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HomeMy WebLinkAboutLEPFA Board of Commissioners Meeting Minutes November 19, 2024 LANSING ENTERTAINMENT& PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING MINUTES November 19,2024 At 8.02 a.m. 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, Kenric Hall, Dustin Howard, Danielle Lenz, Charles Mickens, Charles Randall (Ex-Officio), and Maureen McNulty-Saxton. COMMISSIONERS ABSENT: Desiree Kirkland (Ex-Officio), Larry Leatherwood, James Stajos, and Rawley Van Fossen (Ex-Officio). OTHERS PRESENT: Mindy Biladeau, Heidi Brown, Kirby Doidge, Kasey McFadden, Paul Ntoko, and Tristan Wright- Lansing Entertainment& Public Facilities Authority; Joe Abood -Lansing City Attorney's; Kirsty Doak, Julie Pingston- Choose Lansing; and Jack Alexander- Public. I. CALL TO ORDER II. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda. III. PUBLIC COMMENT: Kristy Doak, Director of Sales at Choose Lansing, updated the Board on Lansing Center sales, announcing the addition of Sales Manager Elaine Unger to strengthen their collaborative efforts. Key initiatives include the "Convention Corridor" strategy, partnering with local hotels to promote Lansing as a destination, and a short-term prospecting promotion offering 20% off new rentals, which has already generated several RFPs. Looking ahead, the focus is on positioning Lansing as a regional hub by leveraging new venues like Grewal Hall and Ovation, exploring Detroit partnerships, and maintaining a timely response to short-term booking demands. Paul Collins entered the meeting at 8:08 a.m. IV. APPROVAL OF THE SEPTEMBER 24, 2024, MINUTES: Motion was made to approve the meeting minutes for the September 24, 2024, meeting as presented. MOTION: Commissioner Lenz SECOND: Commissioner Mickens. MOTIONED CARRIED V. REPORTS: A. CHAIRMAN'S REPORT: Chairwoman Maureen Saxton noted items for today's meeting 1. Financials Review/Approval: September& October Draft Financials (Action Item) 2. Review &Acceptance of Revised Lansing Center FY 24/25 Budget (Action Item) 3. Personnel Committee Updates October& November 4. Strategic Committee Updates October& November 5. LEPFA Re-brand Logo Approval (Action Item) 6. Facility Improvements- Lansing Center&Jackson Field B. FINANCE COMMITTEE- Committee Chair Paul Collins reported the committee met both in Octoer and November and he deferred the report to Kirby Doidge to report on both the September and October 2024 Financials as follows: 1. Financial Review: i. September LEPFA Board of Commissioners Meeting November 19, 2024 Page 2 a. Lansin_g Center- For September,the Lansing Center was $289,340.52 under its monthly anticipated budget and $428,188.19 under year-to-date. Revenue shortfalls included $46,000 in rental income and $351,161.12 in food and beverage revenue. Expenses came in under budget by$58,724.08 despite higher payroll costs associated with preparing for large events. Event scheduling adjustments impacted revenue recognition, with significant activity shifting to October. In September, the Lansing Center was$180,362.43 under its anticipated budget for the month, contributing to a year-to-date deficit of$137,179.27.This places the facility in a deficit as of September. Mindy Biladeau entered the meeting at 8:27 a.m. b. Groesbeck Golf Course-September revenue was slightly below the anticipated budget by$378.90. PNC Banking errors caused a delay in reconciling transactions, but the issue is being addressed, with all funds accounted for. Supplies and materials expenses will decrease following audit adjustments that align with accounting standards. Year-to-date, Groesbeck was$24,023.81 under the anticipated budget. c. Jackson Field—Utilities for September were lower than expected, and salaries are being properly allocated.Jackson Field came in $15,170.04 under the anticipated budget for the month and $40,486.22 under year-to-date.The surplus will support ongoing capital projects. ii. October a. Lansin_g Center-October was a record month for the Lansing Center, with $986,459.54 in revenue, including $601,461.38 from food and beverage sales—a historic high. The center exceeded its monthly anticipated budget by$140,430.38, reducing the year-to- date deficit to $259,184.74. On the expense side, salaries and wages were$8,995.01 under budget, and benefits were $76,605.63 under budget. However, facility maintenance costs included a $65,000 elevator expense that will be reallocated. After adjustments, the Lansing Center exceeded its overall budget by $199,504.91 for the month. b. Groesbeck Golf Course-Groesbeck had an outstanding October, nearly doubling revenue in key areas. Power cart rentals exceeded budget by $10,725.00, and greens fees were $12,692.60 over budget. Year-to-date revenue is $40,447.89 above the anticipated budget. Operating expenses increased slightly but remain manageable. Overall, October's results added $27,571.92 to the positive variance, with year-to-date performance near break-even. c. Jackson Field-October expenses included increased utility costs due to ongoing construction and rising utility rates. The field was LEPFA Board of Commissioners Meeting November 19, 2024 Page 3 $16,279.26 under budget for the month and $55,581.57 under year- to-date, with capital improvements and salary allocations still in process. Despite challenges, the