIDE OF THE AQUIFER BUT, JUST AS A SAFETY BACKUP AS WELL. - - YOU HAVE THAT WRITTEN EVERYWHERE AND MOST PEOPLE DON'T DEAL WITH THE SUPERVISORY CONTROL ANALYSIS DATA. DATA ACQUISITION. COMPUTER SOFTWARE TELLS YOU PRESSURES IN DIFFERENT AREAS AND HOW MUCH WATER IS IN IT. THAT IS FINE. YOU TALK ABOUT THE DIFFERENCE BETWEEN ADVISORY AND ORDER. ON YOUR WEBSITE IT SAYS, WE ARE UNDER A BOIL ADVISORY AND IT SAYS, WHAT DOES THIS MEAN? THEN IT SAYS, YOU SHOULD BOIL YOUR WATER. THERE IS NO DIFFERENCE AT THAT POINT. YOU PUT ON YOUR WEBSITE, EXACTLY, YOU SHOULD BOIL YOUR WATER, IT DOES NOT MATTER WHAT YOU TITLE THAT IT SAYS YOU SHOULD BOIL YOUR WATER. WHY WOULD ANYBODY DO ANY DIFFERENT? THEN, THURSDAY I GO TO GET MY COFFEE AND, THE GAS STATION, THE ONE I GO TO EVERYTHING IS STILL OUT. I SENT A MESSAGE TO SOME COUNSELORS I GET RESPONSE ABOUT, THERE COULD BE SEDIMENT IN THE LINE. FINE, MAYBE THERE COULD HAVE BEEN. I WENT BACK IT WAS STILL OFF AND I SAID WHY IS YOUR WATER STILL OUT? THEY WERE DEBATING WITH THE MANAGER OF THE GAS STATION TOLD ME IS THAT CORPORATE WAS DEBATING WHETHER OR NOT A FACEBOOK POST WAS A FORMAL NOTIFICATION. WHICH, I HAVE NO IDEA THAT SOUNDS PERFECTLY PLAUSIBLE IN CORPORATE AMERICA TO CYA. IF WE HAD HAD FORMAL, DIRECT TO MEDICATION OFFICIALLY THAT WOULD HAVE BEEN NOT MUCH OF AN ISSUE. I WANT TO GET BACK TO THE CONVERSATION ABOUT ARE YOU OR ARE YOU A CITY DEPARTMENT? I TAKE ISSUE, I DO NOT THINK YOU ARE IN YOUR WEBSITE SAYS CARMEL UTILITIES IS MANAGED BY A DEPARTMENT. THE ONLY PERSON IT SORT OF ALLUDES TO THAT HAS ANYTHING TO DO WITH A DEPARTMENT IS YOU. NOT THE REST OF YOUR ORGANIZATION. THIS, I'M JUST GOING TO GIVE YOU A HINT ON WHAT I'M GOING TO GET INTO DURING THE BUDGET TIME. THE MAYOR KNOWS SOME OF MY COMMENTS. YOUR SALARY IS PAID 50% FROM WATER RATES. THE MATH DEPARTMENT THE FACT THAT IT IS YOUR FIRST GO TO WHEN, WHAT ARE YOU PAYING THEM FOR THAT SERVICE. I KNOW YOU GET A STIPEND FOR PAYROLL PROCESSING BUT YOU DO NOT PAY A PORTION OF THE MAN'S SALARY OR THE LEGAL SALARY OR KELLY'S SALARY. IF YOU WANT TO BE A DEPARTMENT, YOU HAVE TO CONTRIBUTE TO THE CITY. I GO BACK HISTORICLLY, YOU DO NOT HELP OUT, I HAVE NEVER SEEN ANY OF YOUR FLEET OF VEHICLES WITH A PLOW ATTACHED HELPING THE STREETS IN THE WINTER. WHEN THERE IS A LOCATE YOU SEND OUT ONE TRUCK FOR SANITARY, ONE TRUCK FOR WATER, WHICH IS A COMPLETE WASTE OF MONEY. THE FORMAL DEFINITION OF ARE YOU OR ARE YOU NOT A CITY DEPARTMENT NEEDS TO BE ESTABLISHED. IT SEEMS RIDICULOUS WHILE EVERYONE[02:55:02]
ELSE IS SUFFERING GREATLY UNDER THE STATE LEGISLATION, YOURS GOES UP WHEN EVERYBODY ELSE GETS CUT. I UNDERSTAND YOU ARE RATE DRIVEN BUT IT IS NOT A GOOD LOOK. YOU CAN MOVE YOUR RATES AND NOT CALL IT A TAX. IT IS NOT FAIR TO THE REST OF THE CITY TRYING TO ACCOMPLISH THINGS. SO FAR IT HAS BEEN A WONDERFUL AND GREAT AND I KNOW BETWEEN THE MAYOR AND YOU NOT TO WE HAD A BROKEN SYSTEM BUT NOW SEEMS LIKE A GOOD TIME TO LOOK AT IT AND MAKE IMPROVEMENTS. THOSE ARE SOME OF THE CONCERNS WE HAVE. WE DO NOT GET TO PLAY WITH YOUR BUDGET, THE COUNCIL HAS NO SAY ON THAT. AS WE MOVE FORWARD, WE EITHER ARE GOING TO LOOK AT YOUR BUDGET AND YOU ARE GOING TO LISTEN OR NO, YOU'RE NOT GOING TO BE A PART OF US AND YOU NEED TO HIRE YOUR OWN PEOPLE YOUR OWN LEGAL DEPARTMENT, AND YOU NEED TO ESTABLISH RATES THAT YOUCONTRIBUTE TO THE COMMUNITY. >> BEFORE YOU ANSWER THAT, I WANT TO SAY, THE UTILITIES DEPARTMENT DOES HELP WITH SNOWPLOWING BECAUSE REMEMBER IN THE BUDGET CYCLE, IN THE BUDGET CYCLE STREETS DEPARTMENT HAS TO PAY OVERTIME TO UTILITIES WHEN THEY HAVE TO WORK OFF SHIFT. I DO KNOW THAT AT LEAST, FOR MY UNDERSTANDING WHEN I LOOKED AT THE BUDGET FROM LAST YEAR FROM THIS YEAR I DO NOT KNOW BUT WHAT THEY HAVE PAID TO UTILITIES, I AM NOT TRYING TO GET INTO AN ARGUMENT I AM JUST TELLING YOU THAT I DO KNOW THAT THE STREET DEPARTMENT DOES PAY UTILITIES
FOR OVERTIME. >> THERE ARE THREE STREET DEPARTMENT COMMISSIONERS OVER THE LAST FIVE YEARS THAT WOULD COUNTER THAT. CAN YOU SAY YOU HAVE EVER SEEN A UTILITY DEPARTMENT TRUCK PLOWING THE ROAD?
>> IT IS IN THE BUDGET. >> OKAY.
>> COUNSELOR LOCKE? >> IF I MAY RESPOND TO COUNSELOR SNYDER. WE DO PAY QUITE A BIT OF MONEY TO THE CITY ONE $.8 MILLION EVERY YEAR. - - NUMBER $1.8 MILLION TO THE GENERAL FUND. I HAVE NOT DONE THE MATH ON THAT BUT, I DO NOT THINK THAT WE GET NUMBER $1.8 MILLION FOR THE PERSONAL SERVICES. WE ARE HAPPY TO CONTRIBUTE SO DON'T HEAR ME SAY WE SHOULDN'T DO IT IT IS AN IMPORTANT PART, UTILITIES SHOULD BE A PART OF HELPING WHEN THEY CAN. I WANT TO SHARE THAT WE DO THAT. AS FAR AS RATES ARE CONCERNED, I CANNOT RAISE RATES UNLESS YOU PASS THAT AS COUNSEL. AGAIN, I CANNOT JUST GO AND DECIDE THIS TIME TO RAISE RATES ON OUR CUSTOMERS. I CAN COME AND SAY WE HAVE INVESTMENT WE HAVE TO MAKE IN OUR SYSTEM AND IN ORDER TO DO THAT, WE NEED TO RAISE RATES AND I BUILD THAT CASE BEFORE YOU BUT ULTIMATELY, YOU ARE THE BODY THAT SAYS YES, HERE ARE THE RATES THAT WE ENACT. THOSE ARE THE ONES WE CHARGE. I JUST WANT TO SHARE THAT. I WANT TO MAKE SURE OUR CUSTOMERS KNOW, THAT IS HELP THAT HAPPENS. THIS FINAL WOULD BE PREVIOUS TO THIS ADMINISTRATION, FOR THREE DECADES, THERE WAS A WONDERFUL ADMINISTRATION THAT BUILT THIS CITY. I HAVE NOTHING BUT RESPECT FOR THAT. BUT MANY MUNICIPALITIES ACROSS OUR COUNTRY, NOBODY WANTS TO BE THE ONE THAT RAISES UTILITY RATES.
THEY DO NOT GET RAISED WHEN THEY OUGHT TO GET RAISED AND THEY DO NOT STAY COMMENSURATE. CARMEL DID NOT RAISE RATES FOR MUCH OF MAYOR BRAINERD'S TIME. HE DID DO A ONE-TIME BUMP AT THE END WHEN HE WAS ON THE WAY OUT WHICH HAS HELPED TO WHICH HAS GIVEN US THE MONEY TO INVEST IN THIS NEW SYSTEM. IT IS A GOOD THING THAT IT HAPPENED. JUST KNOW THAT, COMMENSURATELY THINKING THROUGH THE RATES OVER THE COURSE OF TIME, WE ARE BEHIND AND WE ARE CATCHING UP AND WE WILL GET BETTER. I JUST WANT THAT TO BE
KIND OF UNDERSTOOD, MAYBE. >> COUNSELOR LOCKE?
>> THANK YOU, WE CAN GET INTO THE BUDGET STUFF THE FURTHER WE GET BUT I WOULD LOVE TO GET BACK TO THE ISSUE OF THE COMMUNICATION AND KIND OF SET LIKE AN UNDERSTANDING OF WHAT
[03:00:01]
WE, AS A CITY AND CITY COUNSELORS AND CONSTITUENT OVERSIGHT BODY. WANT TO SEE COMING OUT OF YOUR PROCESS AND ADMINISTRATION. ONCE IN A 17 YEAR THING. I THINK BY ALL ACCOUNTS FROM A TIMELINE PERSPECTIVE, YOUR TEAM HANDLED PHYSICALLY EXTREMELY WELL. THE RULES EVEN ACCOUNT FOR A BOIL ADVISORY YOU HAVE 24 HOURS TO GET TO, IT IS A REASONABLY CONSTRUCTED STANDARD WE HAVE TO GET IT TO EVERYBODY THAT IS AFFECTED IN 24 HOURS. I WANT TO PUT ON THE RECORD WE ARE WELL WITHIN THAT. I DID REACH OUT TO - - TO COLLEAGUES AND OTHER PEOPLE TO CALL TO VERIFY WE DID THIS PROCESS CORRECTLY BY THE LETTER OF THAT REGULATORY PROCESS. THAT BEING SAID THIS IS CARMEL, INDIANA WE HAVE ONE 36 INCH MAIN THAT WAS BILLED 12 OR 15 YEARS AGO TO FEED THE WEST SIDE NOW IT IS FOR THE THOUSAND - - 40,000 PEOPLE AND 20,000 HOUSES. WE HAVE A DIFFERENT KIND OF STRUCTURE. AND YOU STARTED IN THIS ROLE JUST A FEW MONTHS AGO, YOU DID WORK IN EVANSVILLE FOR FOUR YEAR AND SAID THIS HAPPENS WEEKLY, OR DAILY, WHATEVER IT WAS. WHAT I WOULD LIKE TO SEE AS I GO THROUGH THIS TIMELINE, ONE OF THE BEST PRACTICES FOR WHEN THIS HAPPENS AGAIN WE ENSURE AS A UTILITY, PROVIDING TO YOUR STATEMENT, THIS IS PUBLIC SAFETY. FIRST AND FOREMOST THE MOST IMPORTANT THING WE DO IS CREATE SAFE WATER FOR OUR HUMANS TO DRINK SO WE DO NOT DIE FROM WATER - - BEFORE WE FIGURED IT OUT. WHAT SHOULD WE DO MOVING FORWARD? HOW DO WE BETTER PERFECT THE SYSTEM? IF IT IS TO NOT USE CITY MARKETING AND IS HAVE INTERNAL UTILITIES MARKETING WITH LAWYERS SHAPING THE MESSAGE TO MAKE SURE IT GETS TO EVERYBODY IT NEEDS TO. ON THE OTHER END WE HAVE PEOPLE ON STAFF THAT UNDERSTAND WHAT THEY ARE GETTING INTO SO WHEN WE ARE PIVOTING TO WORST-CASE SCENARIO, NIGHTMARE SCENARIO THAT WE KNOW EXACTLY WHAT THOSE PEOPLE AS YOUR TRUCKS ARE GOING TO FIX THE FLOW ARE DOING FROM A PERSPECTIVE, BUILDING THE EMAIL, CREATING AND CRAFTING THE MESSAGE AND PUTTING IT OUT THERE. CAN WE USE THIS TO LEARN THAT, TO GET THAT OUT IN THE NEXT 24 TO 48, TWO WEEKS, WHATEVER IT TAKES BUT WHENEVER WE CAN TO SAY THIS IS WHAT WE ARE GOING TO DO BETTER. I THINK IT GETS INTO THE BUDGET PROCESS WHEN WE TALK ABOUT WHAT THE RATE NEEDS TO BE. DO WE NEED TO INCREASE THAT TO GET TO THE LEVEL OF SERVICE WE REQUIRE PARKS - -? AS FAR AS I'M CONCERNED IT IS NOT OKAY FOR A NEW MOTHER WHO MAY NOT HAVE SOCIAL MEDIA OR A NEW FATHER, WHO IS DOING BOTTLE DUTY THAT MORNING BECAUSE OF WORK AND PROCESS TO EMAIL AT 10:36 AND SAY WHAT IS GOING ON I JUST GOT AN EMAIL FROM THE SCHOOLS AND I HAVE NO IDEA WHAT IS HAPPENING BECAUSE WE ARE NOT ON SOCIAL MEDIA. I WANT TO PREFACE AND GO BACK TO MY INITIAL PURPOSE THAT WE FOLLOW THE REGULATORY PROCESS. EVEN BASED ON THEIR FEEDBACK TO ET. WE WERE SUPPOSED TO DO. THAT IS NOT ENOUGH FOR CARMEL. I WOULD LOVE FOR US TO FIGURE OUT WHERE THOSE GAPS WERE. WHERE THE BREAKDOWN IN THE COMMUNICATIONS EVEN INTERNALLY WAS. IF WE BROUGHT BACK IN AND BACK WAS LOOKING AT IT FROM A MESSAGING PERSPECTIVE AS OPPOSED TO HOW DO WE SET UP A LEGAL LIABILITY PERSPECTIVE AND WHAT WE NEED TO DO IN SHARING THE INFORMATION? HOW DO WE PUT THEM IN THE BEST POSITION TO BE HELPFUL TO YOU IN THAT ROLE? CAN WE HAVE THAT PLAN AROUND A TABLE TOP. IT DOESN'T HAVE TO GO TO EVERYONE BUT THERE ARE NINE WILLING EMAILS WE COULD SEND IT TO OVER THE CITY TO TEST WHAT IT LOOKS LIKE. TRIGGERED FOR THE INITIAL MESSAGE AT 8:57. THAT WAS TO SAY THE WATER WAS DOWN WHICH I THINK IS GOOD. IT SETS THE STAGE. THE NEXT ONE DIDN'T COME UNTIL 3:00. CAN WE GET TO A POSITION WHERE WE ARE USING OUR LOCAL PUBLIC SAFETY PARTNERS AT THE COUNTY OR ELSEWHERE TO HELP SUPPORT THIS RESEARCH AND GET IT OUT EARLIER? SO WE ARE NOT GIVING PEOPLE FIVE HOURS A POTENTIALLY DIRTY WATER. BUT WE ARE GETTING THE MESSAGE OUT TO EVERYBODY WE CAN AS QUICKLY AS WE CAN. I WANT TO GIVE A SHOUT OUT TO THE SCHOOLS BECAUSE I KNOW WITH THE SCHOOLS YOU HAVE KIDS IN BUILDINGS AND THERE ARE THINGS THAT ARE CHANGING AND A DROP IN WATER CHANGES THE[03:05:04]
DYNAMIC. THE EMAIL HIT A LOT OF CONSTITUENTS IN A WAY THAT WAS HELPFUL AND I THINK THE MESSAGING WAS ON POINT. I THINK THAT BECOMES PART OF THIS CRISIS COMMUNICATION. HOW AGAIN TO UTILIZE THOSE THINGS? THEN, EVEN THE IDEA OF CRITICAL CALL CUSTOMER LIST. THAT SEEMS TO HAVE BEEN TRIGGERED QUICKLY.THAT IS GREAT TO KNOW BUT CAN WE SEE IN THIS PLAN WHAT THAT IS? THE NEXT TIME THIS OCCURS BECAUSE, IT WILL OCCUR AGAIN BECAUSE WATER MOVES AS WATER WANTS TO MOVE. JUST SO WE ARE PREPARED AND PEOPLE KNOW WE ARE LEARNING FROM THIS TO MOVE IN A BETTER DIRECTION. TO PREFACE IT A THIRD TIME, BASED ON THE WAY THE REGULATIONS ARE SET UP AND THE WAY THE PROCESS WENT, IT APPEARS THAT THE CITY DID EVERYTHING THAT IT WAS REASONABLY SUPPOSED TO DO DURING THIS PERIOD IT IS - - WE DO NOT GET INTO A POSITION WHERE THE FIRST POST ANYONE SEES IS A CONSTITUENT SAYING THEY CALLED - - AND THEY WERE NERVOUS ABOUT SENDING AN EMAIL TO THOSE PEOPLE. THAT WOULD BE MY REQUEST. I LOVE ALL OF THIS, THIS TIMELINE IS SUPER HELPFUL.
