City Council

MINUTES OF THE CITY OF BRISTOL,TENNESSEE AND CITY OF BRISTOL, VIRGINIA CALLED JOINT CITY COUNCIL MEETING January 13,2020 CALL TO ORDER: The City of Bristol, Tennessee and City of Bristol, Virginia Called Joint City Council Meeting was called to order by City ofBristol, Virginia Mayor Neal Osbome on Monday,January 13,2020, at 12:10 p.m. in the City of Bristol, Virginia City Hall. City of Bristol, Tennessee Mayor Margaret Feierabend called the meeting to order at 12:11 p.m. Mayor Osbome led the pledge of allegiance. Present for the City of Bristol, Virginia were Mayor Neal Osbome, Vice-Mayor Bill Hartley, Councilman Anthony Farnum, and Councilman Kevin Mumpower. Present for the City of Bristol, Tennessee were Mayor Margaret Feierabend, Vice-Mayor Mahlon Luttrell, Councilman Chad Keen, Councilwoman Lea Powers, and Councilman Vince Tumer. Others present were City Manager William L. Sorah; City Attomey Danielle Smith, City Recorder Tara Musick; and members of City staff. Also present were City ofBristol, Virginia City Manager Randy Eads and members of City of Bristol, Virginia staff. ITEMS FOR DISCUSSION: A. Introduction of Bristol Public Library Director: Councilman Farnum introduced Tonia Kestner, the new Bristol Public Library Director. Ms. Kestner provided a brief summary of her background. She once worked for the Bristol Public Library and is now back where she started. She stated that the Library evolves as the community evolves. She would like the opportunity to meet with each Council member individually to discuss the Library. She also introduced Brenda Dunn, the Library's Chief Financial Officer, who was in the audience. B. Presentation from Birthplace of Country Music Museum: Mayor Osbome introduced Ms. Leah Ross who is with the Birthplace of Country Music Museum. Ms. Ross introduced Mr. Keith Liskey to give a presentation. Mr. Liskey discussed the mission ofthe Birthplace of Country Music and the three branches which are the museum, the radio station, and the festival.  Called Joint City Council Meeting January 13, 2020 Page 2 of 7 The radio station currently hosts twenty-five programs and is operated twenty-four hours for all seven days of the week. They are trying to expand the signal of the radio station. The FCC is expected to open a window to new stations in 2020. A video about Rhythm and Roots Reunion Festival was shown to the audience. Demographics on attendance of the festival was also provided. This past year was the first year that the festival had held a super raffle. The upcoming 20^'* Rhythm and Roots Reunion Festival was also discussed. The financial status of all three branches was discussed. The festival is positive and contributes funding to the Birthplace of Country Music Museum. The radio station is operating close to break even. The museum is not profitable. It is a Smithsonian Affiliate and needs to be accredited as a museum. Volunteers are very important to its success. The economic impact of motor coach groups and new hotels to the museum was also discussed. The educational impact of the museum was reviewed. The hosting of summer camps, participation in other festivals and music weeks, and the Ken Bums documentary were all discussed by Mr. Liskey. The presentation continued to review business plans, marketing strategies, and the financial status of the museum. The needed budget is approximately $1,061,000 and there is a funding shortfall. Actions underway to address the shortfall include reviewing revenues and controlling costs, Bristol Sessions Leadership Circle, 1927 Society, Unbroken Circle Society, grants task force, the Bristol Sessions Super Raffle, and government support. The museum needs $200,000 in direct government support with half from the state level and half from the two cities. The primary needs of the museum were presented and the reasons why each City should provide support. The nonprofit is executing its mission. The BCM has a positive impact on the community and the economy. The Cities have already invested in the entity and the community. Mayor Osbome asked if there were any questions. City Manager Sorah requested copies of the presentation for distribution to Council. Councilman Keen inquired as to why not just raise prices. Ms. Ross responded that they raised prices last year and sold fewer tickets. Vice- Mayor Luttrell asked how the attendance numbers were calculated. Ms. Ross explained the process and that included in the numbers from actual ticket sales are vendor and performance passes.  