overall positive budget variance for October was$30,000 Motion was made to accept the September and October 2024 Financials as presented for Lansing Center, Groesbeck Golf Course, and Jackson Field. MOTION: Commissioner Mickens SECOND: Commissioner Howard. MOTIONED CARRIED 2. Revised FY 24/25 Lansing Center Budget: Kirby presented the revised FY24/25 budget for the Lansing Center. The revised budget includes adjustments to both revenue and expenses to reflect current projections and goals. Building rental revenue remains targeted at$1.2 million and is being closely monitored, while food and beverage revenue has been increased by$41,000,with expectations of a corresponding rise in equipment rental revenue. On the expense side, salaries and fringe benefits were reduced, partly due to appropriations from the Lansing Center and lower-than-anticipated cost increases. Professional services and utilities were also decreased, while insurance and bonding saw a necessary increase to reflect actual costs. Food and beverage expenses were lowered by$50,000 due to the event mix in the year's first half. Interest income on the bank account was adjusted upward based on better-than-expected returns.These changes are targeted and will be revisited if actuals deviate from expectations. Motion was made to accept the Revised FY24/25 Lansing Center as presented. MOTION: Commissioner Collins SECOND: Commissioner Hall. MOTIONED CARRIED 3. Audit Update: Kirby gave a brief report on the LEPFA Audit process. The audit process went smoothly this year, with timely fulfillment of auditor requests and improved procedures.There were no major issues,though a few items from last year were carried over and resolved. One key adjustment was the reallocation of a $5 million grant, which was confirmed by the auditors. Danielle Lenz exited the meeting at 8:43 a.m. The audit will be presented to the Finance Committee for approval by mid- December and to the board in January for final acceptance. It is currently under review and should be finalized soon. 4. Ottis Elevator Repair: The elevator project, approved for$209,000, includes replacing all elevators and necessary upkeep. Additionally, a change order of $97,000 was added to ensure compliance with project requirements.The increase is solely due to this change order, and this update is informational rather than requiring further approval. LEPFA Board of Commissioners Meeting November 19, 2024 Page 14 C. PERSONNEL COMMITTEE- In lieu of the absence of the committee Chair Larry Leatherwood, committee member Dustin Howard reported the committee met in October and November and discussed the following items: 1. Resignation of LEPFA's Executive Chef- During the Personnel Committee meeting, they discussed the resignation of the Executive Chef. The Sous Chef has stepped up to support operations, and his salary has been adjusted accordingly. Heidi Brown shared that the Executive Chef position has been posted both internally and externally, and four candidates are currently being interviewed. Danielle Lenz entered the meeting at 8:47 a.m. 2. Fair Standard Labor's Act-Additionally, the committee reviewed potential changes under the Fair Labor Standards Act, which could impact wages and benefits for 13 positions. Heidi announced that recent updates suggest that provisions will not proceed as initially anticipated. While Michigan's incremental minimum wage increases remain on track, the PTO provisions appear to be more uncertain and are expected to be revisited in February. Projections for these changes have been factored into the budget, though the exact impact will depend on finalized details. Further updates will be provided as the situation develops D. STRATEGIC COMMITTEE-Committee Chair Larry Leatherwood reported the committee met and discussed the following items: 1. LEPFA's Strategic Plan- During the Strategic Planning Committee report, Commissioner Mickens provided an update on recent activities. He noted that meetings in October and November focused on aligning the committee's agenda with the organization's strategic priorities. 2. LEPFA's Re-brand Selection/Approval-After distributing a visual of the proposed logo, Commissioner Mickens formally moved to adopt the proposed LEPFA logo created by M3 Group as the organization's new brand identity. Motion was made to accept the new LEPFA logo as presented. MOTION: Commissioner Mickens SECOND: Commissioner Howard. MOTIONED CARRIED E. PRESIDENT& CEO REPORT- Report was moved to the VP of Operations Report. F. VICE PRESIDENT/STAFF REPORTS 1. Mindy Biladeau: Sales & Services- Mindy reported that October was an exceptional month for sales, generating $27,439 in rentals, placing the organization over$8,000 ahead of the previous fiscal year's pace. She highlighted the success of recent MSU travel efforts and other strategic initiatives, which have already produced notable results. Preparations for Friday's 40th Annual Silver Bells In The City Celebration are nearly complete. With 70 parade units, including 11 marching bands, the event promises to be a standout. Brochures were passed out and highlighted items including BWL's involvement in transporting Santa and a performance by David Archuleta, adding buzz to the festivities. Enhancements for the tree lighting and drone show include 10,000 LED wristbands that will synchronize