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HomeMy WebLinkAboutLEPFA Board of Commissioners Meeting Minutes March 26, 2024LANSING ENTERTAINMENT & PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING March 26, 2024 MINUTES At 8:14 a.m. Chairman Kenric Hall called the monthly meeting of the 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: Kenric Hall, Larry Leatherwood, Danielle Lenz, Emily Linden (Ex-Officio), Charles Mickens, and Maureen McNulty-Saxton. COMMISSIONERS ABSENT: Paul Collins, Price Dobernick, Desiree Kirkland (Ex-Officio), James Stajos, and Rawley Van Fossen. OTHERS PRESENT: Heidi Brown, Kirby Doidge, Scott Keith, Kasey McFadden, and Tristan Wright - Lansing Entertainment & Public Facilities Authority; Joe Abood -Lansing City Attorney’s Office; Julie Pingston -Choose Lansing; and Jack Alexander- Public. III. ESTABLISHMENT OF THE AGENDA: The agenda was approved as presented. MOTION: Commissioner Leatherwood SECOND: Commissioner Lenz MOTION CARRIED IV. PUBLIC COMMENT: There was no public comment. V. APPROVAL OF THE FEBRUARY 27, 2024, MINUTES: Motion was made to approve the meeting minutes for the February 27, 2024, meeting as presented. MOTION: Commissioner Mickens SECOND: Commissioner Saxton. MOTION CARRIED VI. REPORTS: A. CHAIRMAN’S REPORT: Chairman Hall noted items of discussion/action items for today’s meeting include: 1. Financial Review: February 2024 (Action Item) 2. Review & Acceptance of Updated Draft Budget FY24/25 (Action Item) 3. Purchase Reviews & Approvals: Lansing Center & Jackson Field Marquees (Action Item) 4. Personal Time Off Language Change for LEPFA Staff (Action Item) 5. Review of the New Lansing Center Website/Board Portal 6. Discussion of President & CEO Resignation with Resolutions that Assist with said Changes to Leadership (Action Items) 7. Personnel Committee Update 8. Strategic Committee Update B. FINANCE COMMITTEE: Commissioner Danielle Lenz reported the committee met and deferred to Kirby Doidge to report on February 2024 Financials as follows: 1. Lansing Center: Revenue: Food and Beverage exceeded budget by $100,290.64 which equates to a positive variance of $42,130.13 for year-to-date. Building Rental exceeded budget by $5,559 for the month and exceeds year-to-date by $25,075.28. Equipment Rental beat budget for the month by $20,682; and for year-to-date is behind budget by $155,243. Overall, the Lansing Center exceeded expected revenues by $141,268 for the month, and by $67,961 for year-to-date. Expenses: Kirby noted that Salaries/Wages and Fringes are under budget due to vacant full-time staff positions. As Kirby discussed last month there was an overcharge from LBWL which impacted the utilities line item, and the team is continuing to monitor utilities and billing for LEPFA Board of Commissioners Meeting March 26, 2024 P a g e | 2 accuracy. After review, it was determined that a meter was running, which Tristan stated has happened in the past and is being addressed with the Lansing Board of Water and Light. Chairman Hall asked if the meter was a water meter and Tristan stated that she believed it was a steam meter. Utilities are over budget by $164,715.38 year-to-date. Professional Services is over budget by $182,707.67 and while the need for Professional Services is decreasing, there are items that Professional Services are needed. Excess Revenues over Expenses for February are $420,292.92 and year-to-date the Lansing Center is at $471,326.06. Kirby and the Finance team will continue reviewing/projecting year-end Revenue and Expenses and will continue to monitor. Income: Kirby reported Finance continues working on the Lansing Center’s Receivables which have decreased and are waiting on the outstanding grant reimbursements. Kirby noted that February was a strong month for the Lansing Center and while compared to the prior year the Income was less, the Lansing Center is still beating last year’s Excess Revenues Over Expenses by $100,000. Heidi Brown entered the meeting at 8:17 a.m. 2. Groesbeck Golf Course: Revenue: Total Operating Revenue was $3,152.68 less than the budget for February and year-to- date is behind budget by $15,228.30. Kirby indicated with the season opening up and the warm weather in March, there was an opportunity to open the course which brought in revenue, and he anticipates that this will impact the budget deficit. Expenses: Because the course is being prepared for the season and there are various projects underway which means staff has returned for the season, which has increased Salaries/Wages and there were expenses for