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HomeMy WebLinkAbout3-2-22 LEPFALANSING ENTERTAINMENT &PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING MARCH 2, 2022 MINUTES At 8:00 a.m. Chairman James Stajos called the monthly meeting of LEPFA Board of Commissioners to order in the Governor’s Room located at the Lansing Center; 333 East Michigan Avenue; Lansing, Michigan 48933. COMMISSIONERS PRESENT: Paul Collins, Price Dobernick, Larry Leatherwood, Danielle Lenz, Maureen McNulty-Saxton and James Stajos. COMMISSIONERS ABSENT: Cindy Bowen, Kenric Hall, Desiree Kirkland (Ex-Officio), Brian McGrain (Ex- Officio), and Charles Mickens. OTHERS PRESENT: Mindy Biladeau, Heidi Brown, Scott Keith, Paul Ntoko, Daniel Ray, Karen Wilson, and Tristan Wright Lansing Entertainment & Public Facilities Authority; and Lisa Hagen-Lansing City Attorney’s Office. III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda. IV. PUBLIC COMMENT: Paul Ntoko introduced newly hired Foodservice team members Daniel Ray, Executive Chef and Karen Wilson, Foodservice Manager to those present. Chairman Stajos welcomed them and noted it was nice to have them on board. At 8:08 a.m. Daniel Ray and Karen Wilson exited the meeting. Scott Keith reported that he had talked to Jack Alexander prior to today’s meeting and Jack was unable to attend today’s meeting due to Ash Wednesday. Mr. Alexander asked for an update on the stadium and Scott will share the information. V. APPROVAL OF THE JANUARY 25, 2022 MINUTES: Motion was made to accept the meeting minutes for January 25, 2022 as presented. MOTION: Commissioner Leatherwood SECOND: Commissioner Lenz; motion carried. VI. REPORTS: A. CHAIRMAN’S REPORT: Chairman Stajos asked Scott Keith to address the following: 1. Remote Policy: Scott Keith noted this is something we have been contemplating for some time. The policy was shared with the Finance Committee and the Personnel Committee and will apply to employees based on their position, and if in person meetings are required for their duties as may or may not apply to our industry. This policy allows for employees who have been employed with LEPFA for twelve months, with exceptions made by the President & CEO. Scott shared that Commissioners Mickens and Bowen are supportive of the policy and noted it is the way of the future. The policy will not apply to all positions but is acceptable as long as we apply the policy and treat all employees fairly and equally. The policy will go back to the Personnel Committee for final approval. We had a remote policy that applied to staff during COVID-19 and was on an emergency basis. Chair Stajos questioned how will we implement the policy if it is an “all hands-on deck” day? LEPFA Board of Commissioners Meeting Page 2 March 2, 2022 Commissioner Leatherwood questioned if the policy specifically related to COVID had to be adjusted back and forth based on the status of COVID, and if the current remote policy was due to COVID? Scott Keith replied that COVID pushed the policy because we had no policy in place. COVID told us we needed to consider working remotely for employees. We also needed a remote policy that was agreed to by our Worker’s Comp carrier. Commissioner Leatherwood asked if it was determined that they would cover an employee who worked remotely and noted that this seems to be the biggest gray area for employers. Chairman Stajos noted he would be leaving the meeting for a 9:00 a.m. meeting and Vice Chair Leatherwood would take over the meeting when he left. Commissioner Price Dobernick will leave the meeting at 8:30 a.m. B. FINANCE COMMITTEE: Scott Keith reported that the Committee met and included Commissioner Mickens, Commissioner Saxton and Commissioner Kirkland on January 31, 2022 and they reviewed the following: 1. Groesbeck Golf Course: Year to date revenue per round is up, rounds are down, and simulator play is down compared to last year. Scott Keith suggested the course simulator play peaked two years ago and may have been a fad two years ago, because not as much was open at that time and it had an impact on play; now everyone has a simulator. Chair James Stajos noted we were ahead of the curve with the simulator; Scott Keith stated it has paid for itself and will be up until the end of March for this year. Commissioner Lenz questioned if the simulator has leagues? Scott Keith noted we do and also allow for rental by the hour. Income Statement – Actual versus prior year – greens fees are up over the prior year (this includes the simulator) and Total Operating Revenue is up while