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Home My WebLink AboutLEPFA Board of Commissioners Meeting Minutes August 20, 2024LANSING ENTERTAINMENT & PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING August 20, 2024 MINUTES At 8:06 a.m. Chairwoman Maureen McNulty-Saxton called the regular 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, Dustin Howard, Larry Leatherwood, Danielle Lenz, Charles Mickens, Maureen McNulty-Saxton, and Rawley Van Fossen (Ex-Officio). COMMISSIONERS ABSENT: Kenric Hall, Desiree Kirkland (Ex-Officio), and James Stajos. OTHERS PRESENT: Mindy Biladeau, Heidi Brown, Kirby Doidge, Kasey McFadden, Paul Ntoko, and Tristan Wright - Lansing Entertainment & Public Facilities Authority; Elizabeth Krochmalny - Lansing City Attorney’s Office; Julie Pingston- Choose Lansing; and Price Dobernick and Jack Alexander- Public. I. CALL TO ORDER: Chairwoman Maureen McNulty-Saxton introduced Dustin Howard, LEPFA’s newly appointed Commissioner. II. ESTABLISHMENT OF THE AGENDA: Chairwoman Maureen McNulty-Saxton made a change to the order of the agenda moving the Transition Committee (closed session) report prior to the Personnel Committee report. Motion was made to approve the changes to the agenda MOTION: Commissioner Charles Mickens SECOND: Commissioner Danielle Lenz MOTION CARRIED III. PUBLIC COMMENT: None. IV. APPROVAL OF THE June 25, 2024 MINUTES: Motion was made to approve the June 25, 2024 meeting minutes as presented. MOTION: Commissioner Larry Leatherwood SECOND: Commissioner Charles Mickens MOTION CARRIED V. REPORTS: A. CHAIRWOMAN’S REPORT: Chairwoman Maureen McNulty-Saxton reviewed discussion/action items as follows: 1. Financial Statement Review: July 2024 (Action Item) 2. Review and Approval of Purchases (Action Item) 3. Transition Committee- Closed Session 4. Personnel Committee Updates 5. Strategic Committee Updates 6. Choose Lansing/LEFPA Agreement (Action Item) 7. RFP: Third-Party Management Company to Manage LEPFA (Action Item) LEPFA Board of Commissioners Meeting August 20, 2024 P a g e | 2 B. FINANCE COMMITTEE: Finance Committee Chair Paul Collins stated that the committee met and deferred to Kirby Doidge for the July 2024 Financial report as follows: 1. Lansing Center: Revenue: July total operating revenue was $82,251, which was under budget by $160,000. Rental revenue was $15,000 below budget. Commissioner Paul Collins noted the absence of large events compared to the prior year. Mindy Biladeau explained that last year the Lansing Center hosted the Horseshoe Pitchers World Championship and the Grand River Rumble, in which generated revenue last July which is typically a slow month. Mindy explained the team has worked to strengthen surrounding months, with June generating over $103,000 and August showing positive rental trends. Expenses: July Salaries/Wages totaled $130,000 due to fewer events and accrued time off. Utility expenses were under budget at $74,000, compared to the $117,000 budgeted; a 10% utility rate increase is expected in October 2024 and 2025. Total expenses were under budget by $195,000, resulting in a July loss of $167,000, which was better than the projected loss of $198,000. Kirby indicated although we are ahead of projections, we still have ground to cover to meet total revenue projections. The general checking account holds $3.2 million, keeping the Lansing Center in a solid financial position. Discussion followed regarding the minimum wage increase and how that could affect the budget. Kirby Doidge explained that LEPFA may be able to accommodate the changes dependent on the unknown variables such as inflation calculation. 2. Groesbeck Golf Course: Revenue: July golf-related revenue consisted of power cart rentals exceeding budget by $881.30, green fees exceeded budget by $2,598.14, and league play by $3,870.35. However, food and beverage concessions fell short by $8,495.32, largely due to rainouts affecting sales. Overall, we were under budget by $2,358.93 for July, but recent record weekends indicate a potential positive rebound. Expenses: July Salaries/Wages were over budget due to the allocation of raises and true breakout percentages, which will be adjusted. Equipment and Facilities were also over budget due to purchasing seasonal pesticides for the course. These costs are expected to taper off as the golf season winds down. Total expenses for July were $107,370.13, exceeding budget by $11,747.42. The month-to-date positive budget variance was $64,790.27, which is under the budgeted amount of $78,896.62 by $14,106.35. Commissioner Paul Collins asked how the allocation process is handled for Salaries/Wages. Kirby Doidge explained the allocation process for Salaries/Wages. 