cleanup of the course which will be spread out throughout the season. Groesbeck Expenses were under budget by $14,778.47 for the month, and for year-to- date Expenses are under budget by $69,843.38. Excess Revenues Over Expenses was $19,011.89 behind budget, year-to-date Groesbeck is exceeding budget by $72,860.45. Commissioner Lenz asked why the simulator numbers were down. Kirby explained it was due to many simulators in the area and people now have them in their homes. Scott added that because of these factors, they are looking into the future of the simulator at Groesbeck. Income Statement- Revenue compared to the prior year is down as is Excess Revenue Over Expenses, Groesbeck is less in the hole for the current year than in the previous year. 3. Jackson Field: Revenue: There was no revenue for Jackson Field for February. Expenses: De-winterization of the stadium began in February which resulted in Expenses, including HVAC repairs which impacted Maintenance of Facilities, Jackson Field beat budget by $17,953, and Excess Revenues Over Expenses exceeded budget by $23,549.92. Kirby noted that there are HVAC units with issues and leaks that are being monitored. February Accounts Receivables are $226,592.09 and are comprised of grant funding. Currently, LEPFA owes the construction contractors $537,000 which is to be coming from the grant funding this week. Chairman Hall requested clarification regarding why the Utilities numbers are decreasing. Kirby explained the light project has had an impact on the numbers shown, and they budget for an LEPFA Board of Commissioners Meeting March 26, 2024 P a g e | 3 increase, which impacts the figures. The upcoming budgeted Utility expense has been reduced; the savings will impact Expenses for other repairs that are needed at Jackson Field. Motion was made to accept the February 2024 Financials as presented for Groesbeck Golf Course, Jackson Field, and Lansing Center. MOTION: Commissioner Saxton SECOND: Commissioner Mickens. MOTION CARRIED 4. Updated FY 24/25 Draft Budget: Kirby explained a meeting with the city was held to go over LEPFA’s draft budget as approved by the LEPFA Board of Commissioners. Kirby presented the past two years’ financials and noted that the Lansing Center’s operating contribution was decreased by the city to $800, 000 to accommodate the decrease in contribution; Kirby reviewed the Budget revisions as follows: Lansing Center: There was no change to Revenues. Items that were adjusted include Salaries/Wages and Fringe Benefits by $84,000; Rent/Leases by $35,000; Professional Services by $5,000; Maintenance and Supplies by $4,000; Events by $35,000; Food & Beverage by $150,000 and Miscellaneous by $10,000. Emily Linden entered the meeting at 8:28 a.m. Groesbeck Golf Course: There were no changes to the budget. However, the only change is that there will be a line item that will highlight reserves for capital. Jackson Field: There were no changes. Motion was made to accept the updated Draft FY24/25 Budget as presented. MOTION: Commissioner Mickens SECOND: Commissioner Saxton. MOTION CARRIED Julie Pingston exited the meeting at 8:38 a.m. 5. Lansing Center/Jackson Field Marquee Purchases: Kirby Doidge deferred to Tristan Wright to discuss the purchases of the Lansing Center and Jackson Field Marquees. Tristan Wright reported the following: a. Lansing Center Marquees- Tristan explained that we are looking to replace the two marquees that are at the end of the building in parking lot 55 next to Cedar Street. The current marquees are fifteen-plus years old and are no longer in working order. These are used as a marketing piece for Lansing Center events. There is also a marquee south on Cedar Street beyond the Marketplace Apartments and the Pepsi marquee that also will be replaced. The price for the Lansing Center marquees is $181,024 and includes purchase, delivery, and installation with a 5-year warranty. The timeframe is estimated between 6-12 weeks. Scott Keith added this purchase will be made through the grant funding from the state as well. b. Jackson Field Marquees- Jackson Field’s marquees (three screens) are located on the corners of Cedar and Larch streets and have also not been operating for some time as they are also fifteen-plus years old. The company they worked with in the past is no longer in business, so they will work with Daktronics. The total price for the Jackson Field marquees is $195,722 with a 5-year warranty. This included purchase, delivery, and installation with a 5- year warranty. The timeframe is estimated between 6-12 weeks. Scott