Called Joint City Council Meeting January 13, 2020 Page 3 of7 Mayor Osbome asked if there was considerable costs to increase the radio signal from 67 to 100. Mr. Liskey replied that is was not a technology problem but rather a problem with gaining approval of the FCC. Councilwoman Powers questioned how much event tax is collected by BCM. Ms. Ross replied that it is 5% of each ticket. Since the tax has gone into effect in 2014, $255,000 has been generated. The festival averages $40,000 in tax and the museum averages $12,000 in tax. Councilwoman Powers asked if ticket prices could be raised if the event tax was not present. Ms. Ross said that possibility would be explored. Councilwoman Powers noted that Tennessee does not have an event tax. Councilman Mumpower asked ifthe event tax should not be paid was Councilwoman Power's point. She said yes based upon a previous memorandum of understanding. She would like the event tax to be removed on all nonprofits. Councilman Mumpower stated that you would have to play the market awhile to see the impact. It is something that could maybe be waived one year to analyze what would happen. Councilwoman Powers said the tax is built in and represents the amount ofrequest for funding under discussion. The City of Bristol, Tennessee gives $30,000 to the Birthplace of Country Music Museum and $25,000 to the Rhythm, and Roots Reunion Festival. Mayor Feierabend asked if the $30,000 was already included in the $200,000 previously discussed as the government ask. Mr. Liskey replied yes. The use of a talent buyer to books acts for the upcoming festival was discussed. A request for proposal process was used to pick the right person. Councilman Mumpower asked how we get the museum to be self-sustaining. He questioned what events could be held in advance to pull crowds is. Ms. Ross said this is discussed every year and she would take the comments of Council back to the festival committee. C. Discussion of Memorandum of Understanding for Nonprofit Agencies: City Manager Eads reviewed this item. This memorandum of understanding for nonprofit agencies is the result of the discussion at the October 15, 2019, joint meeting. The memorandum is based upon the guidance to use population in the funding formula. The city managers met to discuss the terms and Ms. Danielle Smith drafted the document. City Manager Sorah said that this memorandum was staffs stab and a starting place for discussions. Guidance is needed on where to go from here.  Called Joint City Council Meeting January 13, 2020 Page 4 of 7 Mayor Osbome stated that both mayors meet every month and have reviewed this matter. He felt that this is a jumping off point. City Manager Eads stated that agencies could be added or taken away from the memorandum. Councilman Vince Turner stated that he does not think population is a fair basis for the allocations. Councilman Bill Hartley stated that he is not sure what metric should be used. The capacity to pay of each city should be included in the formula. Councilman Turner stated that occupancy tax receipts might be a fairer metric to use. Councilman Keen reviewed that the memorandum resulted from the Visitors and Convention Bureau's request for a three year funding plan. He said that we need to consider how much they need for this period. City Manager Eads said that the end result or the request needs to be known so we can work backwards and determine the funding formula. Councilwoman Powers wants the previous memorandum of understanding regarding the Birthplace of Country Music Alliance (BCMA) to be fulfilled before entering into a new memorandum. The City of Bristol, Virginia still owes $100,000 to the BCMA from the previous memorandum. She wants trust to ensure that parties feel memorandums of understanding will be honored. City Manager Eads stated that memorandums of understanding are not legally binding. There are many moving pieces and it is hard to hold each other accountable. He added that memorandums of understanding might need to be ratified after a Council change. Mayor Osbome said the City of Bristol, Virginia would have to study the impact of rolling back the event tax. City Manager Eads said that he is not sure that the City of Bristol, Virginia would receive enough revenue from additional motel nights to make up for the lost revenue from the event tax decrease. He added that other ways to drive festival revenues need to be looked at because hosting the same festival each year will eventually lose sales. Councilwoman Powers replied that extra funding will be needed to make change. Mayor Feierabend said or the festival could be looked at as a community festival with a smaller crowd. Councilman Keen inquired as to what each city contributes to the nonprofits in the memorandum.  