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HomeMy WebLinkAboutAugust 28 2012 LEPFA Board of Commissioners Minutes ,:. ��ir t LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTI Y ; 9 Ai.1 10: 21 BOARD OF COMMISSIONERS MEETING AUGUST 28,2012 MINUTES At 8:04 a.m. Chairman Charles Mickens called the meeting to order in the Governors Room of the Lansing Center, 333 E. Michigan Avenue, Lansing, Michigan 48933. COMMISSIONERS PRESENT: Tim Barron, Cindy Bowen, James W. Butler III, Charles Janssen, Charles Mickens, Charlotte Sinadinos, Robert Johnson(Ex-Officio) and Angela Bennett (Ex-Offico). COMMISSIONERS EXCUSED: Tim Kaltenbach and Kris Nicholoff. OTHERS PRESENT: Scott Keith, Greg Soleau, Tristyn Wright, Heidi Brown, Gus Pine, Paul Ntoko and Shelly Busse—Lansing Entertainment&Public Facilities Authority. Dave Schaberg,Alexis Melton, Roger Weathers, Willow Richmond,Neva Austin,Nan Jasinowski and Brenda Weathers— Lansing City Market Vendors,Dirk Spillemaeckers -AMTA and Jack Alexander. III. ESTABLISHMENT OF THE AGENDA: No changes to the agenda were made. IV. PUBLIC COMMENT: Chairman Mickens issued a reminder that all public comment should be kept to a three minute maximum and stated that all concerns should be in writing so they may be properly addressed. Jack Alexander, Lansing Lugnuts season ticket holder, addressed the LEPFA Board with concerns related to Cooley Law School Stadium. Mr. Alexander stated that he has received a summary of his concerns from Scott Keith and he would like to discuss ideas for funding the projects that need to be completed at the stadium. Mr. Alexander stated that he still has concerns regarding the three trees that are dying, outdated signage that is still up, the gate that is in disrepair and the field lights that still do not work properly. In addition,Mr. Alexander stated that the ground crew needs an aerator, the ceilings in the concourse need to be power washed, the first base restroom is in disrepair, the sound system is aging and the doors on Cedar St. need a second coat of paint. Mr. Alexander stated that in his estimation, the stadium needs $750,000 - $1,000,000 per year to maintain the building. *Angela Bennett(Ex-Officio)entered the meeting at 8:06 a.m. Nan Jasinowski, City Market vendor, stated that LEPFA should pay for the cost of one parking space per City Market vendor; noting that the City Market is made up of unique vendors and most are working below poverty level. Roger Weathers, City Market vendor, stated that he understands the parking situation, however, it is not feasible. Roger reported that first aid training is needed along with first aid supplies for the City Market. Roger stated that security for the City Market is lax; noting that there is no security at night and there are safety concerns about walking to the parking area after dark. Roger stated that there are no cameras at the City Market for monitoring purposes. LEPFA Board of Conunissioners Meeting Page 2 August 28, 2012 Willow Riclunond. City Market vendor, stated that her business offers a service, not a product; noting there are 5 —6 people who work at her location and paying to park will be a hardship. Dave Schaberg, City Market vendor, reported that his business must have $200 (gross) sales per day in order to succeed; stating that parking fees were not mentioned when he signed his lease. Dave stated that he is concerned with the lack of funding for advertising and noted that the City Market web-site has not been updated in several months. Dave reported that the common area seating is a problem, but he is handling it with no extra charges involved. *Bob Johnson(Ex-Officio)entered the meeting at 8:18 a.m. Brenda Weathers, City Market vendor, stated she has a concern about pan-handlers and noted that when darkness arrives early the parking area is unsecure and inconvenient. Neva Austin, City Market vendor, reported that lighting around the City Market is better; however, the parking area so far away is a concern. Neva also stated that when parking passes are exchanged, it will be inconvenient when there is no employee overlap. Neva also noted that her employees earn minimum wage and will not be able to afford the parking fees. Alexis Melton, City Market vendor employee, reported on an attempted kidnapping of a child at the City Market during July and noted that security response time was 15 minutes, which is unacceptable. *Commissioner Barron