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HomeMy WebLinkAboutMinutes Arts And Cultural Commission - 01/14/2010 RECEIVED ARTS&CULTURAL COMMISSION Regular Meeting,January 14,2010,4:30 p.m. NOV 0 5 2010 6`h Floor Conference Room, City Hall, 1201 Leopard Street, Corpus Christi,Texas MEMBERS P A_. . MEMBERS P A LCRETAFSomCE 1. Honigbaum,Brian ® ❑ 10. Bluntzer-Dura,Dianna ® ❑ Michele Thomas 2. Brown,Barry L I ® ❑ � 11 LaBarrett,Joye ..__...._ ® l 01 Tara Mireles 3. Vacant I ❑ ❑ 12. Vacant ❑ ❑ 4. Paris,Karina iEl 0 13 Vacant I Lisa Aguilar 5. Burch,Alene ® ❑ }14. Prewitt,Dr.Judith ❑ ® Constance Sanchez 6. Garza,Amorette L❑ ® 15 Schenk,Joe Z i Eddie Houlihan 7. Hilliard,Joe ® ❑ 16. Trimble,Frank ® ❑ Margie Rose 8. llovda, Heidi ® ❑ 17.Valadez,Corinne ® ❑ 9. Kemm,Ericha . ' [] Total: : 12 CALL TO ORDER-The Regular Meeting of the Arts and Cultural Commission was called to order at 4:36pm by Chair, Heidi Hovda. II. ROLL CALL-The recording secretary called roll, announced quorum. III. PUBLIC COMMENT- None. IV. APPROVAL OF MINUTES a. Regular Meeting, November 12, 2009 i. Joe Hilliard made a motion to approve minutes. Joye LaBarrett seconded. Motion passed. b. Regular Meeting, December 10, 2009 i. No quorum V. FINANCIAL REPORT Due to City staff time constraints, Heidi moved on to item a. under New Business, Arts and Culture Alliance (ACA) Memorandum of Understanding. VI. NEW BUSINESS (DISCUSSION/POSSIBLE ACTION) a. Arts and Culture Alliance (ACA) Memorandum of Understanding- See Attachments i. Heidi and Michele provided answers to the committee members' questions and allowed them a discussion immediately following. City staff discussed budget issues. The Commission discussed options in regards to where the money can be allocated. Questions were raised regarding whether the ACC is permitted to engage in a legal binding contract. Because the commission is not allowed to engage in binding agreements, the ACC will have to get approval from City Council to sign the MOU. If approved, the Council can appoint one member to sign the agreement. Ericha Kemm made a motion to have a closed ballot vote. Because the votes need to be recorded, the motion was denied. Dianna Bluntzer-Dura made a motion to recommend to Council that they sign the agreement. Brian Honigbaum seconded. The vote was called. Joe Schenk and Joye LaBarrett abstained; none opposed. Motion passed. Because of time limitations, Heidi moved to item a. under Old Business, Review of the bylaw regarding expenditures under$500. VII. OLD BUSINESS (DISCUSSION/POSSIBLE ACTION) a. Review the bylaw regarding expenditures under$500 i. Heidi reported that a change be made to the by-laws stating the staff liaison may make purchases up to$500 for budgeted ACC expenses without receiving prior approval from the ACC. Purchases over$500 must be approved by the ACC prior to purchase. Brian Honigbaum made a motion to accept the proposed changes to the bylaws. Joe Hilliard seconded. The motion passed unopposed. VIII. COMMITTEE REPORTS Heidi asked that the commission table the other items until the next scheduled meeting. Brian Honigbaum announced that subcommittee meetings are allowed to be held at home. Lastly, Heidi asked members to review the attendance requirements. a. James Hetherington"The Flame" maintenance i. Mr. Hetherington can fix the sculpture, but will need to make modifications in his studio located in Houston. The City is looking at ways to fund the specified work, which is a total of$2,750. IX. STAFF REPORT: No Report X. IDENTIFY ITEMS TO BE PLACED ON NEXT AGENDA a. Commission's vote on recommendation from Grant Committee b. Approval of the selection panel's decision for Police Station artwork Xl. ADJOURN a. Frank Trimble made a motion to adjourn. Alene Burch seconded. Motion passed. Heidi Hovda, Chair, adjourned meeting at 6:16pm. Tara Mireles, Administrative Assistant Cultural Services, Parks & Recreation Department ACA Response Needed information The ordinance that created the Arts and Cultural Commission that delineates specifically what the ACC is charged by the ordinance to do. An explanation if the Cultural Community Plan that was adopted in 1996 is applicable to the ordinance, if we're bound to follow the Plan, even if it's been approved by City Council. Question: Would it not seem those percentages would no longer be applicable since the City of CC HOT funds are no longer available for distribution to these nine "line item" art organizations? ll Why has this new Arts & Culture Alliance/Alternative Arts Funding Task Group not developed an updated method/guideline of distributing the anticipated public donated funds? Answer: The City Staff has not made any decisions regarding how these funds would be distributed. This was an agreement by the nine organizations that represent the line items on the HOT. The group, now called the Arts and Culture Alliance, made the decision that the most fair and equitable way to disburse these funds would be based on current percentages, less Harbor Playhouse's $13K a year for the loan on the roof of the building. The Alliance did not feel that it was obligated to raise funding for City Property. The current allocations of the HOT Fund set a precedent that the arts community has apparently been comfortable with (considering that they have not requested or not been added to the HOT fund up to now). Therefore, the percentages are a good best practice, proven and amicable method to continue allocating the replacement of that funding. It is important to note that the Alliance believes that because the ACC distributes money to arts organizations that are not represented on the HOT Fund line item, it is important that the ACC is a part of this Alliance. Another important point: the HOT Fund replacement is key for this agreement because it justifies that ONLY the nine organizations that has previously received HOT Funding will be able to make this deal with the City on the utility bill. Outside organizations (like the Red Cross or other non-profits) will not be able to apply for the opportunity to be a part of the utility bill and raise funds through this mechanism because it's solely for the use of replacing the nine recipients of the HOT Fund —through the Arts and Culture Alliance. Question: Why was city staff involved in hosting meetings for only these nine "line item" art organizations once the budget decision was made to exclude them from HOT funds and City budget?0 Answer: The only meeting that the City "hosted"was the first meeting, to tell the nine that we weren't receiving money and to explain the bleak forecasted outlook for the City's budget in 2010-2011 and possibly several years, down the road. At the meeting, the Mayor, the City Manager and other City Staff expressed a sincere interest and desire to not leave these organizations out in the cold and encouraged the nine organizations to develop a plan together to find a new funding mechanism. IT IS IMPORTANT TO NOTE THAT NOT ALL COMMISSIONS OR ORGANIZATIONS THAT RECEIVE FUNDING FROM THE CITY'S BUDGET HAVE BEEN GIVEN THE SAME OPTION. City Council and City Staff, while recognizing that there is no funding available for the arts and cultural organizations that it could previously fund, knew that they could offer services to the arts groups that would otherwise be unavailable to them and they have graciously and freely offered guidance and advice and made several staff members available to us. The MOU represents a huge investment by the City to the arts organizations to help the ACA develop and plan some sort of funding during the City's Economic Crisis. Outside of that initial meeting, all other meetings have been held at City Hall, only because the ACA relied heavily on the City's resources to move this MOU forward. We could have had these meeting anywhere. In fact, I held one meeting at House of Rock, simply because I desperately wanted to have a beer while we discussed the topic. These meetings are entirely run and all decisions that have been made are the decisions of the nine groups that make up the ACA. All meetings have been called at the direction of the ACA. City Staff's role has been to give the ACA their time, resources and expertise to help organize a plan of action. Question: Why weren't these meetings posted to the public for others to participate in the development of the MOU, formation of the Alliance, etc. Answer: As previously stated, the ACA is made up, right now, of the groups that are currently line items on the HOT Fund. Therefore the ACC currently and in the past has acted as a representative —through our granting process - of the groups that are not HOT FUND line items for groups like CC Ballet and K Space Contemporary. Because this MOU pertains only to replacing and/or supplementing HOT Fund money, the groups that are not line items on the budget are not and cannot be represented on this MOU. But, again, as previously stated, the ACA does not feel that these organizations should not be left out where they were previously brought in through the ACC's grant process. That is where the ACC's role as the distributor of grants has a valuable and powerful role in the ACA to ally and unify the efforts of distributing money to several arts organizations in the City of Corpus Christi. Since this is not a City Commission or a City Committee— because City Council has not appointed any of us to perform anything official —we are not bound by the Texas Open Meetings Act. Question: The Arts & Cultural Commission has specific detailed duties to perform as outlined in the City Ordinance, I could not find the administering of the City's Art Grant Program listed in the City Ordinance for the Arts & Cultural Commission, would you direct me as to where I can locate this information? tI This question is handed over to City Staff. Question: Since the Arts & Culture Alliance/Alternative Arts Funding Task Group. Elis to be the recipients of public funds/donations, would they not be the new administrators and creators of a Public funded grant program for the Arts?hlhl Answer: It is important to clarify that the funding we receive for the grants would no longer be considered PUBLIC money, but rather PRIVATE DONATIONS. The fact that the City is serving as a fiscal agent of these private donations requires that we work with the City Manager and City Council and City Staff, but to continue to use to term "public donations" is an inaccurate portrayal of this money. The ACC has developed a granting process that is accepted and well-known in the arts community and can be seen as a best practice for the distribution of HOT money. Furthermore, the ACC's pool of money—currently and in the past— does not just come from the HOT FUND budget. We have, on several occasions, applied for grants from the NEA and TCA to supplement our programs and grants. In the same way that City Council grants permission for the ACC to apply for this additional funding resources/opportunities, the ACC will request permission from City Council to obtain this funding. As this funding comes in through City Council, we then operate under City Council's directive to use the money for the arts— much like we do for the grants that we have received in the past. City input would be great for this question as well. Question: Is this a form of"double dipping" since these nine "line item" art organizations will be receiving a pre- determined percentage of the total collected public donations (as stated in the MOU) and then by grant application Answer: Considering that this scenario currently exists in our granting process, if the double dipping was fine for the HOT Fund distribution, why would this new scenario change it? The ACA is just following the mode that is currently set up because it is a proven method that has worked for the past 6-7 years. However, the ACA has talked about this issue and has made a determination. Should the ACC restrict the other ACA organizations from applying for the grant, then the ACA will reallocate the percentages based on a average amount of money received from the ACC grant. For example, the CC Symphony, who is a member of the ACA and also applies for ACC grants, would average out their funding from the ACC's grant over a set amount of years. Their average would then be deducted from the total that the ACC is set to receive, thereby lowering the ACC's percentage of funding from the utility bill that it will receive. Question: If the Arts & Cultural Commission were representative of those art groups, then the Commission should have created a sense of awareness amongst those art groups as to what was occurring and connected them with the involved City staff that were involved in the budget decisions for equitable transparency, but it did not and I assume it was not suggested that the Commission do so. Answer: At the December ACC meeting, we had this item on the agenda to discuss. As the ACC representative to the ACA. my intent was to report information and to allow for us to make a recommendation to the ACA on how to proceed and what our entire Commission's input was. However, we did not have a quorum at December's meeting and we couldn't make a decision or even discuss it in a casual manner. This could have been done, but unfortunately that opportunity has come and gone. However, the ACA had to press forward without the entire Commission's input (which would have been conveyed through me) because there is a stringent deadline if we are going to implement a plan to be placed in the March 2010 utility bill. This MOU must be signed by Jan. 15th so it can be a part of the City Council's information for their information and possible approval. The insert must be created by Jan. 30th, approved by the City's Public Information Office (as all inserts in the utility bill are so done) in February and sent to San Antonio for the company that sends out the utility bill to stuff them in the utility bill. Following this timeline will allow us to receive our first monthly payment in May 2010. This will allow the ACC to gauge and conservatively forecast ACC funding through the end of the fiscal year. Question: Why were these other art organizations excluded?© It is my understanding City staff has been the liaison to this newly organized group (Arts & Cultural Alliance/Alternative Arts Funding Task Group), and as stated in the MOU, these nine "line item" organizations will be required to report and be accountable to the City of CC for the Publicly donated funds distributed to them by the City of CC. Pi Answer: When you consider that the sole purpose of the MOU is solely to deal with the organizations that represent the line items on the HOT Fund budget, using the word "excluded" seems strong. Those groups are not a part of this MOU and not currently part of the ACA because they are not line items on the City's Budget. They are excluded only in the sense that the organization had never been part of the line item to begin with. As a Board Member at K Space Contemporary, I had an opportunity to ask the K Space Board their feelings and gauge their support of these efforts. Not only did they not have a problem with the ACC acting as a representative of them regarding this money to be used for grants, they were grateful that there was a plan being developed to ensure that the ACC would continue to provide grant opportunities in some way. Question: Would not an Arts & Culture Alliance have to be approved by city council ? On the other hand, has City Council been aware of the Arts & Culture Alliance/Alternative Arts Funding Task Group or attended the planning meetings, which began sometime in October? o Answer: This has to be answered by the City. Answer: I have been in contact with several City Council Members and can assure you that they are relieved that we've developed a plan and are excited about the opportunity that has presented itself in light of the economic crisis. Question: If there is a City Ordinance for a City of CC Arts & Cultural Commission, then is the City advocating an Arts & Culture Alliance as new citizen group that will be added to the City Municipal Codes as the vehicle to replace HOT funds with public donations ? Answer: This is for City Staff. Question: Why did the Arts & Culture Alliance/Alternative Arts Funding Task Group's MOU indicate they are the only benefactors of this new Public Donation Fund, naming themselves as the ones to oversee the operations, distributions, etc. for the next three years and at the same time also exclude all other art organizations from having a voice or the ability to benefit and participate until then? PI Answer: Simply because the ACA doesn't know how well this project is going to work, didn't want to tie too many organizations to this experiment and finally, in the event that it's successful, would like to be able to shore up funding so that the nine organizations (including the ACC, acting as a distributor of these funds to arts and culture organizations) will have the ability to conservatively manage and build on for marketing the fund and Conversely, the ACA also wanted to be able to share the fund with others, if possible, at a later date. Which is why it is only for three years, while this fund develops and gains community support. This is also a best practice used in San Antonio's Fund , which distributes money through private donations via company payrolls. They selected a group of arts organizations that would benefit from The Fund and then closed off applications to the Fund for the time being. Question: Since the City of CC will collect and deposit the donated Public Funds, who will be accountable to the general public donors? Answer: It would be the same process that any non-profit organization is accountable to private donations. On the day of sharing, I gave $25 to the YWCA and $25 to the Women's Shelter. If I want to know how my $50 is being spent, I go to those organizations Board Meetings. Question: The commission is not permitted to engage in binding agreements, so why is the Arts & Cultural Commission being asked to sign this MOU, should not the City of CC be the one to sign the MOU? Answer: This is for City Staff to answer. Question: How can a city commission, such as the Arts & Cultural Commission, be a participant within a group such as this newly formed Art & Culture Alliance/Alternative Arts Funding Task Group? I Answer: This is for City Staff to answer. Question: If the MOU Is adopted, is the ACC then abolished since we are projected to have no funding from any City budget source and it will in effect replace the ACC with another group? Has the City adopted this position or when will it? Answer: This is for City Staff to answer. Answer: But my thoughts on this are the following: 1. Aren't their several commissions that operate without funding? Does the Planning Commission, for example, have a budget that they oversee and control? 