THE IDEA OF HOW DO WE CREATE A BETTER PLATFORM MOVING FORWARD AND WE ALL KNOW WHAT IT IS AND IF WE NEED TO DO OUTREACH AND DISCUSSION OF WHAT A BOIL ADVISORY VERSUS A BOIL ORDER AND WE CAN START TO DO PUBLIC EDUCATION ABOUT IT. THAT IS WAY - - THAT WAY WE ARE NOT IN A POSITION WHERE PEOPLE FEED THEIR BABIES OR ELDERLY PARENT WATER THAT MAY NOT REASONABLY BE CONTAMINATED BUT IN THAT ONE INSTANCE WHERE THEIR ONE PIPE HAD A BREAK IN IT AND THE WATER PRESSURE WENT DOWN AND SOMETHING GOT IN THERE THAT THEY GOT SICK AND THEY DIDN'T KNOW THEY SHOULDN'T DRINK IT BECAUSE THEY DIDN'T GET AN EMAIL FROM CHANNELS THAT WE HAVE. THAT WOULD BE MY REQUEST. I THINK THE FACT WE HAD OUR 36 INCH MAIN - - BY ALL ACCOUNTS EXEMPLARY PUBLIC ADMINISTRATION. WE JUST HAVE A LITTLE BIT MORE TO GO ON HOW WE COMMUNICATE WITH OUR CONSTITUENTS. BECAUSE IT IS IMPORTANT NOBODY DIES FROM DRINKING OUR WATER.
>> COUNSELOR JOSHI? >> THANK YOU, I JUST WANT TO TRY TO UNDERSTAND A FEW THINGS. I DO WANT TO START OUT BY SAYING THANK YOU TO YOU BUT ALSO TO OTHER MEN AND WOMEN WHO DID GET THE OPERATIONS BACK AND RUNNING. I CAN ONLY IMAGINE THAT MORNING YOU ARE FOCUSED ON GETTING WATER BACK ONLINE. I WOULD LIKE TO ASK, HOW LONG HAVE YOU BEEN IN THIS POSITION?
>> FIVE MONTHS. >> THANK YOU. HAVING SAID THAT, THERE IS JUST SOME THINGS YOU DO NOT KNOW PROBABLY. I WANT TO TURN TO THE MAYOR AND TALK ABOUT HOW THE CITY SUPPORTED THAT EFFORT. WE HAVE, LET ME START OUT, MAYOR, I HEARD ON SEVERAL SOCIAL MEDIA THINGS WE DID NOT HAVE A PUBLIC PORTAL. IS THAT THE SYSTEM THAT YOU AND I LOOKED AT MIKE IN THE FIRST MONTHS OF YOUR ADMINISTRATION? WE MET WITH - - AS A CONSULTANT AND LOOKED AT I CAN'T REMEMBER, 411? CAN YOU CLARIFY WHAT YOU ARE TALKING ABOUT WE DO NOT HAVE THAT WE ARE GETTING?
>> I DO NOT KNOW THE DETAILS BUT IT IS A CUSTOMER PORTAL THAT - -
>> THIS WAS AFTER. >> I AM TELLING YOU THAT IS NOT WHAT IT IS. THE PORTAL THAT WE ARE GETTING IS WHAT WE WERE BRIEFED ON WHEN WE GOT THE AUTOMATIC WATER READERS THAT WOULD ALLOW RESIDENTS TO LOG INTO THEIR SYSTEM AND SEE WATER USAGE. IT WILL ALSO HAVE THIS COMMUNICATION PORTAL IN IT AS
WELL. >> OKAY, LET ME ASK THE QUESTION, WHEN WE MET WITH THE CONSULTANT IN YOUR OFFICE, LIKE WITHIN THE FIRST COUPLE OF MONTHS OF YOUR ADMINISTRATION AND WE FUNDED HIM 90 GRAND FOR THE CONSULTING, WOULDN'T THAT HAVE ALSO HELPED IN THIS SITUATION? SOME, SURE.
>> OKAY. >> I THINK EVERY TO MEDICATION VEHICLE WE HAVE WOULD HAVE BEEN HELPFUL. WHATEVER WE HAVE AVAILABLE WOULD BE HELPFUL. THAT SYSTEM IS NOT YET LIVE. WE ARE
[03:10:02]
GOING LIVE LATER THIS YEAR. >> GREAT, THAT IS COMING, ALL RIGHT. THEN, LANE IS NEW. I WANT TO GET AN UNDERSTANDING OF HOW THE CITY, HE IS TRYING TO PULL LEVERS TO GET THINGS WORKING. DO YOU REACH OUT TO MAC? DOES THE MAYOR CALL MAC? HOW DOES THIS WORK AND THAT WE HAVE THE EOC IN CITY HALL UP AND RUNNING? GIVE ME SOME CONFIDENCE AS TO, WAS IT ALL HANDS ON DECK? HOW DID THAT MORNING GO FROM A CITY PERSPECTIVE?
>> I CANNOT TELL YOU EVERY, I MEAN YOU HAVE YOUR EVERY SINGLE MEDICATION THAT WENT OUT AND WHEN IT WENT OUT. I DO NOT KNOW THE BACK-AND-FORTH BETWEEN PEOPLE. WHAT I CAN TELL YOU IS THAT, YOU MENTIONED THE EOC, WE NEED TO DO MORE WORK WITH THE EOC. IT WAS FIRED UP AND BROUGHT BACK DOWN THAT WE DIDN'T HAVE EVERYBODY WE NEEDED. THIS IS A GOOD LEARNING FOR US. IT WASN'T A FIRE OR TORNADO IT WAS A WATER ONE WE SHOULD HAVE HAD BETTER
ALL HANDS ON DECK WITH THAT. >> AT CITY HALL?
>> THE PRIMARY EOC, ONE OF THE FIRE STATIONS WE DO NOT TYPICALLY SAY EXACTLY WHERE IT IS THAT. THE PRIMARY EOC WAS FIRED UP AND SHUT BACK DOWN. WE NEED TO MAKE SURE WE UNDERSTAND HOW THE ALERTS ARE GOING OUT AND WHO IS ON THE LIST AND UPDATE.
ALSO, SIMILARLY, WE NEED TO MAKE SURE WE UNDERSTAND CLEARLY WHAT THE ALERT IS GOING TO, WHERE. AT ONE POINT WE SENT A LIMITED ALERT OUT AND OUT A BROAD ALERT. THIS IS ALL OUTLINED AS FAR AS THE OPPORTUNITIES WE HAVE TO LEARN AND GET HER.
>> I UNDERSTAND, YOU ARE OKAY TALKING ABOUT THIS AREN'T YOU?
>> OF COURSE. >> OKAY. I JUST WANT TO UNDERSTAND. THE ONE THING I THOUGHT WAS SO OBVIOUS THAT WAS MISSING WAS, IT WAS EASY TO SAY, IF YOU ARE WEST OF COLLEGE AVENUE, THEN YOU SHOULD DO WHATEVER. YOU SHOULD DO THE BOIL WATER. IT SEEMS LIKE THERE WAS ALL THIS CONFUSION, WE CANNOT SEPARATE OUT OR WE DO NOT WANT TO SEND IT TO EVERYBODY. I WANTED TO MAYBE UNDERSTAND THAT. YOU, AS THE EXECUTIVE, I THOUGHT I WOULD START THEIR AND ASK, HOW WAS THAT ALL HANDLED AS FAR AS
WHO IS MAKING THESE DECISIONS? >> CAN I JUMP IN?
>> YEAH. >> THAT IS MY RESPONSIBILITY IT FALLS UNDER ME AS FAR AS COMMUNICATING. WE KNEW WE HAD A WATER PROBLEM. WE KNEW IT WAS LARGELY WEST. WE DID NOT KNOW EXACTLY WHERE. PART OF THE PROCESS IS TO DEFINE YOUR AREA.
TYPICALLY, WHEN THERE'S A WATER MAIN BREAK YOU HAVE TO TRY TO ISOLATE, IT IS VERY CONTAINED. YOU CAN KIND OF CHECK PRESSURE AND DO VALVES AND SHUT IT OFF AND GO OKAY, WE HAVE CONTAINED IT. THE WAY OUR WATER SYSTEM ORKS, WHEN THAT WEN FEEDS SO MUCH IT WAS GOING TO BE TOUGH FOR US TO GET IT REALLY DEFINED. AT FIRST WE THOUGHT ABOUT EVERYBODY WEST OF KEYSTONE. EVERYBODY WEST OF KEYSTONE. IF YOU ARE WEST OF KEYSTONE, WE HAVE HAD A WATER ISSUE, WE WOULD ADVISE YOU TO, IF YOU LOST WATER PRESSURE, BOIL YOUR WATER. AS WE FOUND, ISSUING A BOIL ADVISORY EVEN AN ADVISORY IS A BIG DEAL. IT HAS A BIG IMPACT. WE WANTED TO TRY TO AT LEAST KNOW WHERE WE SHOULD DRAW THAT LINE. WE WERE PRETTY CONFIDENT THAT MOST EVERYBODY BETWEEN COLLEGE AND KEYSTONE WAS NOT EFFECTED BY THAT. A LOT OF BUSINESSES IF YOU THINK ABOUT THAT CORRIDOR THAT THEY WOULD'VE HAD TO SHUT DOWN RESTAURANTS. SOMETHING THAT TAKES TIME TO GO OKAY HERE IS OUR LINE. THIS WAS UNIQUE BECAUSE IT IS SO BIG. WE WERE LIKE I THINK WE SHOULD GO HERE. THAT IS WHAT THE TEAM WAS WORKING ON AS WE WERE OUT TRYING TO DO THE OPERATIONAL THING THEY WERE WORKING TRYING TO FIGURE OUT WHAT IS THE RIGHT LINE TO
>> COUNSELOR THE LAST BULLET POINT HERE IS MORE PRESSURE SENSORS AROUND THE SYSTEM? WE HAVE TWO MORE CLEARLY NARROW THE
AFFECTED AREA. >> OKAY, GREAT. I'VE ALREADY GOTTEN ONE TEXT. WE ARE NOT RAISING RATES IN THE NEAR
FUTURE, RIGHT? >> I AM NOT COMING TO YOU WITH
OUR BUDGET AND A RAISED RATE. >> OKAY, THANK YOU. ONE LAST THING. I HAVE HAD THIS QUESTION 10 TIMES. THE FIRE HYDRANT BLOWING OFF, THAT IS A FUNCTIO OF A PIPE BEFORE THE RUPTURING,
IS THAT A YES OR NO? >> THAT IS A NO.
