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HomeMy WebLinkAboutLEPFA Board of Commissioners Meeting Minutes April 23, 2024LANSING ENTERTAINMENT & PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING April 23, 2024 MINUTES At 8:07 a.m. Vice Chairwoman Maureen McNulty-Saxton 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: Paul Collins, Larry Leatherwood, Charles Mickens, Maureen McNulty- Saxton, and James Stajos. COMMISSIONERS ABSENT: Price Dobernick, Kenric Hall, Desiree Kirkland (Ex-Officio), Danielle Lenz, and Rawley Van Fossen. OTHERS PRESENT: Mindy Biladeau, Heidi Brown, Kirby Doidge, Kasey McFadden, Paul Ntoko and Tristan Wright - Lansing Entertainment & Public Facilities Authority; Kevin Liuzzo – Ciesa; Sherrie Boak – Lansing City Council; Joe Abood - Lansing City Attorney’s Office; Julie Pingston -Choose Lansing; and Jack Alexander- Public. III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda. IV. PUBLIC COMMENT: None. V. APPROVAL OF THE MARCH 26, 2024, MINUTES: Motion was made to approve the meeting. minutes for the March 26, 2024, meeting as presented. MOTION: Commissioner Mickens SECOND: Commissioner Stajos. MOTION CARRIED VI. REPORTS: A. CHAIRMAN’S REPORT: Vice Chair McNulty-Saxton reviewed discussion/action items for today’s meeting as follows: 1. Financial Statement Review: March 2024 (Action Item) 2. Review & Acceptance Financial Policies (Action Item) 3. Review and Approval of Purchases (Action Item) B. FINANCE COMMITTEE: In Commissioner Lenz’ absence the report for the Finance Committee was deferred to Kirby Doidge for the March 2024 Financials as follows: 1. Lansing Center: Revenue: Total Operating Revenue was at $518,450 which was under budget by ($29,773); however, Revenue is ahead for year-to-date by $44,687. Building Rental is ahead by $25,000 and Equipment Rental is behind budget by $100,000 but we beat budget by $52,000 and the variation is credited to the mix of events. Expenses: Kirby noted that Utilities are being shored up and are already past our budgeted amount. Expenses for the month were under budget by ($258,669) and for year-to-date are over budget by ($256,770). We are over in Revenue and under in Expenses for the month of March. Excess Revenue Over Expenses is over budget by $240,554 for the month of March and is $390,248 for year-to-date because expenses did not come in as high as anticipated. Kirby noted in comparison to prior year, we are beating year-to-date Revenue by approximately $700,000. Expenses did increase, but Excess Revenues Over Expenses are $58,000 over the prior year. We have $2.5 million in our account currently which is grant funding. Commissioner Stajos question Equipment Rental, noting we do not typically make a lot from Equipment Rental LEPFA Board of Commissioners Meeting APRIL 23, 2024 P a g e | 2 or was the figure our profit? Kirby explained that figure is anything that could be rented, i.e., tables, chairs, etc.) and not just electric. Vice Chair Saxton expressed her appreciation of the one-page summary and Kirby noted he will continue to provide the information in that format. 2. Groesbeck Golf Course: Revenue: Total Operating Revenue was $11,033 compared to $4,789 budgeted for a variance of $6,243 for the month and year-to-date Groesbeck Revenue is under budget by ($8,656) due to the Simulator not generating as anticipated. We did just receive carts and will be in full operation. Expenses: Total Operating Expenses are under budget for March by ($16,759) which will be decreased due to bulk orders of chemicals and our consultant has been contacted as well. Total Operating Expenses are at $7,488 and are ($16,759) behind budget and year-to-date we are under budget at ($80,542). Excess Revenues Over Expenses came in at ($28,423) for a variance of $23,035 for March and year-to-date we came in at $72,173 to the positive. We currently have carts, which should assist with play and revenue. Overall, we are beating the prior year by $30,000. 3. Jackson Field: Revenue: There was no revenue to report for Jackson Field. Expenses: March expenses were under budget by ($5,100) and are under budget at ($93,578) for year-to-date which is because we did not know what utilities projections would be, but this allows for allocations to be made toward projects at the stadium. Excess Revenues Over Expenses for March are $9,400 and for year-to-date the figure is $100,000 which is great for cash flow. Commissioner Stajos asked if the excess funds are able to be used for any of the projects at the stadium. Kirby noted that funding is coming from the City, and overall, those projects are too large for our budget to handle. Motion was made to accept the March 2024 Financials as presented for Groesbeck Golf Course, Jackson Field, and Lansing Center. MOTION: Commissioner Leatherwood SECOND: Commissioner Mickens. MOTION CARRIED 4. LEPFA Financial Policies Updates: Kirby reviewed the distributed copies of the Financial Policies noting the most recent copy of board approved Financial Policies was dated 1997 and the revised copy has been reviewed by the Finance Committee twice and also included input from the auditors. Kirby reviewed the following added items: Under IV. CASH DISBURSEMENTS/PURCHASING PROCEDURES – Item 1. Single purchases of $30,000 or less shall be approved by the President & CEO. Item 2. Single purchases exceeding $30,000 or a contract over a three-year term shall have the approval of the President & CEO and the Finance Committee. Item B. Obtaining Quotes/Bids: Items 1 and 2 had wording changed and now read as follows: 1.Two quotes/bid shall be obtained on a single purchase of goods exceeding $3,500 but less than $5,000. 2. Three written quotes/bid from two or more suppliers shall be obtained on a single purchase over $5,000. LEPFA Board of Commissioners Meeting APRIL 23, 2024 P a g e | 3 Under IX. FIXED ASSESTS (FF&E), item B. Authority Property – item 2. All equipment items purchased with a value of $5,000 or more and having a useful life of more than one (1) year shall be capitalized and depreciated. All fixed assets of the Authority shall be tagged as such. The previous amount was $500, and it was recommended that the amount be increased to $5,000 as noted above. Also added on the last page of the policies was item XII. INVESTMENT ACCOUNTS and Kirby stated that this language was developed in conjunction with “Choose Lansing” language as recommended by Chairman Hall. All of the changes have been approved by the Finance Committee, reviewed by the Auditors, and all of the changes are currently being implemented. Motion was made to accept the Financial Policies as presented. MOTION: Commissioner Collins SECOND: Commissioner Stajos MOTION CARRIED. 5. 10 Purchases – Recommendations/Approval: Kirby Doidge reviewed the following information as shared in the distributed detailed packet.: 1. Myer Plumbing – Repair of a Heating Coil Riverside Concourse; Cost $60,250 which went down last November. Commissioner Leatherwood asked where the funding for these projects is coming from; Kirby explained that this is funded by Excess Revenue Over Expenses. Some are the funds are grandfathered and Kirby will share the funding source. Commissioner Stajos noted the difference in the bids, and asked if Tristan and the team is comfortable with Myer Plumbing in consideration of the difference (less). Tristan shared that we are incredibly pleased with Myer Plumbing and noted that the pricing difference is significant but is not a surprise; Myer Plumbing has done a lot of work in the building. 2. Mamava Pod (Lactation Pod) – cost is $35,000 half of the funding will be covered by a sponsor. This is not a revenue stream but is ADA compliant and has an added value. Tristan noted the sponsor is excited and this has been a project that has been on-going since 2018 and will provide privacy for our groups and is that it will be placed in the capital view area and is on wheels. LAFCU is the co-sponsor. Vice Chair Saxton noted it is a great marketing opportunity. Commissioner Leatherwood asked if it can be a draw for our clients, and Tristan noted it could be and we have various organizations that have a need for the pod such as Delta Dental, Inch, etc. Commissioner Collins questioned if LEPFA’s portion would come from Excess Revenues Over Expenses funds and Kirby noted it would. 3. Bornor Construction – Lansing Center – This is for the concourse main lobby roof leak repairs and also includes the 200 rooms back hallway and is a safety concern. It covers about 3,200 square feet of roof top replacement and is not repair. The amount from Excess Revenue is $49,448. 4. Honeywell – Fire Alarm Design and Heating & Cooling System and is a part of the grant from the state $107,000 this is also a safety item. Tristan noted Honeywell has been in the building for a good 30 plus years and noted there are two components to this upgrade that includes the computer EBI Upgrade (HVAC System) and the Fire Alarm Design which will need to be piecemealed together for the system in order to bring it up to code and retrofitted to fit the fire alarm currently. Commissioner Mickens questioned if this would completely meet the needs of the building or are there other aspects that will need alteration. Tristan stated that the design will flush out any other needs of the building and anything in the future can be added on to it. This will come out the $5 million from the state. Kirby noted that everything presented today is covered financially. Kirby noted we LEPFA Board of Commissioners Meeting APRIL 23, 2024 P a g e | 4 had a good year, which is attributed to expenses not coming in where they should be. The rest of the purchases are under $30,000. 