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HomeMy WebLinkAbout1997 LEPFA Minutes L ANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING z'~''` "... JANUARY 29, 1997 LAINSING CITY CLERK MINUTES At 7:32 a.m. Chairman Donald J. Ristow called the meeting to order in the Governor's Room of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT: John Decker, Charles Janssen, Ellen Jeffries,Kate McNealy, Daniel Nickerson, Donald Ristow, Charlotte Sinadinos, Robert Swanson (Ex-officio) and Dennis Sykes (Ex-officio). COMMISSIONERS EXCUSED: James Butler and Greg Koessel (Ex-officio). OTHERS PRESENT: Heidi Brown, Marian Bryant, Michael Meyers and Peter Sullivan, Lansing Entertainment and Public Facilities Authority; Jack Jordan and James Smiertka, City of Lansing. III. ESTABLISHMENT OF THE AGENDA: No additional agenda items were noted. IV. PUBLIC COMMENT: None. V. APPROVAL OF THE MINUTES OF DECEMBER 17, 1996: The December 17, 1996 minutes were approved as published. MOTION: Commissioner Janssen SECOND: Commissioner Decker, motion carried. VI. REPORTS: A. CHAIRMAN'S REPORT: 1. 1997 Greater Lansing Convention Visitors Bureau Visitor's Guide and Fun Guide: Copies of the visitors guide and fun guide were distributed and Chair Ristow indicated additional copies of the guides are available at the CVB or they may contact Chair Ristow. 2. CVB Economic Impact Study: Chair Ristow noted the CVB has just completed an economic impact study of 25 major events that were held in Lansing along with 29 group tours. He would like to have the Bureau present an overview of the information at the February or March meeting. 3. Standing Committee Appointments: A listing of the committees was distributed. Chair Ristow noted the nominating committee(special committee)usually is appointed in May, however, he appointed it now so that a smooth transition can take place. The Personnel Committee (standing committee) will need to consider a variety of personnel issues i.e. salary administration, personnel policies, etc. and the Finance Committee(standing committee)will review the budgets and review the financials. 4. 1997/98 FYE Budget: Chair Ristow requested the 1997/98 budget be reviewed in a Special Board Meeting to be called on Wednesday, February 5 at 7:30 a.m. to allow Commissioners additional time to review the budget. Chair Ristow indicated usually the budget is required by January 1, however, the budget has required a great deal of work, i.e. the Market budget was developed from scratch, thus, a Special Board Meeting will be called to allow time for review and for approval of the budget. In the interim, Chair Ristow encouraged Board members to contact Peter should they have any questions. At 7:41 a.m. Commissioner Nickerson entered the meeting. LEPFA Board of Commissioners Meeting Page 2 January 29, 1997 B. SECRETARY/TREASURER'S REPORT: 1. REVIEW OF THE DECEMBER 31, 1996 FINANCIALS: Marian Bryant reviewed the following financial information: a. Lansing City Market: Marian reported total operating revenue is $27,000; total building rental is $20,194 with a total operating expense of $48,574, which includes salaries and wages. Marian noted utilities are being booked on a monthly basis and maintenance of facilities i.e. contracted janitorial services and miscellaneous includes the PSD and Storm Water payments. Decker questioned if the PSD payment is the total or a monthly payment. Marian noted that it is the total. Marian noted the current ratio is 4.96 (last month it was 3.94), equity in number of days is 217.88 (last month was 259.81) and total cash is $70,870. Accounts payable are $14,000 and includes the PSD which will be paid in January. b. Oldsmobile Park: Total operating revenue for the year is $167,555; total building rental is$3,000 (for LEPFA events); and total operating expense is $197,350. Marian noted there are expenses associated with ice skating, however there are no revenues because ice skating did not take place until mid-January. The net income after subsidy for December 31 is $69,662. Marian noted the operating transfer was monies that the City paid for Enkomat and plywood and when you subtract that out the net income is $30,304. IRS coverage of expenses is 85% and the current the ratio is 1.24 (last month it was 1.31). Equity in number of days of operation is 74.32 (last month was at 41.51). Cash stands at $187,000 with liabilities of$153,652. Furniture, fixtures and equipment are at$50,281 (the Enkomat, Geotex, and plywood) and depreciation is $7,000 for a net of$43,211. c. Lansing Center: Total operating revenue exceed last year by 21% or $280,000 and total building rental exceeds last year's by $76,954. Marian noted that there are a number of revenues that are up over last year including: building rental up by 26% or $77,000. Food and Beverage is up by $124,000 or 15%, equipment rental, trade show utilities,and labor service are all up. Total operating expenses decreased by less than 1% or$663. Utilities are up due to 6 months of utilities in 96/97 compared to five (5) in 95/96. Marian noted Food and Beverage expense is up, however, revenue is up. At 7:50 a.m. Dennis Sykes entered the meeting. Net income as of December 31 (after subsidy) is $338,177. Marian noted that this does include the $206,000 payment from the City for the prior year's deficit and without the prior subsidy payment and depreciation net income is at$239,876. IRS coverage of expenses is 90% compared to 78% for last year. Cash is up by about$50,000 and that is due to the City's payment of$206,000. Accounts receivables are up as of December 31 (most of that has been collected). Advanced rent deposits are up by$38,500 or 21% which is a positive sign for future business. Marian reviewed actual figures in comparison to budgeted and noted building rental is up by $24,000, Food and Beverage up, and salary and wages are under budget due to vacant positions. Peter pointed out in reviewing the operating income (loss line) comparing $388,000 versus the budgeted ($215,000) this is also a very positive sign for the next six(6) months. He cautioned that this is the first six (6) months and Marian is developing rolling forecasts which will be shared with the Board and will be a good indicator for the year end. Marian noted additional line items relative to operations that are under budget are: maintenance of equipment, maintenance of facilities, and some line items related to supplies and materials due to delayed purchases (this line item will increase). Chair Ristow entertained a motion that the financial statements for the Lansing City Market, Oldsmobile Park and the Lansing Center be received as published for the period ending December 31, 1996 and the expenses for each entity for the month be approved. MOTION: Commissioner Janssen SECOND: Commissioner Decker; motion carried. LEPFA Board of Commissioners Meeting Page 3 January 29, 1997 d. 97/98 Budget: Peter indicated five (5) budgets had to be compiled which included a 96/97 and 97/98 budget for each facility(the City Market and Oldsmobile Park had to be recreated). Marian distributed and reviewed a synopsis of the event mix at Oldsmobile Park, noting further that LEPFA, City and MSU event figures were used to develop budget projections for 97/98. The figures were broken down more specifically into concerts, sporting/gate shows, community events and receptions. In comparing the net columns we are anticipating to approximately double net revenue, which will be dependent upon successful concerts and sporting events, which include two Michigan versus Michigan State baseball games. Commissioner Nickerson questioned the status of the Women's baseball. Peter indicated it is our strong sense that they will not return. Commissioner Nickerson questioned the loss for ice skating. Peter clarified that the $15,000 loss is included in the $93,000 net and on an event basis we are operating the rink at a loss. He noted when the overall financial analysis of ice skating was presented to the City and City Council he indicated that we would operate skating at a loss. Peter noted what is presented today is the most realistic prediction of what skating will be for next year, while it remains our goal to reduce that and also noted "Fright Night" also projects a loss,however, for 97/98 a$800 earning is anticipated through sponsorships. It is anticipated sponsorships will also be obtained for skating as well, however, the figures are conservative. Chair Ristow indicated this is a philosophical issue, and while our mission is to manage and operate a businesses professionally, responsibly, successfully and hopefully at a profit, we have a community responsibility which the Administration and Council are interested in and concerned about. Ice skating is an issue that is a good community minded project, regardless of the fiscal status and management has to try and make it break even while being affordable for the community which is not easily accomplished. Dennis Sykes noted the Council and Administration believe the Board needs to consider a wide variety of events that allow the Community to utilize the facilities. Over the past year they have not had community complaints about the inability to use the facilities and participate in the building that their tax dollars have provided. Sykes noted last year we had many ideas i.e. the movies, but had no idea of the cost of making the events happen and Peter had to figure out how to make these events work. Commissioner Sykes noted it is a tricky business when we ask people to run these entities like a business, and then ask them to do things that are not money makers but are positive community wide events. Peter noted ice rink attendance has averaged approximately 500 people per day to-date. Peter noted initially 60 days were budgeted and revised to 30, and that the event is a good one in terms of community reaction. Overall inclusive of skating, the bottom line for all non-baseball events is a positive number. Jim Smiertka suggested if LEPFA plans to continue to the host negative financial events such as "Fright Night" and skating, it would be helpful if this information is communicated to City Council near budget time indicating that while the events operate at a loss, LEPFA is fulfilling the Community purpose. Peter indicated he believes he has communicated this to members of Council and the Administration and they requested we move forward, however, he will reiterate this in the future during budget hearings. Commissioner Janssen noted he is pleased to have received this information and it is good for the Commissioners to know and be aware of such matters so that they are able to discuss this issue. Commissioner Janssen requested as we move forward and try other things,that it would be helpful to bring the Board in on the success/failure of some of the projects so they can be supportive. Peter indicated the Lansing Center and City Market budgets are also included and suggested if anyone has questions to contact him. C. CHIEF EXECUTIVE OFFICER'S REPORT: LEPFA Board of Commissioners Meeting Page 4 January 29, 1997 1. Union Issues: Peter reported he recently met with Dirk Spillemaekers regarding questions and wording changes on the Facility Workers contract, a state mediator was also involved and as a result management will re-submit a new draft of the document to Dirk for his review. He will review it and barring any issues he will resubmit the document to the employees and hopefully it will be ratified. The state mediator will attend the meeting(at Peter's request)with the rank and file and will be viewed as an impartial third party. Peter noted they have begun negotiations with the AV Techs and they put 12 issues on the table. We have responded and there still remains some financial issues that need to be resolved. Forepeople will be the final group in need of negotiations. 2. City Market: Peter reported to-date there has been an outstanding response to the Lansing State Journal market survey. Thus far there have been over 450 responses to the survey which does not include the LSJ responses, for an estimated total of 700. Mark Nixon has indicated that this is the single most favorable survey that they have ever run and the information is being tabulated and will be shared at a future Board meeting. Upcoming events at the Market include a pancake breakfast on February 15 to benefit "The Citizens for a Better Lansing" as well as a Sparrow Hospital Heart health screening on the same day. Peter indicated the vendors are putting together a coupon flier for the community newspapers. A birthday party was held for the winner of the Harvest Fest pumpkin carving winner and Eaton Gardens will be a new vendor in the court yard. 3. Oldsmobile Park: The focus at Oldsmobile Park continues to be public ice skating and skating actually opened on Saturday, January 18 and has been open for seven (7) days with attendance in excess of 3000 people. To-date the response has been very favorable. The activity will continue through March 2 (weather permitting). Peter reported he and Scott Breckner continue to meet regarding non-baseball entertainment and nothing is confirmed yet, but offers are in progress. Concerts will occur probably in June and they are also considering various festivals, as well as the " Yes Fest" (a country festival on a Friday and Saturday in June in conjunction with a carnival). A number of big name acts are being considered for July and August and he will keep the Board informed as acts confirm. In addition, LEPFA is looking at the United Way Kickoff, the Great Lakes State Games, as well as pursuing a number of high school baseball activities,in addition to the Oldtimers game and the Diamond Classic. 4. Lansina Center: Peter noted the Lansing Center hosted 40 events for 68 event days, with 23,000 in attendance, utilizing 418 room nights, for an economic impact of$354,000 in December. Comparing this year's second quarter to last year's second quarter,there were 30 more events, which equaled 53 additional event dates, building rental was up $63,000 as are extra charges, and banquet income. Attendance is up about 2000 and 900 room nights. Economic impact is up about $370,000. Year-to-date numbers: 256 events, 381 event days, building rental is up by over $460,000, attendance is up by $126,000, economic impact is as $25 million. Food and beverage revenue achieved the $1million sales mark three (3) weeks earlier this year compared to last year. At 8:30 a.m. Jim Smiertka exited the meeting. December highlights include the Art Van charity dinner, which was very well received and will take place again next year. FestEve took place on December 31 with 2000 people in attendance and LEPFA will become more involved in the event next year. January 3-5 the Boat Show was in house and attendance was up. A Bridal Show was recently held and they will expand their show next year. We participated in the show and additional business was generated as a result of it. The Lansing Center recently hosted the Michigan Nursery and Landscape convention as well as the Michigan Agri-MEGA Conference. Chair Ristow noted Tom Galyon and the CVB is working with LEPFA in welcoming conferences such as the Michigan Landscape and Nursery Association to Lansing via buttons, and billboard. Peter noted he, LEPFA Board of Commissioners Meeting Page 5 January 29, 1997 Tom Galyon, and Roy Croop will make a presentation to the Michigan Funeral Directors and they are considering returning to the Lansing Center in 1998-2000. The Michigan High School Education Association has booked for 1998-2000 due to last minute maneuvering. D. LANSING CITY MARKET EVALUATION TASK FORCE: Committee Chair Ellen Jeffries reported the City Market Task Force met last evening and are working on the outline. The committee met on Tuesday, February 4 at 4:30 and will be dealing with parking, vendor recruitment and vendor mix. Chair Jeffries noted everyone received a copy of the thank you letter from Chair Ristow sent to the Lansing State Journal and the Committee is very pleased with the survey and the results. She noted the survey is the first Lansing City Market survey and will be a key component of the Committee's recommendation. Jeffries noted the committee is behind, but the survey results are a key component. Chair Ristow expressed his pleasure with the survey, the results, and the Committee's progress. VII. COMMISSIONERS COMMENTS: A. DENNIS SYKES: Commissioner Dennis Sykes discussed the idea of hockey, noting this issue came up last year.when the stadium was being finished. Sykes noted there are multiple hockey opportunities via the Colonial League and IHL and currently the City is in the process of looking at the issue which would require an arena with two to three sheets of ice and parking (25 acre site). Different sites around the City are being considered and the Administration will follow the same approach as the stadium, i.e. securing a great deal of input. Sykes indicated he has had discussions with MSU and we have to consider a multi- purpose site so there must be consideration of the Breslin Center and Wharton Center and there must be the ability for the market to support such a site. Sykes noted hockey would be secondary, but hockey will be the driving force for people's interest and while there is revenue there is also debt service and the facility would be utilized year around. Mr. Sykes noted the concept is in the early stages and there are many questions to be answered, however, he wanted to inform the Board of the discussions that are occurring. Bob Swanson noted there are many people who are looking at what the market for baseball is here, and if we can do that for baseball, they are hoping for the same response to hockey. Swanson indicated there has been at least four (4) separate groups that have contacted the City regarding hockey and they see a market that will produce some fan support. B. DANIEL NICKERSON: Commissioner Nickerson noted in regard to Oldsmobile Park and the Michigan Festival, he would not want to be seen as competing with Michigan Festival and questioned if Oldsmobile Park could be used as an "off site" for Michigan Festival? Peter indicated those discussions have been broached with Michigan Festival and they wish to remain self contained. Peter noted we are not trying to compete with Michigan Festival, but its natural and their charge is similar to our charge. He noted it doesn't make sense to go up against them, however, if we have a musical act that will be a success, we have a job to do just as they do. Nickerson questioned if such an issue would be brought to the Board? Peter indicated it would be, cautioned that one has to move quickly when attempting to secure big acts, however, he is very sympathetic to Commissioner Nickerson's request. Sykes noted that there is a delicate balance that we will have to struggle with forever and it is important to maintain a positive relationship with the Community, but there will be conflicts from time to time, however it is a business. C. AMENDED ARTICLES OF INCORPORATION: Bob Swanson noted the Articles of Incorporation amendments have been referred to the IntraGovernmental Relations Committee of City Council and there is a slight change in them that the Mayor will recommend only one of the two terms be extended so that we immediately go to a nine member board and it makes the appointment process easier. LEPFA Board of Commissioners Meeting Page 6 January 29, 1997 VIH. OLD BUSINESS: None. IX. NEW BUSINESS: None. `• Chair Ristow reminded Board members of the Special Meeting called for next Wednesday, February 5 at 7:30 a.m. to consider the 1997/98 budgets. At 8:57 a.m. it was moved that the meeting be adjourned. MOTION: Commissioner Nickerson SECOND: Commissioner Sinadinos; motion carried. THE NEXT MONTHLY MEETING IS SCHEDULED FOR WEDNESDAY, FEBRUARY 25, 1997 AT 7:30 a.m. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM. Respectfully submitted, Heidi K. Brown, Recording Secretary r SPECIAL MEETING LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORI 'Y" E '`v,r_ D * i Ili R 20 All li: 29 BOARD OF COMMISSIONERS MEETING LANSING CITY CLERK FEBRUARY 5, 1997 MINUTES At 7:37 a.m. Chairman Donald J. Ristow called the meeting to order in the Governor's Room of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT: John Decker, Charles Janssen, Ellen Jeffries, Kate McNenly, Daniel Nickerson, Donald Ristow, Charlotte Sinadinos, Robert Swanson (Ex-officio) and Dennis Sykes (Ex-officio). COMMISSIONERS EXCUSED: James Butler and Greg Koessel (Ex-officio). OTHERS PRESENT: Heidi Brown, Marian Bryant, Michael Meyers and Peter Sullivan, Lansing Entertainment and Public Facilities Authority; and Jack Jordan, City of Lansing. III. FYE 1997 & FYE 1998 BUDGETS: A. BUDGET REVIEW: Peter indicated the budget cover letter highlighted the following points: 1. Lansing Center: FYE 1998 it is projected that revenues generated will be $3,900,000 with expenses of$4,600,000 for a City contribution of$668,000 which is a decreased of 6.5% compared to FYE 1997. 2. Oldsmobile Park: Expenses are estimated at$203,000 compared to $174,000; which is an increase of 16% and is attributed to the expiration of warranties, as well as commencement of the City's and LEPFA's obligation regarding major maintenance responsibilities per the TMO. Also projected were 33 non-baseball events, for a 9% increase compared to the first season. 3. Lansing City Market: Revenues are estimated at$68,000, with expenses of$181,000 which equals a City contribution of$115,000, for an estimated 8% decrease compared to this fiscal year. At 7:37 a.m. Bob Swanson entered the meeting. Peter reported the combined facilities will generate 911 event days, with an excess of 500,000 people visiting the facilities under LEPFA's direction. He noted that we endeavored to create the budgets in more detail for the current fiscal year, to help with the calculations for 97/98. Peter indicated that the process used was zero based budgeting. B. QUESTION AND ANSWERS: 1. Indirect Cost Allocation: Ellen Jeffries questioned the indirect cost allocation and recognition of it and asked if the City had a way of taking this into account? Bob Swanson reported he and Peter discussed this issue and noted the City does have a method as well as a consultant that performs yearly allocations of staff time who perform multi-functions. Swanson indicated he and Peter have discussed having the City's consultant review the Lansing Center this summer. LEPFA Board of Commissioners - Special Meeting Page 2 February 5, 1997 In the meantime, it was agreed to leave the budget as it is presented for the current year rather than trying to arbitrarily allocate time. Mr. Swanson indicated this will apply to the budget for the following year. Commissioner Jeffries requested some recognition of the allocation process in the transmittal of the budget i.e. a footnote to the statements. Mr. Swanson noted this could also be noted in a transmittal letter and that it was one of the recommendations of the Task Force. 2. City Market: Commissioner John Decker noted $19,000 has been allocated for the marketing of the Lansing City Market, however, to-date $3,000 has been spent at the Market. Decker questioned if the figures are correct and if there is $16,000 available through June 30 for marketing? Peter indicated the remaining monies will be used for major promotional weekend events and it will be spent on targeted promotions similar to Silver Bells, Harvest Fest, etc. At 7:41 a.m. Dennis Sykes entered the meeting. Ellen Jeffries acknowledged Peter Sullivan's and Marian Bryant's work on the budgets and questioned if they will be on the monthly financial statements? Ellen also questioned the Lansing Center budget, under the projected City contribution, if the City plans to see where we end up before they change the subsidy since we are ahead of budget. Bob Swanson noted that if the numbers remain positive, we will need substantially less than the amount requested and this is consistent with the numbers developed last fall. Peter has presented the information to City Council and the administration is aware of the possibilities. Ellen questioned if it will impact 97/98? Peter noted that it will have to be reassessed and indicated he has asked Marian to develop a "rolling forecast" which will be a 95% indicator at the conclusion of the next two months as to where we will be at the end of the fiscal year. If the figures vary, it is logical that 97/98 will be reassessed and we will report back to the Board. Peter noted two recommendations of the Task Force as presented to Council were the establishment of a cash reserve operational fund as well as the establishment of a capital major maintenance reserve fund. Charlotte Sinadinos noted under Oldsmobile Park an increase in"insurance bonding" (while Lansing Center decreased significantly). Marian noted in April the Board approved insurance that the City funded for Oldsmobile Park, and the Authority assumed the expense in January. Chair Ristow questioned if the Honeywell system is working up to the level expected. Michael Meyers noted we have received a report and the report indicated that it has, but we have not verified if it has. Marian noted one of the difficulties with this service is that there is no building history as it is now. Peter noted last year was the first full year under the Honeywell system. Michael Meyers noted the report is favorable and their assumptions are based on what they thought the savings would be. Commissioner Kate McNeely requested when there is a disparity between line items, if in the narrative we could explain why, i.e. Oldsmobile Park budget, "other professional services" was budgeted for $10,000 but$26,000 was spent, with a notation that items would be done in house. Peter noted this variance was due to the consultant agreement with MSU. Repairs and Maintenance for Oldsmobile Park were also noted as it relates to the TMO agreement. Peter indicated that issue is addressed in the cover letter and disparities were noted, and in the future they will endeavor to list all disparities. Under "other miscellaneous" McNeely requested a break down on all three areas (shopping district, storm water and Board expenses). Marian Bryant clarified the figures. Commissioner Janssen asked Peter if he felt enough money has been set aside in the budgets in moving toward major improvements for the Lansing Center and Oldsmobile Park? Peter noted regarding the stadium, what has already been set up is the setting aside of $60,000 per year to be taken out of the revenues and put in a major maintenance reserve fund, however, we may want increase this amount after further analysis of this issue and we will continue to look at projects that merit consideration. Peter noted $60,000 is being reserved, however, there is more in the account based on how it was initially funded (there will be $180,000 reserved as of July 1, 1997). LEPFA Board of Commissioners - Special Meeting Page 3 February 5, 1997 Peter noted he is comfortable with the stadium amount thus far. In regard to the Lansing Center, the Task Force, through Bob Swanson's efforts, has earmarked the original lease payment of$50,000 to be shifted to a major capital reserve and it is his recommendation that the figure be increased because we need to keep the building in good repair, and that there is a list of equipment that is needed, per the Transition Committee's recommendations. Bob Swanson noted a major problem facing the Board and City was that there was no major maintenance reserve fund for the Lansing Center in the past. Commissioner Nickerson requested clarification regarding the $50,000 lease payment from the GLCEA to the City which was terminated and is tied into the major maintenance reserve. Peter noted when developing the management agreement between LEPFA and the City it was agreed between the parties that the$50,000 yearly lease payment would be used for capital funding and major maintenance reserves, and it would be a separate item under the major maintenance reserve. Peter noted in the past there were reserves, but they were not split and one of the recommendations of the Task Force was to split them, i.e. if there is a surplus half would go into a cash reserve fund and the other half in a capital reserve fund. Chair Ristow noted that the major maintenance was discussed by the Transition Committee and the Task Force recognized the need for a major maintenance reserve and cash reserve fund, and those two items will be resolved over time. Chair Ristow indicated he believes Council considers these items to be important as well and there is a need to avoid what happened at the Civic Arena. Chair Ristow entertained a motion to adopt the fiscal year budgets for the period ending June 30, 1998 for Oldsmobile Park, the Lansing City Market and the Lansing Center as presented and published, including the recommendations as submitted to the Board. Motion was unanimously passed. i At 8:01 a.m. it was moved that the meeting be adjourned. MOTION: Commissioner Decker SECOND: Commissioner Sinadinos; motion carried. Respectfully submitted, Heidi K. Brown, Recording Secretary LANSING ENTERTAINIVMNT AND PUBLIC FACILITIES AUTHORITY s C' I\�E"1 BOARD OF COMMISSIONERS MEETI }" r' ` F:-R l ? N I?: 39 FEBRUARY 25, 1997 LANS(Pav CITY CLERK MINUTES At 7:32 a.m. Chairman Donald J. Ristow called the meeting to order in the Governor's Room of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT: James Butler, John Decker, Charles Janssen, Ellen Jeffries, Kate McNenly, Daniel Nickerson, Donald Ristow, Robert Swanson (Ex-officio) and Dennis Sykes (Ex-officio). COMMISSIONERS EXCUSED: Greg Koessel (Ex-officio) and Charlotte Sinadinos. OTHERS PRESENT: Heidi Brown, Marian Bryant, Michael Meyers and Peter Sullivan, Lansing Entertainment and Public Facilities Authority; Jack Jordan, City of Lansing. III. ESTABLISHMENT OF THE AGENDA: No additional agenda items were noted. I IV. PUBLIC COMMENT: None. V. APPROVAL OF THE NEU14UTES OF JANUARY 29 and FEBRUARY 5, 1997: The January 29, 1997 and February 5, 1997 minutes were approved as published. MOTION: Commissioner McNenly SECOND: Commissioner Decker, motion carried. VI. REPORTS: A. CHAIRMAN'S REPORT: 1. Articles of Incorporation: Chairman Ristow reported the changes recommended to the LEPFA Articles of Incorporation were ratified by the Intergovernmental Relations Committee and City Council. At 7:35 a.m. Jack Jordan and Charles Janssen entered the meeting. B. SECRETARY/TREASURER'S REPORT: Chair Ristow reported Treasurer Charlotte Sinadinos requested he give her report in her absence and also requested he Chair the Finance Committee meeting held on February 24. Chair Ristow noted a correction on the quarterly statement, the quarter ended in the first paragraph should read "December 31, 1996," not "January 31." Commissioner Ristow reported the Committee was very pleased with the overall finances of the Authority; and the Committee did approve a recommendation for adoption and approval of the financials to the full Board. 1. REVIEW OF THE JANUARY 31, 1997 FINANCIALS:_ Marian Bryant reviewed the following financial information: a. Oldsmobile Park: Total operating revenue is $184,882; total building rental is $3,000 (for LEPFA events); and total operating expense is $258,723 (Marian noted the revenues are associated with ice skating). Net income without depreciation and the operating transfer as of January 31 is $46,000. IRS coverage of expenses is 71% and the current the ratio is 1.13% Marian noted budget versus actual has been added and event and non-event revenues and expenses have been included. LEPFA Board of Commissioners Meeting Page 2 February 25, 1997 b. Lansing City Market: Marian reported total operating revenue is $29,878; total building rental is $22,805 for a total operating expense of $58,000 with a net income after subsidy of $56,770. Marian noted page three of three notes the budget versus actual figures. c. Lansing Center: Marian noted the Lansing Center continues to do very well and cautioned that these figures are only for seven (7) months. Total operating revenue exceed last year by 24% or$420,000 and total building rental exceeds last year's by 21% or$105,000. Food and beverage exceeds last year by 30% or$300,000 and expenses exceed last year by 8% or$60,000. Net income after subsidy and without prior payment of $206,000 is $279,000. Year-to-date for seven months prior to an application indicates ($113,000) compared to ($500,000) for last year. Marian noted that advanced rent deposits are up over last year by 46% or $80,000. Chair Ristow noted last June "Equity in Number of Days of Operation" was down to two days, so 58 days for this period is noteworthy. The Committee also noted under "Utilities"the increase in rental income versus the increase in "Utilities"indicates that the Honeywell system is effective in providing savings. Chair Ristow entertained a motion that the financial statements for the Lansing City Market, Oldsmobile Park and the Lansing Center be received as published for the period ending January 31, 1997 and the expenses for each entity for the month be approved. MOTION: Commissioner Jeffries SECOND: Commissioner Nickerson; motion carried. C. CHIEF EXECUTIVE OFFICER'S REPORT: 1. Union Issues: Peter reported he recently met with Dirk Spillemaekers and a state mediator regarding the Facility Workers contract. A new draft of the Facility Workers contract has been forwarded to them which included wording changes. He noted the Union now must respond to the proposal and it is hoped that the new draft, incorporating the language changes, will be viewed favorably. In regard to the AV Tech bargaining unit, a meeting was held on February 20 and they received a new draft instituting the changes they were seeking, however, a fax was received from Dirk on Friday, February 21 refusing the proposal for reasons that are unclear. Peter noted only two people are in this bargaining unit and they would like to get this issue resolved. Peter noted the Foreperson's contract has not been addressed due to the understanding that the two other groups will be resolved before moving on to their contract. 2. City Market: Peter reported there has been two follow up articles in the Lansing State Journal in response to the survey results; one was an editorial and the other was an article. He noted the feedback from the vendors to both articles has been extremely positive. As a result of the survey it has been indicated that there is the need to expand Market days and hours as well as to increase product offering (which validated a number of keys issues being study by the Task Force). 3. Oldsmobile Park: The focus for February at Oldsmobile Park continues to be ice skating. To-date the rink has been open for 21 days and has attracted 6000 paid patrons. The public response has been positive, however, the recent warm weather may cause the rink to close sooner than expected. Peter noted a recent article in the paper was favorable and feedback continues to be positive. He noted he and Michael Meyers will continue to investigate the possibility of a "man made" ice rink for next year and they will put together a feasibility analysis. Peter reported he and Scott Breckner continue to meet regarding non-baseball musical entertainment and a number of potential events are being discussed. He and Michael Meyers continue to meet with the Lugnuts weekly on operational issues. LEPFA Board of Commissioners Meeting Page 3 February 25, 1997 At 7:44 a.m. Dennis Sykes entered the meeting. 