2. We still oversee the Permanent Art Collection and the Permanent Art Trust Fund. We also oversee, with staffs help and input, the Maintenance of the Permanent Art Collection. The money for the Permanent Art Trust Fund is separate from the HOT Fund or General Fund Money that we have received in the past. 3. There is an argument for this, though, to justify continued General Fund money from the City. In fact, we currently use a combination of HOT Fund and General Fund money to maintain the City's Permanent Art Collection. Without any sort of funding from the city, we will not be able to keep Selena glowing on the Shoreline. Question: If not, when does the City see HOT Funding returning for the ACC to continue our role? Answer: This is for City Staff to answer, and can probably be answered through the previous question. Question: How much money is in the City's "Rainy Day Fund"? If there is any, can't some of this be used to cover the arts to some degree/percentage? Answer: This is for City Staff to answer Question: Can the City provide us with the appropriate pages from the Finance Department's budget proposal from this last year (2009-2010) that eliminated funding, as well as the adopted budget where Council restored support? Answer: This is for City Staff to answer Question: Can the City provide the tentative proposals eliminating funding for 2010-2011 upon which this MOU is based? Answer: This is for City Staff to answer Question: Can the City provide the tentative proposal for use of HOT Funding for 2010-2011? Answer: For City Staff to answer Question: Has the City met with all the other departments/agencies/organizations who receive HOT Funds and what are their projected cuts in amounts and/or percentages? Answer: This is for City Staff to answer Question: Can the City provide us with a summary comparing HOT Funding for 2008-2009 and 2009-2010 year-to- date, as well as their projections for 2010-2011? Answer: This is for the City to answer City Response QUESTIONS FROM THE ACC COMMISSIONERS REGARDING ALLIANCE MOU According to the MOU, the City of CC will distribute collected public donations amongst those nine "line item" art organizations in specific percentages. I was made to understand during the ACC Executive Committee meeting that those percentages reflect the same percentages of funds received from prior years of City of CC HOT fund distributions. 1. Would it not seem those percentages would no longer be applicable since the City of CC HOT funds are no longer available for distribution to these nine "line item" art organizations? THE GROUP DETERMINED THAT IT WOULD BE BEST TO KEEP THE PERCENTAGES THE SAME AS THE CITY HAD FOR THIS FIRST TERM OF 3 YEARS. ONE OF THE REASONS WAS FOR EXPEDIENCY PURPOSES, SINCE TIME WAS OF THE ESSENCE. IF THE GROUP DETERMINES IN THE FUTURE THAT THEY WANT TO CHANGE THE DISTRIBUTION, THEN THEY CAN VOTE TO AMEND THE AGREEMENT. 2. Why has this new Arts & Culture Alliance/Alternative Arts Funding Task Group not developed an updated method/guideline of distributing the anticipated public donated funds? THE ALLIANCE FELT THE MOST IMPORTANT COURSE OF ACTION WAS TO PROCEED WITH THE MOU AND THEN BEGIN WITH THEIR FUNDRAISING AND MARKETING. CREATION OF BYLAWS IS SCHEDULED AT THE NEXT MEETING. 3. Why was city staff involved in hosting meetings for only these nine "line item" art organizations once the budget decision was made to exclude them from HOT funds and City budget? THE CITY WAS THE FACILITATOR TO GET THE GROUP STARTED. ONCE ESTABLISHED, THE CITY WILL NOT BE A PARTY TO THE GROUP, BUT WILL HAVE A CITY REPRESENTATIVE AVAILABLE FOR THE GROUP, AS NEEDED. 4. Why weren't the Arts & Culture Alliance/Alternative Arts Funding Task Group meetings posted/announced so that the general public and ALL Corpus Christi art organizations could have been made aware of the ongoing discussions, the forming of this Arts & Culture Alliance/Alternative Arts Funding Task Group, the creation of this MOU document, and the upcoming citywide plan to requests donations from the General Public for those nine "line item" art organizations all via the City of CC utility bill? THIS GROUP WAS FORMED AS A RESULT OF BUDGETARY CONSTRAINTS IN THE HOTEL OCCUPANCY TAX FUND. BECAUSE THE CITY STATED THAT THEY WOULD NOT BE ABLE TO FUND THE NINE GROUPS IN THE NEXT FISCAL YEAR, THE CITY REQUESTED THAT THE NINE GROUPS SEEK ALTERNATIVE FUNDING SOURCES. THESE MEETINGS ARE NOT REQUIRED TO BE POSTED, AS THE ALLIANCE IS NOT AN OFFICIAL CITY COMMITTEE OR COMMISSION (I.E. MEMBERS OF THE ALLIANCE WERE NOT APPOINTED BY COUNCIL). 5. The Arts & Cultural Commission has specific detailed duties to perform as outlined in the City Ordinance, I could not find the administering of the City's Art Grant Program listed in the City Ordinance for the Arts & Cultural Commission, would you direct me as to where I can locate this information? SECTION 2-105. RECOMMENDATIONS AS TO EXPENDITURES AND OTHER MATTERS THE COMMISSION SHALL MAKE RECOMMENDATIONS UPON MATTERS SUBMITTED TO IT INVOLVING AN EXPENDITURE OF LESS THAN ONE THOUSAND DOLLARS WITHIIN 15 DAYS AFTER SUBMISSION,AND UPON ANY OTHER SUCH MATTERS WITHIN 30 DAYS AFTER SUBMISSION. IF IT FAILS TO DO SO, ITS RECOMMENDATION SHALL BE CONSIDERED UNNECESSARY (ORD NO. 8288, 6, 12-21-1966; ORD NO. 17748, 5(F), 7-27-1983). 6. Therefore, is it not correct to say, without receipt of HOT funds, the City's Art Grant Program can no longer exist nor the City of CC's Arts & Cultural Commission's task of administrating a City Arts Grant Program? Since the Arts & Culture Alliance/Alternative Arts Funding Task Group is to be the recipients of public funds/donations, would they not be the new administrators and creators of a Public funded grant program for the Arts? NO AND NO. Because the Arts & Cultural Commission is an Advisory committee for the City of Corpus Christi, it seems odd that the City of CC, via the Arts & Cultural Commission, is on the list of benefactors of the projected collections of Public donations for the Arts & Culture Alliance/Alternative Arts Funding Task Group. It appears some of the nine "line item" organizations that benefited from prior HOT funds and now the forthcoming Public donated funds, will also be allowed to benefit from a portion of the funds determined to be distributed to the City of CC via the Arts & Cultural Commission. This has been accomplished in the past by their applying as an applicant to the HOT funded City of CC's Arts Grant Program and it seems they will be allowed to do the same from the new "Publicly Funded" Arts Grant Program. 7. Is this a form of"double dipping" since these nine "line item" art organizations will be receiving a pre- determined percentage of the total collected public donations (as stated in the MOU) and then by grant application, receive from the new "Publicly Funded" Arts Grant Program, an award amount distributed to the City via the Arts & Cultural Commission? THE DISTRIBUTION METHODOLOGY IS FOLLOWING THE SAME FUNDING MECHANISM AS DONE PREVIOUSLY, I.E. HOT FUNDS WERE PAID DIRECTLY TO THE NINE GROUPS, AND THEN THE ONE GROUP (ACC) DID THEIR DISTRIBUTION VIA THE GRANT APPLICATION PROCESS. SIDE NOTE: IT IS NOT PUBLICLY FUNDED. 8. Why were these other art organizations excluded? It is my understanding City staff has been the liaison to this newly organized group ( Arts & Cultural Alliance/Alternative Arts Funding Task Group), and as stated in the MOU, these nine "line item" organizations will be required to report and be accountable to the City of CC for the Publicly donated funds distributed to them by the City of CC. THE SOLE PURPOSE OF THE FORMING OF THIS NEW ALLIANCE WAS TO DETERMINE A METHOD TO REPLACE THE FUNDING PREVIOUSLY PROVIDED THROUGH THE CITY'S HOTEL OCCUPANCY FUND. ONLY THE GROUPS THAT RECEIVED FUNDING IN THE CITY'S FY2009-2010 WERE INCLUDED IN THE GROUP. 9. Would not an Arts & Culture Alliance have to be approved by city council? On the other hand, has City Council been aware of the Arts & Culture Alliance/Alternative Arts Funding Task Group or attended the planning meetings, which began sometime in October? THE MOU IS SCHEDULED TO GO TO COUNCIL JANUARY 26, 2010 FOR APPROVAL. IN ADDITION, THE MAYOR AND CITY STAFF HAVE MET WITH THE ART COMMUNITY AND COUNCIL/CITY MANAGER HAVE BEEN MADE AWARE BY MEMORANDUM. 10. If there is a City Ordinance for a City of CC Arts & Cultural Commission, then is the City advocating an Arts & Culture Alliance as new citizen group that will be added to the City Municipal Codes as the vehicle to replace HOT funds with public donations? NO. 11. Why did the Arts & Culture Alliance/Alternative Arts Funding Task Group's MOU indicate they are the only benefactors of this new Public Donation Fund, naming themselves as the ones to oversee the operations, distributions, etc. for the next three years and at the same time also exclude all other art organizations from having a voice or the ability to benefit and participate until then? EXCLUSIVE PURPOSE OF NEW GROUP WAS TO OFFSET THE LOSS IN FUNDING FROM THE CITY'S HOT FUNDS. The City's Community Cultural Plan adopted in 1996, references funding policies based on equity for all organizations. The general public could become confused and not understand they are donating funds which will not benefit all art organizations, but only the select group of nine "line item" organizations, which includes the City of CC Arts & Cultural Commission as the administrator for a publicly funded Arts Grant Program. 12. Since the City of CC will collect and deposit the donated Public Funds, who will be accountable to the general public donors? THE INDIVIDUAL ORGANIZATIONS RECEIVING FUNDING THROUGH THE ALLIANCE. 13. The commission is not permitted to engage in binding agreements, so why is the Arts & Cultural Commission being asked to sign this MOU, should not the City of CC be the one to sign the MOU? BOTH WILL BE SIGNING; TO HAVE THEIR SUPPORT WITH THIS GROUP. 14. How can a city commission, such as the Arts & Cultural Commission, be a participant within a group such as this newly formed Art & Culture Alliance/Alternative Arts Funding Task Group? THE ACC IS ONE OF THE NINE GROUPS THAT RECEIVES HOT FUNDING AND AS LONG AS CITY COUNCIL APPROVES THIS, THEY CAN PARTICIPATE. 15. If the MOU Is adopted, is the ACC then abolished since we are projected to have no funding from any City budget source and it will in effect replace the ACC with another group? Has the City adopted this position or when will it? NO, AS THE ACC'S RESPONSIBILITIES ALSO INCLUDE THE OVERSEEING OF THE PERMENANT ART TRUST FUND. IN ADDITION, IF MONIES ARE RAISED THROUGH THE ALLIANCE; ACC WILL BE TO FUND SOME, IF NOT ALL OF THEIR PROJECTS. 16. If not, when does the City see HOT Funding returning for the ACC to continue our role? AT THIS TIME, IT IS PREMATURE FOR US TO SAY. 17. How much money is in the City's "Rainy Day Fund"? If there is any, can't some of this be used to cover the arts to some degree/percentage? THE HOT FUND HAS NO FUND BALANCE TO UTILIZE FOR FY09-10. AS FAR AS THE GENERAL FUND GOES, THERE IS NO "RAINY DAY", PER SE. THERE IS A UNDESIGNATED FUND BALANCE IN THE GENERAL FUND, WHICH ACCORDING TO THE CITY'S FINANCIAL POLICIES, ADOPTED VIA RESOLUTION 028176 ON MAY 19, 2009, IT IS THE GOAL OF THE COUNCIL TO BUILD AND MAINTAIN A RESERVE IN THE GENERAL FUND UNRESERVED FUND BALANCE WHICH TOTALS AT LEAST 10% OF THE TOTAL ANNUAL GENERAL FUND APPROPRIATIONS. UNDESIGNATED FUND BALANCE IN EXCESS OF THE 10% POLICY REQUIREMENT MAYBE RECOMMENDED FOR EXPENDITURE ON ONE-TIME IMPROVEMENTS, WITH A PRIORITY ON INFRASTRUCTURE AND EQUIPMENT WHICH WILL REDUCE THE NEED FOR FUTURE DEBT. THEREFORE, NO, THERE IS NO "RAINY DAY FUND" WHICH CAN BE UTILIZED TO REPLACE HOT FUNDING AT THIS TIME. 18. Can the City provide us with the appropriate pages from the Finance Department's budget proposal from this last year (2009-2010) that eliminated funding, as well as the adopted budget where Council restored support? PLEASE SEE PAGES. 19. Can the City provide the tentative proposals eliminating funding for 2010-2011 upon which this MOU is based? NOT AT THIS TIME. 20. Can the City provide the tentative proposal for use of HOT Funding for 2010-2011? NOT AT THIS TIME 21. Has the City met with all the other departments/agencies/organizations who receive HOT Funds and what are their projected cuts in amounts and/or percentages? WE HAVE EVALUATED OUR FUNDING, CONTRACTUAL AGREEMENTS, LEGAL OBLIGATIONS AND STATE/FEDERAL REQUIREMENTS. 22. Can the City provide us with a summary comparing HOT Funding for 2008-2009 and 2009-2010 year-to-date, as well as their projections for 2010-2011? PLEASE SEE PAGES. Page 1 of 6 Memorandum of Understanding Whereas, the Hotel Occupancy Tax ("HOT")funds are not projected to be available for the City FY 2010-2011 Budget as previously funded through the annual budget process; Whereas, the City HOT funds previously funded the nine arts and culture groups which are a party to this MOU,who are now referred to as the"Arts and Culture Alliance"; Whereas,the Arts and Culture Alliance members have come together to make good faith effort to supplement and/or replace the City HOT funds, Now, therefore, the parties to the MOU agree as follows: Section I. Purpose of this MOU. The purpose of this MOU is to identify responsibilities and roles between the City and the groups specified herein in Section 8 which have been previously funded with HOT funds. The group of nine recipients identified in Section 8 shall be referred to as the"Arts and Culture Alliance". Section 2.Responsibilities of previously HOT-funded organizations. a. To develop and implement programs to secure funding to supplement and/or replace the previously provided HOT funds. b. To promote the funding programs. c. To generate fund raising efforts. d. To oversee distribution of funds. e. To determine and approve any new members or participants after the initial three year term. f. To provide annual report to City Council. Section 3.Responsibilities of City. a. To serve as fiscal agent for the funds collected under this MOU. b. To schedule utility bill for at least one annual insert,with month(s)to be agreed to by all parties. c. To issue checks to the participants to this MOU to remit monies received each month. The City shall issue such check to the participants by the second Friday of the month following the month the funds were received. Once the Alliance has established status as a 501(c)(3) organization, the City shall then issue one check to the Alliance,and the Alliance shall be responsible to distribute the share of funds to the participants to this MOU. To provide City liaison to the Arts and Culture Alliance. C:\DOCUME--1\tarami\LOCALS-1\Temp\HOT MOU 1-8-2010 clean.doc I Page 2 of 6 Section 4.Fund-raising efforts. The participants to this MOU have identified the following fund raising efforts: a. City will include a residential utility bill insert regarding funding for the arts in the March 2010 utility bill mailout. Insert to be designed by the organizations which are a party to this MOU. Costs of the insert(including cost to ship inserts to City utility bill distribution