5. Southeastern – Carpet Extractor $14,022 Tristan noted that we had three quotes, and it is recommended that we go with Southeastern Equipment Supply. A floor scrubber was purchased last year for the Exhibit Hall floors. 6. Morrison – Carpet Sweeper $10,836.12 was the recommended quote for purchase. 7. 50 Mity Lite Tables - $9,930 – this is a sole provider purchase that allows us to not use linen, and charge more for rental. Commissioner Mickens asked if there is value to the tables we are replacing, Tristan noted they are not of value to us in their current condition. 8. Turfco Widespread 1550 $23,500 – this is a top dresser for the greens at Groesbeck. 9. Staircase – Groesbeck Golf Course - $22,740 this is a safety concern and is coming out of Excess Revenue for the golf course. 10. Bornor Construction - Concrete Repairs at Jackson Field: $33,180 for concessions area at the west end which is a trip hazard; a seating section in the stands which are not able to be filled and second floor stucco wall that has pieces falling off all of which are safety issues. Commissioner Leatherwood stated he does not understand where these funds are coming from and what impact it has on the budget. Kirby Doidge explained that the Sales/Marketing reimbursement which is truly for capital expenditures and is coming in at $86,000 above the projected amount. As well as Food and Beverage expenses are currently sitting at $590,000 under budget because we did not see the expenses we anticipated. Commissioner Leatherwood asked if the funds are currently in the budget, Kirby noted they were. Motion was made to accept the purchases as presented. MOTION: Commissioner Leatherwood SECOND: Commissioner Collins MOTION CARRIED C. PERSONNEL COMMITTEE: Committee Chair Collins reported that the committee did not meet but will meet next month. D. STRATEGIC PLANNING COMMITTEE: Committee Chair Larry Leatherwood reported that. Interim President & CEO Tristan Wright had representatives from Superlative Group attend the meeting to discuss naming rights for the Lansing Center, with the basic reasoning being the possibility of generating revue for the facility. The two gentlemen (Sean and Kyle) did a good job with their presentation in referencing their company’s experience in representing various entities around the country. Commissioner Leatherwood indicated he questioned what financial impact the renaming rights would have on the entity if they would employ them – they will provide that information at a later date and is one area that he felt it was important to know, but he wants to see how those naming rights have generated revenue for other entities. He felt the meeting was highly informative and will wait for the information on the impact of the naming rights. E. INTERIM PRESIDENT & CEO’s REPORT: Tristan Wright reported that she sent an email with a first week report regarding her first week as interim without Scott and overall, everything went well. other than we had a tornado. She also referenced information about the bill passed regarding the hotel/motel tax in Grand Rapids and the effect it may have on us. Tristan noted that she continues to meet with Julie Pingston of Choose Lansing on the agreement and it is progressing. Tristan thanked the Board for their attendance at Scott’s farewell event. F. VICE PRESIDENT/STAFF REPORTS: LEPFA Board of Commissioners Meeting APRIL 23, 2024 P a g e | 5 1. Mindy Biladeau- Sales & Services: Mindy reviewed the March Sales Summary, Pace Report and Marketing highlights. March Sales for rental were at $89,666 and we are $113,031 ahead of budget at the end of March and are $189,000 ahead of the previous year. Event highlights - we will be hosting the Lansing Regional Chamber of Commerce Annual Dinner, and we are excited for their return to the building and city; we will also be hosting the first Tattoo Convention – Tattoo City this weekend with international artists with a $10,000 cash prize. We also have the Hot Tub Show. Mindy reported the blank wall where the construction is underway will be wrapped on May 3 and the LEPFA brand refresh is also underway with M-3 Group. Mindy introduced Kevin Liuzzo with Ciesa Design, whom she worked with on rebuilding the Lansing Center web site that went live on March 2, 2024. Kevin presented the background for the web site update and shared and presented the changes and updates including the mobile version, the accessibility updates, the content updates; and he noted the “search” feature works now; we now have ACH payments; and he noted they host the site and do maintenance on the site. He highlighted the event calendar, and updated and upgraded the Board portal. Commissioner Saxton asked Kevin to address the security of the site and he noted there is a firewall on the server and the website that updates nightly, and no financial data is stored on the web site and the web site is secured by Auto SSL which is updated every three months and auto renews. Any hacking would be found by them, and word press is on top of this item; security updates are automatic once a month. Kevin noted if there are any questions, pass them along to Mindy and he will be happy to address them. Commissioner Stajos noted he is extremely impressed with what Kevin has presented today. 