>> THAT IS A NO. >> I WILL TELL YOU WHAT HAPPENED
[03:15:02]
QUICKLY. THE PRESSURE IN THE SYSTEM THAT IS AN UNUSUAL AMOUNT OF PRESSURE. THE HYDRANTS THAT ARE ON THERE, THEY WERE INSTALLED IN A PROJECT AND THEY WERE INSTALLED TO>> - - SPECIFICATION. THEN WE HAVE A KICKER PLATE GOES BEHIND THAT TO REINFORCE AS THE WATER IS COMING OFF OF A PRESSURE REDUCING VALVE. YOU HAVE 36 INCH AND REDUCES INTO A 12 INCH CONNECTION OF A HYDRANT. YOU ARE ALREADY DOING REDUCTION IN PRESSURE BUT IT IS STILL QUITE A BIT. THEN WE HAVE THE KICKER, YOU CAN ALSO INSTALL EXTRA RESTRAINING BOLTS. ON TOP OF THIS CONNECTION AT THE POINT OF WHERE THE 12 HITS THE HYDRANT IN THE MAIN, YOU CAN HAVE RESTRAINING BOLTS. THINK OF IT AS A BELT AND SUSPENDER APPROACH. WHICH WASN'T TAKEN BUT, WE ARE GOING TO DO THAT ON ALL OF THE HYDRANTS FROM THE PLANT UNTIL PROBABLY U.S. 31, AFTER THE SUMMER SEASON AFTER THE HIGH DEMAND WHEN WE CAN DO THIS AT NIGHT. WE ARE GOING TO GO AND LOOK AT EVERYONE AND SEE IF THEY HAVE THAT OR NOT. SO WE DO NOT HAVE THIS PROBLEM AGAIN.
>> SO WE DO KNOW WHAT HAPPENED.
>> WE DO KNOW WHAT HAPPENS. IT WAS, TIME AND TIME AGAIN A LITTLE CHANGE OF SO MUCH PRESSURE THEN IT GOES DOWN A LITTLE BIT ONCE WE FILL THE TANK. THERE IS A LOT OF CHANGE.
THAT PRESSURE IS WET, WE DO NOT KNOW WHY BUT SOMETHING CAUSED THAT HYDRANT TO OVER TIME LOOSEN AND FLOW.
>> THANK YOU, THANK YOU. WE ARE GOING TO DO COUNSELOR JOSHI AND COUNSELOR GREEN WE WILL PROBABLY MOVE ON BECAUSE WE HAVEN'T EVEN STARTED OUR ITEMS ON THE AGENDA.
>> I WANT TO MAKE THE POINT ON THE WEST SIDE - - THE SUPPLY OF WATER IS COMING FROM BASICALLY TRAVELING A LONG DISTANCE THROUGH 136 INCH MAIN WHEN WE NEED TO BE THINKING ABOUT A WATER SUPPLY ON THE WEST SIDE. ESPECIALLY WHERE WE HAVE BEEN TALKING ABOUT NEEDING THE FIRE DEPARTMENT ON THAT SIDE. WE HAVE BEEN TALKING ABOUT SO MANY THINGS AND WHEN I SAID APPEAR AT TIMES I GET AND I'M SORRY THIS IS THE FIRST TIME WE ARE ACTUALLY MEETING BECAUSE YOU SEEM LIKE A LOVELY GENTLEMAN. I WOULD LOVE TO MEET YOU UNDER BETTER CIRCUMSTANCES. IT SEEMS LIKE WE GET INTO THESE ISSUES THAT IT IS KIND OF DEFERRED MAINTENANCE IN SOME WAYS. SHORT-TERM THINKING, NOT LONG-TERM, GENERATIONAL THINKING. INFRASTRUCTURE IS NOT BUT IT NEEDS TO BE DONE. AND COMMUNICATING HEALTH AND WELLNESS ISSUES TO PEOPLE, WE KNOW VERY WELL TAKES SOME NUANCE AND SOME EDUCATION. PEOPLE PANIC WHEN THEY DO NOT NEED TO BECAUSE THEY ARE TOLD THINGS IN A WAY THAT MAKES THEM FEEL THEY NEED TO PANIC. AND THEY CAN ALSO UNDER REACT WHEN THEY NEED TO IF THEY ARE NOT TOLD ENOUGH ABOUT WHAT NEEDS TO HAPPEN. HAVING BEEN IN THOSE SITUATIONS, HAVING SOMEBODY THAT IS SPECIFICALLY WELL-EDUCATED ON WHAT IS HAPPENING IN THE SYSTEM AND WHY.
AND WHAT WILL BE THE OUTCOME OF THAT I THINK IS CRITICAL. HAVING SOMEONE IN THAT POSITION WILL BE IMPORTANT OR AT LEAST SOMEONE THAT UNDERSTANDS COMMUNICATING WITH THOSE WHO NEED TO GET THE MESSAGE OUT. THE FAILURE WAS NOT IN THE WORK THAT WAS DONE BY THE UTILITIES DEPARTMENT. IT WAS ALL ABOUT COMMUNICATION. I GOT NOTIFIED BY PHYSICIAN FRIENDS WERE LIKE, MY CASES ARE GETTING CANCELED. THAT IS THE FIRST NOTIFICATION I SAW ON THIS. THAT IS HARD. I THINK WE WANT TO DO BETTER BECAUSE WE NEED TO DO
BETTER. THANK YOU. >> THANK YOU. I WILL DOUBLE DOWN ON EVERYTHING DR. JOSHI JUST SAID. A LOT OF REALLY GOOD COMMENTS. LOOKING AT THE TIMELINE, IT LOOKS LIKE THE INITIAL DRAFT FOR THE BOIL WATER ADVISORY WAS DRAFTED AT 942.
THEN, 10:16 EMERGENCY OPERATIONS CENTER, WAS ACTIVATED. THAT PROBABLY WOULD HAVE BEEN A FORM IN A PERFECT WORLD FOR THE EEOC, IS CARMEL UTILITIES PART OF THE EEOC?
>> YES. THE FACT WE DIDN'T USE THE EEOC IS ON ME. I HAD BEEN TO THE EEOC THEY SHOWED ME IT'S CAPACITY. I WAS THINKING OF IT IN AN OPERATIONAL, TACTICAL DEPLOYING TROOPS AND GETTING STUFF DONE. I KNEW WHEN I GOT THE CALL, I KNOW WHERE THIS IS SO WE HAVE TO GET IT FIXED. I WASN'T TAKING ABOUT IT FROM
[03:20:05]
COMMUNICATION PERSPECTIVE. THEY CALLED ME, THAT IS ON ME.>> I APPRECIATE THAT BUT IT IS SOMETHING COUNSELOR LOCKE SAID, THIS IS THE FIRST TIME THIS TYPE OF THING HAPPENS AND NOWADAYS, WE COULD HAVE ALL DIFFERENT TYPES OF EMERGENCIES WE NEED TO RESPOND TO AND GET WORK OUT FAST. IN A PERFECT WORLD EOC WOULD'VE MADE A DECISION, BOOM, GET THE MEDICATION OUT. PROBABLY AFTER THE ACTION REPORT, SOME TYPE OF EXERCISE TO GET ALL THE NEW PEOPLE, HERE IS AN EOC WHETHER IT IS A WATER PROBLEM OR MAYBE A NONTRADITIONAL PROBLEM. KIND OF EVERYBODY'S UNDERSTANDS THE PROCESS, THE GOVERNANCE AND COMMUNICATION.
>> COUNSELOR SNYDER? >> I JUST WANTED - - COUNTERTREND EIGHT ASKED POINT-BLANK YOU ARE NOT RAISING RATES AND THAT IS GREAT. I THINK MAKING THAT STATEMENT, YOU HAVE TO BE CAUTIOUS. THE BOARD OF PUBLIC WORKS APPROVED $750,000 STUDY TO LOOK AT YOUR INFRASTRUCTURE. IF IT COMES BACK BAD, YOU ARE RAISING RATES. TO SAY, YOU'RE ABSOLUTELY NOT RAISING RATES I WOULD CAUTION AGAINST MAKING SUCH A
DECLARATIVE STATEMENT. >> WHAT I SAID WHAT - - WAS I AM
NOT COMING BACK THIS BUDGET. >> I LOVE THAT YOU ARE TALKING ABOUT THESE THINGS. IT IS WHY WE ARE DOING THE STUDY SO WE CAN UNDERSTAND EVERY WIDGET, THIS IS CONSERVATIVELY TO SAY WE HAVE $750 MILLION IN INFRASTRUCTURE. IF WE HAD TO REPLACE IT ALL TODAY, NOT TO MENTION BUILDING THE PLANT YOU WOULD LIKE TO SEE ON THE WEST SIDE. WE NEED TO UNDERSTAND THE CONDITION OF EVERY ONE OF THOSE ASSETS AND NEED TO LOOK AT THE CRITICALITY OF THOSE THINGS. THAT IS WHAT THIS STUDY WILL DO SO WE CAN BUILD WHAT WE NEED TO DO IN THE NEXT FIVE YEARS, THE NEXT 10 YEARS AND LOOK AT HOW TO GRADUALLY GET RATES THERE SO WE CAN FUND IT. I AGREE, I AM THANKFUL YOU SEE THAT AND ARE TALKING ABOUT THAT. IT IS IMPORTANT BECAUSE IN THE END, I WILL COME TO THIS GROUP AND GO HERE IS WHAT I THINK WE NEED TO DO. IT WILL BE A PARTNERSHIP. NO QUESTION ABOUT THAT.
>> I DO ALSO WANT TO THANK THE ENTIRE WATER UTILITY AND EVERYBODY IN THE CITY INCLUDING THE CITY COUNCILS WHO PITCHED IN TO HELP GET COMMUNICATION OUT TO FIX THE SYSTEM. WE ALSO HAD A CONTRACTOR IN THE AREA WHICH WAS FORTUITOUS FOR AS WELL. WE DIDN'T PUT ALL THE RECOMMENDATION IN THE AFTER ACTION FORM JUST TO HAVE A LISTING. I WILL OWN GETTING THEM DONE. THERE ARE GOOD LEARNINGS HERE WE CAN APPLY TO A LOT OF THINGS IN THE FUTURE. THE NUMBER $1.7 MILLION ROUGHLY SPLIT BETWEEN WATER AND SEWER, WE JUST HAD OUR ACCOUNTING CONSULTANT UPDATE THAT LAST YEAR. I THINK IT HAD BEEN 2014 WHEN IT WAS INITIALLY SET. HE DID UPDATE THAT SO IT IS AVAILABL.
THERE'S A GROUND WATER TANK UNDER CONSTRUCTION ON THE WEST SIDE. THAT IS ALSO FUNDED BY THE BOND THAT YOU HAD APPROVED. WE DID NOT BRING THAT UP TONIGHT SO I WANTED TO MAKE SURE YOU KNEW THAT. WE JUST STARTED WORKING - - THAT IS NOT QUITE YET IN WRITING BUT, WE WILL CONTINUE TO WORK THAT. AND THEN THE AFTER ACTION REPORT. IT IS ON THE CARMEL UTILITIES WEBSITE IF THERE IS ANYONE IN THE PUBLIC THAT IS HEARING THIS AND WANTS TO READ THE REPORT IT IS AVAILABLE.
[12.a. Thirteenth Reading of Ordinance D-2762-25; An Ordinance of the Common Council of the City of Carmel, Indiana, Amending Chapter 8, Article 5, Sections 8-37, 8-47, and 8-48 of the Carmel City Code; Sponsor: Councilor Aasen. Remains in the Land Use and Special Studies Committee.]
>> MOVING ON OLD BUSINESS 13TH READING OF ORDINANCE - - THE CITY OF CARMEL, INDIANA AMENDING CHAPTER EIGHT ARTICLE FIVE. THE
[12.b. Eighth Reading of Ordinance D-2772-25; An Ordinance of the Common Council of the City of Carmel, Indiana, Adopting a New Article 8 Under Chapter 2 of the Carmel City Code; Sponsor(s): Councilor(s) Aasen, Ayers, Minnaar, Snyder and Worrell. Remains in the Finance, Utilities and Rules Committee]
SPONSOR IS COUNSELOR AASEN. THE EIGHTH READING OF ORDINANCE - - OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA ADOPTING A NEW ARTICLE EIGHT CHAPTER 2 OF THE CARMEL CITY CODE. THIS REMAINS IN THE FINANCE UTILITIES AND RULES COMMITTEE. PUBLIC[14.a. First Reading of Ordinance D-2778-25; An Ordinance of the Common Council of the City of Carmel, Indiana, Authorizing the Issuance of Economic Development Tax Increment Revenue Bonds to Support the Rebar Old Meridian Project, and Authorizing and Approving Other Actions in Respect Thereto; Sponsor: Councilor Aasen.]
HEARINGS, WE HAVE NONE. NEW BUSINESS, FIRST READING OF ORDINANCE - - AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA - - OLD MARIA THEN PROJECT AND AUTHORIZE AND APPROVE OTHER ACTIONS. THE SPONSOR IS COUNSELOR AASEN.MOTION TO INTRODUCE? >> SO MOVED.
>> ALL RIGHT, COUNSELOR WHAT YOU READ THE SYNOPSIS?
[03:25:03]
>> THANK YOU. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA. THE ORDINANCE AUTHORIZES THE ISSUANCE OF THE DEVELOPER BY THE CITY TO FINANCE CERTAIN IMPROVEMENTS TO SUPPORT THE DEVELOPMENT OF THE OLD MERIDIAN
[14.b. Resolution CC-08-18-25-01; A Resolution of the Common Council of the City of Carmel, Indiana, Authorizing Certain Actions with Respect to the Acquisition of Certain Real Property by the City for Public Use and Matters Related Thereto; Sponsor: Councilor Aasen.]