center)are to be paid by the organizations which are specified in Section 8,with each group portion of costs equal to the percentage amount identified in Column C, Section 9 below. b. The Arts and Culture Affiance shall inform the City Manager about additional funding opportunities to supplement or replace the previously provided HOT funds prior to implementation. All marketing efforts that mention City of Corpus Christi must be pre-approved by the City Director of Public Information Office. Section 5.Application of City HOT funds. Participation in this MOU does not prohibit a group from submitting a separate request to the City for City HOT funding. However, City in its sole discretion shall determine whether such funding is available for the requested budget year. Section 6. Term. This MOU will continue for three(3)year(s)beginning on date of execution by City Manager. Thereafter, this MOU may be extended for additional year upon mutual written agreement of the parties. Section 7.Maintenance of arts funding. Monies collected from City utility customers to fund the arts will be kept by the City in a separate general ledger account and may only be disbursed as provided in this agreement. Section 8.Parties receiving funding under this MOU. The following entities are parties receiving funding under this MOU,effective upon execution by their respective Executive Directors: 1. Texas State Museum of Asian Cultures and Education Center 2. Botanical Gardens 3. Harbor Playhouse 4. Texas A&M University-Corpus Christi, Antonio E. Garcia Arts & Education Center (formerly known as Center for the Hispanic Arts) 5. Instituto de Cultura Hispanica 6. Arts Community Center (d/b/a the Art Center of Corpus Christi) 7. Corpus Christi Symphony C:\DOCUME-1\tarami\LOCALS-1\Temp\HOT MOU 1-8-2010 clean.doc Page 3of6 8. Texas Jazz Festival 9. Arts & Cultural Commission Section 9.Disbursement of Arts funding. By the second Friday of each month, the City will transfer monies received in the prior month under this MOU to the groups,in following percent amounts as reflected in column C below: Name Column A Column B Column C Texas State Museum of 30,000 30,000/$260,236 11.53% Asian Cultures and Education Center Botanical Gardens 20,000 20,000/$260,236 7.68% Harbor Playhouse 31,736 31,736/$260,236 12.20% Texas A&M University- Corpus Christi,Antonio E. 15,000 15,000/$260,236 5.76% Garcia Arts&Education Center Instituto de Cultura Hispanica 20,000 20,000/$260,236 7.69% Art Center of Corpus Christi 30,000 30,000/$260,236 11.53% Corpus Christi Symphony 12,000 12,000/$260,236 4.61% Texas Jazz Festival 10,000 10,000/$260,236 3.84% Arts&Cultural Commission 91,500 91,500/$260,236 35.16% Total $260,236 100% Section 10.Addition or deletion of MOU participants. After the initial three(3)year term of this MOU,the groups listed in Section 8 above shall have jointly determined eligibility requirements for new participants. Section 11.Responsibility of individual MOU participants to the Arts and Culture Alliance. Each participant to this MOU shall: 1. Share expenses as well as proceeds received under this MOU. Each participant listed in Section 8 above shall share in the expenses in amount equal to the percentage amount identified in Column C,Section 9 above. 2. Provide seed funds for marketing. 3. Actively participate in marketing efforts,such as by contributing mailing lists and providing C:\DOCUME--1\tarami\LOCALS-1\Temp\HOT MOU 1-8-2010 clean.doc Page 4 of 6 volunteers. 4. Positively promote the Arts and Culture Alliance. Section 12. Timeline for completion -Deadline to respond. Each organization must provide the City Manager by January 15,2010 with 10 originals of this MOU, executed by an authorized representative of each organization,to indicate the organization's agreement to participate in this MOU. Section 13.Surplus Funding. For each year of this agreement,once the participating groups have received their funding to the same levels as provided by the City in FY 2009-2010 identified in Column A above Section 9 , then the surplus funds shall be disbursed or reserved as agreed by majority of the participants to this MOU. Section 14.Marketing responsibilities. . City will provide available marketing resources (in-kind)on case by case project basis. Section 15. Use of the funding provided under this MOU. Each party to this MOU shall utilize the funding provided under this MOU as follows: in accordance with each respective organization's approved budget for operational and program expenses that benefit local community and enhance quality of life. However, the funding provided under this MOU shall not go towards repayment of loans. Each organization shall submit their annual budget to the Arts and Culture Alliance and City Council. Should City Manager determine that a participant to the MOU has failed to comply with the requirements regarding use of funds, the funds must be repaid to the Alliance. Section 16.Amendment This Agreement may be amended only upon signature of an authorized representative for each party. Section 17. Termination After the initial year of this MOU,a participant may terminate by submitting written notice to the Chairperson of the Arts and Culture Alliance and the City Manager. All disbursement percentages shall be refigured to remove the terminating entity's funds identified in Section 9 Column C above from the total funds to be collected. Once an entity terminates from this MOU, they are not eligible to rejoin during the initial three year term. C:\DOCUME-1\tarami\LOCALS-1\Temp\HOT MOU 1-8-2010 clean.doc Page 5 of 6 Agreed to by: City of Corpus Christi By: `Angel R. Escobar, City Manager Date: Texas State Museum of Asian Cultures By: Name: Title: Date: Botanical Gardens By: Name: Title Date: Harbor Playhouse By: Name: Title: Date: Texas A&M University-Corpus Christi,Antonio E. Garcia Center Arts &and Education Center By: Name: Title: Date: Instituto de Cultura Hispanica By: Name: Title: Date: Arts Community Center By: Name: Title: Date: Corpus Christi Symphony By: Name: Title: Date: C:\DOCUME-1\tarami\LOCALS-1\Temp\HOT MOU 1-8-2010 clean.doc Page 6of6 Texas Jazz Festival By: Name: Title: Date: Arts and Cultural Commission By: Name: Title: Date: C:\DOCUME-1\tarami\LOCALS-1\Temp\HOT MOU 1-8-2010 clean.doc 00:00 Heidi Hovda And uh I am just going to go ahead and start without our city staff present but we do have Eddie Houlihan and Tara, Tara, 1 didn't want to say your name wrong Tara. Tara, I, this is your first meeting with us right 00:16 Tara Mireles yes unable to transcribe 00:17 Heidi Tara came first time to record Tara came last time Tara uh works with Michele; Eddie Houlihan is in charge one of the many wonderful people who work so diligently to put our city budget together. Uh we are also expecting Stacie Talbert who is Director of Parks and Rec 00:34 Michele Thomas yes 00:35 Heidi Margie Rose who is the Asst City Manager and has been kind of the home of the city's staff support that the Arts and Cultural Alliance has received 00: 45 Michele ahuh, here comes, here comes Constance 00:46 Heidi (meeting called to order at 4:36pm) Constance is ah a part this is Constance Sanchez she is part of the finance department and they are all a made themselves available today until five thirty to answer any questions that we may have. So um I would like call this meeting to order ah Michele can you do roll call 01:03 Michele Actually Tara will 01:05 Heidi Tara will you please do roll call, sorry: 01: 07 Tara yes roll call of members,uh Brian Honigbaum present Barry Brown here Karina Paris here Alene Burch here Amorette Garza Joe Hillard here Uh Heidi Hovda here Ericha Kemm here Diana Bluntzer Dura here Joye LaBarrett here Judith Prewitt Joseph Schenk here Frank Trimble here and Corrine Valadez Valadez Corrine yes 01:41 Heidi Ok 01:42 Tara there's a quorum 01:43 Heidi We have a quorum. Wonderful um first of all is there any public comment? 01:48 unable to identify-someone answers no-Heidi continues 01:49 Heidi There is no public comment. Okay so let's move to item four on the agenda approval of minutes. As we did not have a meeting in December because we lacked quorum uh we still need to approve the minutes from November's meeting so, has everyone had an opportunity to read over those minutes? 02:04 Joe Hilliard I make a motion that we approve those minutes 02:07 Heidi There is a motion on the floor 02:08 Joye LaBarrett I second 02:09 Heidi There's a second on the floor First uh motion was made by Joe Hilliard, the second by uh Joye LaBarrett Alright I am calling for a vote all those in favor for the approval of the November twelfth minutes say aye 02:20 response from group aye 02:21 Heidi All those opposed ? Motion passes. Now uh normally we would move to item five financial report but because we have a time constraint with city staff availability I would like to move to item eight a, Arts and Cultural Alliance Arts and Cultural uh a memorandum of understanding. Okay um 02:43 unable to determine where is the memorandum? 02:44 Heidi the memorandum is in your packet. Its a couple of pages in I think it's yeah its right past the financials. I hope everyone has had an opportunity to read over this. I believe y'all have. I've talked to some of you it seems like you've all taken this pretty seriously and I appreciate that. Um this is how we are going to do this today just for the sake of time. Oh here's Lisa Aguilar, Lisa uh works for the legal department for the city of Corpus Christi she's Parks and Recs personal attorney. Laughter she does our(unable to determine?) laughter. Uh okay this is how we are going to do it. I want to keep discussion at forty five minutes. So in order to do that, I'm going to read the questions that were submitted only two commissioners submitted questions it was uh Joe Schenk and Joye LaBarrett those questions are in their your packets as well, in your packet as well and uh what's going to happen is I am going to read the questions and I am going to answer from the Arts and Cultural Alliance perspective and Michele is going to answer based on city staff input. There will be no follow, there will be no initial follow up of the questions. I encourage you if you have a follow up question write it down after we have gone through all of the questions and answers then I'm going to open the floor to discussion. I hope that it won't take longer that forty five minutes, I may be willing to extend it depending on the amount of discussion that's left but I am not going to extend it past an additional 20 minutes. Um, at the very latest,after an hour and five minutes of discussion,of going over this, I will call for a vote. Um, I also just want to encourage some of the new members didn't do this but in October everybody signed a statement that said we would respect each other and we're going to work together and we are going to remember we always work to serve the arts even when we disagree. So I just wanted to remind everyone to please uh, respect each others opinion because I think we are going to have a wide varying amount of opinions on this. Okay. So first question urn Joye, I, I don't think you will mind me saying this,Joye, Joye's questions were rather verbose, so her entire question is written, it's in the packet but we've done for the sake of brevity is that we have uh condensed the questions to kind of like the main point of the question, uh and and combined a few questions into one question. So 05:20 Would it not seem those percentages would no longer be applicable since the City of CC HOT funds are no longer available for the distribution to these nine "line item" organizations? Why has this new Arts & Culture Alliance/Alternative Arts Funding Task Group not developed an updated method/guideline of distributing the anticipated public donated funds? 05:42 Alright, so this is the Arts and Cultural Alliance answer The City Staff has not made any decisions regarding how these funds would be distributed. This was an agreement by the nine organizations that represent the items on the HOT fund. The group, now called the Arts and Culture Alliance, made the decision that the most fair and equitable way to disburse these funds would be based on the current percentages, less Harbor's thirteen thousand a year for the loan on the roof of their building. The Alliance did not feel that it was obligated to raise funding for City Property. The current allocations of the HOT Fund set a precedent that the arts community has apparently been comfortable with considering that they have not requested to be a line item on the city's budget and the HOT Fund up until this point. Therefore, the Arts and Cultural Alliance felt that the percentages are a good best practice,proven and amicable method to continue allocating replacement of that funding. And it is important to note that the Alliance believes that because the ACC distributes money to arts organizations that are not represented on the HOT Fund line item, it's important that the ACC is part of this Alliance. And another point to make: the HOT Fund replacement is key for this agreement because it justifies that only the nine organizations that has, that has previously received HOT Funding will be able to make this deal with the City on the utility bill. Outside organizations, other non profits, will not be able to apply for the opportunity to be a part of the utility bill and raise funds through this mechanism because it's solely for the use of replacing the nine recipients of the Arts and Cultural represent uh, uh, organizations that are on the HOT Fund— through the Arts and Culture Alliance. That's my answer, I think city staff has an answer to this one 07:37 Michele City staff is a little bit shorter laughter, The Alliance, the Alliance determined that it would be best to keep the percentages the same as the city had for the first three years of this agreement. Obviously um, the reasons why we wa, time is of the essence and so we needed to move fast on this and the Alliance agreed to that. However, obviously,once this agreement is in place the Alliance then can amend the agreement if they so chose later down the road. 08:04 Heidi No discussion on 08:05 Brian Honingbaum No I just 08:07 Heidi Question why was city staff involved in hosting meetings for only these nine "line item" art organizations once the budget decision was made to exclude them from HOT funds and City budget? The only meeting that the City"hosted"was the first meeting, to tell the nine that we were not receiving money and to explain the bleak forecasted outlook for the City's budget in 2010-2011 fiscal year and possibly several years,down the road. At the meeting, the Mayor, the City Manager and other Staff expressed a sincere interest and desire to not leave these organizations out in the cold and encouraged the nine organizations to develop a plan together to fund, to find a new funding mechanism. It is important to note that not all commissions or organizations that receive funding from the city's budget have been given the same option. City Council and City Staff,while recognizing that there is no funding available for the arts and cultural organizations that it could previously fund, knew that they could offer services to the arts groups that would otherwise be unavailable to them and have graciously and freely offered guidance and advice and made several staff members available to the Arts and Cultural Alliance. The MOU represents a huge investment by the City to the arts organizations to help the Arts and Cultural Alliance develop and plan some sort of funding through the City's economic crisis. Outside of that initial meeting, all other meetings have been held at City Hall, only because the Arts and Cultural Alliance relied heavily on the City's resources to move this Memorandum of Understanding forward. We could have had these meeting anywhere. In fact, I held one at House of Rock, because I wanted a beer while we discussing the topic. So, these meetings are entirely run and all decisions that have been made are the decisions of the nine groups that make up the Arts and Cultural Alliance. All meetings have been called at the direction of the Arts and Cultural Alliance. And city staff's role has been to give the Arts and Culture uh,Alliance their time, their resources and their expersee, their expertise to help organize a plan of action. City's turn. 10:13 Michele The Alliance felt the most important course of action uh,was proceed with this MOU, then they could start the marketing and the fundraising. And of then course if I understood from the last meeting the creation of bylaws uh, is going to be occurring at the next meeting. 