4. Lansing Center: Peter noted the in January the Lansing Center hosted 38 events for 66 event days, with 31,000 in attendance, utilizing 2500 room nights, for an economic impact of $738,000 in January. January/February highlights include: the Bancorp Home and Garden Show -January 30 through February 2; the Lugnuts Charity Gala on January 27; Michigan Pork Producers (early February); Motorcycle Swap Meet on February 9; Michigan State Police press conference on February 10; Ingham County Democrats and Democratic Caucus; the Deer and Turkey Spectacular February 14-16 with 18,000 attendees;February 20-22 Heartland Travel Showcase - this is in conjunction with the CVB and is the first time this event has been hosted outside the state of Ohio. Peter noted currently the Michigan Association of Broadcasters is in-house. Peter noted future bookings include: the Michigan Library Association in 2001 and 2003 and 2007 and 2009. The Michigan Association of Secondary School Principals are looking at a four day event in December, 2001. The Michigan Funeral Directors Association is looking at a three day event in May, 1999; the Diocese of Lansing is looking at a three day conference in October, 1998; the American Waterworks Association re-booked for February, 1998; Information Network for Christian Homes is looking at June, 1998 and Sysco Food Show is considering March, 1997 dates. Peter noted we have been working on getting "arena" type events in the Lansing Center and will host a contemporary Christian Concert at the Lansing Center in May which will be in Halls A&B for about 2000 people. D. LANSING CITY MARKET EVALUATION TASK FORCE: Committee Chair Ellen Jeffries reported the City Market Task Force met on February 4, 19, and 20 to wrap up the Task Force recommendations and will meet again tomorrow to work on the rules and regulations. Chair Jeffries noted the Task Force is hoping to get the final draft of the recommendations distributed by March 7. By March 11 it is hoped to be distributed to the Board members, members of City Council and the Mayor's office with the Board voting on the recommendations at the March 25 meeting. The Task Force will meet with the vendors on March 13 at 5:30 p.m. Chair Jeffries noted the survey reinforces what the Task Force members learned from their site visits, i.e. more hours and more days of operation. Jeffries indicated if any Board members have questions,to call any of the Task Force members. VIE[. COMMISSIONERS COMMENTS: A. JAMES BUTLER: Commissioner Butler questioned the status of the most recently hired staff member, i.e. when that person will be in Lansing? Peter noted he sent a memo to all Board members regarding the filling of the position and Tad Carper will begin on March 3. Butler questioned the status of the recruitment of a minority manager by Tad. Peter noted he is unaware of such a candidate,but there is a Marketing Manager position that will be filled as soon as possible. Commissioner Butler then asked for clarification as to whether or not a minority has been hired in a management position? Peter indicated a minority has not been hired to-date. Peter indicated currently there is one position open within the Marketing Department. B. DONALD RISTOW: Chair Ristow questioned Peter as to how he would envision the Delta Township proposal for an ice arena would affect the Authority. Peter noted it is a sensitive topic and he thinks that they have some very ambitious plans regarding their overall project, i.e. the arena will be phase III not I or II and $50 million for the entire project is conservative. Peter noted he also had concerns as to whether the region can support the Breslin Center and an Arena downtown and as well as to the west. LEPFA Board of Commissioners Meeting Page 4 February 25, 1997 Bob Swanson noted their plans are unrealistic and ambitious in comparison to the dollars. Swanson noted if they were to build everything they outline, they would impact this operation, but the size of investment they would need to make for the facilities they propose would be more than $50 million but if it does happen it will impact the Lansing Center and the Breslin Center. Dennis Sykes commented that they are looking at building the project in phases and the arena is the last phase. Sykes noted they move the phases along as they look at the market and it appears as though they were trying to move the City out of the competition and considering the recent article concerning Breslin Center, it appears as though everyone is posturing. Commissioner Nickerson questioned if we should pro-actively consider a Task Force to study where this would fit in terms of the facilities that LEPFA operates. Dennis Sykes noted that money is the issue at this point and noted we need to be careful how we become proactive. Sykes noted in about 60 days they will have more information to bring back to the Board and at that time we should consider a "proactive" phase because this is such a sensitive issue. Commissioner Janssen questioned the minimum size needed for an Arena to support an IHL team and the need for a smaller arena i.e. 2500 - 3000 seats that would compete with MSU. Sykes noted these are legitimate questions and the IHL won't do business with an Arena less than 10,000 seats and the Colonial League tends to consider 6-8000 seats. Sykes noted we need to set hockey aside in considering a design and look at the Arena for multi-purpose events as well. Commissioner Nickerson clarified what he mean't by developing a Task Force, was to develop a Business Plan to provide parameters. Sykes noted the entire reason for discussing the issue was to make everyone aware of what is being discussed and so that we are collectively aware of the information needed to make decisions. Jack Jordan questioned if there are teams available and is there interest? D. Sykes noted that they have had correspondence with the IHL and there are teams interested. However, commitment is needed from a team. Sykes noted there many unanswered questions and they will comeback to the Board with information. VM. OLD BUSINESS: None. IX. NEW BUSINESS: None. At 8:15 a.m. it was moved that the meeting be adjourned. MOTION: Commissioner Janssen SECOND: Commissioner Decker; motion carried. THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, MARCH 25, 1997 AT 7:30 a.m. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM. Respectfully submitted, Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY L-)rr`�I�, BOARD OF COMMISSIONERS MEETING ' 'E7 ('` E!D MARCH 25, 1997 L ;i Si; 0 CITY CLERK MINUTES At 7:30 a.m. Chairman Donald J. Ristow called the meeting to order in the Governor's Room of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT: James Butler, John Decker, Charles Janssen, Ellen Jeffries, Kate McNeely, Donald Ristow, Charlotte Sinadinos, Robert Swanson (Ex-officio) and Dennis Sykes (Ex-officio). COMMISSIONERS EXCUSED: Greg Koessel (Ex-officio) and Daniel Nickerson. OTHERS PRESENT: Jack Jordan, City of Lansing; Thomas C. Galyon, Greater Lansing Convention&Visitors Bureau; Lisa Cromley and Debbie Guenther, Pace&Partners; Heidi Brown, Marian Bryant, Tad Carper, Michael Meyers, Peter Sullivan, and Lisa Wootton; Lansing Entertainment and Public Facilities Authority. III. ESTABLISHMENT OF THE AGENDA: No additional agenda items were noted. IV. PUBLIC COMMENT: None. V. APPROVAL OF THE MD1UTES OF FEBRUARY 25, 1997: The February 25, 1997 minutes were approved as published. MOTION: Commissioner McNeely SECOND: Commissioner Decker, motion carried. At 7:32 a.m. Commissioner Charles Janssen entered the meeting. VI. REPORTS: A. CHAIRMAN'S REPORT: 1. Agenda Item Change: Due to today's early departure of Lansing City Market Evaluation Task Force Chair Ellen Jeffries, Chair Ristow noted "Item D" will be the second item of business following the GLCVB and Pace & Partner's presentation. 2. Date Change for April and May Monthly Board Meetings: Chairman Ristow requested the LEPFA Board of Commissioner's April and May meetings be moved to Wednesday (April 23 and May 28) at the same time. The change in April is due to Peter Sullivan's return on Tuesday and Memorial Day falls on Monday, 26 which will require that the Finance Committee meet on Tuesday, May 29. At 7:35 a.m. Dennis Sykes entered the meeting. 3. Greater Lansing Convention&Visitors Bureau Economic Impact Presentation: Chair Ristow welcomed GLCVB President&CEO Thomas Galyon and Debbie Guenther and Lisa Cromley from Pace &Partners. Mr. Galyon noted in 1995 the GLVCB contracted with Pace and Partners to begin a comprehensive market analysis of what the Convention&Visitors Bureau is doing in the community in terms of economic impact via surveys and interviews. Galyon indicated in 1997 aspects such as MSU Football, the Lugnuts, the Wharton Center, and additional leisure type activities will be researched. In 1998 research will return to conventions/tradeshow analysis. LEPFA Board of Commissioners Meeting Page 2 March 25, 1997 Mr. Galyon introduced Lisa Cromely who presented the background of the study(copies of the GLCVB's 1996 Annual Report-Executive Summary, were distributed). Mr. Galyon noted Peter Sullivan has a copy of the GLCVB's full 1996 annual report for those Board members desiring a detailed copy. At 7:50 a.m. Bob Swanson entered the meeting. Lisa noted that the study encompassed all of 1996 during all four seasons of activity and events. The objectives of the study were: 1. To quantify the spending of visitors who came to the Greater Lansing area by way of the Convention/Visitors Bureau; adding spending by exhibitors, set-up crews, etc. 2. Compare different kind of spending types: day trippers vs. one overnight stay, to understand the different spending levels of the different kinds of visitors. 3. Compare spending based on the type of event. 4. Compare the data collected in 1993 to the new data and understand changes of the type of visitors and the spending levels of visitors (1996 versus 1993). Lisa noted 25 events were sampled in total over the course of the twelve months as well as 29 group tours with 1600 responses. Other samples include conventions associated with a meeting, trade shows, sporting events, public shows, home and garden show, and tours. The results: 1. The GLCVB brought over 421,000 people to the Greater Lansing area in 1996. 2. Visitors spent $77.8 million in direct spending broken down as follows: $25 million spent at conventions with a tradeshow; public shows $20 million; conventions and meetings $17 million; sporting events $16 million and group tours $200,000. Spending by exhibitors and sponsors is $12 million ($5 million by exhibitors, $7 million by sponsors) and the remaining $65.8 is spent by visitors (hotels $25 million, $19 million on restaurants, $8 million retail,$4 million sports events, $3 million gasoline and parking, $2 million on merchandise at shows, $2 million museums, and $3 million in other). 3. Overnight visitors versus day trip visitors comparison is as follows: 55% of the total visitors came for one day; 45% had at least one overnight stay in their visit. Day trippers spent $49 during their visit, overnight visitors spent $291. 4. Comparison of 1993 to 1996 convention delegates (this was the only group surveyed in 1993). Overnight visitors in 1993 was 55% of the convention visitors and in 1996 it was 72%. Total spending was at $189 per delegate. 5. In 1996 Visitor Satisfaction Data was sampled as follows: on a scale of 1 - "I Don't Agree with this Statement at All" to 7 - "I Agree Completely With This Statement." The rating for "I enjoyed My Stay" - 5.5. The mean rating for "Found Activities of Interest" was 5.3; "Was Able to Get Enough Information" - 5.3; "I Would Recommend the Lansing Area for a Meeting or Convention" -5.4; "I Would Recommend the Lansing Area to a Friend or Colleague for a Visit" - 5.2; "Look Forward to a Return for Pleasure" and "Look Forward to a Return for Business" both at 5.1. LEPFA Board of Commissioners Meeting Page 3 March 25, 1997 In summary, the GLCVB is bringing visitors and money to the area. The one source of dissatisfaction was paying for parking. Lisa noted this information provides the GLCVB with the opportunity to review areas differently in terms of how we package items for visitors and continuing with measurements to obtain more detailed data. Mr. Galyon noted his thanks and indicated if there were any questions to feel free to contact him. C. LANSING CITY MARKET EVALUATION TASK FORCE REPORT: Committee Chair Ellen Jeffries thanked all the Task Force members and Peter Sullivan and Lisa Wootton for their efforts. Chair Jeffries noted all Board members were sent a copy of the report approximately two(2)weeks ago. Jeffries presented an overview of the report noting the Committee was formed one year ago and its purpose was three (3) fold, beginning with becoming familiar with Market operations and reviewing the key issues identified by the vendors and the consumers; and then make recommendations based upon the research completed in order to position the Market for success. Chair Jeffries noted hours and days were spent reviewing old studies, interviewing vendors and other interested parties, visiting other state-wide Markets and developing a consumer survey (which was published in the Lansing State Journal). The first survey question asked was if there should be a City Market and the resounding answer was "yes." The report outlines the critical issues and the Task Force's recommendations. Jeffries indicated the highlights are in the "Executive Summary" on page two (2). Chair Jeffries reviewed the highlights as published including: annual leases with the option for seasonal, monthly and daily leases at a new fee structure; recommended extending the days of;operation (adding Fridays); extending hours by one hour (open until 6:00 p.m.); a series of new promotional activities; procedures for recruiting new vendors and guidelines for vendor mix and a vendor support organization; and investigating capital improvement projects. At 8:00 a.m. Jack Jordan entered the meeting. The conclusion outlines what the success of the Market relies upon as follows: increasing occupancy and product diversity; increasing customer convenience; increasing advertising, promotions and educational opportunities; and maintaining a professional/business oriented approach to Market management. Jeffries noted policies and rules and regulations are included in the report and thanked the Task Force members for their time. Commissioner Janssen questioned how many people use the Market as they leave downtown, or how many people make a special trip? Lisa noted this was a non-issue because the Market closes at 5:00 p.m. and the traffic tends to be heaviest at lunch time; therefore, extended hours is a top issue. Peter Sullivan noted this was a survey issue and the feedback requested hours after 5:00 p.m. Janssen noted that he believed it was good that the Committee did not address the issue of location and suggested the group may want to note that the issue of location was not addressed. Chair Jeffries noted location was discussed, but was not addressed because it was felt that the Market could be better marketed in terms of parking where it is now located. Janssen suggested the critical issues should be addressed prior to addressing the location issue, but it should be noted that it is not included in the study. Commissioner James Butler noted that this was not an issue in any of the survey responses. Chair Ristow noted the Market has been dependent on funding from the City, however, if through this study we can turn the business around and outgrow the spot, then location will become an issue. A motion was made that the Lansing City Market Evaluation Task Force Study recommendations/report be adopted as published and the recommendations be approved contained therein. MOTION: Commissioner Jeffries: SECOND: Commissioner Janssen: motion carried. Chair Ristow thanked the Committee members and Lisa Wootton for their work, time and effort put into the project. LEPFA Board of Commissioners Meeting Page 4 March 25, 1997 At 8:11 a.m. Ellen Jeffries exited the meeting. B. SECRETARY/TREASURER'S REPORT: Treasurer Charlotte Sinadinos noted the Committee met on March 24 and reviewed the financial statements. Marian requested, and the Committee recommended and approved, the transfer of$50,000, which appears on page one of three under "Rents and Leases," this is the amount of the previous lease to the City and will be transferred to "Reserve Capital Replacement" (or line item two). It was noted, after questioning by Mr. Ristow, that$20,000 of the close to $500,000 accounts receivables are over 90 days and is due to the timing of the billing/invoices but is not an issue at this time. Committee Chair Sinadinos moved as recommended by the Finance Committee the adoption and approval of the financials to the to the full Board of Commissioners. It was moved that the finacials for the Lansing Center, Oldsmobile Park, and City Market for the period ending February 28 be received as published and the expenses for the month of February, 1997 for each entity be approved. MOTION: Sinadinos SECOND: Decker, motion carried. C. CHIEF EXECUTIVE OFFICER'S REPORT: 1. Union Issues: Peter reported the Facility Workers' contract was ratified and he has asked Michael Meyers to compile a synopsis which will be forwarded to the Board prior to the April Board meeting. If there are questions, he suggested Board members call him so that the contract may be approved by the Board in April. He noted Michael Meyers forwarded a letter to Dirk Spillemaekers questioning why the AV Tech contract proposal was rejected and to-date no response has been received. Peter noted in regard to Foreperson's contract, it was also noted in the letter to Mr. Spillemaekers that management would be more than happy to begin negotiations with them following the completion of the AV Tech negotiations. The Board will be informed as events develop. 2. City Market: Peter echoed Chair Ristow's and Ellen Jeffries' comments, noting the Task Force spent countless hours putting together the report, and requested Board members contact him should they have any further questions. He specifically thanked Chair Jeffries and Lisa Wootton for their time and effort and noted Lisa did an outstanding job which was difficult to deal with in terms of the Vendors. In addition, she set-up the tours/trips and developed a significant portion of report. 3. Oldsmobile Park: The focus for March has been the closing of ice skating at Oldsmobile Park. Marian Bryant distributed a re-cap of the skating financial information. The actual number of days of operation was 21; revenues were approximately$27,000 with expenses at$48,600 for a net loss of($21,700)which was consistent with this year's budget. He noted a great deal of positive feedback has been received from many groups and individuals within the City; however, it is budgeted again next year at a loss of ($14,000). Approximately 6000 attendees visited the ice rink and overall it was considered a very successful promotion. Peter reported LEPFA continues to prepare for the opening game on April 2 (MSU vs. CMU) and on April 8 the Lugnuts season will open. He noted he continues to work with Scott Breckner and other partners on non-baseball events which includes: two musical festivals in June and August and he will continue to update the Board as events are confirmed. A Friday/Saturday "Big Band" event is being considered for July at the stadium and non-Lugnut baseball events in progress are the "Oldtimers" game (which is confirmed) and the Diamond Classic. July 4 the Symphony will take place as well as Monthly Movies, Fright Nights, MSU baseball, Olds Centennial events, etc. Peter noted, as a result of the ice storm, damage did occur at the stadium due to the combination of the ice and wind the nets had to be cut. Also, due to the weight of the ice, the fence bent. LEPFA Board of Commissioners Meeting Page 5 March 25, 1997 However, the fences are covered by insurance(less the deductible of$1000) at a cost of$20,000-25,000 and the gauge of the pipe will be increased at a cost of$1800 to us. In the future, the nets will be taken down at the end of the season as a part of standard procedure. 