PROJECT. >> DIRECTOR AND THE NEXT ITEM IS RELATED TO THIS SO FEEL FREE TO SPEAK ABOUT HER. GOOD EVENING. I DO NOT HAVE AN HOUR-LONG PRESENTATION ON THIS BECAUSE I KNOW IT WILL GO TO COMMITTEE. I DO WANT FOR ANYONE WATCHING, GIVE THE DEVELOPER AN OPPORTUNITY TO DISCUSS THE PROJECT. WE WILL KNOCK THIS OUT IN ABOUT 10 MINUTES AND LOOK FORWARD TO DISCUSSION IN COMMITTEE. BEFORE WE START I APPRECIATE COUNSELOR SNYDER MENTIONING THIS EARLIER TODAY BUT ONE MORE TIME. WE ARE ABOUT TO HEAR ABOUT A NEW PRODUCT.
THAT PROJECT WOULD HOPEFULLY BE SUPPORTED WITH TAX INCREMENT FINANCE BONDS. THOSE BONDS ARE NOT A DEVELOPER RISK. THE CITY, THE TAXPAYERS, EITHER THE CITY OR THE TAXPAYERS HAVE ANY RESPONSIBILITY ON THESE BONDS WE ARE DISCUSSING TODAY.
ESSENTIALLY, THE DEVELOPER BUILD A BUILDING, THE BUILDING PAYS TAXES AND AS THOSE TAXES ARE THEN SENT BACK TOWARD THE BOND.
THE BUILDING BURNED DOWN AND THERE IS NO TAXES BEING PAID, THE CITY HAS NO OBLIGATION TO MAKE PAYMENTS ON THE BONDS. THIS IS RISK FREE TO THE TAXPAYER. THE PRESS WILL WRITE ABOUT IT SO PLEASE HIGHLIGHT THAT. WITH THAT I WOULD LIKE TO INTRODUCE THE NEW PRESIDENT AND CEO OF REBAR DEVELOPMENT. TOM IS GOING TO DISCUSS THE SIGNATURE 55 PROJECT IN THE NEXT THREE MINUTES.
>> THANK YOU FOR HAVING US HERE TONIGHT. WE ARE EXCITED TO TALK ABOUT THIS PROJECT. WE HAVE WORKED IN CARMEL FOR 18 YEARS AND BEING - - PARTNERS IN THE BACK. ALSO PARTNERING WITH TWO THE PRINCIPLES THAT DEVELOPED SIGNATURE OF CARMEL IN MERIDIAN.
WE HAVE A LOT OF EXPERIENCE AND DID ELEMENT AROUND CENTRAL INDIANA PUBLIC AND PRIVATE PARTNERSHIPS. LOTS OF DEVELOPMENT IN HAMILTON COUNTY AND DID ELEMENT EXPERIENCE IN THE ACTIVE ADULT AREA. I WANT TO TALK ABOUT OUR PROJECT FOR A SECOND. THERE IS OUR FIRST SHOT OF WHAT WOULD BE A GREAT ICONIC BUILDING ON OLD MERIDIAN SOUTH OF MAIN STREET ON THE EAST SIDE OF THE STREET. I WAS INSPIRED BY THE QUOTE THAT JEFF MCDERMOTT - - TALK WITH YOU FROM WINSTON CHURCHILL. I WILL GIVE YOU A QUOTE MAYBE IT IS DISTINGUISHED BUT WALT DISNEY. THE QUOTE IS GROWING OLD IS MANDATORY, GROWING UP IS OPTIONAL. THAT REALLY ENCAPSULATES WHAT ACTIVE ADULT LIVING IS. THIS IS A PRODUCT IN BETWEEN REALLY COOL AND MARKET RATE AND INDEPENDENT LIVING. THIS PRODUCT HAS NO CAFETERIA IT HAS NO TRANSPORTATION IT ATTRACTS THE HEALTHIEST AND WEALTHIEST RENTERS IN THE MARKET WHO WILL SPEND MONEY IN SHOPS AND RESTAURANTS AND SO FORTH. I DO NOT NEED TO TELL YOU THIS BUT FOR ALL THE THINGS YOU TALK ABOUT PARKS AND ARTS, CARMEL IS THE PLACE FOR THIS TYPE OF A PRODUCT. THE RENTS WILL PUSH THE HIGHEST RENTS IN CARMEL BUT IT IS MORE OF A CLUB FEELING. ALL KINDS OF ACTIVITIES, WE WILL SPEND MORE MONEY ON FINDING THE RIGHT PEOPLE TO MANAGE THIS THAN ANY OTHER PROJECT IN THE CITY.
THAT IS BECAUSE THE SUCCESS OF THE PROJECT WILL BE BASED ON OUR ABILITY TO CURATE COMMUNITIES AND HAVE PEOPLE FIND NEW PASSIONS AS THEY TURN 55 AND OLDER WHICH I AM IN THAT CATEGORY. I THINK YOU HAVE PROBABLY KNOW ABOUT ACTIVE ADULT RENTAL. I THINK THIS WILL BE THE SECOND ONE THE NORTH END PROJECT I THINK HAS ONE. I AM SURE THEY O WITH AVENUE DEVELOPMENT. OUR COMMAND ANALYSIS, PLENTY OF BOOMERS AGING IN CARMEL WHO WILL WANT TO SEE THIS PROJECT COME. THAT IS THE PRODUCT. I WILL NOT READ THROUGH THIS, IT IS CLASS A AMENITIES, HIGHEST QUALITY. YOU
[03:30:03]
WILL SEE THINGS YOU MAY NOT SEE IN OTHER PLACES. PRIVATE DINING ROOMS WE CAN HAVE A HIGH END KITCHEN. SOMEONE WHO CAN FEEL LIKE THEY CAN MOVE DOWNSIZE FROM A HOME TO SIGNATURE 55 CARMEL.THAT IS ALL ABOUT ACTIVE ADULT LIVING. WE THINK WE ARE PUSHING THE MARKET AND WE THINK WE ARE THE BEST AT IT. THESE ARE ALL FOLKS, THIS IS WHO WE THINK WILL LIVE THERE. YOU CAN PROBABLY IDENTIFY, I AM PROBABLY UP THERE SOMEWHERE. I LOVE TO FOCUS ON THE LAST TWO, WHEN YOU LOOK AT THE RATIO OF ADULT CHILDREN TO SENIORS, THERE WILL BE SENIORS MOVING FROM OUT OF STATE. I MOVED HERE TO RAISE KIDS. I AM NOW HERE, MY PARENTS ARE NOT HERE THEY ARE GOING TO MOVE HERE TO BE CLOSER TO THE KIDS. THAT IS A RATIO THAT IS IMPACTFUL FOR OUR BUSINESS. WHAT WE ARE TRYING TO DO DIFFERENTLY IS, ACROSS THE COUNTRY, ACTIVE ADULTS HAS BEEN A PRODUCT TYPE FOR ABOUT 10 YEARS. THE MAJORITY OF THE TENANTS ARE WOMEN. A LOT OF THE DEVELOPMENTS ARE TARGETED AT THAT WINTER. WE WANT COUPLES, WE WANT MEN OF COURSE BUT, WE WANT THE COUPLES WHO LIVE IN CARMEL TODAY. THEY WANT TO LEAVE INDIANA AND COME BACK IN THE WINTER. YOU WILL SEE MORE THINGS LIKE GOLF SIMULATORS, WORKSHOPS AND THINGS LIKE THAT THAT TARGET THE MEN IN THE LEASING FAMILY AS WELL. THAT IS A LITTLE BIT ABOUT US AND A LITTLE BIT ABOUT THE ACTIVE ADULT PROJECT. I WILL
TURN IT BACK OVER TO HENRY >> IF COUNSEL HAS QUESTIONS, IF I COULD JUST PRESENT THIS SLIGHTLY THINK WE CAN HANDLE THAT. SIGNATURE 55 IS THE NAME OF THE PROJECT. $88 MILLION INVESTMENT. DOWN AT THE BOTTOM RIGHT, WHAT YOU SEE IS THE SITE PLAN FOR THE PROJECT. YOU CAN SEE THE PROJECT ESSENTIALLY BEING SPLIT INTO TWO. ONE IS THE DEVELOPMENT ITSELF AND ONE IS A FUTURE PART. THIS IS NUMBER 1.54 ACRES THAT WILL GO ULTIMATELY TO THE PARKS DEPARTMENT THE PARKS DEPARTMENT WILL DESIGN THIS, THE CITY COUNCIL PROVIDED THE PARKS DEPARTMENT WITH THE MONEY FOR THIS DESIGN. ADDITIONALLY, I WILL DISCUSS THIS IN A SECOND.
THE FUNDS FOR THE PARK COME FROM 2024 BOND. THIS PROJECT IS PART OF THAT PROVIDING 356 PUBLIC PARKING SPACES. THIS PROJECT WILL PROVIDE FOR EVER PUBLIC BATHROOMS THAT SERVE THE PARK THAT WILL BE MAINTAINED BY THE DEVELOPER. THERE WILL BE A GOOD INTERACTION HERE WITH THE VFW POST THAT IS TO THE SOUTH OF THIS. I WANT TO GIVE A SPECIAL SHOUT OUT TO COUNSELOR MATT SNYDER WHO HAD ME AND THE PARKS DIRECTOR DISCUSS THIS PROJECT AND SHARE RENDERINGS WITH WONDERFUL MEMBERS OF THE COMMUNITY AT THE VFW LAST WEEK. THERE WILL BE A PAVED WALKWAY HERE THAT TAKES YOU FROM OLD MERIDIAN DOWN THE PAVED WALKWAY TO THE PARK AND INTERACTS WITH THE VETERAN OF FOREIGN WARS POST. THE PARKS IMPACT FEES FROM THE PROJECT, 200 GRAND IN TOWARD THE PAVED WALKWAY TOWARD THE SOUTH OF THIS. THAT WILL BE A DESIGN PROCESS. NOTHING HAPPENS WITHOUT THE SIGNOFF ON THE FIRE LANE. THE REST OF THE PARK IMPACT FEES GENERATED WILL BE APPLIED TO THE PURCHAS PRICE. AGAIN, MY FAVORITE NUMBERS, THIS LANDS SOMEHOW, FOR SOME REASON THANK YOU ASSESSOR, PAYS US $200 PER YEAR IN PROPERTY TAXES. WHEN THIS PROJECT IS COMPLETED IT WILL PAY $483,000 IN PROPERTY TAXES. THE SCHOOL REFERENDUM RATE THAT RECEIVES NOTHING OF THE TAXES OF THE LAND, THE SCHOOLS WILL BENEFIT AS SOON AS THIS IS BUILT IN TWO YEARS TO THE TUNE OF $66,000 PER YEAR. WE HAVE A SCHOOL BOARD MEMBER IN
[03:35:02]
THE AUDIENCE. MUSIC TO HIS EARS. PREVIOUS ASSESSED VALUE PER ACRE WAS $4000 PER ACRE. NEW ASSESSED VALUE IS $14 MILLION AN ACRE.AGAIN, THIS PROJECT WILL PROVIDE FREE PARKING AND FREE RESTROOMS TO THE PARK FOREVER. IT FACILITATES THE PARK AND PROVIDES PARKING. YOU HAVE TWO ACTION ITEMS IN FRONT OF YOU TODAY. THE FIRST IS THE BOND. THE SECOND IS A LAND TRANSFER.
LET ME JUST READ THE THING ON THE POWERPOINT. IN TWO DAYS ON WEDNESDAY THE COMMISSION WILL TAKE ON TWO BOATS. THE FIRST WILL BE THE PURCHASE OF THE LAND AT BELOW THE AVERAGE OF TWO APPRAISALS AND THE SECOND, TRANSFERRING THE LAND TO THE CITY. THE SECOND RESOLUTION IN FRONT OF YOU IS TO ACCEPT THAT TRANSFER OF THAT LAND. IF THE CITY COUNCIL APPROVES THE PROJECT, IF CITY COUNCIL TAKES ON THE PROJECT, DELIBERATE, LET'S SAY CITY COUNCIL APPROVES THE TRANSFER. THAT MEANS THE DEVELOPER SPENDING THE NEXT SIX TO NINE MONTHS IN DESIGN AND GOING THROUGH ALL OF THE ENTITLEMENTS AND APPROVALS NEEDED FROM THE PLANNED COMMISSION FROM THE REDEVELOPMENT COMMISSION. THE DEVELOPER GOES THROUGH THAT PROCESS, DESIGNS, GETS THEIR APPROVALS ULTIMATELY TO GET A BUILDING PERMIT SO THEY CAN START CONSTRUCTION. WHEN THEY GET THE BUILDING PERMIT FROM THE CITY, THAT IS USUALLY THE TIME WHEN THE LENDERS ARE READY TO LEND. WHEN WE KNOW THAT THE PROJECT IS HAPPENING, BECAUSE IT HAS BEEN DESIGNED CONCURRENTLY WITH THE PARKS STUFF GOING ON AND WE KNOW THE PROJECT IS A GO BECAUSE THE LENDER IS READY TO LEND BECAUSE THEY HAVE THEIR CONSTRUCTION PERMITS ON HAND. AT THAT MOMENT THE CITY WILL CLOSE ON ITS NUMBER 1.54 ACRES AND THEREAFTER THE COUNCIL WILL TRANSFER THAT TO THE PARKS DEPARTMENT. THE PARKING WILL HAPPEN WITH IT. THAT IS THE TIMING OF THE LAND TRANSACTION AS CONTEMPLATED HERE. THOSE ARE THE TWO THINGS IN FRONT OF YOU.
LOOK FORWARD TO DISCUSSING THEM AT COMMITTEE. WE ARE HERE TO ANSWER ANY QUESTIONS IN THE MEANTIME.
>> WE WILL SEND THIS TO THE LAND USE COMMITTEE. THERE IS TALK ABOUT WHETHER TO SEND THIS TO LAND USE OR FINANCE I THINK THE QUESTION IS MORE ABOUT THE DESIGN OF THE BUILDING THEN THE FINANCING. I WANT TO OPEN IT UP FOR QUESTIONS. COUNSEL,
QUESTIONS? COUNSELOR SNYDER? >> IN COMMITTEE I WANT TO MAKE IT CLEAR TO ANYBODY WATCHING THAT, BECAUSE THERE WAS A LOT OF VETERAN FEEDBACK WHICH INCIDENTALLY, I APPRECIATE THE GOOD WORDS THAT I SERVE IN THAT POSITION BECAUSE THE MAYOR PUT ME THERE SO THANK YOU FOR ALLOWING ME TO RUN WITH MY PASSION AND THANK YOU FOR THE LEEWAY YOU HAVE GIVEN ME ON THIS. THIS IS A MEANS TO AN END FOR SOMETHING THAT I AND MANY OF THE COUNSELOR ARE PASSIONATE ABOUT. IN LAND USE THIS WILL BE DISCUSSED. THERE ARE SOME QUESTIONS THAT HAVE BEEN PRESENTED TO ME BUT THE FACT THAT TWO BLOWS MY MIND SO I'M SURE WE WILL BE ABLE TO WORK THROUGH IT.