10:37 Heidi Uh Question why weren't these meetings posted to the public for others to participate in the development of the Memorandum of Understanding, formation of the Alliance, etc. As previously stated, the Arts and Cultural Alliance is made up, right now,of the groups that are currently line items on the HOT Fund. Therefore the Arts and Cultural Commission currently and in the past has acted as a representative—through our granting process-of the groups that are not on HOT FUND line items for groups like Corpus Christi Ballet and K Space Contemporary. Because this MOU pertains only to replacing and/or supplementing HOT Fund money, the groups are not line items on the budget and are not and cannot be represented in this MOU. But, again,as previously stated, the ACA, the Arts and Cultural Alliance does not feel that these ordigina, organizations should not be left out where they were previously brought in through the Arts and Cultural Commissions' granting process. That is where the ACC's role as the distributor of grants has a valuable and powerful role in the Arts and Cultural Alliance to ally and unify the efforts of distributing money to several arts organizations in the City of Corpus Christi. 11:41 Michele The Alliance was formed as a result of budgetary constraints in the HOTEL OCCUPANCY TAX Fund, the HOT Fund. Because the city stated that they would not be able to fund the nine groups in the next fiscal year, the city requested that the nine groups seek alternative funding sources, hence the Alliance was created. These meetings are not required to be posted,as the Alliance is not an official city committee or commission, for example you as members were appointed by city council,so that is a not recognized as a official city council city committee or commission. 12: 12 Brian Honigbaum unable to transcribe 12:15 Michele unable to transcribe..laughter 12:17 Heidi Are you done 12:18 Michele Yes 12:19 Heidi Point of order. Uh the question okay next question Question: The Arts & Cultural Commission has specific detailed duties to perform as outlined in the City Ordinance, I could not find the administering of the City's Art Grant Program listed in the City Ordinance for the Arts & Cultural Commission, would you direct me where I can locate this information? I hand that over to the City Staff. 12:38 Michele Okay what our legal department god love em what they least what they have been able to come up with is Section two dash one o five is that correct Lisa? Okay recommendations as to expenditures and other matters. 12:48 Joye Could you repeat that please sorry 12:49 Michele Section two dash one o five You'll actually,cough, excuse me, you'll find that in your member book, uh basically it is the recommendations as to expenditures and other matters the Commission shall make recommendations upon matters submitted to it involving an expenditure of less than one thousand dollars within 15 days after submission and upon any other such matters within thirty days after submission. If it fails to do so its recommenda, recommendation, recommendations shall be considered unnecessary 13:18 Joye Would you reread that please, I'm sorry 13:21 Michele Quite alright my apologies I am getting over a cold alright; the Commission shall make recommendations upon matters submitted to it involving an expenditure of less than one thousand dollars within 15 days after submission and upon any other such matters within thirty days after submission. If it fails to do so its recommendations shall be considered unnecessary. 13:43 Joye And that is under section 13: 45 Joye and Michele two dash one o five 13:47 Joye Lisa what is 13:48 Heidi Joye 13:48 Joye What does section two cover? 13:50 Heidi Uh at the end 13:51 Joye To ask, she'll clarify that 13:53 Heidi Yes,she will answer 13: 54 Joye That will give her time to look it up 13: 55 Heidi Okay urn, where were we,okay since the arts 14:00 difficult to determine-possibly Lisa Aguilar City Ordinance 14:03 Heidi Since the Arts & Culture Alliance/Alternative Arts Funding Task Group is to be the recipients of public funds/donations, would they not be the new administrators and creators of a Public funded grant program for the Arts? I just think its important to clarify that we're not receiving public money anymore,the the money received from the utility bill are is private donations and the fact that the City is serving as a fiscal age agent to these donations require that we work with the City Manager and City Council and the City Staff, but to continue to use to term public donations is not an accurate distinction, it's private donations that are made through the city's utility bill. The ACC has developed a granting process that is accepted and well-known in the arts community and can be seen as a best practice for the distribution of HOT money. Furthermore, the ACC's pool of money—currently and in the past—does not just come from the HOT FUND budget. We have, on several occasions,applied for grants from the NEA and TCA to supplement our programs and grants. In the same way that City Council grants permission for the ACC to apply for and use these additional funding resources and opportunities, the ACC will request permission from City Council to obtain this funding opportunity before us. As this funding as this funding comes in through City Council, we then operate under City Council's directive to use the money for the arts—much like we do for the grants that we have received in the past. 15:41 Michele The city concurs 15:44 Heidi That's it 15:46 Heidi Question is this a form of"double dipping" since these nine "line item" art organizations will be receiving a pre-determined percentage of the total collected public donations (as stated in the MOU) and then by grant application? Considering that this scenario currently exists in our granting process, if the double dipping was fine for the HOT Fund distribution, why would this new scenario change it? The ACA is just following the mode that is currently set up because it is a proven method that has worked for the past 6-7 years. However, the ACA, this is the bad news, however, the ACA has talked about this issue and has made a deter a determination,should the ACC restrict the other ACA organizations from applying for this grant, the ACA the arts and cultural alliance, will reallocate the percentages based on a average amount of money received from the previous ACC grants. So for example, the Corpus Christi Symphony,who is also a member of the arts and cultural alliance and also applies for arts and cultural commission grants,would average their funding over the over a set amount of years. And then their average would be deducted from the Arts and Cultural Commission's potential uh total they currently receive and that amount would be reallocated. Thereby lowering the ACC's percentage of the funding from the utility bill that it will receive. 17:14 unable to transcribe-several responses you lost me on that difficult to determine-possibly Joe H 17:15 Brian yeah 17:16 Heidi Okay so the arts the symphony apply applies for a grant right now and then they are also going to receive this money. what the whole point of this this function is is for them to maintain funding. These groups that not only receive hot fund money but also receive arts and cultural commission 17:37 difficult to determine—possibly Joe H & Heidi Grants 17:38 Heidi they consider the grants part of their city funding,alright. And so the arts and cultural commission, the arts and cultural alliance, uhh, 17:48 Joe H Under the new model or the old model 17:49 Heidi under the new model the 17:50 Joe H Okay 17:51 Heidi under the old model they they get both funding and under the,and and uh, and the the symphony and all of these organizations who receive both sets of funding what's what's being called double dipting, double dipping, 18:02 Joe H Uh-hm 18:03 Heidi currently as a whole they can't determine either one every year for sure what's the total amount there gonna get because it varies but they consider the whole part their city funding. Now,what and and this isn't necessarily set in stone but this is the Alliance stance on it as as of today. If the ACA says well this is double dipping and you cant which I don't understand why the a c the arts and cultural commission would say that now, when double dipping has been going on for a very long time, for I don't know for how long, but for example the Art Museum applies for our ACC grant 18:44 Joe H Uh-hm 18:47 Heidi and the Art Museum is also a line item in the HOT Fund so since this double dipping currently exists I don't, we, the I,I would be surprised if we thought it should change. If you do want to change it our percentage will lower because the Alliance would like that funding to maintain the same. And while and while I understand why that's hard for us to take as the arts and cultural commission, I'm one person of nine people and I'm only one vote in that so 19:20 Joye I'd like to go on the record that I have questioned this 19:25 Heidi Oh I know you've questioned it plenty, I know you have questioned it 19:26 Joye For several years unable to transcribe 19:27 Heidi and I know you have Joye, and I don't want, I want to stay to the issue but 19:29 Joye Just so that unable to transcribe 19:31 Heidi we've never done anything about it and 19:34 Joye True 19:35 Heidi Alright 19:37 Joe H Heidi I understand you want to hold off on conversations until the end 19:40 Heidi I do 19:42 Joe H Sigh,so we going to go fourteen questions away from this and then go back to it? - - 19:44 Heidi Yes 19:47 Joe H Okay 19:48 Heidi Sorry. Umm, we've only got these guys fo, until five thirty 19:51 Joe H Okay 19:52 Heidi Alright. Did you have anything you wanted to add to that? Okay . If the Arts & Cultural Commission were representative of those art groups, then the Commission should have created a sense of awareness amongst those art groups as to what was occurring and connected them with the involved City staff that were involved in the budget decisions for equitable transparency, but it did not and I assume it was not suggested that the Commission do so. At the December Arts and Cultural Commission meeting,we had an item we had this item to discuss on the agenda. As the ACC representative to the Arts and Cultural Alliance, my intent was to report information and to allow for us to make a recommendation to the Arts and Cultural Alliance on how to proceed and what our entire Commission's input was. However, we did not have a quorum at December's meeting and we couldn't make a decision or even discuss it even in a casual manner. This could have been done, but unfortunately that opportunity has come and gone. However, the ac the Arts and Cultural Alliance has had to press forward without our entire Commission's input, which would have been conveyed through me,because there is a stringent deadline if we are going to implement a plan to be placed in the March 2010 utility bill. This Memorandum of Understanding must be signed by tomorrow so it can be a part of the City Council's information for their uh for their next Council meeting at the last Tuesday of January and possible approval. The insert must be created by the January thirtieth, approved by the City's Public Information Officer as all inserts have to be approved by the public information office in February and then sent to San Antonio for the company that sends out the utility bill to stuff them into the utility bill. So following this timeline will allow us to receive our first monthly payment in May of 2010. And this will allow the ACC to gauge and conservatively forecast ACC funding through the end of the fiscal year. Did city staff have a 21:47 Michele No ...unable to transcribe 21:51 Frank Which number are you responding to right now? 21:54 Michele There's some confusion on the questions as to we ...unable to transcribe.. on double dipping...unable to transcribe...of the arts 21:5 Frank Is that number eight? 21:59 Michele No we haven't gotten to number eight yet mi,:. 22:01 Heidi Well if you want to address number eight go address number eight 22:03 Michele Okay the question number eight was Why were these other art organizations excluded? this and the city staff`s response to that is the sole purpose of the forming of this new alliance was to determine a method to replace the funding previously provided through the city's hot fund. Only the groups that received the funding 22:20 Joye Would you repeat that again 22:22 Michele Sure, the sole purpose of the forming of this new alliance was to determine a method to replace the funding previously provided through the city's hot funds. Only 22:34 Joye The city's 22:35 Michele the city's hot fund 22:37 Joye No go back and just repeat it again. I am trying to write this down. 22:38 Michele Okay 22:39 Joye The purpose was 22:41 Michele The purpose of forming the new alliance was to determine a method to replace the funding previously provided by the hot fund 22:53 Joye And you said that the city's determination, that was their reason ..unable to transcribe repeat start over 22:58 Michele No. The sole purpose of the forming of this new alliance was to determine a method to replace the funding previously provided through the city's hotel fund. Only the groups, the nine groups that received funding in the city's fy 2009 20 10 were included in this alliance. 23:24 Heidi I have an answer for this from the ACA, well what I did was combine two questions because they were related, into one question. Uh Why were these arts organizations excluded when it was my understanding city staff was the liaison to this newly organized group and then stated in the MOU, these nine line item organizations will be required to report and be accountable to the city of Corpus Christi for the publicly funded donated funds distributed to them by the city. Now as I said before we we have to be answer to the city manager because if we ask city council for permission to uh use this money much like we do the TCA grant we have just like we do with everything else we are all accountable to the city manager's office even now. It it's a very we are I mean the city manager can can come in and unable to transcribe right? wer we the city manager can come in and direct us I'm getting off my topic points okay uh 24:23 unable to determine-Michele or Constance Heidi Heidi 24:24 Heidi Yes 24:26 unable to determine-Michele or Constance Unable to transcribe...utilizing the city utility bill 24:28 Heidi And we're using the city utility bill 24: 29 Unable to determine-Michele or Constance And only unable to transcribe- if you were using—coughing-then the city wouldn't be involved, it's just because you are using the utility bill 24:37 Joye So does everyone that uses the insert fall under the auspices of the city? 24:42 Unable to determine-Michele or Constance Well no one else has actually 24:45 Joye So the answer is,other than the city 24:46 unable to determine -Michele or Constance Unable to transcribe....city sponsored 25:00 Heidi That the arts and cultural alliance has to make a presentation and then has to be accountable to the city manager. Okay. Urn da da da duh I'm done. Who Crap I lost my place uh 25:08 Michele Unable to transcribe 25:10 Heidi Okay okay here we go When you consider that the sole person purpose of the MOU is to solely deal with the organizations that represent the line items on the HOT Fund budget, using the word "excluded"seems strong. Those groups are not a part of this MOU and not currently part of the Arts and Cultural Alliance because they are not line items on the City's Budget. They are excluded only in the sense the organization has never been part of the line item to begin with. Now as a follow-up as a Board Member of K Space Contemporary, I had the opportunity to ask the K Space Board their feelings and gauge their support of these efforts. Not only did they not have a problem with the ACC acting as a representative of them regarding this money 25:48 Joye Excuse me,why was that organization consulted when all of the other fourteen weren't? 25:53 Heidi I did it on Saturday in a retreat, I just wanted to gauge their opinion 25:59 Joye Could we not discuss that now 26:00 Heidi Sure 26:00 Joye or bring that point up because the other fourteen art organizations out there 26:04 Heidi That's a valid point I'll move on 26:06 Joye Were not consulted 26:07 Heidi Would not an Arts & Culture Alliance ahem Would not an Arts & Culture Alliance have to be approved by city council ? On the other hand, has City Council been made aware of the Arts & Cultural Alternative Arts Task Funding Group or attended the planning meetings, which began sometime in October? 26:26 Michele okay. First of all the MOU the reason it is needed to be signed and ready to go tomorrow is that we are taking it to Council on the twenty sixth and it will be approved on the twenty sixth of this month. In addition, the mayor and city staff have been made aware of this not only by memorandums but by meetings it was the mayor who actually met with the art community at that first meeting. So everyone above me and even beyond is quite aware of the situation. 