Operating Expenses are down over the prior year due to vacancies of the Golf Course Operations Manager and the Assistant Pro. Budget vs. Actual – we are behind in Revenue and are ahead of budget. Commissioner Lenz questioned why supplies are up? Scott Keith noted we bought ahead in preparation of the Manager position being vacant, so we can start the season off with the proper chemicals on board and ready to go. Commissioner Leatherwood asked if LEPFA has incentive packages to keep employees? Scott Keith noted they are bonus eligible through June 30th of each year and are vested in the retirement plan after five years. There are no incentives for retention efforts. Balance Sheet – the Balance Sheet is in a good spot. There is money allocated to improve the course; Scott has a meeting with the Mayor and Bret regarding “Friends of the Park” being upset about the limitations of the course being used for cross country skiing. The issue is previously the skiers were entering the park wherever they wished, and they are now required to enter by the Club House, and we are monitoring based on insurance carrier recommendations, and it LEPFA Board of Commissioners Meeting Page 3 March 2, 2022 keeps people off the greens; there is also concerns about unsupervised kids on the course. They will also discuss the next phase of the course at the meeting. At 8:29 a.m. Price Dobnernick exited the meeting. 2. Jackson Field: Scott noted we are not where we were last year or two years ago. Funds are being spent for the improvements. The construction project is resulting in high utility bills as they are needing heat for the drywall, paint, etc. Chairman Stajos questioned if this was included in the budget, for the City to pay for these costs. Scott noted we are $40,000 under budget and will inquire with the City on how we can use the funds. Chairman Stajos indicated he was inquiring to make sure we don’t get saddled with the debt as we did 3-4 years ago. Scott Keith noted a meeting was held and he had a conversation about being very efficient and will attempt to use the funds. At 8:32 a.m. Mindy Biladeau entered the meeting. It was noted we are over in Salaries/Wages and Maintenance of Facilities and are about even compared to the prior year. Year-to-date and prior year-to-date are very different due to utilities. Income Statement – Budget vs. Actual is on budget. Balance Sheet – the stadium is in an okay position and is better than last year; with unreserved equity a positive number. 3. Lansing Center: Scott Keith reported January revenue at $538,000 is close to a typical January and is good news. What is not typical is the number of weekend events with a lot of family activities such as cheer, wrestling, etc. which account for 33 percent of concessions sales. Commissioner Stajos noted that this should be a constant source of dialog in the community – the Lansing Center’s economic impact on the community. Building Rental and Equipment Rental are all in a good place. Miscellaneous reflects the reconciliation of Silver Bells. Compensation is higher due to bringing staff back and hiring at higher wages. Scott noted discussion will take place regarding the reduction of the 12% employer contribution to the pension because new hires are interested in a higher wage and pension and health care are not priority to them when looking at benefits/wage packages. Facilities maintenance is comprised of Security and revenue is tied to it; other costs include utilities. Income Statement – there is no comparison to the prior year-to-date and we are on track to have a $4-4.5 million year; we could see it ramp up and are still challenged on the gaps in labor and food and supply costs. The good news is that we are ahead of last year in Budget vs. Actual. Revenue exceeds Expenses and they are beating budget due to staff shortages that are borne on the backs of the staff who are doing a lot more, including the staff in the room and Scot extended his kudos to them. Commissioner Larry Leatherwood asked if there is something we LEPFA Board of Commissioners Meeting Page 4 March 2, 2022 can do to recognize staff. Scott Keith noted this is the age-old question, and our staff would be happy to have time off to be with their family. We are currently bringing back various recognition programs, including acknowledging milestone anniversaries, employee of the month, and the LEPFA Bucks Program. The challenge now is to bring staff together for recognition. Balance Sheet – Scott noted the PPP is still reflected and we are working with the Auditors. The grant is