>> ANY COUNSEL COMMENTS OR QUESTIONS?
>> I WANT TO SAY ONE THING, ONE QUESTION WE ALWAYS GET. WHAT DOES THE PUBLIC GET OUT OF THESE PRIVATE PUBLIC PARTNERSHIPS?
[03:40:19]
>> ANY OTHER QUESTIONS OR COMMENTS? THIS WILL GO TO THE
LAND USE COMMITTEE. >> THAT IS FOR ITEM A.
RESOLUTION - - WHILE THIS IS A RESOLUTION, WE ARE GOING TO GO
[14.c. First Reading of Ordinance D-2779-25; An Ordinance of the Common Council of the City of Carmel, Indiana, Fixing Salaries of Appointed Officers and Employees of the City of Carmel, for the Year 2025; Sponsor: Councilor Taylor.]
AHEAD AND SEND THIS TO THE LAND USED COMMITTEE. FIRST READING OF ORDINANCE D - - THE CITY OF CARMEL, INDIANA SPONSOR ISCOUNSELOR TAYLOR. >> ESTABLISHES THE 2025 SALARIES FOR THE EMPLOYEES OF THE EXECUTIVE BRANCH.
>> ZACH? >> PRIOR TO THIS I SPOKE TO COUNSELORS AND THERE WAS A THOUGHT OF SENDING THIS TO THE FINANCE COMMITTEE. WE STILL WANT TO HAVE CONVERSATION TONIGHT. SO
GIVE US YOUR PRESENTATION. >> MY COMPUTER DIED.
>> JUST AS A REMINDER, BACK WHEN WE WERE PUTTING LAST YEAR'S BUDGET TOGETHER. WE WERE TALKING ABOUT SALARY STUDY AT THAT POINT IN TIME. WITH THAT, WE TALKED ABOUT DOING THIS IN TWO PHASES.
FIRST WE DID THE PUBLIC SAFETY SWORN POSITIONS. THAT WAS MEMORIALIZED, IF YOU WILL IN THE UNION CONTRACT AS WELL AS THE UPDATED SALARY MATRIX THAT WE DEVELOPED AT THE BEGINNING OF
THE YEAR. IN TERMS OF - - >> AS WE TALK ABOUT THE BUDGET WE MENTIONED THIS YEAR WE WOULD LOOK AT CIVILIAN SALARIES. AND COME BACK TO COUNSEL WITH A PROPOSAL LATER IN THE YEAR. I WOULD LIKE TO POINT OUT I THINK COUNSEL OFTEN THINKS OF SALARIES IN TERMS OF THE ORDINANCE. THE CITY THINKS ABOUT IT BUT ONLY AS A SALARY ORDINANCE BUT THIS - - INCLUDES SIX STEPS.
NON-DIRECTORS ON THE MATRIX IN GRADES SIX THROUGH 20 WITH SIX STEPS IN EACH GRADE. SOMETIMES THEY START HIGHER THAN THAT.
[03:45:05]
IMPLIES WHERE SOMEONE SHOULD START IN THAT STEP SYSTEM. IF THEY STARTED AT STEP ONE A WHICH THE MAXIMUM WITHIN FIVE YEARS.THEY TYPICALLY GET A 4% JUMP FROM WHAT STEP TO THE NEXT COUPLED WITH A 3% COLA IN THREE YEARS. KIND OF A GLIDE PATH TO INCREASE SALARIES BY 72% OVER THE FIRST FIVE YEARS FOR MOST OF OUR EMPLOYEES. SECOND, ON DIRECTORS, THEY ARE ALSO HERE IN GRADES 21 THROUGH 23. THERE ARE NO STEPS THERE, A MINIMUM AND MAXIMUM. AS WE STARTED LOOKING WE NOTICED MULTIPLE POINTS OF CONCERN WITH OUR EXISTING PAY GRADE STEPS AND THE COMPENSATION SYSTEM AS WELL AS THE SALARY ORDINANCE. TODAY, EXISTING TITLES ARE OFTEN POOR REFLECTIONS OF WHAT AN PLOIDY ACTUALLY DOES. WE HAVE PEOPLE CLASSIFIED THE STREET DEPARTMENT AS LABORERS, UTILITIES AS LABORERS. FACILITIES MAINTENANCE FOLKS IN CITY HALL AS WELL. WHENEVER YOU ARE GOING OUT TO COMPARE WHAT IS THE APPROPRIATE SALARY FOR A CUSTODIAL MAINTENANCE PERSON IN CITY HALL BUT, IF YOU ARE COMPARING THAT, YOU ARE ALSO WANTING TO GET DATA FOR SOMEONE WORKING IN THE STREET DEPARTMENT. IT REALLY DOESN'T CAPTURE THE DETAILS SURROUNDING THAT POSITION. TO BETTER UNDERSTAND WE ASK EMPLOYEES TO COMPLETE A RATHER LENGTHY JOB ANALYSIS QUESTIONNAIRE. I THINK WE RECEIVED OVER 330 OF THOSE FROM OUR CIVILIAN STAFF. TO BETTER UNDERSTAND THEIR DUTIES, QUALIFICATIONS AND CERTIFICATIONS REQUIRED FOR THOSE POSITIONS. THERE WERE SEVERAL FINDINGS THAT CAME OUT.
AS I MENTIONED, THE TITLES WERE WILDLY INCONSISTENT AND WITHOUT AN OVERALL HIERARCHY. AT TIMES I HAVE SHOWN COUNSEL A PAGE WHERE I MAPPED OUT ALL THE POSITIONS, COLOR-CODED IT AND YOU CAN SEE PEOPLE WITH TITLES LIKE ANALYST MIGHT BE SPREAD FROM GRADE 6 TO GRADE 20. A MANAGER MIGHT BE AT A GRADE SEVEN BUT ALSO A GREAT 20. SUPERVISORS WERE ALL ACROSS THE BOARD. THERE WAS NO RHYME OR REASON BEHIND THE TITLES.I HAVE MENTIONED THE LABOR PEACE. ALSO, WHAT WE HAVE SEEN IS BECAUSE THOSE RANGES ARE SO NARROW AND BECAUSE AN EMPLOYEE WILL UNDOUBTEDLY REACH THE TOP WITHIN FIVE YEARS, PEOPLE HAVE REALLY MANIPULATED OUR TITLES AND GRADES AND PAY OVER THE YEARS. THE ONLY WAY TO GET SOMEONE AN INCREASE WAS TO MOVE THEIR POSITION TO A HIGHER SALARY GRADE. EVEN IF THAT DIDN'T REALLY WANT MOVING TO A HIGHER SALARY GRADE BECAUSE IT WASN'T COMPLEX AS POSITIONS IN THAT GRADE. WHEN IT COMES TO THE STEPS, MOST OF OUR DEPARTMENTS DO NOT HAVE STANDARDS WHEN DETERMINING WHEN TO MOVE UP.
CURRENTLY 55% OF OUR EMPLOYEES ARE AT THE TOP END OF THEIR GRADE. YOU WOULD EXPECT THERE WOULD BE SOME DISTRIBUTION.
PEOPLE AT THE EARLY STEPS, A LOT OF PEOPLE IN THE MIDDLE AND SOME PEOPLE WHO HAVE BEEN WITH THE CITY FOR A LONG TIME. WE HAVE 55% MAXED OUT RIGHT NOW. WHEN WE DO THE NEXT STEP INCREASE ON JANUARY 1ST, IT GOES TO 67%. AS I MENTIONED BEFORE YOU REACH THE TOP OF THE SALARY GRADE WITHIN FIVE YEARS AND THERE REALLY IS NO OTHER OPPORTUNITY AFTER THAT. ALSO IT IS WORTH NOTING IN A TRY TO SAY THIS IN THE LEAST HR SOUNDING MANNER AS POSSIBLE.
MOST OF OUR POSITIONS HAVE A STARTING SALARY WHICH IS COMPARED TO MARKET, MOST OF OUR POSITIONS ALREADY START AT THE 25TH PERCENTILE OR EVEN GREATER THEN THE 50TH PERCENTILE.
MEANING, OUR STARTING SALARIES ARE MORE THAN THE MARKET MIDPOINT AVERAGE, IF YOU WILL. THE OTHER THING I WILL MENTION IS FOR THE NON-DIRECTOR GRADES, THEY ARE EXTREMELY NARROW. THE MAXIMUM IS 20% MORE THAN THE MINIMUM. THEIR RANGES ARE 50,000
[03:50:09]
TO 60,000 AS THEY STAND TODAY. THIS ONE, AN ATTEMPT TO GRAPH OUT, IF YOU WILL BUT I HAVE BEEN DESCRIBING. IF SOMEBODY DID COME IN AT A MINIMUM SALARY FOR THE ADMIN ONE POSITION. AND AGAIN THERE IS NOTHING IN PLACE TODAY THAT SAYS SHOULD SOMEONE START AT STEP ONE VERSUS TWO VERSUS FIVE OR SIX. IF THEY WERE TO START AT THE MINIMUM, AS I MENTIONED EARLIER, YOU CAN SEE THE 4% INCREASE THAT IS IN EFFECT BASICALLY BETWEEN EACH STEP. ONCE YOU ADD LONGEVITY PAY AND COLAS TO THAT WE END UP WITH A 72% INCREASE WITHIN FIVE YEARS. OTHER PROBLEMS WITH THE STEP PLANS ARE, THEY LACK FLEXIBILITY WHEN TRYING TO REWARD BECAUSE EVERYBODY GETS THAT STEP INCREASE, IF THEY'RE DUE ONE, MEANING, WERE THESE INCREASES A AUTOMATIC.AND FRANKLY, WITHOUT THAT MOTIVATION, THERE IS NO MOTIVATION TO EXCEED EXPECTATIONS OR TO PURSUE PROFESSIONAL DEVELOPMENT. AS I MENTIONEDER YEAR, BECAUSE WE HAVE SO MANY PEOPLE CLUSTERED AT THAT TOP END, WE HAVE MAJOR COMPRESSION THERE.
SOMEBODY THAT'S BEEN WITH THE CITY FOR FIVE YEARS. WHAT WE'RE PROPOSING IS REALLY DIGGING INTO COMPENSATION PLANNING. AND THAT IS BEING MORE STRATEGIC ABOUT HOW WE MANAGE SALARIES, BONUSES, BENEFITS AND OTHER REWARDS. THIS INCLUDES BASE PAY, INCENTIVES, BENEFITS, AS WELL AS EQUITY, AND ENSURING THAT PAY STRUCTURES ARE FAIR, ALIGNED WITH THE MARKET, AND SUPPORT THE BUSINESS GOALS.
MORE THAN JUST SALARIES, IT'S THE TOTAL REWARDS.
SO, WHY DOES THIS MATTER? WE WANT TO CONTINUE TO ATTRACT THE TOP TALENT. WE WANT TO MOTIVATE EMPLOYEES.
WE WANT TO ENSURE FAIRNESS, AND WE WANT TO ALIGN WITH OUR ORGANIZATIONAL GOALS. SO, SEVERAL RECOMMENDATIONS COMING OUT OF OUR ANALYSIS, FIRST OF ALL, WE WOULD LIKE TO DO THIS LAST -- THERE ARE A NUMBER OF EMPLOYEES THAT ARE EXPECTING STEP INCREASES, BASED UPON BEING EMPLOYED THIS YEAR. THOSE TYPICALLY GO INTO EFFECT ON JANUARY 1ST. OUR PROPOSAL IS TO CONTINUE THAT LAST ROUND OF STEP INCREASES SO THAT NOBODY FEELS LIKE SOMETHING WAS TAKEN AWAY FROM THEM, BUT THEN AFTER THAT , BASICALLY, FULLY IMPLEMENT THIS -- THIS NEW SCHEDULE.
WHAT WE'RE PROPOSING WIDENS THE EXISTING RANGES.
WE WOULD TAKE THE RANGE DOWN 10% FROM ITS CURRENT MINIMUM AND ALSO UP 10% FROM ITS CURRENT MAXIMUM. SO, NOW WE HAVE RANGES THAT ARE 40% WIDE AS OPPOSED TO JUST 20% WIDE. LOWERING THE RANGER WILL ALSO -- HELPS US GET AT THE FACT THAT WE'RE -- OUR STARTING SALARIES ARE SO MUCH HIGHER THAN MARKET RIGHT NOW.
THAT WOULD NOT IMPACT ANY CURRENT EMPLOYEE PAY BY LOWERING THE MINIMUMS. NO PART OF THIS PROPOSAL AT ALL GETS AT LOWERING ANY EXISTING EMPLOYEE SALARY, ANYTHING ALONG THOSE LINES. ONCE WIDENED, AND THEN ALSO WITH REMOVAL OF THE STEP INCREASES AFTER JANUARY 1ST, PEOPLE WOULD PROGRESS THROUGH THE RANGES, A GENERAL SALARY ADJUSTMENT, COST OF LIVING ADJUSTMENT, OR, YOU KNOW, RIGHT NOW, THERE'S JUST NOT THAT FLEXIBILITY, IF I GIVE SOMEBODY IN MY DEPARTMENT MORE WORK TO DO , BUT IT DOESN'T NECESSARILY CHANGE THE COMPLEXITY AND WARRANT MOVING UP A SALARY GRADE. THERE IS NO FLEXIBILITY RIGHT NOW IN MY DEPARTMENT FOR ME TO GIVE SOMEBODY AN EXTRA 3%, 5%, FOR EXPANDING WITH THEY'RE DOING, BECAUSE EVERYBODY IN MY DEPARTMENT'S ALREADY MAXED OUT AT THE TOP OF THE RANGE. AND THEN ALSO, THIS WOULD ENCOMPASS DEVELOPING NEW POLICIES TO SUPPORT, WHAT DOES IT TAKE TO MOVE UP IN THE RANGE? WHAT DOES IT TAKE TO -- TO RECLASSIFY THIS
[03:55:04]
POSITION FROM THIS GRADE TO THIS GRADE? TO ANOTHER GRADE, BECAUSE TODAY THERE'S -- THERE ARE NONE OF THOSE THINGS IN PLACE.WHEN IT COMES TO TITLE CHANGES, AGAIN, THERE WERE 330- ISH JAQS THAT WE LOOKED AT. 160 EMPLOYEES WERE NOTIFIED THAT THEIR TITLE TODAY AND THE GRADE THAT THEY'RE IN WERE FINE AS IS. NOT QUITE HALF OF THIS GROUP.