3. Jackson Field: Revenue: There was no July revenue to report for Jackson Field. LEPFA Board of Commissioners Meeting August 20, 2024 P a g e | 3 Expenses: July Salaries/Wages were under budget by $4,489.96, this category will be adjusted once actual salary allocations are finalized. Utilities are being closely monitored, as July was a busy month for the Lugnuts; utility costs are expected to decrease as the season winds down. July operational expenses were under budget by $8,200, it is projected after salary adjustments, this figure is closer to $4,000. For month-to-date Revenue was $6,183.41 and was $8,276.41 after accounting for Non-operating Revenue. Motion was made to accept the July 2024 Financials as presented for Groesbeck Golf Course, Jackson Field, and Lansing Center. MOTION: Commissioner Larry Leatherwood SECOND: Commissioner Dustin Howard MOTION CARRIED 4. Purchases – Recommendations/Approval: Kirby Doidge reviewed the following information. a. Silver Bells In The City Drone Show- Special Events- Mindy Biladeau provided a brief review of the Drone Show purchase. Mindy shared that Silver Bells In The City works with Firefly and this is the fourth year they have worked with Firefly. Firefly is the only company in the state that handles drone shows and is based in Detroit and is a global leader worldwide. The price of the drone show total is $40,000. Mindy noted that Silver Bells is fully funded solely on sponsorships, so nothing is taken out of LEPFA funding. Discussion ensued regarding Silver Bells sponsorships and event details. Motion was made to accept the purchase of the Firefly Drone Show for Silver Bells In The City as presented. MOTION: Commissioner Charles Mickens SECOND: Commissioner Danielle Lenz MOTION CARRIED. C. TRANSITION COMMITTEE: Chairwoman Maureen McNulty- Saxton motioned to enter into closed session for the discussion of the President and CEO transition to be presented by the ad hoc Transition Committee, chaired by Commissioner Larry Leatherwood. Roll Call Vote: Yays: Commissioner Collins, Howard, Leatherwood, Lenz, and Mickens Nays: None MOTIONED CARRIED Mindy Biladeau, Heidi Brown, Kirby Doidge, Paul Ntoko, Tristan Wright; Juie Pingston, Price Dobernick, and Jack Alexander exited the meeting for the closed session at 8:31 A.M. At 9:14 a.m. Mindy Biladeau, Heidi Brown, Kirby Doidge, Paul Ntoko, Tristan Wright; Juie Pingston, Price Dobernick, and Jack Alexander re-entered the regular monthly Chairwoman Maureen McNulty-Saxton motioned for the Board to return back into the regular monthly meeting session. LEPFA Board of Commissioners Meeting August 20, 2024 P a g e | 4 Roll Call Vote: Yays: Commissioner Collins, Howard, Leatherwood, Lenz, and Mickens Nays: None MOTIONED CARRIED D. PERSONNEL COMMITTEE: Committee Chair Larry Leatherwood reported that the Personnel Committee met and deferred to Tristan Wright to share. The Personnel Committee met on August 12 to discuss the Fair Labor Standards Act (FLSA), which impacted five employees as of July 1, with another possible FLSA increase expected on January 1, 2025, affecting 13 LEPFA employees. Additionally, due to a Michigan Supreme Court ruling, sick leave policies may change, potentially increasing full-time employees' sick days from five to nine. Leadership is assessing the changes, with payroll calculations underway. Heidi Brown shared that a virtual seminar hosted by the Lansing Chamber will be held on August 28 regarding the Michigan Supreme Court ruling. E. STRATEGIC PLANNING COMMITTEE: Committee Chair Charles Micken reported that the Strategic Committee did meet on August 13 and discussed the status of the LEPFA rebranding, Choose Lansing Agreement, the RPF- third party management, Jackson Field Turf replacement, and the Lansing Center upgrades. F. INTERIM PRESIDENT & CEO’s REPORT: Tristan Wright discussed the following items: Tristan Wright acknowledged and thanked Commissioner Price Dobernick who stepped down from his position after serving the LEPFA Board for nine years. Tristan thanked Price for his years of service, his leadership, and his guidance while he was on the LEPFA Board and presented him with a plaque. G. VICE PRESIDENT/STAFF REPORTS: 1. Mindy Biladeau- Sales & Services: Deferred to her report in the administration report presented. 