Called Joint City Council Meeting January 13, 2020 Page 5 of7 City Manager Sorah replied that the City of Bristol, Tennessee gives $50,000 to Believe in Bristol, $30,000 to the BCMA,$25,000 to Rhythm and Roots Reunion Festival, and $170,000 to the Convention and Visitors Bureau. City Manager Eads replied that the City of Bristol, Virginia gives $20,000 to Believe in Bristol, $5,000 to the BCMA, and $125,000 to the Convention and Visitors Bureau. City Manager Sorah also stated that funding for the FY 2021 budget is still underway and too early to commit amounts. Councilman Keen inquired if Believe in Bristol served about the same amount of landscape on both side of downtown. Maggie Elliott, Believe in Bristol, responded that each side is almost equal. City Manager Eads then asked if split equally means 50/50 to the City of Bristol, Tennessee City Council. Councilman Turner and Vice-Mayor Luttrell replied yes. Mayor Feierabend said that she was flexible. City Manager Sorah asked if the Bristol Public Library should be added to the discussion. Mayor Feierabend replied no because the library is owned by and funded by governments. Councilman Turner then asked what the City of Bristol, Virginia Council was thinking. Councilman Flartley replied that he thinks more funding is needed, but not at the 50/50 rate proposed. Mayor Osborne agreed that we need to put more in. He stated that maybe a percentage of the lodging tax could be used to fund the agencies. Councilman Mumpower stated that the timing is not good. The City of Bristol, Virginia's capacity to pay is a serious issue. Councilman Turner asked what amount that the City of Bristol, Virginia could afford to pay. City Manager Eads said that it is early in their budget process and it would be the end of March or the first of April at the earliest before that could be determined. Councilman Mumpower said that he thinks two years is the right horizon for the nonprofits. Councilwoman Powers asked that the last memorandum of understanding be honored. She stated that we need to put a foot in before we take a foot out. Mayor Feierabend said that we need to review between now and the beginning of April what each side can commit and then we can decide what to do. She would like memorandums of understanding added to Council policy and procedures. It seems that a two year period seems agreed upon. She also stated that she thinks each side should know more of the other city's budget.  Called Joint City Council Meeting January 13,2020 Page 6 of 7 Councilman Turner stated that he did not think that was necessary to decide what to fund these three nonprofits. He asked that each side look at what they can fund and then we can come up with the percentage. Councilman Hartley stated that the memorandum of understanding should be the floor and not the ceiling. Vice-Mayor Luttrell responded that each Council would share if each city gets a windfall. City Manager Eads requested that Believe in Bristol get a chance to present to both Councils. City Manager Sorah requested direction on where the City Mangers should go from here. Councilman Keen suggested that the BCMA and Believe in Bristol should be funded equally and that Discover Bristol could be funded by a formula. He mentioned a hybrid combination offunding. City Manager Eads said that he is hearing that the City of Bristol, Tennessee wants a 50/50 split. However, the City of Bristol, Virginia does not want a 50/50 split. He questioned if this process was a lesson in futility. He suggested that we look at totals to make a budget. Mayor Osbome stated that he would like a formula to be used going forward. Councilwoman Powers said that City of Bristol, Tennessee constituents are questioning prior year disparities and asking for justification. City Manager Eads reviewed business incentives provided by the City of Bristol, Virginia that he believes helps promote tourism. Mayor Feierabend said that the two mayors and city managers will follow up on the issue and try to revise the memorandum of understanding. City Manager Sorah recommended that the Convention and Visitors Bureau should go ahead and hire the vacant position. Beth Rhinehart, Bristol Chamber of Commerce, replied that funding dictates which direction that they go in the hiring process. D. Other Items for Discussion: Mayor Osbome discussed events planned for Martin Luther King Jr. Day on January 20 and 21,2020.  Called Joint City Council Meeting January 13, 2020 Page 7 of 7 There being no further business, the meeting was adjourned at 2:16 p.m. by both mayors. Ivj^garet Feierabend, Mayor Tara E. Musick, City Recorder