160 EMPLOYEE S, WE BELIEVE THEIR TITLE NEEDS TO CHANGE TO BETTER REFLECT THEIR WORK, HOWEVER, THEY'RE ALREADY IN THE APPROPRIATE SALARY GRADE, SO -- NO FISCAL IMPACT RELATED TO EITHER OF THESE TOP GROUPS.
I BELIEVE WHAT I SENT TO COUNSEL, I'LL SAY ABOUT A WEEK AGO, I HAVE TWO UPDATED NUMBERS.
THERE ARE TWO EMPLOYEES IN POSITIONS THAT -- THAT ARE CLASSIFIED TOO HIGHLY TODAY AND NEED TO BE MOVED DOWN ONE GRADE.
WE'RE NOT PROPOSING TAKING AWAY SALARY OR ANYTHING LIKE THAT FROM THOSE FOLKS, AND ONCE WE EXPAND THESE RANGES, THOSE PAY AMOUNTS WOULD FIT WELL INTO THE NEW CHANGES. THEN WE HAVE FIVE EMPLOYEES THAT -- AFTER THE SALARY STUDY, WE'RE RECOMMENDING THEIR POSITIONS BE MOVED UP ONE GRADE, AS WELL AS A TWEAK TO THEIR TITLE , THAT BET REFLECTS WHAT THEY'RE DOING. THE FISCAL IMPACTS OF THOSE ARE ABSORBABLE BY THOSE DEPARTMENTS. WHAT WE'RE PROPOSING IS THOSE PEOPLE WOULD GET ESSENTIALLY MOVING UP TO A SIMILAR SPOT IN THE NEXT GRADE IS WORTH ABOUT $7,300 PER PERSON. BUT AFTER THE IMPLEMENTATION OF THIS , AND FRANKLY, SO LATE IN THE YEAR, ALL THESE DEPARTMENT -- THE FIVE IMPACTED DEPARTMENTS HAVE VACANCY SAVINGS AND CAN USE THOSE TO COVER THESE COSTS THIS YEAR, SO, WE'RE NOT PROPOSING ANY, YOU KNOW, ADDITIONAL APPROPRIATIONS OR ANYTHING LIKE THAT.
THESE CHANGES WOULD BE MADE EFFECTIVE THROUGH THE ADOPTION OF THE PROPOSED SALARY OR DIN NANCE, AS WELL AS THE INTERNAL DOCUMENT THAT REFLECTS THE SALARY RANGES THAT WE HAVE
TODAY. >> YEAH, JUST -- MAYBE WE CAN JUST CUT -- JUMP TO Q&A IF WE CAN.
>> THAT'S THE END OF MY REMARKS.
>> ANY QUESTIONS? COUNSELOR LOCK?
>> YEAH, SO, JUST -- PREFACE, NO IDEA WHAT'S GOING ON.
HAVE VERY LITTLE INFORMATION OTHER THAN WE WERE TOLD YOU GUYS WERE GOING TO DO THIS, YOU SENT OUT THE JAQ, REQUEST FORM, THAT GOT A TON OF PUSH- BACK, BECAUSE IT'S A VERY INHUMANE PEOPLE TO KIND OF GET PEOPLE TO TELL YOU, WHO ARE YOU, WHAT DO YOU DO, THE TWO BOBS FROM "OFFICE SPACE.
" THAT GOES INTO A BLACK BOX, IT COMES BACK AROUND, HERE WE ARE IN AUGUST BEFORE SEPTEMBER OF A WILD AND CRAZY BUDGET SESSION. AND 160 PEOPLE HAVE BEEN TOLD THAT THEIR JOB IS COOL AND 160 PEOPLE HAVE BEEN TOLD THAT THEIR JOB IS WRONG.
>> AND I -- SO, NO, I -- I'M SAYING THAT, IT'S A VERY IMPORTANT DISTINCTION, THAT THE WAY THAT THIS HAS BEEN COMMUNICATED, WHILE WE TALKED ABOUT WATER COMMUNICATION EARLIER, I AM FLABBERGASTED THAT WE'RE TALKING ABOUT IT IN THIS WAY HERE TODAY. BECAUSE THESE ARE PEOPLE, THESE ARE PEOPLE THAT WORK FOR OUR CITY THAT HAVE WORKED HERE FOR A LONG TIME, LONGER THAN YOU GUYS.
THE REASON THEY'VE HIT THE TOP OF THEIR PAY IS BECAUSE IT TAKES FIVE YEARS TO GET THERE AND THEY'VE BEEN HERE IN THIS MARKET, WHICH I DON'T KNOW WHAT OTHER MARKETS THERE ARE OR WHY WE'RE EVEN TALKING ABOUT THAT, BUT LIKE, THIS IS A VERY, VERY STRANGE CONVERSATION TO BE HAVING BEFORE WE EVEN STARTED THE CONVERSATION ABOUT - ABOUT THE BUDGET. AND THE FACT THAT EVERYBODY HAS HEARD THAT THEIR JOB TITLE IS EITHER WRONG OR THEY'RE GOING TO NOW HAVE TO COMPETE FOR SALARY BASED ON WHATEVER THIS NEW STRUCTURE IS, IS BIZARRE.
SO, I'M -- I'M SAYING IT'S OBVIOUSLY GETTING LATE.
I HAVE NO APPETITE UNTIL WE HAVE WAY MORE INFORMATION ABOUT WHAT THIS IS TO EVEN THINK ABOUT IT. AND I SAY THAT, LIKE, WITH ALL DUE RESPECT ON THIS, BECAUSE, AGAIN, THESE ARE THE PEOPLE THAT RUN THIS CITY.
WE THINK WE SIT HERE AND WE DO IT AND WE COME UP WITH GREAT HR AND WE GO THROUGH THE BUDGET, BUT THESE ARE PEOPLE PLOWING STREETS AND MOVING PAPER AND DOING ALL THE THINGS THEY HAVE TO DO TO KEEP US LOOKING AWESOME IN THE NEWS, AND WE'RE TREATING THEM LIKE NUMBERS ON A PAGE WITHOUT ANY CONTEXT AS TO WHY WE'RE EVEN DOING THIS AT ALL. THERE ARE SEVEN PEOPLE ON THERE, IF I WAS ONE OF THOSE SEVEN, I WOULD BE FULLY PHYSICALLY EMBARRASSED AND UPSET. I'M A LITTLE, SITTING HERE
[04:00:03]
IN THIS ROLE, BASED ON HOW WE'RE TREATING THESE PEOPLE AS NUMBERS. THESE ARE FRIENDS AND COLLEAGUES AND THE PEOPLE WE OVERSEE. THERE ARE FRIENDS.AND I HAVE NO IDEA WHY WE'RE DOING IT. YOU SAID THERE'S NO VALUE IN IT, FROM THE FINANCIAL STANDPOINT. IS IT NEXT YEAR? THE NEXT YEAR AFTER THAT. WHY ARE WE DOING THIS, OTHER THAN TO PUT PEOPLE IN A POSITION WHERE THEY NOW FEEL MORE DISENFRANCHISED FROM WHO THEY ARE AND WHAT THEIR JOB IS THAN THEY DID BEFORE WITH THE INTENT OR HOPE TO MAKE THEM FEEL ALIENATED FROM THEIR LABOR? THAT'S NOT FREE MARKET ENOUGH TO SAY OUT LOUD, EITHER.
BUT I'M JUST VERY, VERY CONFUSED.
AND I DO -- I DO THINK THE TIMING IS SUSPECT. I DO HATE THAT WE ARE SO FAR DOWN THIS RABBIT HOLE THAT EVERYBODY IS NOW A LITTLE SCARED.
AND A LITTLE UN -- IT'S UNKNOWN WHERE THEY'RE GOING TO END UP. MAYBE WE CAN GET THERE, MAYBE THERE IS INFORMATION YOU CAN SHARE TO DO THAT, BUT WE ARE SO FAR DOWN THIS ROAD WITH ZERO INFORMATION AS TO WHY OR HOW OR WHAT .
IT IS A VERY, VERY STRANGE THING TO BE SEEING A FULL SLIDE DECK ABOUT TONIGHT. SO, I DON'T HAVE ANY QUESTIONS, OTHER THAN, WE JUST NEED WAY, WAY MORE INFORMATION , INCLUDING FINANCIAL REALITIES FOR INDIVIDUALS, WHAT THIS LOOKS LIKE FROM JOB TO JOB, WHAT THIS LOOKS LIKE FROM A FULL CITY BUDGET, WHICH DEPARTMENTS ARE WE TALKING ABOUT, HOW MUCH MONEY ARE WE LOOKING TO CUT, HOW MUCH MONEY ARE WE LOOKING TO ADD? DOES THIS HAVE IMPACT ON OVERALL STRATEGY? WHAT DOES IT DO TO SEPARATELY ELECTED OFFICES? HOW ARE WE APPLYING THIS TO PUBLIC SAFETY DIFFERENTY THAT OTHERS SINCE WE JUST WENT THROUGH IT THERE, ARE THERE CIVILIAN EMPLOYEES THAT ARE NOW STUCK IN THIS, IN IMBOW, IF A WAY THEY SHOULDN'T HAVE BEEN BEFORE? THERE'S JUST NO INFORMATION.
SO, WHILE I UNDERSTAND, LIKE, IN EFFORT AND THIS ENERGY GOING INTO THIS HR THING, WE JUST NEED WAY, WAY MORE INFORMATION TO MAKE DECISIONS ON WHETHER OR NOT THIS MAKES SENSE.
AND I DON'T THINK WE'RE GOING TO GET THAT TONIGHT. IF I HAD MY -- I WOULD VOTE NO ON THIS ORDINANCE TONIGHT, BECAUSE WE NEED A WHOLE NEW STRUCTURE. YOU CAN BRING IT BACK, BUT I DON'T THINK THIS EVEN MERITS GOING TO COMMITTEE TO TALK ABOUT, OTHER THAN WE CONSENTED TO START TALKING ABOUT IT, BECAUSE WE DON'T KNOW WHERE THE BUDGET IS GOING TO END UP.
>> IF SOMETHING WAS VOTED DOWN, WHEN CAN I BE REINTRODUCED? NOT TO THROW THAT, JUST TO -- DETER THAT, BECAUSE THERE WAS SOME TALK WHEN YOU VOTE DOWN AN ORDINANCE, IT CAN'T BE REINTRODUCED FOR A PERIOD OF TIME, CORRECT?
>> IF YOU VOTE ON THIS ORDINANCE TONIGHT AND YOU STRIKE THAT ORDINANCE DOWN SO IT'S NOT GOING TO BE BROUGHT BACK, IT CAN BE REINTRODUCED IN ANOTHER FORM, BUT IT'S NOT THE SAME ORDINANCE CAN'T BE BROUGHT. IT'S
NOT TO BE BROUGHT BACK. >> OKAY.
>> I COULD ECHO QUITE A BIT OF WHAT RYAN SAID. ONE THING, BECAUSE I WORK IN THE ROAD INDUSTRY , LABORERS ARE VERY, VERY PROUD OF BEING CALLED LABORERS, AND I'M CONCERNED THAT IN OUR ATTEMPT TO STREAMLINE -- AND I CAN COMPLETELY SEE FROM YOUR PERSPECTIVE SOME OF THESE JOB TITLES AND WHAT NOT, LIKE, TO MAKE THEM MAKE SENSE TO US. LABORER IS NOT SOMETHING TO BE LOOKED DOWN ON, AND I -- I WOULD WOULD -- I'M EMBARRASSED THAT WE MADE THE COMMENT THAT LABORER IS NOT A GOOD CLASSIFICATION.
>> MY POINT WAS, IT'S NOT VERY DESCRIPTIVE.
>> DOESN'T NEED TO BE. BECAUSE THEY DO EVERYTHING. THEY DO A LOT OF WORK.
I MEAN, SO -- IF YOU WANT TO GET DESCRIPTIVE, I MEAN, LABORER'S JOB DESCRIPTION CAN'T BE -- IT CAN'T BE MINIMIZED. AND I WILL SAY, I -- I AM TERRIFIED, AT LEAST AS STREET DEPARTMENT IS CONCERNED, THAT YOU -- JUST BECAUSE WE HAVE ALL GOTTEN A LOT OF FEEDBACK ON THIS, AND I KNOW YOU HAVE A GOOD HEART AND I KNOW YOU'RE A GOOD PERSON, BUT I'VE COMMENTED BEFORE, YOUR EMAILS ARE ABSOLUTELY TERRIFYING. ABSOLUTELY TERRIFYING.
AND I'D BE CONCERNED THEY'RE GOING TO UNIONIZE.