with performances, creating an LEPFA Board of Commissioners Meeting November 19, 2024 Page 5 immersive experience. Additional amenities like expanded restroom facilities and strategically located food trucks were planned to accommodate large crowds. Mindy also shared updates on Saturday's Silver Bells 5K, with registrations trending toward the 1,200-runner goal. Currently, 905 runners are registered, well ahead of last year's numbers at the same time. 2. Heidi Brown: Human Resources- Heidi reported that current vacancies include the Accounting Manager and Food Service Coordinator positions, with interviews ongoing for the Executive Chef role. Two Maintenance Team members recently announced retirements, providing time to fill those roles. Bri, the new HR Payroll Coordinator, started on October 7 and is acclimating well. Recent updates include training with LEPFA U on November 4 to enhance sales engagement, and a leadership series based on "The Five Dysfunctions of a Team", aimed at improving communication and team cohesion. The Healthcare Committee met on November 7 to renew benefit plans, aligning with open enrollment. Heidi also addressed a phishing incident involving her email and advised members to disregard suspicious messages. Lastly, the annual Turkey Drive is underway, supporting the Greater Lansing Food Bank. 3. Paul Ntoko: Foodservice i. Lansing Center- October was a strong month for the Lansing Center, though some events shifted to other months, resulting in a quieter November. The sous chef has successfully managed responsibilities during a busy time, while efforts to hire an executive chef are ongoing. Contributions to food banks have totaled 12,000 pounds of reusable food so far, with plans to donate additional items before Thanksgiving. Challenges persist in coordinating refrigerated transport for donations due to health department requirements, but the team continues to seek approved networks to ensure safe distribution ii. Groesbeck Golf Course- Paul reported that favorable weather extended the golfing season, with October and early November showing strong activity. The last day for sending carts out was declared due to rain and frost, comparable to last year's timeline. Simulator setups are nearly complete, featuring updates aimed at creating a unique experience to attract golfers during the off-season. Enhanced marketing and promotional efforts will focus on increasing simulator use and encouraging early spring participation. 4. Tristan Wright: Operations i. President& CEO Report-Tristan shared updates, beginning with the distribution of Silver Bells ornaments and holiday party invitations. She highlighted the success of the lactation pod and quiet space projects at the Lansing Center, which received support from LAFCU, Publicom,the Chamber of Commerce, and Cathy Blatnick and the Autism Association. Both initiatives have been featured in Focus Magazine. Additionally, preparations for the annual report to the City of Lansing are underway, and progress is being made on carpet replacements in the Lansing Center's meeting spaces and ballrooms using capital improvement funds. LEPFA Board of Commissioners Meeting November 19, 2024 Page 6 ii. Operations Report- In Jackson Field Stadium, progress continues on turf installation despite minor challenges with sand and drainage issues, including a crushed drainpipe. Sod installation remains on track. Updates to the fire safety alarm and Enterprising Business Integrator(HVAC) systems are ongoing.The Amazon Go Store project is progressing,with a goal to complete it by year-end.The upgraded golf simulator space has been finalized, offering a more inviting experience. Lastly, board meeting schedules for 2025 are finalized and accessible on the portal.An informational meeting regarding third-party management will take place on December 10 at 8:00 AM, featuring insights from the RFP panel. 5. Kirby Doidge: Finance— No Report. VI. COMMISSIONERS AND STAFF COMMENTS: A. Dustin Howard- Commissioner Howard inquired about the status of Tristan's contract as President and CEO, expressing concern about delays in the process. It was clarified that the contract is currently with Tristan's attorney, having been previously reviewed by LEPFA's attorney. The matter is still undergoing review between the respective legal teams, contributing to the extended timeline. B. Maureen Saxton- Commissioner Saxton asked Kasey McFadden about how attendance responses for board meetings are tracked, particularly whether declining a calendar invite is sufficient. Kasey clarified that while calendar invite declines are noted, additional communication via text or email is preferred for accuracy. This ensures confirmation of attendance, especially since circumstances can change after initial responses. Kasey emphasized the importance of initiative-taking communication to guarantee quorum for the next scheduled board meeting on January 28th. VII. OLD BUSINESS: No Old Business VIII. NEW BUSINESS: None IX. AJOURNMENT: Motion was made to accept the new LEPFA logo as presented. MOTION: Commissioner Hall SECOND: Commissioner Lenz. MOTIONED CARRIED At 9:25 a.m. the regular monthly meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR: TUESDAY, DECEMBER 10,2023 8:00 a.m. LOCATION: Room 201-202 Respectfully submitted, . __7:A4r 6� Kasey McFadden, Recording Secretary