4. Lansing Center: Peter noted in February the Lansing Center hosted 37 events for 62 event days, with 40,000 in attendance, utilizing 2000 room nights for an economic impact of$620,000. He noted the past month at the Lansing was very good and on page three of three if you compare "Total Operating Income" and "Operating Expense" we operated at an ($84,000) loss and last month we were at a ($115,000) loss and he cautioned that we are entering the slow quarter. February/March highlights include: the Michigan Association of Broadcasters; Michigan Farm Bureau Employee Night; Diamond Quest (Amway Group) which hosted 4-5,000 per day for three days in early March; the Sport Fishing Travel Show was held on March 13-16 with over 10,000 in attendance; World of Dreams Custom Auto Show was held on March 21-23 attracting over 6,000 people. Contracts recently signed included the Michigan Nursery and Landscape Association in January, 1998 for three days; Bedding Plants International in September, 1998, 1999 and 2000; the Michigan Congress of Parents, Teachers and Students in May, 1998 with 750 people to attend; and in conjunction with the CVB at Cotillion for February, 1998 with an estimated attendance of 850. 5. Mayor's Budget Information: Peter noted he and Bob Swanson continue to work on budget information and it is his understanding that the City will recommend LEPFA receive $180,000 for Oldsmobile Park which is down slightly from the requested$203,000 and the Lansing City Market and Lansing Center will approve an amount that is $25,000 less than requested. Peter indicated the City is also consolidating a number of revenue accounts associated with the Lansing Center to create a "Capital Fund" which was a recommendation of the LEPFA Financial Task Force. 6. Introduction: Peter introduced Tad Carper, noting he is from Jacksonville, where he held the position of Director of Marketing and Sales, which is similar to what he will do here in addition to working on new event development. He welcomed Tad, his wife Ann and their two children. Tad noted he has been meeting with members of the corporate community and has spent his first 20 days learning the various components which make up Lansing. Tad commended Lisa Wootton for her work at the City Market and the Task Force and noted his attention has been focused on the City Market and corporate sponsorship. He noted he is excited to embark on a new promotional campaign at the City Market and will have materials to present at the next Board meeting and will present the direction we are moving in terms of creating a new image and awareness campaign for the Market focusing on what makes the Market distinctive and exposed some of the new things via television and radio campaigns, newspaper, public relations,in conjunction with Lansing Community College which will make the City Market a place to get excited about. He will move his family this weekend and they are very excited to be in Lansing and a part of the Community. VII. COMMISSIONERS COMMENTS: A. ROBERT SWANSON: Mr. Swanson noted the Mayor presented the budget to City Council last night and is recommending continuing$180,000 for the stadium operation which is dependant on discussions with the Lugnuts and the subsidy is $765,000 for the Lansing Center and the Lansing City Market ($783,000 was requested). The most significant recommendation is the establishment of a "Major Maintenance Reserve" for the Lansing Center in the amount of$146,000; and he noted that it is significant that the City Council hear from this Board during the budget process that there is a need for the reserve. and it is critical that this building have a reserve and is a critical area of the budget. (Peter Sullivan will distribute copies of the Mayor's Budget message to Board members). Mr. Swanson noted the City Market study is outstanding and recommended the Board make a presentation to City Council on the results and suggested LEPFA request to be placed on the Committee of the Whole agenda. LEPFA Board of Commissioners Meeting Page 6 March 25, 1997 Ristow requested Peter contact City Council regarding presentation of the City Market study, and that he coordinate with Treasurer Sinadinos addressing the need for reserves as it pertains to the budget process. B. CHAIR DONALD RISTOW: Chair Ristow welcomed Tad on behalf of the Board of Commissioners and wished him a long successful career with the Authority. C. COMMISSIONER JAMES BUTLER: Commissioner Butler recommended, based upon the outstanding job that Lisa has done, that she receive a "CEO Reward" i.e. a monetary reward based on her performance which he considered above and beyond the call of duty and outstanding on any measure. Commissioner Butler welcomed Tad as well and noted based on comments and feedback in general that Tad has made an outstanding presence and is very well received. Chair Ristow recommended Commissioner Charlie Janssen and Peter meet and consider Commissioner Butler's recommendation. VIH. OLD BUSINESS: None. IX. NEW BUSINESS: None. 1 Chair Ristow noted a memo will be sent to all Commissioners notifying them of the change of the meetings in April and May. The April meeting is now scheduled on Wednesday, April 23 and the May meeting is now scheduled on Wednesday, May 28 (both at 7:30 a.m.). At 8:47 a.m. it was moved that the meeting be adjourned. MOTION: Commissioner Sinadinos SECOND: Commissioner Decker; motion carried. THE NEXT MONTHLY MEETING IS SCHEDULED FOR WEDNESDAY, APRIL 23, 1997 AT 7:30 a.m. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM. Respectfully submitted, Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING n APRIL 23, 1997 MINUTES ERr� At 7:35 a.m. Chairman Donald J. Ristow called the meeting to order in Room 203 of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT: John Decker, Ellen Jeffries, Greg Koessel (Ex-officio), Kate McNealy, Daniel Nickerson, Donald Ristow, Charlotte Sinadinos, Robert Swanson (Ex-officio) and Dennis Sykes (Ex-officio). COMMISSIONERS EXCUSED: James Butler and Charles Janssen. OTHERS PRESENT: Jack Jordan, City Attorney's Office- City of Lansing; Heidi Brown, Marian Bryant, Tad Carper, Michael Meyers, and Peter Sullivan; Lansing Entertainment and Public Facilities Authority. III. ESTABLISHMENT OF THE AGENDA: No additional agenda items were noted. IV. PUBLIC COMMENT: None. V. APPROVAL OF THE MINUTES OF MARCH 25, 1997: The March 25, 1997 minutes were approved as published. VI. REPORTS: A. CHAIRMAN'S REPORT: 1. Chairman Ristow extended thanks to Heidi Brown, in recognition of National Secretary's Day. Chair Ristow also extended belated birthday wishes to Peter Sullivan. 2. Lansing City Market Evaluation Task Force: Chair Ristow extended thanks to Lansing City Market Task Force members who attended the City Council Committee of the Whole meeting on May 10. Chair Ristow indicated Peter presented a summation of the report and many positive comments were expressed by the Vendors. Overall the session with the Councilmembers was upbeat and positive. Mr. Ristow complimented and congratulated the Committee on a great job. 3. Chair Ristow requested under "REPORTS" that item "D" Personnel Committee Report be added to the agenda. B. SECRETARY/TREASURER'S REPORT: Committee Chair Sinadinos reported the Lansing Center March, 1997 was somewhat lower compared to March, 1996 and the year-to-date figures exceed last year by $427,000. Accounts Receivable are down to $335,000 compared to $499,000 last month. The adjustment for the $50,000 lease payment to the City was channeled back to the Lansing Center via the subsidy and$12,500 will be applied during March, April, May, June and appears under "Reserved Capital Replacement" and also is included under "Rents and Leases." Chair Ristow noted he is pleased with the strides made by management and the Finance Committee regarding the finacials, however, he cautioned the 1996/97 figures do not reflect a 100% employment level, the infrastructure purchases needed or the major maintenance reserve fund needed. A 90-120 day operating reserve is needed as well as and an entrepreneurial risk reserve. Chair Ristow moved that the finacials for the Lansing Center, the Lansing City Market and Oldsmobile Park for the period ending March 31, 1997 be received as published and the expenses for the each entity for the month of March be approved. LEPFA Board of Commissioners Meeting Page 2 April23, 1997 Motion: Commissioner Nickerson Second: Commissioner Decker; motion carried. At 7:43 a.m. Bob Swanson entered the meeting. C. CHIEF EXECUTIVE OFFICER'S REPORT: Peter Sullivan presented the following report: 1. Union Issues: The Facility Workers' contract synopsis has been forwarded to all Board members prior to today's meeting for review and was reviewed at the Personnel Committee meeting as well. Peter noted the contract will be in effect for one and a half more years pending Board ratification. The AV Tech unit rejected management's offer and after two requests as to why the offer was refused it was pulled from the table under direction from LEPFA's labor attorney due to lack of response as to why the offer was refused. One more letter will be forward to Dirk Spillemaekers requesting why the offer was refused, noting if there is no explanation, the offer stands. Peter noted they have had ample opportunity to respond and have chosen not to respond. Peter noted in the correspondence to Dirk it was noted that it is LEPFA's desire to begin negotiations with the Foreperson's unit and because a response was not received until the day before management requested the meeting occur, setting another meeting date was suggested. Peter noted he will continue to keep the Board abreast of discussions with the union. 2. City Market: A presentation was made to the City Council Committee of the Whole on the Market Task Force recommendations. Peter thanked the Task Force members who attended as well as the City Market vendors who showed support. Overall he felt the experience was positive and Council's support was positive noting overall the presentation went very well and City Council is please with the progress. Peter reported the Lansing City Market beautification project is slated to begin around May 15 and the program is in conjunction with Lansing Community College and the Lansing School District,and will target the exterior; the project will be completed in early to mid June. Peter indicated John Decker, Bob Ford and Howard Jones have been helpful in involving the school district in respect to labor needs and the project will include painting and new gates. A pancake breakfast in conjunction with "Be a Tourist in Your Own Town" will take place on June 14. There are two new vendor's at the market and two vendor's are expanding. April, 1997 occupancy is at 50% compared to 39% in 1996. Peter noted Tad Carper and Lisa Wootton are working on an advertising campaign that is slated to begin the first week of May and will include a television spot which will be aired the first week in May. New recruiting efforts are underway to attract new vendors. At 7:52 a.m. Greg Koessel entered the meeting. 3. Oldsmobile Park: April 1 the first baseball game of the season was held between Central Michigan University and Michigan State University(which attracted in excess of 3000 people). The game was free and was promoted through LEPFA and MSU. A press conference was held with Mayor Hollister and MSU Athletic Director Merritt Norvell to announce the opening of the second year of operation of the stadium. The Lugnut's opening day was April 8 and was cancelled due to weather. To-date they have had two cancelled two games. The Lugnuts have sold at the start of the season around 440,000 seats for a total of 538,000 total, this year their goal is 580,000. Peter reported he continues to work on non-baseball/concert events including a two day country music festival on June 13 and 14 at a cost of $30, $17.50 and $12.50 (the same weekend as "Be a Tourist in Your Own Town"). A carnival will be held in conjunction with the concerts in Lot 15 and Michigan Avenue will be closed. LEPFA Board of Commissioners Meeting Page 3 April23, 1997 A one day Hispanic festival is being planned for July (Fiesta Del Verano) and Peter indicated progress continues on this event. The Oldtimers and Diamond Classic baseball games are also in progress; the Oldtimers have confirmed and the Diamond Classic discussions continue. The July Fourth Symphony will take place and LEPFA is also considering a 70's retro concert to involve various acts from the 70's. Other events include a dance party in June or July as well as a big band event in August. He noted this information is confidential and as events are confirmed they will be announced via press conferences. 4. Lansing Center: The Lansing Center hosted 52 events in March for 85 event days, with 46,000 in attendance, utilizing 2000 room nights for an economic impact of approximately $750,000. Highlights include: the Polaris Show which showcases snowmobiles and equipment; this was a two day event with 5000 in attendance and they are considering bringing their national show to Lansing. The Lansing Art Gallery Flower and Garden show was held on April 4 through the 6 in Halls B and C, this is a new event which was promoted by Mummaw and was a very successful fund raiser for the Lansing Art Gallery(they are looking at dates for next year). April 4 the Caesar Chavez dinner was held in the Banquet Rooms Michigan Municipal League and the Plastics Industry summit were in house in April. Lone Star performed at the Lansing Center and drew in excess of 2500 people. Approximately six additional concerts will be promoted by a local country radio station at the Lansing Center over the next year. The Sales Department is processing contracts for the Michigan Congress of Parents, Teachers and Students for May, 1998 and 2002, with 750 anticipated attendees; Michigan Science Teachers Association is considering March, 1999 with 3500 attendees and have space held for the years 2000, 2003, 2004 and 2007. Confirmations for the following groups in conjunction with the Convention/Visitors Bureau are as follows: Michigan Works -Governor's School to Work Conference, June, 1997; Michigan Art Education Arts Association annual conference in October, the 1997 Information Network for Christian Homes annual convention for June 1998 with 3300 attendees; and the Michigan Democratic Party will be in the building in August, 1998 with 2500 attendees and the Michigan Library Association annual convention confirmed for November, 2000. Peter reported Marian Bryant continues to work on the rolling forecast and at the conclusion of next month management will have a better indication of the financial forecast. April looks to be a good month, while the summer events slow down, although July and August will be favorable due to the Pentecostal Keralites and the Oldsmobile Centennial event for ten days in August. D. Personnel Committee: Chair Ristow presented the following report for Committee Chair Janssen. The Committee met on Monday, April 7 and established a working agenda to include: personnel policies and benefit plans; establishing a salary administration policy; addressing a policy issue of Commissioner's reimbursement of expenses; establishing a non-exempt bonus pool; establishing qualitative and quantitative bonus pool for a CEO bonus program; performance evaluation criteria and composing an organizational chart. The Committee also reviewed the provisions of the three (3) year agreement between the Authority and Local 274 and unanimously agreed to recommend ratification of the agreement by the Board of Commissioners. Ristow moved to authorize the ratification of the signing by LEPFA management of a new three (3)year agreement retro active to March 1, 1995 between the Lansing Entertainment and Public Facilities Authority and Local 274 of IATSE (which is part of the AFL-CIO) Facility and Maintenance Workers. Commissioner Jeffries questioned when the three years expire? Peter noted March 1, 1998 indicating management will start negotiating again in December, 1997 in an attempt to reach an agreement by March, 1998. MOTION: Commissioner Decker; SECOND: Commissioner Nickerson; Motion unanimously carried. LEPFA Board of Commissioners Meeting Page 4 April23, 1997 Commissioner Nickerson suggested the Personnel Committee, when looking at the CEO's bonus package, review the contract between the Authority and CEO regarding the criteria set forth. Chair Ristow noted all members of the Committee have copies of the contract. VII. COMMISSIONERS COMMENTS: Commissioner Decker noted the dates of the City Market Spring Beautification Project, between the hours of 8:00 a.m. and 3:00 p.m. are May 15-16 and May 22-23. VIU. OLD BUSINESS: None. IX. NEW BUSINESS: Jack Jordan reported that the amendments to the Articles of Incorporation have been filed with the Secretary of State on February 24, and as such those documents have been adopted and filed. Committee Chair Sinadinos noted the Finance Committee will meet on Tuesday, May 27 at 4:30 p.m. THE NEXT MONTHLY MEETING IS SCHEDULED FOR WEDNESDAY, MAY 28, 1997 AT 7:30 a.m. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM. At 8:12 a.m. it was moved that the meeting be adjourned. MOTION: Commissioner Decker SECOND: Commissioner Jeffries; motion carried. Respectfully submitted, Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING May 28, 1997 MINUTES At 7:33 a.m. Vice Chairman Daniel Nickerson called the meeting to order in the Governor's Room of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933. COMMISSIONERS PRESENT: John Decker, Charles Janssen, Ellen Jeffries, Kate McNeely, Daniel Nickerson, Charlotte Sinadinos, Robert Swanson (Ex-officio) and Dennis Sykes (Ex-officio). COMMISSIONERS EXCUSED: James Butler, Greg Koessel (Ex-Officio) and Donald J. Ristow. OTHERS PRESENT: Heidi Brown, Tad Carper, Marian Bryant, Michael Meyers, Peter Sullivan - Lansing Entertainment and Public Facilities Authority; Jack Jordan and James Smiertka, City of Lansing. At 7:34 a.m. Dennis Sykes and Ellen Jeffries entered the meeting. III. ESTABLISHMENT OF THE AGENDA: There were no additions to the agenda. Motion was made to adopt the agenda as submitted. MOTION: Commissioner Decker SECOND: Commissioner Janssen motion carried. IV. PUBLIC COMMENT: None. V. APPROVAL OF THE MINUTES OF APRIL 23, 1997: The minutes of April 23, 1997 stand approved as published. MOTION: Commissioner Janssen SECOND: Commissioner McNeely; motion carried. ►` At 7:35 a.m. Jack Jordan entered. `> ; VI. REPORTS: c 71 A. CHAIRMAN'S REPORT: m '- Vice Chair Nickerson extended thanks and congratulations on behalf of CWr 4kocvl John Decker and the vendors at the City Market for the outstanding job they URe done on the Lansing City Market Beautification project. B. SECRETARY/TREASURER'S REPORT - APRIL FINANCIALS: Finance Committee Chair Charlotte Sinadinos reviewed the following financial statements for the three entities as approved by the Finance Committee: 1. Lansing City Market: Operating Revenue for the month is $49,265; Building Rental is $28,769; Operating Expense is $82,458 for a Net Income (after subsidy) of$73,584. Chair Sinadinos noted the Operating Expenses will increase particularly marketing and maintenance expenses in June. 2. Oldsmobile Park: Total Operating Revenue for April is $195,552; total Building Rental is $4,000 and total Operating Expense is $319,975 for a Net Income after subsidy of$85,913 (which includes the operating transfer of$39,457.30). LEPFA Board of Commissioners Meeting Page 2 May 28, 1997 3. Lansing Center: Total Operating Revenue exceeds last year by 20% or $586,100; total Building Rental exceeds last year by 14% or $124,846; and total Operating Expenses decreased by 1% or $32,691 from last year for a Net Income after subsidy of $815,696. Sinadinos noted the increase in food and beverage which is up $360,000 compared to $270,000 last year and she noted under operating expenses salary and wages do not reflect a full staff. On page two of three Accounts Receivables are up and the cash position this year is $635,000 compared to $205,000 last year. At 7:40 a.m. Jim Smiertka entered the meeting. On page three of three it was noted under Operating Income - Equipment Rental and Labor and Service the numbers increased due to conscientious follow up and new charges by Michael Meyers. Chair Sinadinos noted for the month of April the Lansing Center operated with a Net Operating Income of$187,600 (year-to-date Net Operating Income is $119,000). Chair Sinadinos recommended approval of the finacials as presented. MOTION: Commissioner Sinadinos SECOND: Commissioner Decker Motion carried. Bob Swanson noted the April figures are phenomenal and the figures indicate that the Center has not used the $550,000 City subsidy during the past ten months. Swanson noted the unused money at the end of the fiscal year will be utilized to finalize the last of the Finance Task Force recommendations sooner than originally anticipated. Swanson noted$146,000 was made available for the major maintenance reserve($50,000 per year) which will equate to $250,000 toward the major maintenance fund as of July 1, 1997; however, an Operating Reserve fund still needs to be established. Peter noted the Finance Committee has discussed these issues, and he also noted the Authority may reach the $4,000,000 gross revenue mark this fiscal year, which has never been done and is not budgeted for two more years. Vice Chair Nickerson noted under expenses (page one of three of the Lansing Center) under Salary and Wages, there was only a$2700 increase this year compared to the prior year and the prior year did not include two of the positions that are currently filled. Peter indicated a more detailed analysis will be provided at the end of the fiscal year in July and he attributed the savings to the efforts of Michael Meyers relative to containment of overtime and contracted labor. 4. July Financials: Chair Sinadinos noted management has requested(due to preparation for the July 28 audit which will involve all three entities) that financials not be presented at the July monthly Board meeting, however, the Board will received a draft of the June financials prior to the August meeting and a draft of the July financials on the day of the August meeting. There will be no Finance Committee meeting in July and the audit recommendations will be reviewed in September. Marian Bryant noted Rehmann Robson will perform our audit. Commissioner McNeely questioned the use of an additional auditor as recommended last year and also questioned if the Financial Task Force addresses the recommendation? Peter noted the Finance Committee reviews the monthly financials however, he would review the recommendations and discuss the issue further with her. Commissioner Jeffries questioned the status of the cost allocation? Bob Swanson noted the allocation process audit occurs in the late summer each year and they would perform LEPFA Board of Commissioners Meeting Page 3 May 28, 1997 the same function for the Authority which could be incorporated into the report. 5. Adoption of Entrepreneurial Fund-Resolution: Sinadinos recommended the adoption of a resolution recommending the establishing of an Entrepreneurial Event Development Fund and the purpose of the fund would be to fund special events programming deposits and other event related costs. The need for the establishment of the fund is stated in the Management Agreement but would require an amendment to the Operating Agreement. Peter noted a copy of the resolution was discussed in the Finance Committee meeting and it is clearly stated in the Operating Agreement and the resolution in a form of a recommendation will be forwarded to the Mayor from the Board for approval; the Mayor will then forward the recommendation to City Council for approval. This recommendation creates a mechanism to move non-baseball net revenues into a separate fund that will handle deposits for non-baseball events at the stadium. Peter explained that the $80,000 figure was derived by he and Bob Swanson and it was a figure that they were comfortable with and will be capped at $80,000. The fund has been accumulating since April, 1996 with revenues from City Sponsored Events and should be in the $30,000-$40,000 range by June 30. Nickerson questioned if the funds could be used by a private promoter, Peter clarified that the funds will be used for LEPFA promoted events. Commissioner Jeffries questioned how this will be accounted for to the Board. Peter noted this will be a part of the Finance Committee's monthly report. Vice Chair Nickerson presented the resolution as follows: "The Lansing Entertainment and Public Facilities Authority Board of Commissioners recommends the Lansing City Council create an `Event Development Fund' which will make available those net proceeds from all City events which have occurred at Oldsmobile Park, capped at $80,000 to allow for the development of special event programming, to maximize and diversify multi-purpose utilization of the stadium, in order to stimulate economic development and to further establish downtown Lansing as a consumer destination." MOTION: Commissioner Janssen SECOND: Commissioner Decker motion carried. C. CHIEF EXECUTIVE OFFICER'S REPORT: 1. Union Issues: Peter noted the Facility Workers contract was ratified by the LEPFA Board of Commissioners at the April meeting and negotiations will begin in January, 1998. AV Tech negotiations continue, at this time the only issue on the table according to Dirk Spillemaeker is caps on the health benefits and it is hoped that this issue will be resolved. The Forepeople negotiations have begun and a meeting was held last week at which time their issues were responded to by management. Currently the main issue at this time is how they wish to be paid, which includes listing all the Forepeople at the same level regardless of seniority. 2. Lansing City Market: Peter reported the Lansing City Market Beautification project is underway which involves students from Lansing Community College, and the Lansing School District. Peter extended his thanks to John Decker, Board members, and the various vendors who participated in the project. The new Market hours are 8:00 a.m.- LEPFA Board of Commissioners Meeting Page 4 May 28, 1997 6:00 p.m. as well as Fridays with considerable traffic noted on Fridays. Record sales were noted Memorial weekend with customers estimated at 5,000 to 6,00 with 4,000 estimated for Saturday alone. Upcoming events in June are a Pancake Breakfast in conjunction with "Be a Tourist in Your Own Town" on June 14 and on June 28 a Strawberry Fest. Several vendor applications have been distributed. A Spring Flower Blitz (seminar series) will take place on Saturday, May 31 and is being considered as an annual event. 3. Oldsmobile Park: Peter reported we continue to work on non-baseball event programming and a press conference is scheduled for today at 10:00 a.m. involving the Mayor announcing Oldsmobile Park summer events including: Voyager/WITL sponsored "Park After Dark" movies on Friday, June 6 - "Dante's Peak" and June 20- "Michael." Peter extended his thanks to Dennis Sykes for the sponsor leads he has generated. Other events include the national premier of "Dance Party USA - Dance Across America" on June 30 which will be sponsored by Z101.7, this event is geared to a young urban crowd and will be the opening of their national tour. There will be six acts and MTV is supposed to cover the event. The Mayor will also announce the July 4th Symphony as sponsored by the MSU Health Team. This event will involve a tight turnaround due to a Lugnuts game in the afternoon. The Yes Fest will also be mentioned by the Mayor in his announcement. Peter noted he, Tad Carper and Hector Arroyo continue to work on the Fiesta del Verano with Linda Sanchez in the Mayor's office (which is a concert and festival) which will target the Hispanic population and involves the local Spanish speaking radio station. This event will involve two national acts and will take place in the middle of July. The Diamond Classic/Oldtimers Baseball both will occur at the stadium and it is hoped they will become annual events. 4. Lugnuts: Peter reported operationally, we continue to work with the Lugnuts on a variety of ongoing issues. Peter noted that outside the front entrance of the stadium Parks and Rec has planted new trees and shrubs which look great. 5. Lansing Center: During the month of April the Lansing Center hosted 60 events, for 86 event days in a 30 day period. Estimated attendance was 41,000 for 2800 room nights for an economic impact of close to $1,000,000. Peter reviewed 1998 contracts in progress including: Michigan Congress of Parent Teachers and Students -750 attendees May, 1998; Michigan Science Teachers Association - 3500 attendees in March, 1999. Convention/Visitors Bureau confirmations include the World Impact Ministries in June, 1997 with 2000 in attendance; Michigan Asphalt Association - 500 in attendance in April, 1998. During the month of April, 15-20 CVB bids were responded to and bids in progress include the Memories Expo in December, 1997 with anticipated attendance of 3500 and a Computer Tech Expo in May, 1998 with 3000 attendees. April events and attendance include: the Michigan Education Association with 1000 in attendance; Ultimate Image - Breast Cancer Fundraiser - 700 in attendance this was a black tie event; Michigan Safety Conference-6000 in attendance; the Lansing Housing Fair - UAW Local 652 Governors Service Awards with 2100 meals served; Lansing LEPFA Board of Commissioners Meeting Page 5 May 28, 1997 Community College graduation with 3000 attendees; Central Michigan University Charter Schools Expo 2000 students; ATHENA Foundation Awards sit down, black tie affair had 700 attendees and went very well. This past Sunday a contemporary Christian concert the "Newsboys" was held in halls A&B which netted the facility approximately $10,000. At 8:25 a.m. Jim Smiertka exited the meeting. 6. Sales and Marketing: Tad Carper shared a video of advertising spots for the Yes Fest at Oldsmobile Park and the Lansing City Market. Tad noted the spots are airing or about to air and the Lansing City Market spots were produced locally at Channel 6 and are geared toward the female audience. The Market spots will air on various cable channels also. D. Personnel Committee: Committee Chair Charles Janssen reported the Committee is reviewing several personnel issues and will place items on the Board agenda next month that will require Board action. The Personnel Committee has requested from Peter personnel policies, a flow chart depicting management structure, compensation benefits for the employees in general. Peter's employment agreement which has bonus and salary standards that need to be met and a structure that needs to be prepared will be reviewed at the June meeting. Janssen noted the Committee will meet to discuss the report draft and they will report their recommendations in June. Chair Janssen indicated the Committee is gathering information from other sources including George Astengo and Mike Barber who had some input on what are appropriate salary structures and bonus programs. The Committee will come back with a recommendation to the full Board next month. Dennis Sykes questioned who is dealing with the Board's Chair? Commissioner Decker indicated he is Chair of the Committee and the Committee hopes to have a recommendation to the Board next month. VII. COMMISSIONERS COMMENTS: A. Commissioner Janssen: Commissioner Janssen noted he attended the ATHENA Foundation dinner and thought the event was very well run, the facility looked great, the servers did a wonderful job -- they were very well trained and organized and the food was served quickly. Janssen noted he heard a number of positive comments regarding the facility and questioned if photos were taken of such events? Tad noted photos are taken and inventoried. B. Commissioner Decker: Commissioner Decker commented in regard to the Lansing City Market Beautification Program that 75% of the plant material and soil and chips were donated and the first purchase will be done today at cost, so it is a very low budgeted community project. VIII. OLD BUSINESS: None. IX. NEW BUSINESS: None. LEPFA Board of Commissioners Meeting Page 6 May 28, 1997 THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, JUNE 24, 1997 AT 7:30 A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM. At 8:47 a.m. it was moved that the meeting be adjourned. MOTION: Commissioner Sinadinos SECOND: Commissioner Janssen; motion carried. Respectfully submitted, Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING June 24, 1997 MINUTES At 7:30 a.m. Chairman Donald J. Ristow called the meeting to order in the Governor's Room of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933. COMMISSIONERS PRESENT: James Butler, John Decker, Charles Janssen, Ellen Jeffries, Kate McNenly, Donald J. Ristow, and Charlotte Sinadinos. COMMISSIONERS EXCUSED: Greg Koessel (Ex-Officio), Daniel Nickerson, Robert Swanson(Ex- officio) and Dennis Sykes (Ex-officio). OTHERS PRESENT: Heidi Brown, Tad Carper,Marian Bryant,Cynthia Lewis,Michael Meyers,Peter Sullivan - Lansing Entertainment and Public Facilities Authority; Jack Jordan, City of Lansing; Leroy McKnight, Local 1753 and Lloyd Teets, Citizen. III. ESTABLISHMENT OF THE AGENDA: No additions to the agenda were noted. IV. PUBLIC COMMENT: None. V. APPROVAL OF THE MINUTES OF MAY 28, 1997: The minutes of May 28, 1997 stand approved as published. VI. REPORTS: A. CHAIRMAN'S REPORT: 1. Thank You: Chair Ristow extended his thanks to the Board of Commissioners for the floral arrangement sent to his wife Jeanette(and her brother) on the occasion of their Mother's death. 2. Committee of the Whole: Chair Ristow reported upon the request of Council President Beal he, Commissioner Decker and LEPFA Management staff attended last week's Committee of the Whole Meeting to discuss the $80,000 Event Development Fund as it pertained to an informational picket that took place on Saturday, June 14. The $80,000 fund was temporarily held to allow for an explanation of the ratios of the local labor and prevailing wages at Oldsmobile Park (Peter Sullivan will expand on this issue in his report). 3. Lansing City Market Beautification Project: Chair Ristow noted the Lansing City Market looks absolutely great and the plantings around Oldsmobile Park and the Lansing Center are a great improvement. He further complimented Commissioner John Decker, Lisa Wootton, the Vendor's Association and LEPFA Management for a job very well done. LEPFA Board of Commissioners Meeting Page 2 June 24, 1997 4. Commissioner Daniel Nickerson's Letter: Copies of Commissioner Nickerson's letter to Mayor Hollister indicating that he did not wish to seek reappointment to the LEPFA Board of Commissioners were distributed. Chair Ristow extended his thanks to Commissioner Nickerson, on behalf of the Board of Commissioners for his service, leadership and the contributions made to the success of the Authority. B. NOMINATING COMMITTEE REPORT: Committee Chair John Decker reported the Nominating Committee (members are: Chairman John Decker, Kate McNeely and Dan Nickerson) recommended the following officer candidates for 1997-98 (all three candidates agreed to be appointed and/or reappointed): Chairman Donald Ristow Vice Chairman Charles Janssen Secretary/Treasurer Charlotte Sinadinos Chair Ristow opened the floor for any further nominations; no additional nominations were noted. A motion was made to cast a unanimous ballot for the election of the three candidates as presented by the Nominating Committee. MOTION: Commissioner Decker SECOND: Commissioner Butler motion carried. C. SECRETARY/TREASURER'S REPORT - MAY FINANCIALS: Finance Committee Chair Charlotte Sinadinos reviewed the following financial statements for the three entities as approved by the Finance Committee at their June 23 meeting. 