THAT'S WHAT I WOULD BE CONCERNED ABOUT. BECAUSE WE ARE CONTINUINGLY CHANGING A STREET DEPARTMENT THAT DOES MORE WORK FOR LESS MONEY AS A DEPARTMENT THAN ANYBODY ELSE. I THINK YOUR INITIATIVE IS -- IT CAME FROM A GOOD PLACE, EVERYBODY, I THINK, THIS ALL CAME FROM A GOOD PLACE. I THINK DOING THIS RIGHT NOW IN A HELLACIOUSLE BUDGET CYCLE WHERE, AGAIN, THE STATE HAS PUT S IN A POSITION WHERE THERE'S GOING
[04:05:01]
TO BE TOUGH DECISIONS, IS -- THE TIMING IS WRONG, AND -- I AGREE WITH COUNSELOR LOCKE THAT, TO ME, THERE'S -- WE COULD TALK ABOUT THIS IN EVERY FINANCE COMMITTEE BETWEEN NOW AND 2030 AND I DON'T THINK AS ITS PRO POSED IN THIS CLIMATE WE'RE GOING TO SEE EYE TO EYE. AND I DON'T WANT IT TO BE A CONTENTIOUS THING. I WANT IT TO BE, WHAT IS BEST FOR OUR STAFF, WHO IS THE EXTENSION OF OUR FAMILY?>> YEAH, IF I CAN JUST RESPOND TO BOTH YOUR COMMENT, AS WELL AS COUNSELOR LOCKE'S -- I -- I THINK WHAT THIS SAYS, TO ME, IS -- IS OBVIOUSLY -- I HAVE NOT DONE A GOOD JOB OF EXPLAINING THIS , BECAUSE I STRUGGLE TO SEE HOW ANY EMPLOYEE WOULD LOOK AT THESE RECOMMENDATIONS AND SAY THAT THIS IS SOMETHING BAD FOR
THEM. >> HAVE YOU ASKED THEM? LIKE, LET'S START THERE. CAN WE HAVE THOSE CONVERSATIONS? CAN WE ASK MANAGERS TO WEIGH IN? CAN WE ENSURE THAT WE'RE MOVING IN THE RIGHT DIRECTION BEFORE WE MOVE IN THE DIRECTION? WE CONTINUE TO MOVE BEFORE WE COMMUNICATE, AND IT'S PUTTING US IN POSITIONS WHERE WE'RE JUST FIGHTING ABOUT STUFF AND FEELINGS FOR NO REASON, AND I -- I KNOW THAT I'M A BIG MEMBER OF THAT FEELING COMMUNITY, I FEEL A LOT , BUT LIKE, I JUST WANT TO MAKE SURE WE'RE -- WE'RE PUTTING THE ADMINISTRATION OF OUR GOVERNMENT FIRST, WHICH MEANS THAT WE'RE PUTTING OUR GOVERNMENT FIRST, WHICH IS THE PEOPLE THAT ARE DOING OUR GOVERNMENT, LIKE -- AND THAT'S A VERY BUREAUCRATIC, HMAN THING SAY, BUT I JUST CAN'T WRAP MY HEAD AROUND THE CONCEPT THAT EVERYBODY ON THAT LIST, ALL 327 OF THEM, HAVE ALREADY GOTTEN AN EMAIL TELLING THEM ABOUT THEIR JOB AND THE CHANGES THAT ARE COMING, AND THIS IS THE FIRST TIME WE'RE TALKING ABOUT IT HERE AND WE DON'T HAVE ENOUGH INFORMATION TO TALK ABOUT IT.
THIS IS -- IN THEORY, ALL THESE EMAILS SHOULD BE RESCINDED. WE HAVE TO FIGURE OUT WHAT TO DO NEXT. BUT EVERYBODY KNOWS NOW WHERE THE CARDS ARE BEING DEALT AND HOW THEY'RE GOING TO BE TREATED, SO -- WITHOUT UNDERSTANDING WHY, IF THE GOAL IS TO SIMPLIFY FOR THE STRUCTURE OF HR SO IT' EASIER TO ADMINISTER MOVING FORWARD, THAT'S AN EASY THING TO UNDERSTAND, BUT IF IT IS ANYTHING OTHER THAN THAT, AND IT WILL ALWAYS BE SOMETHING OTHER THAN THAT, BECAUSE WE'RE TALKING ABOUT PEOPLE AND IT'S GOING TO BECOME AN INDIVIDUAL PERSONAL ISSUE FOR EACH PERSONNEL ISSUE WE MANAGE, WE'VE GOT TO FIGURE OUT A BETTER WAY TO DO THAT. I MEAN, THIS WAS RUSHED TO COMMUNICATE IT BEFORE WE GOT HERE.
AND WE'RE NOT EVEN HERE YET, BECAUSE WE HAVEN'T EVEN STARTED TALKING ABOUT A BUDGET, WHICH WE HAVEN'T SEEN, SO -- I -- I JUST DON'T EVEN KNOW WHY THIS IS HERE. AND WHY THESE COMMUNICATIONS HAVE ALREADY GONE OUT WHEN THIS NOT EVEN BEEN DISCUSSED BY THE COUNCIL.
>> AND PART OF MY FRUSTRATION BOILED UP TODAY WHEN I GOT A CALL FROM AN EMPLOYEE THAT SAID, HEY, I GOT AN EMAIL FROM ANOTHER EMPLOYEE AND THEY'RE USING THEIR NEW JOB TITLE IN THEIR EMAIL SIGNATURE. LIKE -- HOW IS THAT APPROPRIATE? IT'S NOT BEEN APPROVED.
>> YEAH, AND -- I'M NOT SURE THE SPECIFIC INSTANCE, BUT IT'S -- THIS SOUNDS LIKE, PROBABLY A LAME EXCUSE, BUT IT'S NOT UNCOMMON FOR EMPLOYEES TO HAVE A -- WORKING FOR THE STATE, MY FIRST TITLE WAS POLICY AND ANALYST I. THAT'S NOT WHAT I PUT ON MY EMAILS, JUST BECAUSE THAT SOUNDED SO CLUNKY. I DON'T KNOW IF THAT'S WHAT'S HAPPENED OR SOMETHING .
>> I DON'T KNOW, BUT I BLAMED THE STATE, LIKE, FIVE TIMES TONIGHT.
>> BENJAMIN, YOU HAD SOMETHING YOU WANTED TO ADD?
>> YEAH, JUST TO FULLY CLARIFY THE QUESTION, ANSWER THE QUESTION YOU ASKED, SO, THREE MONTHS IS THAT TIME LIMIT, IF THE SAME ORDINANCE IS PUT BACK TO COUNCIL, IT CAN'T COME BACK FOR THREE MONTHS, UNLESS 70% OF THE COUNCIL OFFER APPROVAL FOR IT TO COME BACK BEFORE THAT TIME.
SO, THAT'S THE TIME LIMIT THAT YOU
WERE REFERRING TO. >> YEAH, OKAY.
SO, WE'LL GET INTO THAT LATER, WHAT DEFINES DIFFERENT.
>> YEAH, SO, I -- I DON'T WANT TO PILE ON, SO I WON'T, BUT JUST SPECIFICALLY, I RECEIVED AN EMAIL FROM ONE OF OUR EMPLOYEES THAT HAD ASKED TO HAVE A REVIEW WITH HR AND HR HADN'T RESPONDED, AND SHE SENT ANOTHER EMAIL AND SAID, OR HE SENT ANOTHER EMAIL, I WON'T SAY HE OR SHE, SENT AND EMAIL, AND THAT PERSON WAS NOT RESPONDED TO, TO SIT DOWN WITH HR AND HAVE A DISCUSSION ABOUT HER CHANGE IN TITLE AND WHAT HER DUTIES WOULD BE, AND WHAT THE IMPLICATIONS WERE FOR HER OR HIS EMPLOYMENT -- NEW JOB TITLE AND SHE SHE, HE'S NOT BEEN RESPONDED BACK TO, EITHER, SO, WHEN WE'RE TALKING ABOUT PEOPLE, THIS IS WHAT, I THINK, MY FELLOW
[04:10:05]
COUNCILLORS ARE TALKING ABOUT. NOT THAT THAT'S A ZACH ISSUE, NECESSARILY, BUT WE NEED TO DO A BETTER JOB OF HAVING THOSE COMMUNICATIONS.>> I JUST WANT TO COMMENT, THIS IS A UNIQUE SITUATION.
IF THIS WAS A PRIVATE COMPANY, WE WOULD DO THIS A LOT DIFFERENTLY. IT'S NOT, IT'S A PUBLIC ENTITY. WE CAN'T HAVE MEETINGS OVER AND WITH YOU WITHOUT VIOLATING THE OPEN DOOR ACT. WE'RE TRYING TO DO THIS IN THE BEST WAY POSSIBLE. IF WE HAD THIS CONVERSATION WITH YOU SEPARATELY, ALL THE EMPLOYEES WOULD BE LIKE, WHAT BUCKET AM I IN? SO, INSTEAD, WE SAID TO EMPLOYEES WHO HAVE BEEN INVOLVED IN THIS PROCESS, THROUGH THE INTERVIEWS AND THINGS THIS YEAR, THIS IS SUBJECT TO COUNCIL APPROVAL.
THIS IS GOING THROUGH THE PROCESS.
THAT ALLOWS THEM TO LOBBY YOU IF THEY WANT AND THE PUBLIC WEIGHSWEIGHS IN. IT'S AWKWARD, I AGREE, IT'S HORRIBLE, BUT IT'S JUST THE PROCESS.
AND WE DON'T WANT TO DO ANYTHING BEHIND THE SCENES AND HIDE IT, AND WE CERTAINLY DIDN'T WANT TO VIOLATE THE OPEN DOOR LAW, SO -- I'M NOT SURE HOW MUCH BETTER WE CAN DO THIS. IN THE TIME THAT WE HAVE.
WE'VE BEEN WORKING ON THIS FOR MONTHS.
SO, IT'S NOT LIKE BEEN RUSHED. WE'RE TRYING TO COMMUNICATE IT QUICKLY, BECAUSE ALSO, IF YOU DON'T COMMUNICATE ALL AT ONCE, THE RUMOR MILL TAKES OFF.
EMPLOYEES DID GET INDIVIDUAL INFORMATION AND DEPARTMENT MANAGERS HAD AN FAQ TO ADDRESS IT WITH THEM. SO -- HR HAS WORKING WITH PEOPLE, BUT AS YOU IMAGINE, THERE ARE PEOPLE THAT WANT TO HAVE A CONVERSATION. WE HAVE SOMEONE GOING THROUGH THE DATA, THAT'S EMPLOYEE INITIATIVE.
SO, WE'RE DOING THE BEST WE CAN TO ALSO ATTACK OUR BUDGET, WHICH IS -- ZACH HAS ALREADY INDICATED, THIS IS BUDGET NEUTRAL FOR 2026.
>> WELL, 2025, YOU'RE EATING THE EXTRA FIVE EMENT PLOY PLOYEES, BUT THERE'S NO ADJUSTMENTS BECAUSE OF THIS CHANGE.
>> AND NO EMPLOYEES ARE BEING LET GO BECAUSEBECAUSE THIS.
I'M A LITTLE FRUSTRATED, BECAUSE WE'VE DONE MONTHS AND MONTHS OF WORK, WANT TO COME WITH YOU WITH FEEDBACK AND WE'RE JUST ASKING YOU TO DISWAS IT.
WHEN YOU SAY, I DON'T HAVE INFORMATION --
>> WE'LL SEND IT TO COMMITTEE.
>> THANK YOU. I DO HAVE ONE COMMENT BEFORE WE -- AND THEN WE'LL SEE IF ANYONE ELSE -- BUT I HEARD FROM SOME CITY COUNCILLORS WONDERING IF WE SHOULD DEVELOP NICK WEBER'S PREVIOUS POSITION, OR THE CHIEF INFRA STRUCTURE OFFICER, THOSE ARE THE HIGHEST SALARIES AT THIS MOMENT.
I KNOW YOU SAID THAT YOU HAD NO PLANS TO FILL THAT, AND, YOU KNOW, I -- NO REASON NOT TO TAKE YOU AT YOUR WORD, BUT IT WOULD BE EASY TO STRIKE THAT AND THEN ÷÷A YEAR FROM NOW, WE CAN ALWAYS REVISIT AND PUT IT BACK IN, BUT I THINK WE'VE HEARD FROM SOME COUNCILLORS THAT WE'D FEEL MORE COMFORTABLE IF WE JUSTJUST THAT FOR AT LEAST NEXT YEAR'S BUDGET AND THEN WE CAN -- WE SEE HOW THINGS IMPROVE, WE CAN DISCUSS WHETHER TO BRING BACK THOSE POSITIONS AT A LATER DATE.
>> I CAN CONFIRM THEY'RE NOT FUNDED FOR NEXT YEAR IN THE CURRENT BUDGET. I DON'T KNOW WHY WE CAN'T JUST LEAVE IT IN THERE, BECAUSE YOU HAVE TO FUND IT ANYWAY. JAQS HAVE BEEN DONE.
THAT WOULD BE MY PLAN IN '28 TO BRING
MR. PRESIDENT, THANK YOU. SO, WHAT IS THE PLAN FOR ECONOMIC DEVELOPMENT? ARE YOU SEARCHING FOR A REPLACEMENT?
>> I'LL DISCUSS THAT WHEN WE GET TO THE BUDGET. WE'RE NOT DONE WITH THE BUDGET
>> ANY OTHER QUESTIONS OR COMMENTS? AND THIS WILL GO TO THE FINANCE RULES COMMITTEE.
[14.d. First Reading of Ordinance D-2780-25; An Ordinance of the Common Council of the City of Carmel, Indiana, Amending Chapter 3, Article 1, Section 3-44 of the Carmel City Code; Sponsor(s): Councilor(s) Aasen and Taylor.]
ALL RIGHT. NEXT STOP, FIRST READING OF ORDINANCE D 2780. AMENDING CHAPTER THREE, ARTICLE ONE, SECTION 3. 44, . MOTION TO INTRODUCE?>> ALL RIGHT. SNYDER, WOULD YOU READ THE SYNOPSIS?
>> ORDINANCE AMENDING SECTION 344, WHICH REMOVES THE REQUIREMENT THAT THE PUBLISH NOTICE FOR ZONING MAP CHANGES.
THE PLANNED COMMISSION ALREADY PUBLISHING NOTICE FOR Ú CHANGES.
>> ALL RIGHT. I KNOW -- BENJAMIN, ARE YOU FAMILIAR ENOUGH WITH THIS TO TALK ABOUT IT OR SHOULD ONE OF US TALK ABOUT IT? OKAY. ANY OTHER -- IF THAT'S ALL RIGHT, MAYBE WE'LL JUST SEND THIS TO THE FINANCE COMMITTEE, THOUGH IT'S PRETTY SIMPLE, JUST BECAUSE IT'S BEEN A LONG NIGHT?
[14.e. First Reading of Ordinance D-2781-25; An Ordinance of the Common Council of the City of Carmel, Indiana, Amending Chapter 8, Article 5, Sections 8-46 of the Carmel City Code; Sponsor(s): Councilor(s) Taylor, Aasen and Worrell.]