entered the meeting at 8:19 a.m. Several of tile City Market vendors held a general discussion regarding the parking tees; noting that employees will not be able to afford the cost thus making it difficult to retain/hire staff. V. APPROVAL OF THE MINUTES FOR TUNE 26, 2012: A motion was made to accept the minutes as published. MOTION: Commissioner Sinadinos. SECOND: Conunissioner Barron. Motion unanimously carried. VI. REPORTS: A. CHAIRMAN'S REPORT: No report. B. SECRETARY/TREASURER'S REPORT: 1. Monthly Financial Statements for the Fiscal Year Ending June 30, 2012: Greg Soleau, Vice-President of Finance, noted that these statements are in draft form and will remain so until there is final auditor approval. Greg reported the following: LEPFA Board of Conunissioners Meeting Page 3 August 28, 2012 a. Lansing City Market: Total Operating Revenue for the year is $139,181 compared to the prior year's amount of$132,792. Utilities are $8,000 higher this year and Maintenance of Facilities is $8,000 lower compared to last year. Excess Revenues over Expenses are a loss of($2,801) compared to the previous year's loss amount of($20,407). Balance Sheet: Accounts Receivable is $12,265 compared to the previous year's amount of$4,791. Greg noted that the vendors were given a grace period to pay their rent until business picked up. Accounts Payable is $24,180 compared to the prior year's amount of$33,780. Unreserved Equity is $109,789 compared to the prior year's amount of$112,327. Commissioner Butler asked Chainnan Mickens that the City Market vendors be recognized for their attendance and comments at this meeting. Chairman Mickens stated that he will do so as an order of New Business. Budget vs. Actual: Total Operating Revenue for fiscal year end is $139,181 which is $11,444 ahead of budget. Excess Revenues over Expenses are a loss of ($2,802) for the year. b. Cooley Stadium: Miscellaneous Revenue(ATM) is $837 and Event Revenue is $47,153 compared to the prior year's amount of$42,063. Excess Revenues over Expenses is $$3,651 compared to the prior year's amount of$28,011. Greg reported that a check in the amount of$24,223 was written to the City for the overage in the Net Event Development Fund; noting that this is the third highest amount ever to be paid back to the City. Balance Sheet: The Net Event Development Fund is $80,000. Accounts Payable is $95,035. Unreserved Equity is $133,361 compared to the prior year's amount of $128,199. Budget vs. Actual: Total Operating Revenue is a loss amount of($2,664); this budget line item will be adjusted for future budgets. Total Operating Expenses include concessions for food service equipment. Excess Revenues over Expenses are $3,651 ahead of budget. c. Lansina Center: Total Operating Revenue is $4,943,113 compared to the prior year's amount of$4,368,974. Greg noted that ancillary income is up for the year compared to last year. Total Operating Expenses are$5,747,877 compared to the prior year's amount of$5,438,360. Excess Revenues over Expenses is a $239,701 profit compared to last year's loss amount of($90,152). Balance Sheet: Accounts Receivable is $483,004 compared to the prior year's LEPFA Board of Commissioners Meeting Page 4 August 28, 2012 amount of$451,440. Accounts Payable is $128,805 compared to the prior year's amount of$340,744. Unearned Revenue/Advance Rent is $271,750 compared to the prior year's amount of$299,548. Unreserved Equity is $556,936 compared to the prior year's amount of$317,235. Budget vs. Actual: Greg reported that rental income is up and ancillary income is up compared to last year. Total Operating Revenue is ahead of budget by$403,228. Total Operating Expenses are behind budget by($188,990). City Contribution is $798,750. Excess Revenues over Expenses is a profit of$239,653. 