1. Lansing City Market: Operating Revenue for the month is $55,406; Building Rental is $34,911; Operating Expense is $99,465 for a Net Income (after subsidy) of$71,864. Chair Sinadinos noted marketing expenses will increase during the next month due to the Market beautification project. 2. Oldsmobile Park: Total Operating Revenue for May is $206,370; total Building Rental is $4,750 and total Operating Expense is $350,377 for a Net Income (after subsidy) of$91,771 (which includes the operating transfer of$39,457.30). 3. Lansing Center: Total Operating Revenue exceeds last year by 21% or $688.783; total Building Rental exceeds last year by 13% or $129,918; and total Operating Expenses increased by less than 1% or $10,233 from last year for a Net Income (after subsidy) of $796,321. Sinadinos noted the food and beverage year-to-date amount of $2,307,133.33 is a record; for a net of $802,000. Operating income year-to-date is $61,308. Sinadinos noted Account Receivables is at a high of$645,000, however $280,000 has been collected for a balance of$365,000. Committee Chair Sinadinos recommended the financial statements for the Lansing Center, Oldsmobile Park, and the Lansing City Market for the period ending May 31, 1997 be received as published and the expenses for each entity for the month be approved. MOTION: Commissioner Sinadinos SECOND: Commissioner Decker,motion carried. 4. LEPFA Financial Policies: Chair Sinadinos reviewed the proposed Financial Policies as reviewed and recommended by the Finance Committee noting it is recommended that the policies be approved as submitted. She noted the major revisions were word changes to comply with accepted accounting procedures and the Authority's principles. LEPFA Board of Commissioners Meeting Page 3 June 24, 1997 Commissioner Butler questioned what were the changes? Peter noted for example, on page two under "annual audit," it was stated directly that there would be an audit as called for in the Operating Agreement. Additional changes noted are on page three (3), number three(3), "shall be available for review by the Chair of the Finance Committee." Page three (3) item "F" notes "pen" signatures require two (2) signatures and "facsimile" signatures require one (1) signature. Page seven (7), 1la-3 " . . . lodging and related expenses" was changed to "lodging expenses." Item "11-b" was changed from 230 per mile to the IRS related code rate. On page eight (8) "E" was added "The Authority shall not be responsible for employee tax liability in regard to employee business expenses." Committee Chair Sinadinos moved that the financial policies for the Lansing Entertainment and Public Facilities Authority for 1997, upon the recommendation of the Finance Committee be adopted as presented and published. SECOND: Commissioner Decker, motion carried. D. PRESIDENT AND CHIEF EXECUTIVE OFFICER'S REPORT: 1. Union Issues: Peter noted the Facility Workers contract is completed and negotiations with that union will begin in January of 1998 (their contract is expires in March, 1998). Peter reported the AV Tech negotiations continue, the Union has been sent four letters requesting response to the last communication sent to them, to-date no response has been received. The Forepeople recently responded to LEPFA's proposal and we are preparing a response. Discussions continue with the Union, primarily regarding informational picket during the Friday and Saturday of Yes Fest. Peter indicated in his discussions with Dirk Spillemakers, the picket was because of the staffing levels of Yes Fest, which was agreed to by IATSE's Business Agent; he and Dirk have agreed to discuss perceived sensitivities on both parts and will continue to update the Board. 2. Lansing City Market: Peter reported there are two new vendors, one is a handmade African fabrics and wood carvings (a year lease) and the second is a Stanton, Michigan farmer who will sell plants and produce (through Thanksgiving). Peter noted a number of vendors have reported that their sales are up significantly (50% since the season began). The Beautification Project continues and the volunteers were recognized at a ceremony at City Council and more plants will be received on Sunday. Peter extended his thanks to the vendors and Board members who planted and participated in the project. He noted the Beautification Project will continue and we are doing this in conjunction with the city (Museum Drive). Peter reported recruitment of additional vendors continues at the Market and approximately 12 vendor packets have been distributed. 3. Oldsmobile Park: On June 2 and 3 the Diamond Classic High School Baseball game took place and this will continue to be an annual event. On June 6 "Dante's Peak" was shown at the stadium and was sponsored by Voyager, with an approximate attendance of 600. Yes Fest went very well and the sponsors are discussing next year's event. The June 20 movie "Michael" was rained out. The Great Lakes State Games were held last weekend with 600-700 in attendance and this will continue to be an annual event. Sunday, a double header Oldtimers baseball game was held as well. LEPFA Board of Commissioners Meeting Page 4 June 24, 1997 Peter noted "Dance Across America" will be moved to the Lansing Center due to operational considerations and a press release will be distributed noting the change. Upcoming events include the July Fourth concert by the Lansing Symphony which will follow a Lugnuts baseball game. On July 19 a Hispanic festival will take place at the ball park, similar to Yes Fest. 4. Lugnuts: Peter reported operationally, we continue to work with the Lugnuts on a variety of ongoing issues. 5. Lansing Center: During May the Lansing Center hosted 67 events, for 86 event days, with an estimated attendance of 29,000 for 1200 room nights for an economic impact of$600,000. Peter noted the following contracts have been signed: the Michigan Deer Spectacular has signed for February, 1998 with an anticipated attendance of 15,000; Diamond Quest - Spring Leadership seminar in March, 1998 attendance near 5000 people. Peter reported during the month of May, several responses to CVB bids were made, including the Commission on Accreditation for Law Enforcement Agencies in July, 2000 (600 to attend); April, 2000 the Professional Photographers of Michigan - Annual Convention(400 people); Presbyterian Church, August, 1999 (500 people); International Conference of Young People - Annual Convention - July, 1998 (5000 people) and the Michigan Institute of Laundering and Dry Cleaning - November, 1998 (1100 people). Peter noted the H.E.R.O.S. award was set up by the CVB to acknowledge and reward "positively outrageous services to customers and guests of Lansing." Tarena Smith, Hector Arroyo, Mae Ksicinski and Maureen Brunette, all Lansing Center staff were nominated for the award. Mae Ksicinski won the award at a ceremony during a Lugnuts game (she won a weekend getaway to Mission Point Resort and $500). Peter noted the nominees all work very hard and it is nice to see they are being honored by our clients. At 8:25 a.m. Jim Smiertka exited the meeting. Commissioner James Butler asked if there has been any feedback in regard to the Market being opened on Fridays? Peter noted to his knowledge feedback has been very positive and sales have increased. Commissioner Decker noted Fridays have been successful for the vendors who are committed to the future; however, some vendors are concerned that the Friday schedule does not meet their personal schedule but it has been overwhelmingly successful for the majority of the vendors (a majority of the Friday clients are customers who work downtown). Commissioner Butler noted he had the opportunity to attend "Yes Fest" and view the set- up, noting the idea of blocking off the streets was outstanding. Butler noted that the event was a festive occasion with families and kids enjoying the rides, etc. and was very positive, noting the Fest has generated positive impact on the city and families and he has received positive feedback. Commissioner Butler questioned if the movie "Michael" will be rescheduled? Peter noted we are attempting to reschedule the movie, barring any problems with scheduling the movie with the distributer. Peter noted the carnival portion of the Yes Fest was partnered with St. Vincent's Home for Children. LEPFA Board of Commissioners Meeting Page 5 June 24, 1997 6. Sales and Marketin&: Tad Carper introduced Cynthia Lewis, Sales Coordinator to the Board of Commissioners. Tad noted Cynthia will be working as a Sales and Event Coordinator and will be working with Tarena Smith on event coordination and Barb Doyal in sales. Chair Ristow welcomed Cynthia. 7. Public Comment Re-opened: a. Mr. Leroy McKnight: Mr. McKnight addressed the Board noting the history of the Board, the past Director, and the hiring of Peter Sullivan. Mr. McKnight questioned if Mr. Sullivan/LEFPA recently had inmates work at Oldsmobile Park? Peter indicated we did not, and noted he believed Mr. McKnight was referring to the recent Great Lakes State Games, who contract through a city program the use of inmate labor at the stadium as they did last year. Mr. McKnight indicated he wished to address the question directly and noted that he is concerned that this is happening and this issue will spread through the labor community and would encourage that LEPFA not get in this posture for the well-being of the citizens, business and residents of greater Lansing. Mr. McKnight indicated that LEPFA needs the support of the local unions and their members to support the facility, noting that they have a strong community and they intend to continue to bring a lot of business to the facility, i.e. the Democratic Party in August, 1998. He noted they are here to support the Board as stewards of the community, but this action causes him great concern; especially if they are performing community work. Mr. McKnight noted he would strongly encourage and it has been recommended to him that LEPFA would bill this as a 100% Union facility and it would attract much more business from the labor community and other labor supportive organizations. Mr. McKnight expressed his appreciation for allowing him to speak. Upon Mr. Butler's request, Mr. McKnight stated that he is a 13 year resident of Lansing and is currently the Chair of the Ingham County Democratic Party, and is the recording secretary for the Community Action Program, is Chair of UAW Local 1753 and a city activist for the UAW. b. Mr. Lloyd Teets: Mr. Teets noted that he is a supporter of the Lansing City Market and recently he visited the Market and extended his appreciation of the planting. Mr. Teets indicated his concern is whether or not a "Farmer's Market" could work in Lansing because there are no longer any "truck farmers" and he feels for the Market to be successful, it has to be more than just a Market; noting that the Market should be an event because an event provides the opportunity to visit the vendors at the Market. Teets noted he has attended pancake breakfasts at the Market in the past and has heard that this Board is considering a charge for space at the Market to host events such as the Pancake breakfasts. Mr. Teets feel non-profits should be encouraged to use the area for pancake breakfasts and the visitors would be encouraged to visit the vendors. Mr. Teets noted before LEPFA took over the operations of the City Market and reduced the subsidy, there were events at the Market every Saturday geared toward kids and he hoped the Board would seriously consider collaborating with the vendors and take under consideration that in order for the Market to be a success it has to be more than a Market. Mr. Teets noted regarding "Yes Fest," he was not happy about the blocking of Michigan Avenue, and had no idea that it was blocked off and suggested in the future LEPFA let the public know that we are going to block Michigan Avenue off via signage. LEPFA Board of Commissioners Meeting Page 6 June 24, 1997 Peter responded relative to the Market, we anticipate this year will be financially successful for the Market in light of past costs to the City and relative to hosting events, he noted this was one of the issues the Lansing City Market Task Force studied when they were considering how to make the Market better and improved. LEPFA will continue with the pancake breakfasts, themed weekends, and/or center events around holiday weekends, i.e. Riverfest, Fourth of July, etc. which will already draw people downtown and will encourage people to shop at the City Market. He noted additional recommendations from the Task Force were to use the space upstairs or create space for teaching classes and he noted we are in the process of trying to make these events happen. Relative to signage, Peter noted it was a good suggestion and we would work with the City in an effort to do that. Tad Carper noted the newspaper printed on at least three different occasions, notices about Michigan Avenue being closed down during Yes Fest in response to a press release that we sent. Tad noted regarding the City Market, we support the Pancake Breakfast idea and would like to see that happen and are working to implement new cost saving ideas, i.e. LEPFA paying for the City Market piano player. At 8:25 a.m. motion was made to adjourn the LEPFA Board of Commissioners Monthly meeting and move to Executive Session. MOTION: Commissioner Janssen SECOND: Commissioner Decker, motion carried. At 9:12 a.m. Chairman Ristow called the LEPFA Board of Commissioners monthly meeting to order. E. Personnel Committee: Committee Chair Charles Janssen moved that the Personnel Committee report be accepted and approved in its entirety and a copy of that report be placed on file. SECOND: Commissioner McNeely, motion carried. VII. COMMISSIONERS COMMENTS: A. Commissioner Charlie Janssen: Commissioner Janssen indicated that he wished to clarify for the record, that the Personnel Committee went into Executive Session to protect the confidentiality of the individuals in the process, and should in no way be interpreted as anything negative pertaining to staff and/or this organization. B. Commissioner James Butler: Commissioner Butler requested clarification regarding "Inmate Labor." Peter explained our involvement this year is much more involved over last year due to increased staffing, however, when the city and Scott Breckner were taking applications for the stadium, one of the applicants was the Great Lake State Games. The Great Lakes State Games staff expressed concern on how they would accomplish set-up, tear down, etc. in the Park and they asked last year if they could use, through Ingham County Jail, inmate labor which is a program that has been around for a number of years. This was approved and was a non-issue last year, this year they met with LEPFA, the Mayor's office and Bob Johnson noting they wished to make Lansing the host city of their events again. The logistics were worked out and they indicated they wished to use inmate labor. Peter indicated what transpired this year was exactly what LEPFA Board of Commiss_ .,,ers Meeting Page 7 June 24, 1997 transpired last year; noting perhaps the difference is that this is an election year. He noted if the city, would like to make a recommendation or suggest to us that we do not allow this to take place they can ask, but this is a collective bargaining issue for Local 274. Commissioner Janssen questioned if this is a financial issue? Michael Meyers responded that it is financial and is a program that the county provides to get inmates out of jail. Peter noted the Great Lakes State Games are a lessee and they have the right to contract or subcontract labor and arrange for it and are not obligated to use union labor, however, LEPFA will use IATSE and combined crews as was used and signed off by the Union's Business Agent for Yes Fest. He cautioned that for us to strongly suggest the use of union labor, it could push potential events away from using the building noting this is a bargaining issue and should be discussed at the table. Commissioner Butler requested when an issue of this nature occurs that the Board be made aware of the issue, which will allow them to respond in a defensible and positive manner. Peter agreed, however, he also noted that until today he did not know that this was an issue; even though he and Michael Meyers attend the Mayor's monthly labor meetings. Ellen Jeffries noted this issue was brought up before City Council last evening and they implied that the Democratic Convention may not come here if it is not all union staffed. Peter explained that LEPFA and Mark Brewer of the Democratic Party have discussed this issue and they (Democratic Party) did not want to sign a contract if there was the potential for a labor strike. Mr. Brewer put together a letter of agreement for the Union and LEPFA to sign, to curtail any strike activity during their event, which both organizations signed. VIII. OLD BUSINESS: None. IX. NEW BUSINESS: Chair Ristow noted this is the last meeting of the fiscal year, and he wanted to thank all of the Commissioners and the Committees who have done an absolutely outstanding job. Ristow extended his deepest, sincere thanks noting the Board has given of their time and cared for the Authority and the successful operation of the entities that the Board is responsible for. He further extend his thanks to the Recording Secretary and Management Staff commending them for an outstanding job which makes the Authority/Board members look great and for all that they have done to promote and make the organization successful. Chair Ristow noted the LEPFA Committee structure will remain the same, however, he will make new committee appointments for next year in the near future. THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, AUGUST 26, 1997 AT 7:30 A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM. THERE WILL BE NO FINANCE COMMITTEE MEETING IN JULY. At 9:25 a.m. it was moved that the meeting be adjourned. MOTION: Commissioner Janssen SECOND: Commissioner Jeffries; motion carried. Respectfully submitted, eidi K. Brown, cording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING—. ' AUGUST 26, 1997 MINUTES At 7:30 a.m. Chairman Donald J. Ristow called the meeting to order in the Governor's Room of the Lansing.Center; 333 E. Michigan Avenue; Lansing, Michigan 48933. COMMISSIONERS PRESENT: James Butler, John Decker, Charles Janssen, Ellen Jeffries, Kate McNenly, Donald J. Ristow, Charlotte