OKAY. WE'RE GOING TO SEND THAT TO THE FINANCE COMMITTEE. MOVING ON, FIRST READING OF ORDINANCE D/2780/25. AMENDING CHAPTER EIGHT, ARTICLE[04:15:06]
FIVE, SECTION 846 OF THE CITY CODE. MOTION TO INTRODUCE?>> THIS REGULATING USE OF PUBLIC PARKING SPACES.
>> SO, WE'VE GOT PLENTY OF LAWS RELATED TO BEING A GOOD DRIVER, THIS IS ABOUT BEING A GOOD THAT'S REALLY WHAT IT IS, IT'S ABOUT -- IT'S DRAFTED IN SUCH A MANNER THAT THE VEHICLE NEEDS TO BE WITHIN THE LINES OF A PARKING SPACE, IT'S BEEN DESIGNATED, THESE PARKING SPACES ARE GIVEN ADEQUATE ROOM FOR MOST VEHICLES, ENGINEERING ASSISTS WITH THAT. AND THIS IS A REQUIREMENT THAT WE DIDN'T HAVE PREVIOUSLY, SO, IF YOU ARE CROSSING MULTIPLE SPACES, IF YOUR VEHICLE IS PARKED POORLY AND YOU ARE CROSSING -- AND MAKING IT SO WHAT WOULD HAVE BEEN TWO SPACES IS NOW BEING TAKEN UP BY YOUR SINGLE VEHICLE, THAT WOULD BE SOMETHING THAT WOULD BE A VIOLATION OF ORDINANCE AND YOU WOULD GET A CITATION.
>> COUNCILLOR, YOU WORKED ON THIS, THE SITUATION IN MIDTOWN?
>> NO. NO, THIS IS, IF YOU REMEMBER, THIS IS REGARDING A ROGUE RECREATIONAL VEHICLE --
>> OH, THIS IS THAT ONE? OKAY.
>> SO, BUT I DO HAVE A QUESTION. SO, I'M FULLY IN FAVOR OF -- I DIDN'T MEAN TO STEP ON YOU.
I'M FULLY IN FAVOR OF THIS, BUT I WOULD ASK -- SO, IF WE HAVE A VISITING FAMILY COME IN THEIR RECREATIONAL VEHICLE AND PARK IN FRONT OF BEER KITCHEN 101, WHATEVER IT'S CALLED, AND TAKE UP TWO SPACES, IS THERE ANY KIND OF WAY THEY CAN GET DISPENSATION? BECAUSE WE'RE AFTER -- WE'RE SOLVING A PROBLEM, AND SOMEONE THAT IS NOT ACTING IN THE RIGHT MANNER IN OUR COMMUNITY , BUT WE COULD ALSO PROBABLY HAVE AN UNINTENDED CONSEQUENCE WITH A VISITOR, SOMEONE HERE FOR THE LIV GOLF TOURNAMENT, I DON'T KNOW.
BUT I JUST WANTED TO ASK THAT QUESTION.
IS THERE ANY -- >> SURE, SO, THERE ARE INSTANCES WITHIN THE COMMUNITY THAT HAVE HIGHLIGHTED THIS ISSUE, RIGHT? BUT THE ISSUE IS DRAFTED IN A MANNER TO MAKE IT SO THAT EVEN WITH SINGLE VEHICLES, RIGHT, THE CROSSING, IT IS DEALING WITH A NUISANCE. WHAT I WILL SAY IS, THIS -- IF YOU ARE DEALING WITH YOUR EXACT SCENARIO, SOMEONE IS VISITING AND THEY HAVE AN EXTENDED VEHICLE, LIKE A RECREATIONAL VEHICLE , THIS ORDINANCE HAS DRAFTED WOULD PROHIBIT THEM FROM PARKING ACROSS TWO SPACES.
SO -- IT WOULD TREAT LOCAL AND VISITOR ALIKE AND YOU WOULD NOT BE ABLE TO PARK WITHIN THOSE SPACES. BUT AGAIN, THIS IS ONLY FOR THOSE MARKED SPACES, RIGHT? THIS IS ONLY FOR WHERE ENGINEERING AND THE STREET DEPARTMENT HAVE WORKED TOGETHER WHERE WE HAVE DESIGNATED PARKING SPACES WHICH ISN'T EVERYWHERE WITHIN THE CITY, RIGHT? IT'S DRAFTED THAT WAY SO WE'RE NOT DEALING WITH YOUR RESIDENTIAL NEIGHBORHOOD AND YOU'RE PARKING OUTSIDE A HOME.
IT'S ALSO -- THERE IS A PROVISION IN THERE, THE QUESTION HAS ABOUT BEEN ASKED, BUT IT'S WHERE THE LINES CAN BEBE SEEN, SO, IF WE HAVE A SNOWFALL OR ANYTHING LIKE THAT, IT IS -- THERE'S SOMETHING IN THERE SO THAT WE'RE NOT GOING AFTER PEOPLE THAT CAN'T ACTUALLY SEE WHAT THE SPACE IS.
IT IS WHERE YOU KNOWINGLY ARE PARKING ACROSS MULTIPLE SPACES, YOU.
>> I JUST -- I GO BACK -- I WANT -- MY QUESTION IS, CAN WE -- I GO BACK, I WANT TO SAY, IT WAS ABOUT 12 YEARS, I WAS HAVING DINNER AT BOB'S WITH MY FAMILY AND THERE WAS A HOCKEY TEAM FROM ST.
LOUIS EATING NEXT TO US AND THEY WENT OUT AND THEIR CAR WAS DONE.
IT JUST GOT TOWED. AND -- AND THAT'S WHEN THERE WAS THAT, THE CITY DID PREDATOR -- KIND OF SLOWED ON PREDATORY TOWING.
NOTHING TO DO WITH THIS ISSUE, BUT I REMEMBER THIS FAMILY THAT TOURNAMENT NEVER GOT TOTO PARTICIPATE, BECAUSE ALL THE TEAM'S GEAR WAS IN THEIR SUV.
SO, MY QUESTION IS, WE CAN PUT A LITTLE TICKET, BUT ARE WE GOING TO BE TOWING VEHICLES?
>> SO, THE AUTHORITY HERE IS BOTH TICKETING AND TOWING, WHICH IS THE GENERAL AUTHORITY.
IT CAN BE LIMITED SO THAT YOU CAN -- COUNCIL HAS THE AUTHORITY TO BE ABLE TO SET A FIRST VIOLATION BEING X, SECOND VIOLATION BEING X WITH A TOW. IT IS ULTIMATELY
[04:20:03]
THIS COUNCIL'S DISCRETION TO BE ABLE TO TARGET THAT AS YOU WISH.IT IS NOT DRAFTED THAT WAY, IT IS DRAFTED CURRENTLY IN THE WAY THAT WOULD FALL UNDER THE GENERAL PROVISIONS, WHICH IS A TICKET AND POTENTIALLY, IF THE OFFICER SAYS IT'S NECESSARY, A
>> YEAH, TWO -- ONE QUESTION. LET'S SAY I WAS GOING TO GO OUT AND BUY A REALLY BIG ASS TRUCK, YOU KNOW, WOULD THAT -- A REALLY BIG TRUCK. THAT WOULD GO -- THAT WOULD GO -- JUST OVER THE LINE, OR, AN EXAMPLE WHERE I GO OUT AND I CAN'T DO THIS, BUT BUY A REALLY EXPENSIVE CAR, I MEAN, SUPER, SUPER EXPENSIVE CAR WHERE I DON'T LIKE ANY SCRATCHES ON IT AND SOMETIMES THEY TAKE, LIKE, YOU KNOW, YOU KNOW, PARK SO NO ONE CAN SIT BY THEM.
AND I'M DEFINITELY LOOKING TO DO THE LATER, BUT HOW WOULD THAT FIT WITHIN THIS ORDINANCE?
>> YEAH, SO AGAIN, I MEAN, THE PLICITY OF IT IS, IF IT CROSSES OVER THE LINE, IT'S GOING TO BE IN VIOLATION, BUT WHAT YOU'RE GOING TO HAVE IS, YOU DO HAVE OTHER PARKING SPACES THAT ONLY HAVE THE SIDES AND THE FRONT LINED, RIGHT? YOU HAVE SPACES THAT, WHERE THERE IS NO BACK LINE, OR THEY'RE NOT ABUTTING EACH OTHER. AND SO YOU COULD FIND A SPACE THERE. NOW, WE ALSO HAVE AN ORDINANCE THAT YOU CAN'T -- YOU CAN'T BLOCK THE FLOW OF TRAFFIC, RIGHT? SO, IF YOUR VEHICLE IS GOING TO BE EVEN IN THOSE REGULAR SPACES, WHICH ARE GENEROUS SPACES, I MIGHT ADD, AND I'M SURE THEY'D BE ABLE TO SPEAK TO THE SPECIFIC MEASUREMENTS AND NEEDS AND SO FORTH, BUT I WOULD STATE THAT YOU HAVE TO BE -- IT HAS TO BE A LONG VEHICLE IN ORDER TO EXTEND THAT FAR OUT THAT IT WOULD ALSO BLOCK AND INTERFERE WITH THE REGULAR VEHICLE TRAFFIC.
>> I JUST HAVE ONE IN THE HOPE THAT MAYBE WE CAN ACT ON THIS AND NOT SEND IT TO COMMITTEE.
WOULD YOU BE ABLE TO ANSWER A QUESTION FROM THE POLICE PERSPECTIVE, DO YOU THINK? OKAY.
>> WELL, I JUST -- SIMPLE QUESTION.
IT'S A COMPLETELY EMPTY PARKING LOT, THERE ARE A MILLION EMPTY SPACES, AND SOMEBODY PARKS ACROSS TWO SPOTS.
>> THIS DOESN'T APPLY IN A PARKING LOT.
>> I'M SAYING IN GENERAL. THERE ARE TONS OF PARKING SPACES NEARBY. THERE'S A TON OF PARKING, IT'S A -- IT'S A VIOLATION, BUT THERE'S A LOT OF PARKING, IT'S A TIME OF THE DAY THAT IT'S NOT BOTHERING ANYONE, DOES THAT BECOME A PRIORITY FOR POLICE?
>> FOR THE POLICE DEPARTMENT, NO, IT WOULD NOT BE, UNLESS -- A LOT OF OUR PARKING COMPLAINTS, WE HAVE SOME PEOPLE WHO PROACTIVELY LOOK, A LOT OF THEM ARE FROM CITIZEN COMPLAINTS, IF WE HAD A CITIZEN COMPLAINT, THEN, YES, WE WOULD GO DEAL WITH IT REGARDLESS OF HOW FULL THE PARKING LOT WAS.
>> THOUGHTS ON COUNCIL? DO WE WANT TO ACT ON THIS THIS
EVENING? >> I DO -- IT DOES, IN READING IT, IT SEEMS BROAD ENOUGH TO APPLY TO PARKING LOTS IF THEY'RE PUBLIC PARKING SPACES.
>> IT APPLIES TO PUBLIC PARKING SPACES IN PUBLIC PARKING LOTS AND ON THE SIDE OF THE OAD, AS
WELL. >> THIS ISN'T AT KROGER OR, YOU KNOW --
>> AND WE DON'T HAVE MANY PUBLIC PARKING LOTS.
>> THIS IS ABOUT BEING ON THE STREET, I MEAN, WE HAVE SOME, I KNOW.
>> BY WAY OF EXAMPLE, IT WOULD APPLY TO CITY HALL PARKING.
>> SO, THAT'S NOT WHERE THIS GUY
IS. >> GARAGES? PUBLIC GARAGES WOULD COUNT?
>> IF IT'S A PUBLIC GARAGE, YES, IT WOULD APPLY THERE, AS WELL.
>> IT LOOKS LIKE WE'RE GOING TO --
>> I DO THINK ONE MORE, LIKE, ITERATION TO HAVE PUBLIC WEIGH IN ON THOUGHTS ON IT WOULD MAKE SENSE.
>> WE'LL SEND THIS COMMITTEE. I WAS HOPING TO GET SOMETHING NOT SENT TO COMMITTEE. BUT THIS WILL GET SENT TO THE
[14.f. First Reading of Ordinance D-2782-25; An Ordinance of the Common Council of the City of Carmel, Indiana, Amending Chapter 8, Article 3, Section 8-17 of the Carmel City Code; Sponsor(s): Councilor(s) Aasen and Taylor]
COMMITTEE. ALL RIGHT.NEXT UP, FIRST READING OF ORDINANCE D-27.82-25.
AMENDING CHAPTER EIGHT, ARTICLE THREE, SECTION 817 OF THE CITY CODE. DO I HAVE A MOTION TO INTRODUCE? ALL RIGHT. YES?
IT'S ORDINANCE REGULATING SPEED LIMITS FOR SCHOOL ZONES.
SORRY IF I STOLE SOMEBODY'S THUNDER THERE.
>> MY REQUEST, AND IT'S OKAY, NO HARD FEELINGS, IF YOU COULD HOLD THIS, ONLY BECAUSE I -- I THINK WE -- THIS -- THE ROBUST CONVERSATION AROUND THIS, I THINK, DESERVES TO BE IN THIS SETTING, PERHAPS NOT A COMMITTEE MEETING AND I DON'T WANT TO GET INTO IT TONIGHT.
>> OKAY. SO -- AND IT CAN ALWAYS STILL GET SENT TO COMMITTEE LATER.
BOTH COMMITTEES HAVE PLENTY TO WORK ON AS IT IS, SO, WE'LL TABLE THIS MATTER AND WE CAN ALWAYS SEND IT TO COMMITTEE IF WE HAVE TO. ALL
[04:25:03]
RIGHT. SO, OTHER THAN THAT, WE WILL -- FOR THE MEMBERS OF THE PUBLIC, IF YOU WERE CURIOUS WHAT THE ORDINANCE IS, WE'RE HAPPY TO -- I'LL TALK WITH YOU AFTER, SO -- SO -- MOVING ON.AGENDA ITEMS, WE HAVE NONE. OTHER BUSINESS, WE HAVE NONE.
DOES ANYONE HAVE AN ANNOUNCEMENT TONIGHT? NO ANNOUNCE. S.
ON THAT, I ADJOURN.
* This transcript was compiled from uncorrected Closed Captioning.