26: 53 Heidi I've also been in contact with several city council members and they are relieved that something is being done. They do not like that they have to cut the arts funding but its reality of the current budgeting situation that they are trying to deal with. So there are city council members that absolutely know that this is going on. If there is a City Ordinance for the City of Corp Corpus Christi's Arts & Cultural Commission, then is the then is the City advocating an Arts & Culture Alliance as a new citizen group that will be added to the City Municipal Codes as the vehicle to replace HOT funds with public donations ? 27:26 Michele No the city is not 27:30 Heidi Why did the Arts & Cultural Alliance Alternative Arts Task Funding Group's MOU indicate they are the only benefactors of this new Public Donation, naming themselves as one of the ones as the ones to oversee the operations, distributions, etc. for the next three years and at the same time also exclude all other arts organizations from having a voice or the ability to benefit and participate until then? Simply because the Arts and Cultural Commission, the Arts and Cultural Alliance doesn't know how well this project is going to work. didn't want to tie too many organizations to this experiment and finally, in the event that it's successful, would like to be able to shore up funding so that the nine organizations including the Arts and Cultural Commission, acting as a distributor of these funds to arts and culture organizations that are not line items on the city's hot fund budget and that wi and so that allow the ability to conservatively manage and build for the marketing fund and I cut off there I didn't finish my thought, moving on Conversely, the A, the Arts and Cultural Alliance also wanted to be able to share the fund with others, if possible, at a later date. Which is why it is only for three years,while this fund develops and gains community support. This is also a best practice used in San Antonio's Fund,which distributes money through private donations via company payrolls. They selected a group of arts organizations that would benefit from The Fund and then they closed off applications to to the Fund for the time being. Uh, I ,you don't have anything on that one 29:07 Michele Okay 29:08 Heidi Since the City of CC will collect and deposit the donated Public Funds, who will be accountable to the general public donors? It would be the same process that any non-profit organization is accountable to private organi, to private donations. On the on the annual day of sharing, I gave $25 to the YWCA and $25 to the Women's Shelter. If I want to know how my $50 is being spent, there's avenues for it. You have any 29:33 Michel Ah uh. 29:34 Heidi (#14) The commission is not permitted to engage in binding agreements, so why is the Arts & Cultural Commission being asked to sign this MOU, should not the City be the one to sign the MOU? 29:35 Michele The Arts and Cultural Commission is a city commission and its all of you that go out to the arts these small art groups, its all of you that give these grants,and so we need you to buy in to this memorandum of understanding. We don't have the relationships that you have with the art community so we need your support with this MOU as you are the larger speaker for the smaller groups when it comes to the art community. 30:16 Brian That didn't 30:16 Heidi (#15) Alright uh If the MOU Is adopted, is the ACC then abolished since we are projected to have no funding from the City from any City budget source and will it in effect replace the ACC with another group? Has the City adopted this position and when will it? 30:36 Michele No, the ACC will not be abolished as the responsibilities also include the overseeing of the permanent art trust fund. In addition, if the ACC approves this MOU and participates in the Alliance,obviously you will have the opportunity to gain funds and with those funds then as the ACC you will have the opportunity to decide what to do with those funds. So you might be able to do some of your sub grants, you might be able to do Festival of the Arts. Whatever you chose as the ACC. But you will not be able to if you don't participate in this Alliance. 31:07 Heidi Alright that's the City staff's determination, I, I don't know it, but my thoughts on this are, there are several commissions that operate without funding. I mean for example,does the planning commission have an operating budget that they 31:20 Michele No 31:20 Heidi Then they still an important commission to the community 31:25 Michele Very respected 31:28 Heidi And then as she said,we still ov,oversee the permanent art collection and then there a, however this is a good argument to justify for us to try to appeal to continue to receive general fund money. I don't know if there is going to be any available but, huh, as all of the finance people laugh, um,but without the general fund money, that's where we pull to maintain the public art and how are we gonna keep Selena pretty on Bayfront if we don't have our money to maintain our public permanent art. Okay question uh if it's not the city's determination to abolish the ACC,why does the City 32:02 Joe H Heidi could you please say the number of the question before you start, it is difficult to follow 32:07 Heidi I'm sorry, I actually took the numbers off because they were too sets of questions 32:10 Joe H Okay,what number were we on, anybody 32:11 unable to determine Unable to transcribe—several people are speaking Sixteen 32:13 Michele Sixteen If not, when does the City see HOT Funding returning to the ACC 32:19 Heidi If not, when does the City see HOT Fund HOT funding returning to the City for our continued role 32:24 Joye No it says the A('( 32:25 Heidi I'm sorry 32: 25 Michele for the ACC to continue our role? At this time, it's too premature for us to say. 32:30 Heidi How much money is in the City's "Rainy Day Fund"? If there is any. can't some of this be used to cover the arts to some degree/percentage? (#17) 32:37 Michele Okay. The fun the HOT fund has no fund balance to utilize for the fy 09 10. As far as the general fund goes there is no rainy day per se. There is a undesignated fund balance in the general fund which according to the city's financial policies adopted via resolution 028176 on May nineteen, 2009 it is the goal of the council to build and maintain a reserve in the general fund unreserved fund balance which totals at least ten percent of the total annual general fund appropriations. Undesignated fund balance in excess of the ten percent policy requirement maybe recommended for expenditure on one time improvements,with a priority on infrastructure and equipment which will reduce the need for future debt. Therefore no. there is no rainy day fund which could be utilized to replace HOT funding at this time. 33:31 Heidi Can the City provide us with the appropriate pages, what number is this? 33: 35 Michele & Brian Eighteen 33:36 Heidi Eighteen Can the City provide us with the appropriate pages, from the Finance Department's budget proposal from this last year 2009-2010 that eliminated funding, as well as the adopted budget where Council restored support? 33:50 Michele And if you see as part of your handouts that was passed out,its, its right in front of you 33:56 Heidi And I also put on a spreadsheet that showed the HOT fund money, this little colored one, for several years its allocated by percentage for each year and then there is a total unable to transcribe,and then its up here unable to transcribe,and the total for the total year unable to transcribe since we had that data, I gauge , I used that page on a spre worksheet that was handed out to the Arts and Cultural Commission when we fought for our funding last year. So that's based like July or June numbers 2009. Uh Can the City provide the tentative proposals for use of HOT funding 2010-2011? 34:38 Michele I'm sorry, no, we can't at this time 34:40 Heidi Has the City met with 34:42 unable to determine-several people speaking Hold on, what number are we on Unable to determine—several people speaking 34:46 Michele Nineteen 34:49 Joe H There's a problem going really fast and I appreciate unable to transcribe 35:01 Heidi Has the City met with all the other departments/agencies/organizations who receive HOT Funds and what are their projected cuts in amounts and/or percentages? 35:10 Michele The city has evaluated our funding,our contractual agreements,our legal obligations and state and federal requirements. 35:19 Brian Huh? 35:20 Heidi I think the answer is basically they are still looking at everything. 35:22 Michele Yes 35:23 Joe S So its not available 35:25 Heidi No. I'm sorry I'm not unable to transcribe 35:28 Michele No go ahead 35:30 Heidi Uh, this is the final question Can the City provide us with a summary comparing HOT Funding for 2008 to 2009 and 2010 2009 to 2010 year to date, as well as their projections for 2010 2011? That spread sheet helps with the previous HOT funding. 35:50 Michele The last one that we passed out here 35:52 Joye This one 35:53 Michele Yes 35:54 Joe S That. that's two years, got two of them, two out of three 35:57 Michele Right 36:00 Joye There's no projection ones 36:00 Joe S Got page eight, nine, ten but no projections so, but you already said it's not available 36:05 Michele Right, its not available 36:07 Heidi Alright. so that's that. I now open the floor to questions. DISCUSSION: 36:16 Joe H I have some general questions first.And some for the benefit of the newer people on the commission, you've got in years past on your spreadsheet right here, uh five million,five million,six million, six million going up to eight million going down to seven million. From what I understand hot fund comes from hotel occupancy, rental cars, those kind of things. Now a budget is in crisis we can still, not we, the city can expect the HOT fund dollars somewhere in the range of five to seven million dollars who know what it is. If I understand it correctly there are statues in place as to determine where that HOT money can be spent and its on things that promote tourism, it goes back to the tourism cycle Unable to determine who is speaking—city staff- unable to transcribe 37:08 Joe H Correct. So,so I, I guess I am asking twenty again. If the city gonna receives seven eight six million dollars from HOT funds, it cant go to things that that aren't HOT fund appropriate,so where is this money going to go now? 37: 38 Eddie Houlihan you want me to answer that, uh 37:41 Joe H so Michele said no on twenty but I'm asking the question again. 37:45 Eddie If you look at the the uh I think the financial statement, that was passed out,you can see that, look at the big numbers, uh the bottom number there transfer the debt service, they have to pay that, the two million four ninety six. Unable to determine several are speaking— unable to transcribe 38:05 Joye And Eddie could you explain that debt service 38:07 Eddie It the convention expansion. That's what the uh the two percent was tacked on for and you can actually see that the two percent is not even covering that. See what I'm saying?Or do you only have,do you only,do you just have the expenditures or do you have the revenues Unable to determine several are speaking— unable to transcribe 38:28 Joye We just have expenditures 38:30 Eddie Okay 38: 30 Joye so which page are we 38:31 Eddie Look at the, look at the, look at the one that the last column says adopted, do you have the one that says adopted and the one that says proposed, right? Look at the one that says adopted. 38:44 Ericha Adopted, okay the last column on the second page 38:46 Eddie Right 38:47 Heidi Its in the additional handouts Unable to determine several are speaking— unable to transcribe 38:50 Eddie It's the convention center expansion,two million four ninety six 38:55 Joye So it is here you're saying the money that is listed unable to determine - background noise— unable to transcribe is being used to pay off the debt 39:02 Eddie Right. One of our little problems is that the two percent that was tacked on years ago for for the debt doesn't really even cut the were what a hundred,almost two hundred thousand dollars short so we have to dip into the seven percent in order to pay the debt. 39:19 Joe H But that's the same as last years amount 39:20 Eddie That is the same as last years, right. 39:23 Joe H So 39:24 Eddie Let me give you a history okay? This didn't just pop up because sales tax I mean hotel revenue didn't, Unable to determine someone else is speaking— unable to transcribe its been a problem for a couple years. If you have the adopted, the sheet that says adopted you look in the first column, the column it says actual 07 08, you see the debt there is a million eight eight six? It was really two point four million. So we pushed some of the cost over to the debt service fund because we couldn't afford to do it and pay everybody. So we we pulled we pulled a trick for a one time deal and then we came along in 08 and 09 where if you see at the end of 08 under the fund balance of a million two thirty? The following year in 09 we were able to use that fund balance to mask some of our problems. We budgeted more expenditures and revenues in 09. 40:20 Joe H So since the total amount , the total that's given to all nine organizations in the uh last last couple of years is around six hundred thousand dollars 40:30 Eddie right 40:31 Joe h And because the difference between actuals in 2007 and now the real actuals are about six hundred thousand dollars that's where the monies going. 40:40 Eddie Well any any then in 0 10 we didn't have any more,we we pulled tricks the last in the two years before that and in O 10 we couldn't go to the debt service again. We didn't have a fund balance so but but the four major items are the convention center, the center not taking any more subsidies the CVB contracts is now, you can see is growing you, it has grown, that's the the convention center promotion line item is there 41:09 Joe H Right 41:10 Eddie And we consider those the convention you know the convention center promotions, the subsidy the convention center, the debt service and our beach cleaning, to be the, the things we really that's what we have to fund. 41:22 Joe h Ok Thank you 41:26 Eddie Sure 41:27 Heidi Uh Brian 41:28 Brian Uh Question comment can you I didn't feel comfortable with your answer to number thirteen, and could you answer that again please. 41:38 Michele Basically both groups would be signing. I mean technically we need the ACC to support this MOU 41:46 Brian Ah now I understand your needing our support, the question is the commission is not permitted to engage in binding agreements. 41:54 Joe H Is that a true statement, first of all 41:56 Brian That my first question, is that a true statement? 41:58 Michele I would have to ask 41:59 Atty Lisa Aguilar Yes 42:01 Brian Okay so we are not as a ACC is not permitted to engage in binding agreements. Yes we all agree with that 42:07 Michele Uh hm. 42:08 Brian Why are we is signing okay is signing the MOU a binding agreement? 42:13 Atty Aguilar If the city signs it, yes it's a binding agreement 42:17 Joye So the ACC should not be signing this agreement, because we're not allowed to sign binding agreements The city is the one that should be signing the MOU. 42:28 Heidi The city's not, correct me if I'm wrong, but the city's not going to sign the MOU if 42:32 Joe h Unless we make the recommendation 42:35Heidi Unless we make the recommendation to do so 42:37 Atty Aguilar Most likely they would 42:39 Joye So what you're asking us is to recommend the MOU go in place not to actually sign it because there is a place on the MOU for the Commission to sign it,we can not sign this MOU we can recommend that city council or the city sign it but as the commission you can not sign it 43:00 Margie Rose I think maybe, I believe you are absolutely right, however if the city council approves it. I would think that by you recommending it the comfort level should be there to sign it after the city approves it. Because I believe she's making a valid point. 43:20 Heidi I thinks it's a valid point too 43:22 Brian And then the second half because it ends because I'm new and I want to make sure, I'm sorry 43:25 Heidi No no no you have second follow-up and I'm just pointing at Joe 43:28 Brian I'm gonna try and make this simple and clear so I'm clear. Before all this who ha we got HOT fund money these line people were always the ones who received it,theirs and then we did our grants. 43:41 Heidi Yes 43:42 Brain Okay Now the HOT money is gone; its not really worth arguing who or why or what cause the city council made their decision and there's nothing we can do about it, like it or not. 43:49 Heidi Well they haven't made their decision yet,but its pretty clear that 43:51 Brian We're not getting it 43:52 Heidi We're not getting it 43:52 Brian Okay 43:54 Heidi We're not getting any money 43:56 Brian so now we have an opportunity to say,we're we're there this new organization, these nine people are gonna to get their money,we also are gonna get what it looks like to be uh 44:05 Heidi Ninety one five 44:06 Brian Which then would allow us to do what we were doing before just with a little less money . If we don't agree to this, these nine are still going to get it,were going to get nothing were done 44:15 Heidi The eight are gonna get it 44:22 Brian The eight,we get nothing and then these other organizations that some of feel are not necessarily getting treated fairly, we'll still be able to dispense this ninety one to them, is that correct? 