Sinadinos, and Robert Swanson (Ex-officio). COMMISSIONERS EXCUSED: Greg Koessel (Ex-Officio), and Dennis Sykes (Ex-officio). OTHERS PRESENT: Heidi Brown, Marian Bryant, Tad Carper, Michael Meyers, Peter Sullivan - Lansing Entertainment and Public Facilities Authority; Jack Jordan and James Smiertka - City Attorney's Office, City of Lansing; Dirk Spillemaekers, IATSE Local 274; and Mr. Lloyd Teets. III. ESTABLISHMENT OF THE AGENDA: No additions to the agenda were noted. IV. APPROVAL OF THE MINUTES OF JUNE 24, 1997: The minutes of June 24, 1997 stand approved as published. V. PUBLIC COMMENT: A. Mr. Lloyd Teets: Mr. Teets came before the Board of Commissioners to discuss the $500,000 liability insurance requirements Lansing City Market events (he inquired about holding a fundraiser pancake breakfast event at the Market). Mr. Teets noted the policy did not make sense to him and he intends to require information under the Freedom of Information Act. He noted one or two months ago he had discussed holding functions for non-profit groups with this Board, specifically pancake breakfasts, and the Board indicated they supported and would encourage the breakfasts. Mr. Teets noted that he knows there was another fundraiser at the Market for another individual and that the candidate did not have a $500,000 policy. At 7:35 a.m. Commissioners Janssen, Sinadinos and Swanson entered the meeting. Mr. Teets noted that he is upset and angry and he never felt the City Market should operate under this Board. Mr. Teets noted that the Board operates three different facilities and he was not sure of the rules and regulations. He noted he is on a fact-finding mission and will take the appropriated action. Chair Ristow indicated to the Board of Commissioners that he would refer Mr. Teet's letter to management and would request that they review the issue and report back to the Board. LEPFA Board of Commissioners Page 2 August 26, 1997 B. Mr. Dirk Spillemaekers: Mr. Spillemaekers distributed a flyer regarding a program sponsored by the State and the Federal governments called the "Stage Technicians Apprenticeship Program" at the request of Michael Meyers. Mr. Spillemaekers noted the Authority was offered an opportunity to join this program at various times and unfortunately all vacancies are filled. He indicated they did want to make the Board aware that they are trying to be progressive in the education of the people they are referring to the Authority. Mr. Spillemaekers noted that he would be happy to answer any questions at a later time. He commented further that he felt what the Board has seen in the last week at the Lansing Center with respect to Oldsmobile has proved the Local's worth to the Authority. He noted Oldsmobile had a number of questions with respect to their ability to perform their task, but the event came off without a flaw and they were very well received. Mr. Spillemaekers noted a promise was made to Oldsmobile that there would be no demonstration during the 100' Anniversary celebration, and it was kept and progress on the contracts before the Authority continues. Dirk noted they are working with Fine Host on their contract and will continue to make a heartfelt effort to see to it that they do their part. He extended his thanks for the opportunity to participate in the Oldsmobile celebration. VI. REPORTS: A. CHAIRMAN'S REPORT: 1. Oldsmobile Centennial Celebration: Chair Ristow extended his congratulations to management and staff on what he felt was an absolutely fantastic job on the handling of the Oldsmobile Centennial festivities at the Park and the Center. Mr. Ristow noted we had a full house all week and everything went like clockwork and the Vendors were delighted with the activity as well. 2. LEPFA Committee Members: Chair Ristow extended his thanks to the Personnel Committee members, Kate McNeely, John Decker and James Butler for attending the recent Committee of the Whole meeting. He noted James, Kate and John along with management staff did a wonderful job in clearing the air and putting issues in the proper perspective. Chair Ristow extended his thanks to all the various committee members for "answering the call" in leading the Authority forward. B. SECRETARY/TREASURER'S REPORT — JUNE &JULY FINANCIALS• The following are the financial statements for the three entities as approved by the Finance Committee for their respective periods: 1. JUNE 30, 1997—FINANCIALS DRAFT: Peter reported the June financials remain in draft form pending final approval from the auditors (no changes are anticipated). a. Lansing City Market: Operating Revenue for the month is $66,912; Building Rental is $39,006; Operating Expense is $144,415 for a Net Income (after subsidy) of$47,860. He reported the Operating Expenses are under budget by 15% or $26,189 and Actual Operating Revenues are over budget by 13% or $7,912. For the month of June Total Operating Income is $13,215.43 and$66,911.75 year-to-date. Operating Expenses for the month are $44,949.70, year-to-date $144,415.12, for a year-to-date loss of($77,503.37). Peter noted parking and rent revenue figures are over what was budgeted and Salaries and Professional services are under budget. As advised, a large sum has been spent on LEPFA Board of Commissioners Meeting Page 3 August 26, 1997 marketing and promoting at the Market over the past year specifically in the late spring and early summer; supplies and materials were down and overall we came in under budget. b. Oldsmobile Park: Total Operating Revenue for June was $286,956; Total Building Rental was $13,942 and Total Operating Expense was $492,645 for a Net Income after subsidy of$85,839 (which includes the operating transfer of$39,457.30). Net Income without the transfer is $46,382 and Net Income without depreciation and the operating transfer is $69,088. Peter noted revenues and expenses are over budget, he reviewed page four of five "Budget vs. Actual" figures which shows what we did versus the City contribution. Peter noted the year ended on a ($166,713.83) loss versus ($175,596) projected loss. He noted utilities were $58,946.69 with $50,000 budgeted; however, we continue to review the TMO with the Lugnuts and our options and the number will either go up or down. Peter reviewed the Oldsmobile Park Non-baseball Events Summary for April 3, 1996 through June 30, 1997. The number of events was 46, with 51 event days, for a bottom line of$11,289. c. Lansing Center: Total Operating Revenue exceeds last year by 21% or $731,494; Total Building Rental exceeds last year by 13% or $138,297; and Total Operating Expenses increased by 4% or $161,432 from last year for a Net Income after subsidy of $460,850. Budget versus Actual Operating Revenues are over budget by 12% or$443,568 and Actual Operating Expenses are under budget by 2% or $95,807. The Income Statement comparing the current year to the prior year under Building Rental was reviewed, and year-to-date figures are $1,192,636.00 compared to $1,054,339.23 last year. Food and Beverage is $2,434,030.71 year-to-date, which exceeds last year by $369,000 or an 18% increase. Food and Beverage Expenses are at$1,382,515.73 versus $1,256,359.70 last year. Revenue is up 18% and expense is up 10% in Food and Beverage. Operating Income - Equipment Rental is $267,188.96 year-to-date and $156,405.99 for the prior year, up by 71%. Labor Service year-to-date is $95,135.10 and $45,645.50 for last year up 111%, which is due to client charges. Total Operating Income is $4,195,561.49 year-to-date and $3,464,067.62 for the prior year for an increase of $731,000 or 21%. Operating Expenses - Professional Services is $120,905.68 year-to- date and $160,718.20 for the prior year, down 40%. Utilities year-to-date are $519,827.67 and $591,452.44 for the prior year for a decrease of$72,000, which is a result of the Honeywell System and keeping the lights off. Marketing year-to-date increased $66,517.85 compared to $44,816.50 last year. The increase is due to advertising for Plaza Parties, marketing and advertising on TV and radio, Dance Across America moving from the stadium to the Lansing Center (refunds and advertising), $12,000 on Marketing packets with$37,700 spent in June. Operating Expenses-Supplies and Materials are up, year-to-date $145,804.50, last year's figure was $90,407.97 and the increase of$89,000 was due to monies spent on computer supplies, janitorial supplies, light bulbs, batteries for the radios, office supplies, technical supplies, maintenance items - pressure washers, uniforms for part time staff, food and beverage equipment, etc. Bonding Insurance decreased, and food and beverage expense decreased as well. In total, Operating Expense was $4,500,775.55 year-to-date versus $4,339,343.56 last year and revenue was up 21% versus 4% in expenses. Peter reviewed the balance sheet noting cash year-to-date is $632,759.50 and the prior year it was at$256,526.24. Peter noted cash, plus Accounts Receivable puts us close to $1,000,000 compared to the prior year figure of $521,387.13. LEPFA Board of Commissioners Meeting Page 4 August 26, 1997 Peter reviewed the Budget vs. Actual Statement for the Lansing Center for the period of July 1, 1996 through June 30, 1997. Over budget items include equipment rental, operating income, food and beverage, labor service, etc. Operating expenses, Salaries/Wages were below budget, as well as utilities. Peter noted when you compare the Total Operating Income versus the Total Operating Expenses, we operated at a loss of ($305,214.06) and when depreciation is deducted the final figure is $197,000 this year compared to last year's figure of$756,000. Peter noted the success of this year has allowed the Authority to create a "Capital Reserve Fund" as well as a "Cash Reserve Fund" which coincides with the recommendations of the Financial Task Force. Peter attributed the positive numbers to the amount of business, labor service, the reduction in overtime, and not being fully staff. 2. JULY 30, 1997 — FINANCIALS: Marian Bryant reported the following for July, 1997: a. Lansing City Market: Total Operating Revenue exceeds last year by 16% or $475; Total Building Rental exceeds last year by 18% or $520; Total Operating Expense increased by 169% or$7,849 over last year. Net Income after subsidy as of July 31, 1997 is $3,615; Net Income as of July 31, 1997 is $3,695. IRS coverage of expenses is 30%, last month was 47% and last year 96%. Our current ratio is 2.47, last month it was 2.16 and last year it was 1.36. Our Equity in the Number of Days of Operation is 127.69, last month was 120.96 and last year it was 150.74. Actual Operating Revenues are over budget by 6% or $187 and Operating Expenses are under budget by 4% or$465. Marian noted last year at this time we were just taking over the City Market operations so there were no expenses. Marian noted the budget was revised based on the amount we are receiving from the City ($100,000). Marian noted this year's total cash of $67,310.06 increased over last year's amount of$57,240.73. In comparison of Budget vs. Actual it was noted rent is ahead of budget by $169.22, Salaries/Wages are in line with the budget, and beginning in August the budget will reflect the use of a staff member who will be responsible for the Meaning of the Market. Tad discussed the rotation of various Vendors in the TV ads and how it has increased Vendor sales, and these ads will continue throughout the year. . b. Oldsmobile Park: Marian noted the different format reflects the Board's request to separate the Events versus the Operational Budget and this began with the July financials. Total Operating Income was $5, Total Operating Expenses are $15,542.73, which results in an excess of revenues over expenses of$75.89. Marian reported our Total Cash is at $296,625.92 year-to-date. At 8:28 a.m. Jim Smiertka entered the meeting. LEPFA Board of Commissioners Page 5 August 26, 1997 c. Lansing Center: Operating revenue exceeds last year by 79% or $90,195. Total Building Rental exceeds last year by 7% or $3,089. Total Operating Expense increased by 61% or $108,648 over last year. Net Income after subsidy as of July 31 is ($18,917) and Net Income after depreciation as of July 31 is $4,220. IRS coverage of expenses is 72%, last month it was 94%, and last year it was 63%. Our current ratio is 1.36, last month was 1.33 and last year was .78. Equity in number of days of operation is 56.37, last month was 45.51 and last year was 17.67. Actual Operating Revenues are over budget by 11% or $20,347 and Operating Expenses over budget by 5% or $13,494. Our Food and Beverage is about$100,000 over last year due to the Pentecostal Keralites and because of same event there is an increase in Food and Beverage expenses over last year. Marian noted a difference in Salaries/Wages over last year due to yearly accruals booked in June and reversed out in July and with larger staff there will be a greater figure. Marian noted Total Cash is $461,069.05 for the current year, last year's figure was $240,096.54; Account Receivables are up over last year at $265,892.40 as of July 31 ($127,737.49 last year); FF&E increased over last year due to the purchase of capital items i.e. computers, radios, etc. Advanced Rent is also up over last year at$297,712.16 for this year ($239, 491.59 last year) which is a good indicator of future business. Marian reviewed the Budget versus Actual noting the budget submitted was not based on $500,000; however, the budget has been re-spread based on$500,000. Under Expenses, Salaries/Wages are up due to the additional positions, and we are over budget by$20,000 on Revenues and Expenses are under budget by $13,000 for bottom line of($18,916.72) after subsidy for July, which is a good position for July. Chair Ristow entertained a motion that the report of the Finance Committee be received and that the financial statements for the Lansing City Market, Oldsmobile Park and the Lansing Center for the period ending June 30, 1997 and for the period ending July 31, 1997 be received as published and the expenses for each entity for each month be approved. MOTION: Commissioner Janssen SECOND: Commissioner Butler Motion carried. C. CHIEF EXECUTIVE OFFICER'S REPORT: 1. Union Issues: Peter noted the Facility Workers contract is signed and is up in March, 1998 and staff will sit down with Dirk in the beginning of the new year with the goal to have the contract completed prior to expiration. He noted the union has responded to our proposal in regard to the AV Tech contract, and it is our hope to meet with them in the near future. Peter reported we have lost our lead AV person, Michael Wright, he has taken a full-time position at Lansing Community College. The Forepersons contract is near resolution, there are a few issues which we hope will be resolved soon. Peter also thanked the Board members who attended the Committee of the Whole meeting. 2. Lansing City Market: Peter reported that during the Oldsmobile celebration patrons at the Market nearly doubled and many of the out of town patrons were very complimentary of the City Market. The Harvest Fest plans are underway for October 9-11. Peter extended his thanks to IBM and James Butler for their sponsorship of the event. LEPFA Board of Commissioners Meeting Page 6 August 26, 1997 Thirty six Michigan Commodities Groups were invited to join the Fest this year, and they will center on Michigan goods. July and August rental is up and recruitment efforts continue with direct mailings during the first week of September. Peter reported a retired Foreperson will work at the Market on a consistent basis, as we will no longer source out our cleaning. Vendor's Association elections will be held in October. Project Fresh has been in full swing since the end of July with $8,000 generated in Market revenue to the produce vendors. 3. Oldsmobile Park: Peter reported a number of events have occurred at the Park since the last meeting, including the July Fourth Symphony Celebration which we were happy with operationally, through the direction of Michael Meyers. The event was great considering there was a Lugnut game earlier that day and the weather, the fireworks all went off without a hitch. Many walkup tickets were sold. Peter noted there have been several monthly movies that have taken place, i.e. Liar, Liar; Space Jam (free movie sponsored by the Lansing Youth Recreational League with 1600 in attendance); City Slickers; and Days of Thunder (Saturday the projector broke and the movie was not shown). Fiesta del Verano was held July 19 and was an all day event with food vendors, and the Parks and Rec stage. The area outside the ballpark was free during the day. National acts performed during the evening, Xelencia and Mazz. Linda Sanchez flew down to Texas to secure the acts arrival and they did arrived 15 minutes prior to the start. Peter thanked Jim Smiertka for his assistance with this event, noting that we anticipate that Fiesta del Verano will be an annual event. Other events held at the Park include the United Way "Celebrity Softball" game, Blue Cross Blue Shield commercial shoot; the "Over 30 Vintage Softball Game" and a city league and exhibition game. The NBC 10 Kids Olympic Games was also held but the weather was a problem for this event. We also hosted the Oldsmobile birthday cake at the ballpark and the Western Barbecue (34,000 people). Events which we are looking at the potential for next year include, a Yes Country Music Fest, Fiesta del Verano, a Blues/Rib Festival and perhaps an oldies concert. We have had an average of 25-30 non-baseball events and we are looking at skating and Fright Night also. At 8:55 a.m. Lloyd Teets and Dirk Spillemaekers exited the meeting. 4. Lugnuts: Peter reported operationally, we continue to work with the Lugnuts on a variety of ongoing issues. Currently there is a difference regarding the utility bills, however, Peter and Michael Meyers continue to meet with Jim Weigel and Tom Dickson and they have agreed to mediation. 