2. Heidi Brown- Administration: Heidi Brown clarified that the Lansing Regional Chamber, in partnership with the Michigan Chamber, is hosting a Michigan Business Town Hall meeting focused on minimum wage. Matt Woolman joined the LEPFA team as the Event Tech Services Coordinator on August 12; interviews are ongoing for two positions—HR/Payroll Coordinator and Accounting Manager. Foodservice Coordinator interviews have been completed. A Flu Shot Clinic will be held for LEPFA staff on September 26 in partnership with U of M Health Sparrow. Additionally, LEPFA U will hold a session on November 4- the topic is Sales; this is for all staff. Lastly, performance evaluations are set to begin in September. 3. Paul Ntoko- Foodservice: Deferred to his report in the administration report presented. 4. Tristan Wright- Operations: Tristan Wright reported that the contract for the turf replacement at Jackson Field has been finalized with Bush Turf. This replacement is required by MLB facility standards for compliance by March 2025. The goal is to start work in September, following the LEPFA Board of Commissioners Meeting August 20, 2024 P a g e | 5 conclusion of the Lugnuts' season on September 1, providing ample time for the new turf to be established before the next season. 5. Kirby Doidge-Finance: Kirby Doidge reported that the audit will begin on September 9, with auditors on-site from September 30 to October 4. Currently, the Lansing Center has a positive budget variance of $420,000, Groesbeck at $160,000, and Jackson Field at $105,000. These figures are subject to change as work continues, with periodic updates to follow. VI. COMMISSIONERS AND STAFF COMMENTS: No comments were made. VII. OLD BUSINESS: A. Choose Lansing/LEPFA Agreement: Chairwoman Maureen McNulty-Saxton explained that the draft LEPFA/Choose Lansing Agreement was sent to the LEPFA Board before today’s meeting for review. Commissioner Paul Collins shared his appreciation for the effort in putting together the agreement and asked to discuss the contract overall. Chairwoman Maureen McNulty- Saxton, along with Tristan Wright explained the contract agreement stating that there are two components to the contract- the Strategic Sales Support and the Strategic Financial Support. Motion was made to approve the LEPFA/Choose Lansing Contract Agreement as presented. MOTION: Commissioner Paul Collins SECOND: Commissioner Larry Leatherwood Discussion on the motion ensued to approve the two components separately and conversation followed over the Strategic Sales Support component of the Choose Lansing/LEPFA Contract Agreement. Motion was made to approve the Strategic Financial Support component of the LEPFA/Choose Lansing Contract Agreement as presented. MOTION: Commissioner Paul Collins SECOND: Commissioner Danielle Lenz MOTION CARRIED Discussion proceeded over the Financial Support Agreement of the LEPFA/Choose Lansing Contract Agreement. Motion was made to approve the Financial Support Agreement of the LEPFA/CL Contract Agreement as presented. MOTION: Commissioner Paul Collins SECOND: Commissioner Charles Mickens MOTION CARRIED LEPFA Board of Commissioners Meeting August 20, 2024 P a g e | 6 The original motion (stated above) to approve the LEPFA/Choose Lansing Contract Agreement as presented MOTION CARRIED Julie Pingston explained that the overall goal of the contract is to be collaborative between the two entities ensuring the best outcome for all parties. Danielle Lenz and Heidi Brown exited the meeting at 10:00 a.m. VIII. NEW BUSINESS: A. RFP-City of Lansing Third Party Management – Chairwoman Maureen McNulty-Saxton, along with Tristan Wright, Interim President and CEO shared that the LEPFA Board of Commissioners Executive Committee participated in a review of the RFP with the City of Lansing. LEPFA has not yet received the updated RFP from the City of Lansing, although it was initially expected last week. The RFP timeline has been delayed, and LEPFA is awaiting a revised version from the City of Lansing. The City of Lansing will collaborate with LEPFA on a press release regarding the RFP to ensure clear communication before public announcements. An Evaluation Committee, comprising various stakeholders, will be formed to review proposals. The committee will include 5–7 members, with a maximum of two from LEPFA. LEPFA plans to submit a proposal for the RFP. IX. AJOURNMENT: At 10:09 a.m. the regular monthly meeting was adjourned. MOTION: Commissioner Paul Collins SECOND: Commissioner Larry Leatherwood MOTION CARRIED THE NEXT MONTHLY MEETING IS SCHEDULED FOR: TUESDAY, September 24, 2024 8:00 a.m. LOCATION: Governor’s Room Respectfully submitted, Kasey McFadden, Recording Secretary