44:27 Heidi No 44: 27 Michele No 44:28 Heidi They wont get it 44:28 Brian No they wont get anything? Unable to determine- several say no—unable to transcribe 44:31 Heidi That ninety one will just poof go away and then the and what the arts and cultural alliance will now have to wait will be less ninety one thousand Unable to determine someone speaking— unable to transcribe 44:38 Brian So it would behoove us to do this so we could support things 44:43 Heidi yes 44:44 Joe H Where are we getting the figure ninety one? 44:45 Heidi If you look across on this 44:51 Joe H But now its not ninety one, now its however much this exercise brings in Unable to determine someone else is speaking— unable to transcribe 44:54 Brian in the MOU its ninety one 44:55 Heidi In the MOU its ninety one 44:56 Joye It seventy three on this 44:59 Heidi But Unable to determine— unable to transcribe 45:00 Joe H Hold on a minute 45:01 Heidi The MOU is ninety one, that that the number we pulled and I'm not gonna complain that the ACC got ninety one instead of seventy,seventy three five,four,seventy thousand four hundred thirty three 45:16 Joye The problem is that although the Commission receives seventy three thousand whatever to disperse, because the ACC also receives general fund money,we took general fund money to supplement what we are actually awarding 45:30 Heidi That's true but 45:31 Joye in grants,cause we are actually giving ninety four thousand four hundred dollars away 45:37 Heidi That's that's 45:38 Joye Unable to determine — unable to transcribe 45:38 Heidi I understand but, but the HOT, this new memorandum of understanding is not for the general fund, this memorandum 45:44 Joye Oh, I understand that 45:45 Brian Just so I understand 45:47 Heidi So the general fund money at this phase,we still have to fight for out general fund money I few want it 45:54 Joye Unable to determine— unable to transcribe 45:55 Brian So just to clarify, if we all agree to this, we get this ninety one five, 46:00 Joe h We thirty five point one percent of what Unable to determine — unable to transcribe 46:01 Brian I'm sorry we get thirty five percent of whatever is brought in, we then can do what with that money? 46:08 Joe H Whatever we want 46:09 Brian So we are still able to support the other organizations 46:11 Heidi Technically,Way way way wait technically whatever we want,bu the Arts and Cultural Alliance wants, the whole point that they wanted to enter into this agreement, is that,we do,we we disperse this as we always have with the HOT fund money 46:24 Brian Right 46:25 Heidi Which is the grants 46:26 Brian Right 46:27 Heidi But technically, it is not stipulated in this MOU 46:30 Brian Right 46:31 Heidi What the Arts and Cultural Commission should do with this money 46:34 Brian So in a way we have more freedoms 46:35 Unable to determine Okay Unable to determine— unable to transcribe 46:39 Joe H Hold on I think I have a Unable to determine— unable to transcribe. The, the Alliance is nine people, nine organizations 46:48 Heidi Nine line items 46:49 Joe H Right, I don't think the ACC representative of the Alliance is gonna tell the 46:55 Heidi The other eight 46:57 Joe H The symphony if,well, you can be part of this Alliance if play , I mean we aren't gonna tell them what to do with the money I don't think they can tell us what to do with the money either. We're fighting for a percentage of available funds because we are happen to be one of nine that receive money 47:14 Heidi And and what I'm and what I'm telling you is that, that the memorandum of understanding does not stipulate what the arts and cultural commission 47:20 Joe Okay 47:21 Heidi should do with that money 47:24 Brian Which is good 47:24 Heidi I, its good,what I, I can tell you is that the arts and cultural alliance hopes that what we will do with this money, which is to distribute it to the other organizations that are not line items on the city's budget,just as we continue to support them through our granting process. 47: 46 Joe H But,but my analogy is still as it was still holds true. I hope that the uh,Asian Culture Museum brings in Geishas that begin servicing the public, but that's not my place to tell 47:56 Heidi I understand 47: 57 Joe H them exactly what they 47:58 Heidi I understand 47:59 Joe H Unable to determine— unable to transcribe 48:00 Heidi I understand 48:00 Joe H By the way, I don't hope for that Unable to determine— unable to transcribe laughter 48:07 Joe S Point of order, here we have Unable to determine— unable to transcribe 48:08 Heidi Okay alright, uh Joye had her hand up next 48:10 Joye Okay 48:11 Heidi Does that answer your question,are you satisfied with 48:13 Joe H Yes I am satisfied Unable to determine— unable to transcribe 48:20 Heidi I just want to let ya'll know we have ten more minutes so let's keep the joking around to a minimum 48:23 Joye The uh, the ACC is a city commission,and what this MOU is advocating is that the Commission will now also become a member to a organization or a group called the Alliance.This Alliance is, not at this point a non profit. Is the commission allowed to be a member of a city organized group 48:57 Heidi The city didn't organize the group the city 48:59 Joye No that isn't my question, is the commission, as a city commission,overlooked, over saw, by the city,able to be a member of a outside private organization,this private group called the Alliance, because they are not a city, they are not going to be a city uh committee. It has been answered that they are not going to be a city committee or have that affiliation, their not going to be under an ordinance, so are we as a commission allowed to belong to this private group called the Arts and Cultural Alliance?Because that's basically again what this MOU is asking of us, to be a member of that. The other side of that,is that this group, the Alliance, does not have any guidelines or rules really in place; if we are,as a commission can join this group or be a part of it,first we don't know what we are getting into.To say that we would hope that the money,the percentage that they give the commission would be used to disperse funds to other non profit organizations, is yet to be seen. We don't know what they, as the other eight will tell us,as only one of nine, how we must spend that money. And I still believe that if they are receiving a percentage on their own, and regardless if this was being done years in the past, that they also be able again, to ask for money through from what the Commission is going to be allocated, that is a form of double dipping, because they are already getting a percentage. 50:43 Joe H Joye, Unable to determine— unable to transcribe, isn't allowed Unable to determine— unable to transcribe 50:47 Joye So is it,all of these things come into play 50:48 Heidi How much time do we have, time out 50:50 Joye because as a commission 50:51 Heidi Okay, we we have 50:51 Joye Unable to determine— unable to transcribe 50:53 Heidi Joye, I think everybody understands your question,we only have five minutes so let's let them answer 50:58 Joye And I think Lisa said she could stay Unable to determine— unable to transcribe 51:03 Joe H They been here for an hour, but they haven't been allowed to talk for an hour laughter 51:05 Lisa So,basically if council were to approve a representative from your group to be a member of this organization, I believe that yes you could, you could participate. 51: 18 Joye And should the commission then know what all the guidelines and all what's entailed before we even move forward on this 51:23 Lisa Well by, by the MOU is is not obligating anyone to, it could be that this Alliance never actually become a 501c3 51: 35 Joye Exactly 51:36 Lisa So this MOU is to just establish an alternate funding mechanism and to plan how the funds should be distributed among the groups,to hopefully supp, replace the current HOT funding. Um,so,eventually, I mean there will be some opportunities to review what the bylaws are and and comment on those unable to transcribe 52:01 Joye So the money is again, not, the word that was explained,should not be called as public money. So its private money versus hot money,so why, again,is the city commission even be involved in any kind of privately raised money? 52:18 Lisa This is done in other communities. It is not the first time it's being proposed,other city have started some programs urn when there is no hot funding available,so in trying to continue the programs that your group has unable to transcribe this is one possibility to see if there is any private funds that could be could be given to help, its sort of like you make grant applications unable to transcribe private funds too unable to transcribe. 52:54 Margie Rose And it also gives an opportunity to continue the programs unable to transcribe but basically if you decide to not participate the ninety one five and the additional forty thousand Joye Well the forty thousand was general money 53:08 Margie Right, but that is a question because after next Tuesday , you will be able to see the state of the financial condition of the city and the general fund is a big part of that, that is in question too. But at this point, the ninety one five, if you do decide not to participate that goes away 53:33 Brian And then we have nothing 53:34 Joye unable to transcribe 53:34 Heidi Alright 53:34 Joye unable to transcribe allocated to these other fourteen organizations,am I understanding correctly,although there have been over, I looked at the last two years,fourteen art organizations besides the nine that are, the eight that are represented as line items, that all of the fourteen will not be able to apply for lets say the grant money from the funds received from the Arts 54:03 Heidi Well no, this is, I think this is pretty specific. That other fourteen can not apply,according to this MOU for funds that are raised through this utility bill because that is all,that this agreement is for 54:21Joye Not even 54:22 Heidi the utility bill 54:22 Joye through this grant, that the money, not even for the money that is going to be allocated to the commission. 54:29 unable to determine No 54:30 Joye So that other fourteen will not be able to apply? 54:32 Ericha They can apply in a grant, for grants from the commission unable to transcribe 54:37 Joye Will the other fourteen be able to because I thought you said that only those who had applied this past year could receive money from the grant. 54:53 Heidi No 54:53 Joye So if we have a new nonprofit organization 54:54 Heidi No, I don't remember saying that 55:00 Joye that's my question, we have a non profit that had not applied this past year, lets say they applied two years ago 55:02 Joe H or they never applied before 55:03 Joye Or they never applied before, will they in fact be able to receive money through this Alliance money through the ACC. 55:10 Joe H If that's what we deem to do with the 55:13 Heidi Yeah, I mean if that, Joye unable to transcribe Joe H unable to transcribe 55:18 Brian We,we decide. If we get the money,we decide, nothing changes 55:24 Joye Says who 55;24 Brian Says us 55:26 Joye But this isn't our money Brian Thirty five percent is our money This is no longer HOT money I understand 55:34 Joye It's private money , that's going to be received from the general public 55:37 Brian Correct 55:37 Joye So how is it going to be presented to the general public, cause its my understanding that this is already going to go to the papers, that there's 55:47 Heidi Its already hit the news too, yeah 55:50 Joye But someone,somehow there have been nonprofits approached,even some of the eight to make comment 56:00 Joe H I'm I lost and don't understand your concern 56;02 Heidi Right and we're starting to run out of time and everyone is kinda like lined up to ask a question, so 55:05 Joye Somewhere in going back, you said, you made a comment that only those that had applied in the pla,past year from 56:15 Heidi I did not, I don't think. I did not 56:18 Joe H If you did,did you mean it if you said it 56;20 Heidi No, if I said it I didn't mean it 56:22 Joye unable to transcribe 56:22 Ericha Other people should be allowed to talk that haven't had a chance to talk yet 56:26 Heidi Yeah,Joye yeah 56:27 Ericha Kemm There are other people on this commission that are allowed to ask questions and we're running out of time 56:33 Heidi We're, we're 56:34 Ericha I don't think its fair that 56:36 Heidi We're, we're also over the time limit and I am going to extend it 56:37 Joye Well I think 56:37 Heidi Its five thirty 56:40 Joye I disagree, I put together these questions and again I don't feel I'm getting the final answer, but go ahead 56: 47 Joe H unable to transcribe 56: 48 Ericha I'm just advocating for the others 56:51Heidi Frank,Joe, Brian. Frank, Frank has a question,Joe and then Brian 56:59 Frank: I pass 57:00 Joe Schenk: I am still very uncomfortable that there are no answers to questions 19, 20,21,22. How is it that this determination has been made that there is no HOT fund money when we don't have any speculative budget proposals for 10-11, you all haven't cooked any numbers and looked at this tracking history? 57:22 Eddie Houlihan: It's not like we want to put out 57:22 Joe Schenk: Well I mean I feel like we are just flying blind and I just don't think that, you know I just don't feel real comfortable because I mean I hear the CVB saying you know we're bringing in conventions and the hotel occupancy is up and you see numbers moving up during from 08 to 09 and then there's some that drop back and then there is some that go up into oh you know and then this last four month period one,one is up and some are down so 57:54 Eddie Houlihan: I, I guess because we we 57:55 Joe Schenk: there is no money 57:57 Eddie Houlihan: Let me say three things about that. Number one is we know the convention center arena continues to require some large subsidies. Number two the visitors fund which is where the convention center and that the Heritage Park that and those things sit,which is subs,which HOT funds transfers money over there is two and a half million dollars negative in the hole,so at anytime the audi,our auditors could say and its been going on for about four years could say guys you you've have had a plan every year but its really not working too good so that that's thats an issue. The third issue is that the convention center has maintenance issues that we really don't have a funding support for and should be funded really from the HOT so that's three things that we know that we have large filings in 58:43 Joe Schenk But can I make a point on that maintenance issue? 58:45 Eddie Houlihan sure 58:47 Joe Schenk You just said rainy day fund,ten percent is for capital,capital issues this sounds like a serious capital issue that that money ought to be tapped into to fix those problems 58:57 Heidi Hovda There's also a combination revolving involving, infrastructure throughout the entire city too 59:02 Joe Schenk versus 59:03 Heidi Hovda and this 59:04 Joe Schenk but I mean like where is the revenue going to be generated but if this is the revenue generator that's what you ought to fix right? 