reflected and overall, we are in a better cash position and are $30,000 up. We are in a better spot than a year ago. Motion was made to accept the financials for Groesbeck Golf Course, Jackson Field, and the Lansing Center as presented for the period ending January 31, 2022. MOTION: Commissioner Lenz SECOND: Commissioner Leatherwood Motion carried C. PERSONNEL COMMITTEE: Scott Keith noted the individual headshots are coming up for the Board and he asked that Board members let us know which two head shots they prefer. Scott noted Cindy Bowen indicated they are working on their remote policy with Auto Owners, and LEPFA’s is more robust, and we were commended for moving in this direction, as we strive to be understanding and flexible. Once the policy is finalized it will be returned to the Personnel Committee for approval. Also, the CEO’s evaluation was discussed with Cindy Bowen and the changes they want to make; Scott noted that it is difficult for the Board to evaluate, and in summary will add a box for “not applicable” or “don’t know.” Chair Stajos noted the language would be “not applicable” or “doesn’t apply.” Scott noted they will try to find another form or template that allows for periodic updates and gives Board members the opportunity to give feedback throughout the year. Chairman Stajos noted that COVID has been a challenge in and of itself and Scott must have felt like he was on the Titanic for two (2) years, and to keep going every day is an admirable job. It is a goal by the next Personnel Committee to have a time frame for the evaluation work, and will have it ready by the June meeting, and it will be reviewed in close session and put in file. They will also look at developing a policy or guidelines on how the CEO evaluation is completed. Chair Stajos noted he wants to see the Executive Committee be the only ones that share the evaluation and give the final evaluation to the full Board as well. Commissioner Lenz asked if the evaluation goes only to the Board or is it shared with the Department Heads as well. Scott Keith noted in the past the Executive Chair has asked for input from the Vice Presidents. The evaluation is discussed in closed session and a recommendation is made from there. Commissioner Leatherwood suggested there be the ability to decline or delete items if you have no knowledge. Commissioner Stajos agreed with Commissioner Leatherwood’s suggestion. D. STRATEGIC PLANNING COMMITTEE: Committee Chair Danielle Lenz deferred her report to Scott Keith who noted he will meet with Dorothy Maxwell on the 10th to get the framework for the proposal and noted that he preferred slowly rolling out the training and determining how it will LEPFA Board of Commissioners Meeting Page 5 March 2, 2022 happen. Commissioner McGrain will be a part of the discussion on the 10th. Chair Stajos noted that he liked Dorothy’s strategy of developing a plan for the next year, the next two to five years. Scott note we have a business plans which will also be updated. Scott noted they will also be working on a strategic plan for the golf course as well and will bring before the Strategic Planning Committee for next year. At 8:55 a.m. Chairman James Stajos exited the meeting and Vice Chairman Larry Leatherwood lead the meeting. E. PRESIDENT & CEO’s REPORT: Scott Keith reported the following: 1. GLCVB Annual Meeting: The annual meeting was held yesterday, and Mindy Biladeau attended as well. They are switching to a smaller printed visitor’s guide and it is available electronically and Scott offered to share the guide. 2. Note from Charley Janssen: A thank you note was shared from Charley Janssen. 3. Community Contributions: A nice note was received from the Greater Lansing Food Bank for the donation of leftover food and for the monetary donation. F. VICE PRESIDENT/STAFF REPORTS: 1. Tristan Wright: Tristan Wright reported the Jackson Field renovations are coming to an end with the locker room renovation. There are water leaks that will be repaired, and the new fire panel installation will be completed by next week. The Maintenance team is finishing de- winterizing the stadium and will have the water on soon. April 6 is the first game versus MSU in the “Crosstown Showdown.” April 8th is the Lugnuts season opener. The Lansing Center is doing well and are working on extra projects and are currently cleaning the carpet. Honeywell is providing an audit on energy savings items. Groesbeck is prepping by getting equipment ready for the season and we are looking for a Golf Operations Manager. The Lugnuts will host the MSU vs. UM baseball game it is the 25th Anniversary of the game, which was the first game played at the stadium. Scott also noted we are working on the suite schedule and will have it ready to share with the Board members. 