added this will be purchased through the grant funding from the state. LEPFA Board of Commissioners Meeting March 26, 2024 P a g e | 4 The total cost for all marquees is $376,746. Motion was made to accept both the Lansing Center & Jackson Field marquee purchases as presented. MOTION: Commissioner Saxton SECOND: Commissioner Lenz. MOTION CARRIED C. PERSONNEL COMMITTEE: Due to Committee Chair Paul Collin’s absence, Scott Keith reported the committee met and deferred to Heidi Brown to discuss changes to the LEPFA Personal Time Off Policy: Personal Time Off: Heidi Brown reviewed the Personal Time Off updates as follows: “Full-time salaried employees may request Personal Leave time in two-hour increments, without a minimum of 24 hours advanced notice.” The current policy allowed full-time employees to take personal time in an eight-hour block only. The reason for the change is this will allow employees the flexibility to utilize their personal time in smaller increments. Currently, CBA-covered employees may take their Personal Time in four-hour increments. Heidi stated the CBA covered employee's Personal Time increments may change pending upcoming negotiations. The change would allow overtime-exempt employees to use their time in two-hour increments as opposed to 8 hours, and employees would not be required to provide 24-hour supervisor approval. However, Supervisors may refuse requests if the employee’s absence would interfere with the efficient and effective functioning of the department. The Personnel Committee recommended approval of the change for use of Personal Time Off from eight-hour increments for overtime-exempt employees and 4-hour increments for non- exempt employees to two-hour increments without 24-hour notice but with supervisor approval. Tristan Wright exited the meeting at 8:50 a.m. Motion was made to approve changes to the Personal Time Off language as presented. MOTION: Commissioner Mickens SECOND: Commissioner Saxton. MOTION CARRIED D. STRATEGIC PLANNING COMMITTEE: Committee Chair Larry Leatherwood noted the committee met and deferred to Tristan Wright to discuss the Lansing Center & Jackson Field improvements. Tristan Wright entered the meeting at 8:53 a.m. Jackson Field/Lansing Center Improvements: Tristan Wright noted she visited Jackson Field yesterday and the renovations are coming along, and they are in the process of cleaning up in order to finish the overall renovation in time for the team to take the field on April 1. They have made improvements to the Lugnuts and visitor’s locker rooms. The additional batting tunnel is completed, but they will need to install an additional sump pump, but they are still on schedule. The first game is the Crosstown Showdown on April 3, and the first home game is April 9. The LEPFA Maintenance team is finishing the de-winterizing, to be completed in time for the first practice on April 1. Tristan shared that Christman has started the Amazon Grab N Go Café construction in the Lansing Center and there is a construction wall in place. The space being utilized for the Grab N Go Café will be a partial space from both the First Aid Room and the Coat Room on the Lansing Center's first floor, next to the main entrance doors. LEPFA is currently waiting on a permit and once that is received Christman Construction will begin the Riverside balcony construction. The LEPFA Board of Commissioners Meeting March 26, 2024 P a g e | 5 funding that was received from the state does have a timeline for the use of the funds by October 2025. Chairperson Hall suggested “Coming Soon” signage for the construction areas so that attendees will have something to look forward to. Tristan agreed that this was a great idea and will work with LEPFA’s Marketing team on signage. Lansing Center Naming Rights: Commissioner Leatherwood deferred to Scott Keith to discuss the naming rights for the Lansing Center. Scott shared that he and Tristan Wright met with Superlative Group (out of Cleveland, Ohio), to investigate naming rights for the Lansing Center. The Superlative Group made a brief presentation. Scott and Tristan invited them to attend a committee or Board meeting to present their proposal. Tristan reported the base fee typically begins at around $50,000 and they receive a percentage, with a couple of different options. The Superlative Group would like to meet with the Board to look into naming rights for the Lansing Center. Chair Hall asked if the Superlative Group provided a “ballpark’ range of what amount they would be able to generate for the Lansing Center in terms of naming