59:09 Heidi Hovda and and my this is my concern I understand what you're saying and I don't like to even say this out loud but whenever you're, as we all know whenever your in a budgeting crisis you gotta look at what gives you the most bang for your buck and so the city has to go,all right we can only use this HOT fund money for certain thing, we would love to fund it for the Arts but we need to fund it for the convention center,we need to bring people into to this thing 59:36 Joe Schenk You've gotta have things for people to do, I hate to say it but 59:37 Heidi Hovda Well that's very true, but but that's very true but 59:38 Joe unable to transcribe 59:39 Heidi Hovda Lets not fool ourselves, harbor playhouse 59:42 Joe Schenk let me finish, let me finish, before you, let me finish in our conversation I think the thing I been hoping that we would do is to look at these forecasts and look at these percentages and everybody share in the pain. You know, that's the only thing I think is missing in this this whole equation, in this whole pushing forward, is we zero out the arts and we focus a lot of attention on other things and why why cant everybody share the pain. If we are looking at HOT funds being down eighteen percent,everybody takes an eighteen percent hit, if its twenty two we all take twenty two. But why is it some numbers go up and keep going up and some numbers are gonna end up being zero 1:00:30 Eddie Houlihan well we cant obviously do that with the debt service 1:00:33 Joe Schenk Right 1:00:33 Eddie Houlihan ok 1:00:34 Joe Schenk but we've got some that in here that 1:00:35 Eddie Houlihan there there's some in there they could go back and renegotiate contract with CVB that's a little unable to transcribe my pay grade but that's 1:00:43 Joe Schenk What is special events that all of a sudden is two hundred thousand dollars 1:00:46 Eddie Houlihan Special events,special events is the uh Arts and Science museum 1:00:50 Joe Schenk But their a department,what the special events that come under them 1:00:52 Eddie Houlihan well that was, that was put in there to balance the general fund one year,so yeah that could be taken out and we could make additional deductions in the general fund; It could be. 1:01:05 Joe Schenk that's where I think there just needs to continue to be some more dialogue, and some more what ifs, and you know 1:01:11 Heidi Hovda Well, in talking with the city council,people that I have talked to,its pretty clear that, they,as much as they would like to, they are unable to and the way its been explained to me and I think that this is a way to look at is that, yeah when people come here they,we have to give them something to do but we are not bringing people, people from Wyoming aren't coming to Corpus Christi to see a show at the Harbor Playhouse, as much as I would like to believe they are they're not. So the city council and with the help of city staff have to look at what these expenses are and what's bringing the most bang for the buck. Things like the convention,the convention and visitors bureau and the convention center, as much as I don't like to say it, have a more direct impact on the economy and and local tourism than the Arts organizations do,they have a more indirect economic impact 1:02:08 Joe Schenk • I beg to differ 1:02:09 Joye LaBarrett Wasn't the city involved with the acceptance several years ago of the arts role and Richard Florida's 1:02: 10Joe Hillard I think there's a have a hard asset that we have to take care of, the Arts 1:02:14 Joye The Rise of the Creative Class 1:02:14 Heidi Hovda But I, I, I, as far as economic development,when it comes to bringing people to come live into your city, absolutely it's a very important role and I'm, I'm a huge advocate for that, but as far as bringing heads and beds, I, whenever you are looking at an entire budget you can not say that the Corpus Christi Ballet ,well its not a line item, so that's not a good one, the Corpus Christi Symphony, isn't necessarily bringing a ton of people into heads and beds. 1:02:49 Joe Schenk And I can tell ya that I am trying to get the Mountain Plains Museum Association to come here in 2012, they would have a board meeting here in February, then the whole ten state region would come here in the fall of 2012. If we are eliminating the Botanical Gardens,Art Museum. Asian Cultural Museum,just run the list, I know that they were the organization was looking at going to Colorado Springs in 2011 and Colorado Springs turned down arts funding and museum funding, they're not going there in 11, I mean so we're we're going to have some push back on some of these things and that's what's worrying me. 1:03:29 Heidi Hovda Its worrying me too, it's a hard reality,but the reality is its its been made pretty clear to us by the mayor and city council no matter 1:03:35 Joe Schenk But what are they looking at,what numbers are they looking at,that's what I don't understand 1:03:40 Heidi Hovda they're looking at the 1:03:41 Eddie Houlihan At the end of last year they had to dip into the general fund for four hundred thousand and things are not likely to improve 1:03:47 Joye LaBarrett For the arts? 1:03:48 Heidi Hovda For the Arts and they made it very clear they wouldn't be able to do this again this year 1:03:48 Eddie Houlihan Yes 1:03:48 Joye LaBarrett They took four hundred thousand out for the Arts in 2009? 1:03:48 Joe Schenk They got it out of general funds, that's right. 1:03:54 Joe Hillard Guys we're off topic, we're way off topic. Everyone is here, here on this side of the table and I am sure you guys love the arts as well, because they are passionate about the arts. We would love to see the arts funded as much as possible.Now we're dealing with reality. And Joe I share your concerns and I have had my head in the sand up until this point. The problem isn't that HOT taxes have declined, the problem is that the city has mismanaged HOT funds prior to today. The city has mismanaged HOT funds prior to today and now we get to bear the brunt of that. And I will be saying that very loudly to the seven people that listen to my show. laughter 1:04:39 Heidi Hovda Brian's next 1:04:39 Joe Hillard Here we are today, I have other questions that I would like to try and get us back on topic 1:04:40 Heidi Hovda that's ok but Brian, Brian's next , and then you, ok? but 1:04:45 Joe Hillard I think that Ericha might have some things 1:04:46 Brian Honigbaum I, I just wanted to say that I agree with you one hundred fifty percent, the problem is the writing is already on the wall. Joe's right, something happened and we are getting, you know for lack of better word, it's a lot of screwy but we are not going to change anybody's mind. There not going to go back tomorrow and say, oh, let's give them back the HOT money. So part of it is our responsibility,we should have known about it earlier and we should have gone and marched and raised hell and yelled and said don't take our money away 1:05:10 Joe Hillard Unable to determine creating a past 1:05:11 Brian Honigbaum But if it didn't happen, we got to get over it at this meeting. This meeting is to discuss this MOU and whether it's at least the better of two options and the way I see it is we have two options. We can not agree to the MOU which means we wont get the ninety one which means all those non nine line items wont get anything from us or we can agree use our power as the ACC to work through it get the ninety one and spread it out over the organizations that would get zero. So you're either in the party or you're out of the party. It's not the best party to go to but otherwise there is no reason for our existence. 1:05:50 Joye LaBarrett Why wouldn't the ACC devise its own method of raising money. 1:05:51 Barry Brown There is nothing that says we can't do that 1:05:52 Brian Honigbaum I'm not saying we cant, but this is what is on the table now. I'd rather have ninety one and make sure the the ballet gets two thousand bucks next year than nothing 1:06:59 Heidi Hovda Joe then Dianna 1:05:10 Joe Hillard Uh, if talking with the other people on the ACA if ACC doesn't sign on with this will the other eight organizations proceed as planned? 1:06:08 Heidi Hovda yes 1:06:11 Joe Hillard Uh, if when talking with the other people in the ACA, if ACC doesn't sign on to this will the other eight organizations proceed with this plan 1:06:07 Heidi Yes 1:06:08 Joe unable to transcribe so its not hypothetical unable to transcribe that would be a reality? 1:06:16 Michele Yes 1:06:17 Heidi Hovda they would be highly disappointed, but yes 1:06:23 Joye LaBarrett Well, in that case I still do not understand why all of the art organizations were not asked to come to the table because once the decision was made that there were no HOT funding 1:06:33 Heidi Hovda Joye Joye Joye, I'm sorry, I'm sorry to cut you off but Dianna was next unable to transcribe 1:06:42 Dianna Bluntzer Dura I think my biggest, I struggled a lot with deciding which way to go with this, and um I think my biggest concern is procedural and legal, so I just want to run it past you as a general question,obviously you have given this thought regarding this, you don't see any problems that we're mis-stepping or using privileges urn with having uh Heidi being our chair as well as being the representative on the,this makes me have my first thought, I just want to make unable to transcribe an obstacle unable to transcribe but now I am seeing this just as a grant or a non profit that is allowing us to get some money. But at this point unable to unable to transcribe is this come back and bite us later legally, procedurally or getting into miss-stepping; I'm very concerned that this is outside of our realm of responsibility and what we've been assigned to do,and uh, I just want to clear that up with you guys unable to transcribe 1:07:39 Atty. Lisa Aguilar unable to transcribe 1:07:40 Dianna Okay, you think we're okay unable to transcribe 1:07: 42 Atty. Lisa Aguilar unable to transcribe 1:07:47 Dianna that's my biggest concern 1:07: 51 Heidi Joe 1:07: 53 Joe H I want to discuss the double dipping part now 1:07: 57 Heidi Okay 1:07:58 Joe H unable to transcribe Um,and I want to understand,help me to understand, cause I haven't, whoever wrote the MOU unable to transcribe It doesn't matter to me what has ever happened before today. I believe that today, if this is voted on, we have got the ability to create a whole new ACC and a whole new set of things,and that is exciting actually. Urn, prior to today , the art, I'm going to use, let me not use the Art Museum, let me use the Jazz Festival. The Jazz Festival, receives last year, ten thousand dollars in HOT fund money, and the applies in a grant to receive an additional, Joye? 1:08:32 Joye Ten thousand 1:08:34 Joe H Ten thousand dollars. Um, that's the precedent, can we change that from this point forward? 1:08:42 Heidi Actually, I guess according to what the Arts and Cultural Alliance stated, the Jazz Festival applied for a grant and did not receive funding, so 1:08:53 Joe H A different example, whoever,whichever one it is 1:08:55 Heidi Okay then, then say it with the Jazz, outside the Jazz Festival. Re-phrase the question. 1:09:00 Joye &Joe S Harbor Playhouse 1:09:01 Heidi Re-phrase your question using Harbor Playhouse because I don't understand your question. 1:09:04 Joe H Uh, the Harbor Playhouse is a line item on the budget for HOT Fund,HOT fund, HOT fund money, they applied for maybe two grants and received them. So they've got their forty five zero seven zero plus whatever it was 1:09:19 Joye Ten thousand 1:09:20 Joe Do we have to do it that way from now on? 1:09:23 Atty Aguilar Do it what way 1:09:26 Joe H Do we,do 1:09:27 Heidi You're basically saying 1:09:28 Atty Aguilar The guidelines, what,what were you using to make that kind of decision 1:09:31 Heidi Because of the question of double dipping 1:09:35 Joe H If you are already a line item, line item on the budget and now we're, they're not paying for themselves by joining this Alliance. The fourteen groups,seventeen groups, fifty groups maybe that will apply for grants or any money that we allow to grant in the future if we go along with this,will, I just heard something weird earlier and that is that they want their total grant amount plus their line item to be 1:10:01 Heidi An average of their total grant amount 1:10:05 Joe Right, which reduces our percentage 1:10:05 Heidi Yes 1:10:06 Joe H And, I, that's ridiculous. I don't understand why 1:09:10 Lisa I don't remember hearing that 01:10:11 Joe H We would ever go that way. 01:10:11 Heidi Yeah Unable to determine 01:10:14 Heidi its, its, its nothing in, listen to me. It is not, I'm sorry to mean that so forceful. There's nothing in the MOU that says it. There is nothing that binds us to it. I'm just giving, we, I'm just letting you know as the ACC chair,one person that represents the ACC, this is what has been said. 01:10:32 Joe H Uh hum 01:10:32 Heidi There's no final agreement on this because ultimately they can not tell,this MOU does not allow for the Arts and Cultural Alliance to tell us what we do with this utility bill money as the Arts and Cultural Commission. Unable to determine 01:10:47 Joe H So we can change that policy internally and Unable to determine 01:10:48 Ericha Yes 01:10:49 Heidi Exactly 01:10:49 Brian We can do what we want with it 01:10:50 Ericha Yes 01:10:50 Heidi But we can,we can also, if, if we decide to allow these organizations to double dip as the coin, the term has been coined,we can stren, we can,stren, uh shore up our granting procedures that say, if you apply, if, if, if you receive this funding and apply for a grant, you get a points, you get the points deduction. Unable to determine 01:11:13 Heidi And there are tons of things that we can do 01:11:15 Brian Its our choice Unable to determine 01:11:18 Heidi Its our choice and our granting procedures are up to us Unable to determine 01:11:19 Dianna I have a question 01:11:19 Heidi Dianna 01:11:19 Dianna Will we,will we be brought in to the process going forward if this is approved and 01:11:25 Heidi Absolutely 01:11: 26 Dianna With this Alliance. Will we start getting copy because I think part of the urn problem, has been, I think that a little, I think people have been offended um that they were not consulted or brought into the process of the Alliance being formed 01:11: 41 Heidi And I understand why y'all feel that way, this has moved so quickly and it moved pretty much over the the the Christmas holidays. So Unable to determine 01:11:49 Heidi Absolutely,absolutely Unable to determine 01:11:53 Heidi Yeah, the Arts and Cultural Commission as one of the nine,gets one vote. But any board representative and there there are three or four people that come for the Asian Culture Museum , some some organizations bring more than two people, but each organization only gets one vote. 01:12:09 Joe H Will we get internally a Unable to determine and give a report 01:12:14 Brian And it doesn't have to be you 01:12:15 Heidi And it doesn't have to be me 01:12:19 Heidi Frank 01:12:19 Michele He passes Unable to determine 01:12: 23 Joye I think the concern is that the fourteen organizations in addition to the other eight sitting at the table, and each of those eight get their own individual vote. 01:12:37 Heidi as Unable to determine 01:12:48 Heidi And all, you have raised your hand several times, I am so sorry go ahead 01:12:54 Alene Burch Can we make a stipulation that that thirty five percent of that that ACA money we're allocated uh cannot be dipped into by the other members of the ACA 01:13:05 Brian We can do whatever we want Unable to determine 01:13:05 Heidi Well, not as far as the MOU Unable to determine 01:13:10 Alene if we are one entity out of the ACA, like you know we're one vote out of 01:13;14 Brian I'm confused about one vote out what for what 01:13:19 Alene For their personal benefit vote,outvote us 01:13: 22 Brian Unable to determine 01:13: 25 Alene as to be able to apply to the ACC grant and continue to double dip 01:13:25 Heidi That's Unable to determine 01:13: 25 Alene and continue to double dip Unable to determine 01:13:29 Michele Forgive me that has nothing to do with this MOU. That is an ACC issue not the Alliance issue. That would be something y'all would need to decide that we could put on next month's agenda 01:13:38 Brian We get thirty five percent, it's ours to do what we want, period. End of discussion. They cant tell us what to do with the thirty five percent, they cant change the thirty five percent,that's 01:13:45 Joye Well,they haven't set any guidelines Unable to determine 01:13:49 Brian but that's our decision 01:13:51 Heidi But it's our decision and because its not spelled out its kinda at the Alliance's detriment they haven't said this is what we want up to this point so they cant go and change it at the end. Unable to determine 01:14:16 Lisa Aguilar With the agreement Unable to determine Unable to determine 01:14:08 Brian Oh I agree 01:14:10 Lisa Aguilar Section 15 says Each party to this MOU shall utilize the funding provided under this MOU as follows: in accordance with each respective organization's approved budget for operational and program expenses that benefit local community and enhance quality of life. So that's all that it says 01:14:31 Joe h If someone makes a call to vote, what are we voting on, to approve this 01:14:35 Heidi well 01:14:35 Brian To recommend 01:14:49 Heidi basically to recommend that the city sign the MOU 01:14:42 Joe Okay 01:14:42 Heidi Alright is there any more discussion because I'm about ready to close it 01:14:49 Constance I just wanted to add I would like to disagree and to go on the record that the city hasn't mismanaged the HOT fund money, Unable to determine and I just wanted to say that. 01:14:56 Heidi Thank you Connie, ahem Constance I'm sorry 01:14:59 Constance That's okay, it doesn't matter. 01:15:03 Heidi Alright I'm gonna call for a vote 01:15:04 Ericha I would like to make a motion we have closed ballot, for this vote, that we do it written on ballot. 