2. Heidi Brown- Administration: Heidi Brown reviewed the vacant full-time positions which include the HR/Payroll Coordinator (candidate did not show for interview); Payables Accountant – interviews are set for Thursday and next Tuesday; the Finance Manager position remains posted; and we have posted the Technology Services Coordinator. At Groesbeck we currently have two vacant Assistant Pro positions that are open and posted and applications are being reviewed. We had two Worker’s Comp claims in April, zero in March; Short term disability had one claim in March and currently have two employees on STD. For FMLA we had two employees apply in March and have three currently on FMLA. We are seven days accident free. Staff Training will continue. Heidi attended Michigan HR Day at the Lansing Center. Heidi reminded those present tomorrow is Admin Professionals Day and she thanked Kasey and our Admin Team and also noted Kasey will be departing soon, and we are working on sharing her duties when she is out, so at some point Heidi may be sitting at Kasey’s seat. Commissioner Saxton clarified that Kasey’s departure is temporary; and she also asked if there would be opportunity to make the two part-time positions one full-time position if there is not enough interest. Heidi explained that there are currently twelve part-time applicants that are qualified, and we should be set. 3. Paul Ntoko- Foodservice: Paul report that Groesbeck is back, and we were able to get our new cart lease agreement signed, the carts were delivered on Thursday, and we went live with them on Friday. Last weekend was a strong turnout with two hundred tee times on Saturday and Sunday. There is a lot of excitement, the course looks great, and there are a lot of positive comments from everyone. In regard to the new fleet of carts, Paul noted we upgraded from 2013 carts to 2020; we have also added a few more carts. Long-term we would like to add more carts and hopefully we can get to the point when we have more storage, which in turn will offer more revenue. In regard to the Lansing Center, for the month of April we have over 5,000 pounds of useable food that was donated to the Great Lansing Food Bank and other community resources. LEPFA Board of Commissioners Meeting APRIL 23, 2024 P a g e | 6 4. Tristan Wright- Operations: Tristan reported that the riverside balcony construction has started (it has been closed since 2018) and it will be on-gong through the early summer. Jackson Field MLB projects have been concluded including the additional batting tunnel and the expansion of the locker rooms and she is now working on the turf replacement project, with the plan that it will take place in October. The turf was last replaced about 10 years ago, and bids will be going out soon. Also work continues on the expansion of the safety nets and all of this has to be completed by 2025 at the start of the season, although funding is a challenge. Tristan indicated otherwise the team is doing well and Dan is ready at Groesbeck and has been mowing. Commissioner Saxton questioned the status of the batter’s eye – Tristan noted did get put up in the outfield in front of The View area. It was required of the MLB and Gillespie Group was not happy, but it could not be avoided. 5. Kirby Doidge-Finance: Pushing through. 6. Kasey McFadden: Kasey noted her due date and that she is working with Heidi to divey up responsibilities and may or may not be at the May meeting. VII. COMMISSIONERS AND STAFF COMMENTS: a. Commissioner Collins - Commissioner Collins noted that there was a lot of great news shared today and he appreciated the hard work everyone is doing. b. Commissioner Stajos – Commissioner Stajos seconded Commissioner Collin’s comments and stated that he was overly impressed with Kirby’s presentation and the new format made it extremely easy to follow. c. Commissioner Mickens – Commissioner Mickens noted he also seconded those comments, and the new piece provided by Kirby made financials quite easy to follow. VIII. OLD BUSINESS: No report. IX. NEW BUSINESS: No report. X. AJOURNMENT: Vice Chair Saxton reminded Board members to let staff know in advance if/when they are unable to attend so we know if we do/do not have a quorum. Commissioner Stajos noted he will not be at the May meeting. At 9:25 a.m. the regular monthly meeting was adjourned. MOTION: Commissioner Collins SECOND: Commissioner Mickens MOTION CARRIED THE NEXT MONTHLY MEETING IS SCHEDULED FOR: TUESDAY, MAY 28, 2024 8:00 a.m. LOCATION: Governor’s Room Respectfully submitted, Heidi Brown, Recording Secretary