rights. Scott explained that they will typically evaluate the property which is part of their cost. The plus is that the Lansing Center has a perfect location being so close to the capitol. Jack Alexander exited the meeting at 9:00 a.m. Choose Lansing Agreement Scott Keith reported that he and Julie Pingston, Choose Lansing met two weeks ago and are meeting this afternoon with Tristan Wright to review drafts and he noted he hopes to have an agreement by the next monthly Board meeting. LEPFA Rebrand/Refresh: Scott announced that the LEPFA brand “refresh” is moving forward as that agreement has been signed and LEPFA’s Marketing team is working with M3 Group on the refresh. E. PRESIDENT & CEO’s REPORT: Scott Keith reported the following: 1. President & CEO Resignation: Scott Keith presented his letter of resignation which the full Board has previously received. Scott explained that since he announced his resignation, he has reviewed the Succession Plan and reviewed the previous President & CEO’s Transition Report from 2009 and is working on a draft Transition Report. The Executive Committee has met with Scott to discuss the transition. Scott noted that with upcoming business items/purchases, he has removed himself from signing any documents that occur after his tenure as President & CEO. Scott shared in 2009 there was a Transition Committee that was put in place to follow through on procedures for a new President & CEO and it is up to the current Board to determine if they follow the same process. A luncheon for Scott with LEPFA staff will be held on April 8 at 11:00 a.m. and following the luncheon there will be a “coffee and cookies” reception open to everyone. Commissioner Leatherwood asked if there would need to be a process in terms of signing documents, Chair Hall stated that this could be looked into and asked Scott if the legal team has been incorporated into the process for signatures moving forward during the transition. Scott stated that this has not been discussed with a legal team, however, currently, items above a certain amount require the Board’s authorization on top of the CEO’s authorization and the plan is to review/amend this as they review the Interim position. They can, however, investigate legal guidance on these matters. Commissioner Leatherwood stated that the Board should look into the procedures of signatures and see if the Board should come together to look into these LEPFA Board of Commissioners Meeting March 26, 2024 P a g e | 6 processes. Chair Hall agreed and stated that they could act on these items today and then work with Scott Keith and the new Interim President & CEO with the legal team to ensure the action taken is the correct action, as most action is taken temporarily. Scott asked Joe Abood and Joe explained that it is up to the Board to utilize their Council, but the City Attorney can look into it as well. F. VICE PRESIDENT/STAFF REPORTS: 1. Mindy Biladeau- Sales & Services: Scott Keith gave a brief overview of the Sales and Services Report and shared that the new Lansing Center website is up and running and is very user- friendly. 2. Heidi Brown- Administration: Heidi Brown reviewed the current vacant full-time positions, which are the HR/Payroll Coordinator position, the Accounting Manager position, the Payables Accountant position, and the Technology Services Coordinator position. Heidi added that they extended an offer to a candidate for the Accounting Manager position, but it was declined as they accepted another position. An offer was extended to a candidate for the Payable Accountant position, they did not meet the pre-employment qualifications, and the offer was rescinded. Heidi will repost these two positions and will be going through the process again. Heidi is working on filling positions at Groesbeck Golf Course for the 2024 season; this includes seasonal staff and the Assistant Pro. Heidi shared and reviewed the 2023 LEPFA U Employee Survey, this was a voluntary survey that was given to staff at the November 2023 LEPFA U session ing how team members feel about LEPFA and their overall employment. Fifty-five employees attended LEPFA U which included staff from all LEPFA properties and included management, leadership, full-time, part- time, and on-call; forty-four employees voluntarily filled out the survey. The LEPFA U Committee has resumed their bi-weekly meetings and is reviewing dates in May and the topic is “Workplace Professional/Personal Development.” The SPD was distributed to staff on March 15; the annual Summary Plan Description which is a detailed description of LEPFA’s benefit information required to be distributed by April 1 annually. Heidi met with Lisa Fisher to discuss the next round of staff communication training. 