01:15:13 Dianna I second 01:15:13 Joe S With our name? 01:15:14 Ericha & Heidi No 01:15:15 Ericha Just yay or nay 01:15:18 Joe S I need to go on record for my vote 01:15:20 Ericha Oh, I see 01:15:22 Joe H Say it again 01:15:22 Joe S I think we have to go on record for a vote, I don't think we'd have secret ballots Unable to determine 01:15:29 Ericha Oh,okay 01:15:32 Joe H I'm not sure if we are required 01:15:32 Brian I'm checking, I'm checking, Joe Unable to determine 01:15:34 Ericha For chair. Oh, okay , I'm, I'm 01:15:36 Brian Yeah, no you cant, that's correct 01:15:37 Joe H Urn, remember Unable to determine 01:15:42 Brian We need to fix that 01:15:43 Heidi No, We need to stop and go on . If you want to have that discussion can you have that outside of our meeting. Thank you very much. Alright, I am calling for a vote, do I have a motion regarding this MOU? 01:15:56 Dianna I move that we recommend to sign the MOU 01:16:00 Heidi Do I have a second 01:16:01 Joye That the city sign 01:16:02 Dianna That the city sign the MOU 01:16:03 Heidi Do I have a second 01:16:04 Brian I'll second it 01:16:07 Heidi All those in favor say aye 01:16:09 Michele Raise you hand 01:16:10 Brian Raise your hand 01:16:10 Heidi Oh, Raise your hand 01:16:25 Heidi Are you good?All those opposed. (none opposed) 01:16:28 Heidi All those abstained. (Joe S and Joye abstained) Alright, motion carries 01:16:33 Joe S I think I need to make a point of order. I think I need to abstain since I am a HOT fund recipient and a grant recipient in signing on these contracts with the city I don't think ethically I should vote. 01:16:44 Heidi I'm very glad that you took that stance. I was concerned about that. 01:16:48 Joye And I am abstaining because I feel that we need to get more information as far as guidelines. 01:16:53 Heidi I think that that's a very fair statement Joye. Alright, thank you City staff. 01:16: 58 Eddie Anytime you've got a question,just give me a call 01:17:06 Heidi You' re gonna just walk away just fine 01:17:07 Eddie I am always available 01:17:16 Michele Constance, thank you 01:17:18 Barry We appreciate that Unable to determine- city staff is leaving 01:17:20 Brian Barry, you got a second Unable to determine- city staff is leaving 01:17:24 Heidi Okay, real quick could I just get everyone's attention?Real quick because this meeting has taken already enough time, I put the motion to the table uh I would like to move to item 01:17:40 Michele Old business 01:17:40 Heidi Old business the item regarding the expenditures under five hundred dollars there's this little item, this paper that Frank put it out and work up Frank worked really hard on this 01:17:49 Joe H Ahem 01:17:50 Heidi Uh,Just a bit of history,oh and Joe Hilliard, sorry,did you help?Did you help I don't remember that. 01:17:53 Joe H We helped each other Unable to determine Unable to determine Could we review that 1:18:01 Heidi Okay just for a little bit of history, uh we were operating without a budget, there were a ton of questions about expenditures and what could be spent on and we cant because we have to know for October's meeting so this is the resolution of that and the change to our bylaws shall, its uh, its uh to review the bylaws regarding the expenditure of five hundred dollars and the pro and the post changes commissioners arts and cultural commission,city staff liaison may make expenditures for up to five hundred dollars for budgeted ACC expenses without prior approval from the ACC. Budgeted and unbudgeted expenditures over five hundred dollars must be approved by the ACC prior to purchase,with Receipts for all expenditures shall be submitted to the city arts and cultural commission city staff liaison. 01:18:54 Brian I move to uh accept the proposed change to the bylaws 01:18:56 Joe H I second that 01:18:57 Heidi Uh, any discussion? 01:18:57 Joye I think its too high, five hundred dollars, but that's just my opinion. I don't see the reason for anyone to as an individual commissioner need to go out and spend five hundred dollars. 01:19:12 Joe H Unable to determine 01:19:13 Heidi If we, if we have, if we have 01:19:13 Joye Especially if we have budgeted it all 01:19:15 Heidi If it's a budgeted item for five hundred dollars Go ahead 01:19:20 Frank There are occasions when city staff needs to Unable to determine 01:19:23 Joye Five hundred dollars? 01:19:28 Joe h It has to be a budgeted item Unable to determine then it's a moot point 01:19:29 Joye Right As long as it has been budgeted 01:19:32 Joe H Right 01;19:32 Brian Right 01:19:34 Heidi Okay so any more discussion 01:19:34 Joe S Call for the question 01:19:36 Heidi I'm calling for the question, I'm calling for the vote 01:19:39 Joye Call for the question 01:19:40 Brian Call for the question 01:19:40 Heidi Ah, Okay,uh all those in favor say aye Aye 01:19:46 Heidi All those opposed? Great. Tara did you get the first and second on those? 01:19:51 Tara Um hm 01:19:51 Heidi Good. Urn,since this meeting has taken a long time I would really like to just table all the other items unless there's, unless there's a burning desire for anybody to talk. Yes 01:20:03 Brian I just want to let everyone know that as chair of the subcommittee that Heidi had been working with the city secretary's office on the uh the subcommittee meetings and um you are now allowed to have them at your home. You still have to post seventy two hours but you can now have them at your home. Right? 01:20:21 Michele Yes 01:20:21 Heidi Michele did that Unable to determine 01:20:22 Brian Thank you Michele Unable to determine 01:20:28 Heidi Okay wait the only other thing real quick I just want you guys uh its eight d, I want you to review, regrew, review your attendance requirements. I think a lot of discussion requirements that we've had regarding this MOU we could have gained a lot of ground if we had met quorum and I could have addressed a lot of these concerns to the arts and cultural alliance and it would not have been so so attendance 01:20:54 Ericha Here here 01:20:55 Heidi is important 01:20:56 Ericha Here here. I drug my sick self up here and didn't make quorum 01:21;00 Heidi Alright Joe 01:21:00 Joe S Is there anything on this James Hetherington maintenance that we really need to deal with? What's that agenda item about? Has something come up? 01:21:10 Michele No, we're basically were going to request we were going to see if the ACC would be interested in helping us assist with the new maintenance we have to do. As you know,the fire department uh 01:21:19 Joe S Put up a silly fence Michele Put up a silly fence and so we met with Hetherington,we met with the fire department and we come up with a really great solution, however he needs to take the sculpture back to San Antonio and mend it if you will where its not as um sharp as not sharp,sharp edges and then bring it back but unfortunately that will cost two thousand dollars. Urn, so the city is going basically to the fire department and our cultural services and now the ACC to see if they might be interested in giving any money to contribute to this cost. 01:21:53 Joe S They couldn't come to an agreement on planting that kept people away from the sculpture 01:21:58 Michele It actually that was part of it also 01:21:59 Joe H Didn't it have to be higher Michele It has to, it has, the sculpture has to be a bit higher, the the edges are too sharp and unfortunately he can not do that here, he has to take it back to his shop in San Antonio and we are going to be planting some, some type of, I want to say rosemary but that might not 01:22:17 Heidi Is this something that we want to vote on today or let marinate for a month? 01:22:21 Brian We're better sticking our money away and let it marinate 01:22:22 Heidi Alright uh, 01:22:23 Joe S Cant we just wait until the budget gets Unable to determine 01:22:30 Joe H Unable to determine we made a very big decision today, 01:22:33 Heidi Yeah 01:22:26 Joe H I know we're all ready to go, but we made a very big decision today 01:22:34 Heidi Yeah 01:22:34 Joe H Unable to determine I think we could talk about it for a couple of minutes before we adjourn 01:22:39 Joye But can I make sure something gets put on the agenda, can we do that 01:22:42 Heidi Yes, M'am 01:22:42 Joye Uh, that the Commission will vote on the recommendation coming from the Grant Committee for revising the uh scoring factors. Which is something that the commission 01:22:55 Heidi Uh yeah, good 01:22:56 Joye Ask us to do and we have the recommendation and we want to make sure it gets on the agenda. 01:23:01 Heidi it gets on the agenda. Yes 01:23:01 Frank Another thing that needs to be on the agenda is uh,the approval of the uh selection panels uh decision for the uh police station artwork 01:23:13 Heidi Yes 01:23:14 Brian Joye would the discussion and vote that we had today now that we have more freedom since its not HOT money does that completely change your whole grant proposing to start all over again 01:23:23 Joye Well that was one of the reasons why that I was pressing for what were the guidelines that we as the ACC will be under coming from this Alliance as to how we are to spend this money, and as long as we are free to do what we want with it, this would become an Alliance you know grant and should we ever get HOT money again, whatever we had in effect in the past would kick in instead. So 01:23:53 Brian So in a way 01:23:54 Joye So it could be concurrent 01:23:54 Brian Okay 01:23:57 Joye There's no way to tell, but we, until we know what the guidelines are going to be and everything is on paper, um we'll just have to wait to see what is going to happen there but our recommendation will be based on 01:24:10 Brian HOT money 01:24:11 Joye HOT money 01:24:11 Brian Okay okay 01:24:12 Heidi Urn,just the next meeting is Monday at five thirty city hall we usually meet in the fifth floor of the assistant the city manager's meeting 01:24:19 Michele Fifth floor legal conference room 01:24:21 Heidi Okay we're doing legal the fifth floor conference room 01:24:30 Unable to determine Can you email us that 1:24:32 Heidi Yes yes 1:24:33 Heidi Five thirty 01:24:34 Heidi Alright, they usually last until about eight o'clock, so welcome, welcome aboard. Unable to determine 01:24:50 Joe H Unable to determine Joye, the only recommendation is whether we're under the illusion of getting some HOT money and if we aren't getting any HOT money, I say we dissolve any work toward caring about what we have for HOT money. Unable to determine There is no reason to work toward something Unable to determine 01:25:01 Joye We've already have the recommendation put together which was what the commission asked us to do. whether there is HOT money this year or next year and it could be that HOT money would come to us, we're talking for 2011. I think then to have the commission go ahead and vote on these new factors. Unable to determine 01:25:27 Joe When is the next retreat 01:25:27 Michele April, the next retreat is April 01:25:34 Joe H Unable to determine 01:25:40 Brian I think, there is there is one exciting aspect of it is that we are not tied down with the rules that we have been so we can make more changes, Right Joe is that what 01:25:44 Joe H Unable to determine are groups starting out with no funds Unable to determine and the ACC for a long time has been doing things like its always done and I think some of the best things we can do for the arts organizations in the city require very little money at all. And we haven't been doing any at all because we've been concentrating on two big money items and that's grants and festival of the arts. 01:26:05 Heidi And that is for April's meeting, uh besides from that, April's retreat meeting, aside from that, I want to encourage all of you to listen to city council's meeting on Tuesday, its available during live after on what channel 01:26:19 Michele Its on the, I think is usually on channel 20 01:26:22 Heidi Yeah 01:26:22 Michele The cctv 01:26:22 Heidi You will be able to hear city staff was not as dire with y'all as we have been and I've heard some pretty bleak, bleak information from city council personally when I have talked to them one on one. So I encourage you guys to to listen to, I mean Joe's point is very well taken why is it always the arts to get chopped off at the knees, I didn't but whenever you hear that 01:26:52 Joe S I wish it were only the knees 01:26:52 Heidi Yeah yeah 01:26:56 Joe H They have a lot of financial responsibility when they're getting into loans and debts and all that where the money must go to and as much as we don't like to 01:27:01 Joe S There are a lot of smoke and mirrors out there that you just, that you all saw 01:27:04 Joe H You're probably right 01:27:05 Brian Well I think that maybe that's one of our, our purposes is not to let that happen again. 01:27:09 Heidi Alright 01:27:12 Joye Michele, the insurance for the permanent art out there, 01:27:15 Michele Um hm 01:27:15 Joye Does that not cover any damages for, that would include maintenance costs because we, we have been 01:27:24 Michele Right, risk management is actually looking into that 01:27:25 Joye Okay 01:27:28 Michele We just sent them the latest numbers because they, I believe the ones they have from 2001 and they said they were missing a lot of pieces of art. 01:27:35 Joye right 01:27:35 Michele So they're actually looking into that right now for us. 01:27:37 Joye Right because the general fund money we received is typically what we used to make repairs and so my question was does that insurance cover. 01:27:50 Heidi Well, yeah, and this is another thing and this is something that I have been working on separately when I talked to the city council regarding our general fund money. What I basically said to them is you know, the arts and cultural commission needs that general fund money and just because we are getting our HOT fund money covered does not mean we didn't have a need for that . This kinda gains us working this way, gains us some political capital that we otherwise would not have. The city came to us for help we as the arts and cultural commission made the right recommendation that kinda take a little bit of heat off of them when it comes to budget time and budget decisions. So it gives us just a little bit of wiggle room and a little bit more punch when it says,when we say to them by the way we just saved you two hundred seventy five thousand dollars can you give us our general fund money 01:28:32 Joe H Well you keep quoting numbers,but I mean, I can appreciate a unable to determine plan that we can execute but at the same time I'm not 01:28:41 Heidi Oh no no no, I'm not saying from the utility, what we saved them is for the two hundred seventy five thousand that they, that they should have, that they should have been spending and that all these art organizations would have fought for otherwise. 01:28:54 Joe H I just think that 01:29:55 Heidi We removed the two hundred and seventy five thousand headache. 01:28:57 Brian But Joe you're right, it could be zero 01:28:59 Heidi But it could be zero, but I don't think its going to be zero.Just to give you a little bit of information and Michele you know more about this. Arlington does this and they theirs is a little bit different in that there are seven diferen, seven different funds that people can sign up for. One of those funds in what October, 01:29;18 Michele The care and share program 01:29:18 Heidi The care and share program for one month received a check for seven thousand dollars. Arlington is about the same size as our city, they have a different median income, it's a little higher, I recognize that, this thing has been going on since 1994 so its had time to grow, but there is potential there. And I do believe there is potential there 01:29:37 Joe H Oh I'm not, I'm not downplaying the work that you guys have done 01:29:41 Heidi Oh its not about the work, I just do think there is a potential to raise funding this way. And the arts and cultural alliance want to look at the alternative funding sources outside of this, but this is the phase one, quick,fastest best way that can get some money by May 2010 so we can make a determination for fiscal year 2010 2011 how much money are all of these line items groups going to have.And its just a vague inkling, but it's an inkling link that we can conservatively base on the checks we received in May,June and July. 01:30:17 Joe H Making like this a three month program unable to determine 01:30:18 Heidi May,June and July would be the months, the months that cover the city's fiscal year. 01:30:23 Joe H Okay 01:30:24 Brian Right 01:30:27 Joye Whose the chair of visual arts? 01:30:31 Frank There isn't one 01:30:32 Heidi There isn't one right now 01:30:32 Joye I have some information for you guys 01:30:35Heidi Unable to determine 01:30:44 Heidi Alright, we still haven't adjourned this meeting. do I have a motion to adjourn the meeting 01:30:48 Frank So moved 01:30:51 Heidi Do I have a second Unable to determine 01:30:53 Heidi All those in favor Aye 01:30:54 Heidi All those opposed 01:30:54 Heidi Thank you very much everyone, it was a pleasure to work with all of you (Meeting adjourned at 6:16pm) January 14, 2010 Arts &Cultural Commission Transcribed: Joye LaBarrett PO Box 60110 Corpus Christi,TX 78466 June 9,2010 a. r .4w