2. Heidi Brown: Heidi reviewed the information provided in the Administrative Report and provided a summary of vacant positions. An offer has been extended for the Accounts Analyst Administrator position in Finance. Interviews are scheduled for the Event Coordinator Position and the Building Engineer position. An offer has been extended for the Golf Operations Manager position. Since the last LEPFA Board meeting the HR/Payroll Coordinator position has been filled (as of 2/21). Vacant positions are posted on Indeed, LEPFA web site, Linked In, and LEPFA Board of Commissioners Meeting Page 6 March 2, 2022 LEPFA social media. The OSHA Summary has been completed and posted for 2021, LEPFA had one recordable injury. LEPFA has resumed Anniversary recognition for 5, 10, 15, 20, 25, 30, 35, 40 year anniversaries at staff meetings and have resumed sending birthday cards, anniversary card, etc. The LEPFA Bucks program is under review. And finally, the “Remote Telecommuting Policy” has been finalized with our Legal Counsel and Worker’s Comp provider and will be returned to the Personnel Committee for final approval. 3. Paul Ntoko: Paul noted at Groesbeck Golf Course the web site has been updated and we are seeing activity on season passes and are working to exceed last year’s thirty-eight passes sold. The league policies are being updated and tightened up especially when rain checks may be used, now it will be only on Monday through Thursdays. Food supply chains continues to be an issue, but our packages seem to allow for more flexibility. The Lansing Center staff is working to get staff on board and groups are trying to lock in prices far out from their events and we are working with them but cannot commit on prices so far out. The team is doing a fantastic job. 4. Mindy Biladeau: Mindy noted the Pace Report shows we are ahead of budget in Rent Revenue and bookings are moving in a positive direction, which is great. The change in March revenue is due to Michigan Broadcasters Association cancellation. Michigan State Housing Development Authority cancelled for May and we are keeping a cancellation fee of $12,000 as they are going virtual. Spartan Fire (Motors) signed a three-year contract and will be here on October 22-25. March is busy month for the Lansing Center staff. At Groesbeck, the concessions signs have been updated and the web site, too. VII. COMMISSIONERS AND STAFF COMMENTS: A. Commissioner Paul Collins: Commissioner Collins commented that he enjoyed his first meeting, and the Board seems like a well-functioning Board. He noted his workplace is also dealing with the remote policy and there are few private jobs that can work from home and each organization has a choice to allow employees to work from home or risk having their employees poached and he noted he felt it was a good move for LEPFA. VIII. OLD BUSINESS: Scott Keith reported the following: A. Major League Baseball (MLB) lockout does not impact the Lugnuts and there is still a full season on the schedule. B. Concerts – we are still looking at partnering on concerts at the stadium and have offers out. C. CVE (Certified Venue Executive) is a goal of Scott’s and he has received notice that he has passed the second phase of the certification process and will need to pass a written exam by LEPFA Board of Commissioners Meeting Page 7 March 2, 2022 June and orally defend his paper. Commissioner Leatherwood asked how many times he has to complete this process; Scott noted it is a one-time process. Commissioner Saxton asked if this is required to be a CEO of the Lansing Center; Scott noted it is not, and the CFE is the lower of the two certifications, the CVE is the highest level. Scott indicated he felt it was good to do as continuing education. Commissioner Leatherwood commended Scott and asked if down the road this is a certification that should be a part of the requirement for leadership of the organization in the future. Scott noted it is a good thing to strive for and certainly should be a goal. IX. NEW BUSINESS: None X. AJOURNMENT: At 9:19 a.m. the regular monthly meeting was adjourned. MOTION: Commissioner Saxton SECOND: Commissioner Collins Motion carried THE NEXT MONTHLY MEETING IS SCHEDULED FOR: TUESDAY, MARCH 29, 2022 8:00 a.m. LOCATION: 201-2 Meeting Rooms – Lansing Center Respectfully submitted, Heidi Brown, Recording Secretary