2. Monthly Financial Statements for the Month Endina July 31, 2012: a. Lansing City Market: Net Revenue is close to the same as last year; there is an $800 difference due to vendor turnover. Total Operating Expenses are up due to a salary increase for a new City Market manager. Excess Revenues over Expenses for the current period are a loss of($3,778) compared to the prior year's loss amount of($1,659). Balance Sheet: Accounts Receivable is $10,841 compared to the prior year's amount of$5,251. Accounts Payable is $24,064. Unreserved Equity year-to-date is $105,642 compared to the prior year's amount of$110,657. Budget vs. Actual: Total Operating Revenue year-to-date is $184 ahead of budget. Total Operating Expenses year-to-date are ($1,000)behind budget due to high utilities for the month. Excess Revenues over Expenses are ($893) behind budget. b. Coolev Stadium: It was noted that there was no event revenue for the month of July this year or last year. Total Operating Revenue for the current period is $546. Salaries/Wages are in line with last year. City Contribution for the current year is $14,105 compared to the prior year's amount of$14,020. Excess Revenues over Expenses for the current year are a loss of($18,522) compared to the prior year's loss amount of($12,219). Balance Sheet: Accounts Receivable is $39,684 compared to the prior year's amount $1,396. Accounts Payable is $137,956 compared to the prior year's amount of$112,291. Unreserved Equity for the current year is $114,558 compared to the prior year's amount of$116,693. Budget vs. Actual: It was noted that ATM usage continues to decline and salary/wages is a bit behind budget. Concessions/Catering is behind budget by ($5,823) due to new draft lines installed. Commissioner Bowen asked why Concessions/Catering is classified under Food LEPFA Board of Commissioners Meeting Page 5 August 28,2012 Services and not under Maintenance of Facilities. Scott stated that there were separate contracts set-up for fixed asset equipment initially and explained how LEPFA spends money with regard to history. Commissioner Butler stated that he is concerned that equipment falls under the correct budget category. c. LansingCenter:enter: Greg reported that last year in July, the Michigan Utilities Conference was held here,but not this year; therefore, Total Operating Revenue is lower this year. Greg reported that there is a Board of Water&Light meter that has not been read in the past and now it is; Tristyn is working with the Board of Water& Light to see how it will affect future billings. Excess Revenues over Expenses for the current period are a loss of($230,656) compared to the prior year's loss amount of($123,624). Balance Sheet: Accounts Receivable is $490,390 compared to the prior year's amount of$433,615. Accounts Payable is $131,569 compared to the prior year's amount of$157,082. Unearned Revenue/Advance Rent is $314,356 compared to the prior year's amount of$344,372. Unreserved Equity year-to-date is $326,275 compared to the prior year's amount of$190,471. Budget vs. Actual: Total Operating Revenue for the current period is ($18,498) behind budget. Salaries/Wages are higher this year because furlough days were in place last year at this time. Excess Revenues over Expenses are ($22,271) behind budget. Vice-Chair Charlotte Sinadinos moved that the monthly financials for the Lansing City Market, Cooley Stadium and the Lansing Center for the period ending July 31, 2012 be received as published and further that the monthly expenses for each entity be accepted. SUPPORT: Commissioner Barron. Motion unanimously carried. Vice-Chair Charlotte Sinadinos moved that the 2011 —2012 Year-End financials for the Lansing City Market, Cooley Stadium and the Lansing Center for the period ending July 31, 2012 be accepted as a draft until auditor approval has been obtained. SUPPORT: Commissioner Barron. Motion unanimously carried. 2. Special Permit: A discussion regarding the need to obtain a special permit/license to operate a beer tent at the finish line of the Capital City River Run was held. A motion to obtain the permit was made. MOTION: Commissioner Sinadinos. SUPPORT: Commissioner Barron. Motion LEPFA Board of Commissioners Meeting Page 6 August 28, 2012 unanimously carried. C. PRESIDENT & CEO'S REPORT: Scott Keith reported the following: 1. Board Committee Assignments: Scott thanked Chainnan Mickens for making the committee assigninents; noting that he has reviewed them and appreciates Chainnan Mickens' support. 2. Common Ground: Scott reported that he hopes to finish soon and a decision must be made by October if Common Ground will move forward next year. 3. Audit: Scott congratulated the Finance Department for a swift audit and noted that a check was written to the City fiom the Net Event Development Fund. 4. Event Review: Scott reviewed events of note for the months of July, August and September. 5. Reports: Scott reviewed the recap for the Grand Art Market event and his written response to Jack Alexander. 