3. Paul Ntoko- Foodservice: Tristan Wright shared in Paul Ntoko’s absence a brief overview, noting that Groesbeck Golf Course has been having a soft opening of the course due to the nice weather. The team is looking forward to having the course opened full-time, but in the meantime, they are getting prepped and ready for the season. Lansing Center- Food and Beverage will be gearing up for a wave of food service events. 4. Tristan Wright- Operations: Tristan continued her update from the Strategic Committee on the Jackson Field improvements, the Lugnut’s staff are getting ready for their season with the Crosstown Showdown event on April 3 and the first home opener on April 9. Tristan shared that she has coordinated training for new staff on AVI: Active Violent Incident Training. The training will be run by a gentleman who used to work for the Lansing Police Department in AVI training; this will take place on April 22 for all LEPFA Staff. 5. Kirby Doidge-Finance: Kirby reported he is currently reviewing financial policies and has shared the first draft with the Finance Committee at the last meeting. There was a good discussion with additional items LEPFA Board of Commissioners Meeting March 26, 2024 P a g e | 7 added to the update; Kirby will bring it back to the Finance Committee at their next meeting and once approved he will bring it to the Board. 6. Kasey McFadden- Board Portal Review: Kasey reviewed the Board Portal process for the updated Lansing Center site. VII. COMMISSIONERS AND STAFF COMMENTS: No report. VIII. OLD BUSINESS: No report. IX. NEW BUSINESS: 1. Acceptance of the President & CEO Scott Keith’s Resignation: Motion was made to accept the resignation of President & CEO Scott Keith as presented. MOTION: Commissioner Mickens SECOND: Commissioner Lenz. MOTION CARRIED Commissioner Leatherwood, on behalf of the Board, thanked Scott for his time as President & CEO and noted that the Board is very appreciative of the role and responsibilities that Scott has performed during his time at LEFPA and extends his best wishes in his new role/chapter. 2. Appointment of LEPFA’s Interim President & CEO: Chair Hall made the recommendation on behalf of the Executive Committee to appoint Tristan Wright as LEPFA’s Interim President & CEO. MOTION: Chairman Hall SECOND: Commissioner Leatherwood. MOTION CARRIED Chairman Hall congratulated Tristan Wright on her new role. Chairman Hall also recommended that the Executive Committee take ownership/responsibilities as the Transition Committee. Kasey will be setting up a meeting before Scott’s departure. 3. Interim/Board Officer Change to Accounts- Kirby explained that he is seeking Board approval to update signers on LEPFA bank accounts. Motion was made to approve the recommendation to change names on accounts as presented. MOTION: Commissioner Saxton SECOND: Commissioner Mickens. MOTION CARRIED 4. Change to Approvals for Interim/Board Officer on Agreements/Invoices: Chairperson Hall explained that this change applies to any item outside of the 2024 budget year or more than $5,000 which will require both signatures from the Interim President & CEO - Tristan Wright and a signature from either the Board Chair or a Board Officer rather than come to the full Board. This will eliminate the risk of a hold-up on business items and will help to keep business moving. Chairman Hall, recommended on behalf of the Executive Committee, to accept a temporary change to the approval process for all non-event related contracts and purchases/expenses for more than the 2024 calendar year or more than $5,000 be authorized by both the Interim President & CEO and a LEPFA Board Officer as presented. MOTION: Chairman Hall SECOND: Commissioner Lenz. MOTION CARRIED Tristan Wright thanked the Executive Committee for the recommendation and the Board's approval naming her as Interim President & CEO. Tristan also thanked Scott Keith for his LEPFA Board of Commissioners Meeting March 26, 2024 P a g e | 8 leadership as she was his first hire twenty years ago. Tristan added that this will take a village as she moves forward in her new role, and she thanked the Leadership team as well as the Management team for their support. X. AJOURNMENT: At 9:35 a.m. the regular monthly meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR: TUESDAY, APRIL 23, 2024 8:00 a.m. LOCATION: Governor’s Room Respectfully submitted, Kasey McFadden, Recording Secretary