6. Interview: Scott stated that three candidates have been selected to interview for the vacant Vice-President of Food & Beverage position; noting the interviews will begin the week of September l01h 7. Lugonuts Suite: Scott stated that the suite is available September lst; if anyone is is interested, pleas:;contact him. 8. Vice-Presidents Report: a. Heidi Brown reported that employee evaluations are underway along with reviewing job descriptions. Heidi stated that the Common Ground Volunteer Appreciation party was held last night. Heidi mentioned the Lugnuts Suite is available September lst, if anyone is interested. Heidi reported that interviews for the Vice-President of Food & Beverage begin soon. Heidi reported on a healthcare provision that goes into effect on September 24th; noting that we are in compliance with this provision. b. Paul Ntoko reported that he is working on staffing and training for the Fall season as well as menus. Paul stated that he will work to maintain the Food & Beverage department's numbers. c. Tristyn Wright reported in response to City Market Vendor's concerns that there LEPFA Board of Commissioners Meeting Page 7 August 28, 2012 is a first aid kit for the City Market and it is located in Heather's office. Tristyn reported that LEPFA security staff is available to escort City Market vendors to their vehicles; the vendors may call at any time for this service. Tristyn reported that LEPFA security staff will incorporate rounds to the City Market as well as the stadium; additionally there are cameras that do support the market area. d. Gus Pine stated that he is pleased with year-end results; noting that this year is paced to match last year. Gus distributed a copy of the current Pace report and reviewed the highlights; reporting on securing the Michigan Association of Chiropractors for May 2015 and the Michigan Association of Health, Physical Education and Dance for November 2013. e. Greg Soleau stated he had nothing further to report. D. PERSONNEL COMMITTEE: Commissioner Butler reported that the committee met on August 7, 2012; Commissioners Bowen, Butler and Nicholoff were present. Coinmissioner Butler stated the committee's objective was to work on the President/CEO review. The committee discussed the review and will meet again this week to complete it. E. LONG RANGE PLANNING COMMITTEE: Commissioner Barron stated there is no report and the committee will meet soon. VIL COMMISSIONER& STAFF COMMENTS: No report. VIII. OLD BUSINESS: None. IX. NEW BUSINESS: Chairman Mickens stated that the LEPFA Board appreciates the concerns and comments brought forth by the City Market vendors and noted that the City Market Manager and the Vice-President of Operations oversee the City Market and he encourages the vendors to seek theirs out regarding their concerns. Chairman Mickens stated that it is a challenge for the LEPFA Board to address the stated concerns. Chairman Mickens reviewed the concerns regarding security and first aid; noting that Tristyn Wright addressed both of these concerns in her report. Chairman Mickens encouraged the vendors to continue to work with the City Market Manager, Vice-President of Operations and Scott with regard to the parking concerns. Tristyn Wright stated that Bob Johnson offered several parking alternatives in June. Commissioner Butler asked that the City Market vendors to submit their concerns in writing so they are properly addressed. Chairman Mickens addressed Jack Alexander's concerns, stating that the LEPFA Board is not the responsible action; LEPFA management is responsible for addressing his concerns. Jack Alexander stated that a committee should be formed to dissect the stadium and operational issues. Commissioner Barron questioned Mr. Alexander pertaining specifically to what extent LEPFA Board of Comnnissioners Meeting Page 8 August 28, 2012 a committee or his opinion could further address these concerns without additional funds. Chairman Mickens thanked everyone for their diligence, comments and support and suggested that concerns be submitted to the Long Range Planning Committee. X. ADJOURNMENT: At 9:18 a.m. a motion was made to adjourn the meeting. MOTION: Commissioner Barron. SUPPORT: Commissioner Sinadinos. Motion unanimously carried. THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, SEPTEMBER 25, 2012 AT 8:00 A.M. —GOVERNOR'S ROOM—LANSING CENTER; 333 E. MICHIGAN AVENUE, LANSING, MI 48933. Respectfully Subinitted, Shelly Busse Recording Secretary