5. Lansing Center: Peter reported during the fourth quarter the Lansing Center hosted 315 events which equated to 372 event days with estimated attendance at 75,000 for 3000 room nights for an economic impact of close to $1,600,000. Numbers year-to- date denote we hosted 555 events for 818 event days at the Lansing Center alone for an attendance of 327,330 for an economic impact of 6.6 million. June confirmations: include: the Michigan Disability Rights Association- October, 1997 - 800 attendees; Michigan Council of Teachers of Mathematics Annual Conference Year 2000 - 2000 attendees; Great Lakes Ice Cream and Fast Food Tradeshow - January, 1998, 1999, 2000 with 2000 attendees per year. LEPFA Board Meeting Page 7 August 26, 1997 In June there were 55 bookings by the Sales Department. July confirmations include a Wolverton Inc. Open House in March, 1998 - 1000 people, with 61 additional bookings created by the Sales Department. Lansing Center July and August events were the Pentecostal Keralites, July 3-6-4000 attendance; July 11-14- Michigan Fire Chiefs, it was their 10'Anniversary in the building and the CVB, the Radisson and LEPFA acknowledged their business; July 20 a Cheap Trick Concert - 2000 in attendance; July 21 - Model T event in conjunction with a three day tour from Battle Creek to Lansing; August 2-3 Michigan Cat Fanciers were in Hall C. Oldsmobile was this past weekend and we hosted registration, the Future of Oldsmobile exhibit, the Welcome Reception, Oldsmobile Memorabilia Reception, VIP Reception, meeting room space for car clubs, media/press headquarters, briefing area, Volunteer Headquarters, and community VIP's and we also hosted the Volunteer Thank You Reception on Sunday. Peter noted it was a team effort and thanked Michael Meyers specifically. He noted the feedback we have received thus far has been very positive. Bob Jarboe and John Angell were the two planners and our main contacts and shared that they were pleased with the event overall, as well as the food. 6. IAAM Conference: Peter reported he, Tad Carper and Michael Meyers attended the IAAM Conference in late July, early August in Dallas, Texas. Peter noted this is an industry conference and tradeshow and they were able to attend seminars and exhibits and gain some valuable information. D. PERSONNEL COMMITTEE: Chair Ristow extended his congratulations to Personnel Committee Chair James Butler on his 25`' Anniversary with IBM and his induction to the "Quarter Century Club" with IBM and a thank you for the nice note. Committee Chair Butler reported the Personnel Committee met on August 3 to discuss the union issues and the comments and accusations that had been made. The primary reason was that the accusations and comments that had been made to the City Council were made on August 4 and 11. The Committee reviewed the tapes and also the comments that were made and they also addressed personnel updates. Peter and Michael told the Committee about Jerry Raymond, the supervisor that had retired and would be working at the City Market, due to the Union's accusations that people were leaving. Michael Wright's acceptance of a position at LCC was discussed as well. In turn, the Committee mapped out the strategies that were necessary to address the comments that were made. It was felt by the Committee that it was in the best interest of management to set the record straight and address all the issues and also they needed to understand the status of the Union contracts, because it was alluded that the contracts had not been signed. On August 14, the Committee was scheduled to meet with the City Council Committee of the Whole and most of the Personnel Committee attended in addition to Management. Chair Butler noted Peter did an outstanding job at the meeting, all of the documentation was in place, and all of the comments that were made by the Union and statements made on television to City Council were addressed. City Council made the statement that they did not understand why the issue was brought to them because it appeared to them that the Union was trying to bypass the LEPFA Committee to address the issues. LEPFA Board of Commissioners Page 8 August 26, 1997 In summary, Peter left everyone with the fact that we were focused on collaboration in reference to negotiations and that we did not want the Union to bypass the LEPFA Board of Commissioners and wanted to expedite communications with the Union regarding the contract. Chair Butler noted all of the issues were addressed, our position was understood and it was very well received. Chair Butler commended Peter and management for doing an excellent job in addressing those issues. VII. COMMISSIONERS COMMENTS: A. Comrnissioner Charles Janssen: • Commissioner Janssen noted he attended most of the Oldsmobile celebration and wished to commend Peter, Michael and Tad for their efforts. • In regard to new promotional materials, he indicated he would be interested in seeing how we promote ourselves to the Vendors as well as any additional promotional materials. • Commissioner Janssen noted in regard to problems with firework injuries, he assumes we have a process and that is taken care of any potential hazards. • In regard to the cash we have on hand, he questioned if there is some type of cash management, i.e. are we getting a good return rate. Peter noted in regard to the promotional materials, Tad would make a presentation next month before the Board. Regarding fireworks, we always employ a reputable company and their permit must go through City Council, and the Fire Department approves it as well and we require a certificate of insurance. Cash management is reviewed through the Finance Committee. B. Commissioner James Butler: • Commissioner Butler noted in regard to the overall operation management should be commended for an outstanding job, in particular when you consider revenue and rental increased by double figures, while operating expenses were only 4%. • Commissioner Butler recommended the development of a "good news sheet" that summarizes all of the Authority's good news, so that as ambassadors they will be able to highlight the outstanding things that are taking place on a consolidated one page "Executive Summary" sheet. • Board of Commissioners Roster: Commissioner Butler requested management be a listed on the sheet, Marian, Peter, Tad, and Jim Smiertka. He requested IBM be listed under his name. • In reference to the extra cash, he would like to see a recognition type program that includes bonuses, etc. for people who do a good job, Commissioner Butler noted this is an issue we need to continue to look at. Peter noted the last issue is being discussed by the Personnel Committee and it is his goal and desire to accomplish this in September so that the Personnel Committee can make their recommendation to the Board. Peter noted the "Executive Summary" is a great point, and noted the press will do a story in the near future regarding our successful year and how the monies will be used i.e. the establishing of a cash reserve fund. Tad noted an annual report is in progress which will summarize what has happened to the Authority each year. LEPFA Board Meeting Page 9 August 26, 1997 Charlie Sinadinos noted the Finance Committee will meet on September 8 at 4:30 p.m. and any Board member who would like to make suggestions is welcome to attend. VIII. OLD BUSINESS: None. IX. NEW BUSINESS: • Bob Swanson noted next month the City will be receiving (for the stadium) a major national award from the National Conference on Urban Economic Development at their national meeting; and they will note the City of Lansing, Clark Construction and HNTB for the project. He noted this is yet another award that comes to the City and the folks who designed and built the stadium. • Last week the Mayor set up the nominations of the vacant LEPFA Board members as follows: Bob Lee for remainder of Tim Nichols term, Cyril McGuire to a three year position, he is a long-time city resident and is a retired UAW official and most recently served on the Fire Board and Don Ristow has been appointed to a one year term. These appointments went up last week as well. This week two other nominations will go up essentially renominating Charlie Janssen and Charlie Sinadinos. These nominations will be referred to the Intergovernmental Committee of City Council, which Joan Bauer Chairs and the nominees will receive requests to appear before the Committee. John Decker is the Vendor's representative and under the Articles of Incorporation the Mayor will make the confirmation, and this a one-year term. THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, SEPTEMBER 23, 199 AT 7:30 A.M. AT THE LANSING CENTER IN ROOM 205. At 9:29 a.m. it was moved that the meeting be adjourned. MOTION: Commissioner Janssen SECOND: Commissioner McNenly; motion carried. Respectfully submitted, Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING SEPTEMBER 23, 1997 MINUTES .,1C, ' CITY CLEZR At 7:30 a.m. Chairman Donald J. Ristow called the meeting to order in Room 205 of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933. COMMISSIONERS PRESENT: James Butler, John Decker, Charles Janssen, Ellen Jeffries, Kate McNenly, Donald J. Ristow, Charlotte Sinadinos, and Dennis Sykes (Ex-officio). COMMISSIONERS EXCUSED: Greg Koessel (Ex-Officio) and Robert Swanson (Ex-officio). OTHERS PRESENT: Heidi Brown, Marian Bryant, Tad Carper, Michael Meyers, Peter Sullivan - Lansing Entertainment and Public Facilities Authority; Jack Jordan and James Smiertka- City Attorney's Office, City of Lansing. III. ESTABLISHMENT OF THE AGENDA: Chairman Donald Ristow requested under the Finance Committee Report, item C - "Resolution" be added to the agenda. IV. PUBLIC COMMENT: None. V. APPROVAL OF THE MINUTES OF AUGUST 26, 1997: The minutes of August 26,1997 stand approved as published. VI. REPORTS: A. CHAIRMAN'S REPORT: LEPFA Board of Commissioners Appointments/Reappointments: Chair Ristow congratulated Commissioners Janssen and Sinadinos on their reappointments to the LEPFA Authority Board. He noted Cyril McGuire has also been approved to serve on the Board by the Ways and Means Committee and City Council and will be sworn in. B. SECRETARY/TREASURER'S REPORT- AUGUST FINANCIALS: The following are the financial statements for the three entities as approved by the Finance Committee for the period ending August 30, 1997 and were reviewed by Committee Chair Sinadinos: 1. Lansing City Market: Total Operating Revenue exceeds last year by 1% or$5; Total Building Rental exceeds last year by 1% or $48 and Total Operating Expense increased by 140% or $16,816 over last year. Net Income after subsidy as of August 31 is $6,592 and Net Income after depreciation as of August 31 is $6,782. IRS coverage of expenses is 26%, last year it was 106%. Our current ratio is 2.28, and last year it was 2.66, Equity in Number of Days of Operation 115.63. Actual Operating Revenues are over budget by 2% or $113 and Actual Operating Expenses are over budget by 6% or $1,709. Total Operating Expenses year-to-date are over budget by $1,708. LEPFA Board of Commissioners Meeting Page 2 September 23, 1997 2. Oldsmobile Park: Chair Sinadinos noted an Operating Income of $839 (which consisted of Oldsmobile Park shirts sold at the Oldsmobile Centennial Celebration). Total Operating Expense year-to-date is $29,868 compared to budget, which was $40,974, thus we are under budget by $11,000. 3. Lansing Center: Total Operating Revenue exceeds last year by 116% due primarily to the Oldsmobile Celebration. Total Building Rental exceeds last year by 49% or $36,452; Total Operating Expense increased by 35% or $157,088 over last year due to food and beverage which is in line with the revenue figures. Net Income is$19,540 after subsidy and is $48,939 after depreciation. IRS coverage of expenses is 80% compared to last year's 56%. The current ratio is 1.48 and was .56 last year at this time. Equity in Number of Days of Operation is 57.1 compared to last year's .67. Operating Revenues are over budget by $65,964 and Operating Expenses are under budget by 4% or $24,976. Chair Sinadinos noted Building Rental, Food and Beverage, equipment rental, and labor and service are up and the total cash position overall is up considerably, $407,052 compared to the prior year's figure of$70, 927. Account Receivables are $345,647 ($150,000 of that figure is Oldsmobile monies) and Total Assets are double last year's. Chair Sinadinos noted the food and beverage income difference between year-to-date $296,804 and the budgeted amount of $262,000. Chair Sinadinos recommended the financial statements for Oldsmobile Park, the Lansing City Market and the Lansing Center for the period ending August 31, 1997 be received as published and the expenses for each entity for the month be approved. MOTION: Commissioner Sinadinos SECOND: Commissioner Butler Motion carried. 4. Memorandum - Recommendations for Policy on Cash Reserve Fund: Committee Chair Sinadinos reported the LEPFA Finance Committee recommended approval of the following policy/memorandum: "A Cash Reserve Plan be established and funded at a level of 60 days of the average projected total operating revenues for FYE 1996/97 through FYE 1998/99, not to exceed $650,000 and to be minimally funded at a level of $200,000." Chair Sinadinos moved that the recommendation be approved as submitted. SECOND: Commissioner Butler Peter noted this item was discussed at length at the Finance Committee meeting and Bob Swanson concurred with the policy (he noted it differs from the recommendations outlined in the memo). Commissioner Butler questioned the 60 versus the 90 days and the basis for the minimum funding of$200,000? Peter noted the City's audit firm recommended the 60 days versus the 90 and the minimum was established and discussed by the Finance Committee. The maximum recommendation came from the Chairman's Special Committee on Finance and the minimum is a base figure. The motion carried. LEPFA Board of Commissioners Meeting Page 3 September 23, 1997 5. Resolution: Finance Committee Chair Sinadinos read and moved that the following resolution be adopted: "the Finance Committee of the Lansing Entertainment and Public Facilities Authority unanimously approves and recommends the following resolution to the Lansing Entertainment and Public Facilities Authority Board of Commissioners: Based on the strength of the FYE 1996/97 financial statements the Finance Committee recommends the LEPFA Board of Commissioners reduce its budget and approve a one-time $50,000 reimbursement to the City of Lansing from its FYE 1997/98 City Contribution." Discussion ensued. Commissioner McNenly questioned what year this would apply to and which budget this would impact? Peter noted the resolution applies to the current fiscal year and would apply to the Lansing Center under "Rents and Leases." Peter noted this issue was discussed at length by the Finance Committee. Commissioner Jeffries questioned when this would be reflected in the financials, Peter noted it would be reflected in next month's financials. Commission Butler questioned if the $50,000 reduction would be expected to be reflected in the future budget recommendations to City Council? Peter noted we will complete the budget process and will submit it to the Board for review, as has been done in the past. Dennis Sykes noted when the resolution is forwarded to the City a note should be forwarded indicating that this is a one time, year-to-year reimbursement that will be assessed yearly. Commissioner Butler noted that we may wish to itemize so people will focus on the fact that there were one time events such as Oldsmobile. Commissioner Jeffries suggested amending the resolution to include the words "one-time." After discussion, Committee Chair Sinadinos recommended approval of the motion with the amendment/addition of the words "one-time." Upon suggestion of Commissioner Butler, Peter noted he will clarify the reimbursement in a letter and attribute the reimbursement to one time events such as the Oldsmobile Centennial Celebration, as well as cyclical events like the Pentecostal Keralites. SECOND: Commissioner Janssen Motion carried. At 7:45 a.m. James Smiertka entered the meeting. C. CHIEF EXECUTIVE OFFICER'S REPORT: 1. Union Issues: Peter noted there is no news to report regarding the AV Tech contract and we continue working on filing Michael Wright's position and we are moving forward. Regarding the Forepersons agreement, we have reached a verbal agreement and it has been forwarded to Steve Schultz for review. Peter noted the Stagehands agreement expired in late August and talks will begin soon. LEPFA Board Meeting Page 4 September 23, 1997 2. Lansing City Market: Peter reported there will be two new vendors at the Market in October(a cake decorator and a natural crafts vendor) in the west wing. Harvest Fest plans are being finalized and will involve a variety of vendors. Dates are October 9-11 and will include a Petting Zoo, a Tee-Pee and craft area, bows and arrow, a blacksmith, a candle maker, covered rides, a corn roast, quilting, pumpkin carving contest, etc. Peter noted the Marketing Department and the City Market have done a great job putting information together and there will be a great deal of promotional information soon. Peter extended his thanks to James Butler and IBM for their sponsorship. Plans are beginning for Silver Bells in the City this year which will involve the Market on Friday of the opening week. Peter noted Lisa Wootton has resigned as the Lansing City Market Manager. Lisa has agreed to stay through Harvest Fest. Peter noted there have been some internal applicants and the position has been advertised. 3. Oldsmobile Park: Peter reported the Lugnuts won the Midwest League Championship and he will forward a letter of congratulations to Tom Dickson and the Lugnuts and will include the Board. Peter reported the non-baseball events continue with the start of Fright Night, noting it will be the same event as last year only bigger and better with additional sponsors. Work continues on ice skating as well as the analysis of the man-made versus tank system ice with a final decision to be made by November 1, he reported he will update the Board next month. Peter indicated construction has begun on the Interactive Fountain at Oldsmobile Park and will take 4-6 weeks. Peter reported City Council Ways and Means Committee approved the irrigation project in conjunction with the construction (it will provide irrigation the front plaza's as well as the grass/shrubbery areas in the front of the Park). 4. Lugnuts: Peter reported he and Tom Dickson have agreed to binding mediation in regard to utilities and he will continue to update the Board. Peter alerted the Board regarding the current article in the Lansing State Journal on the condition of the turf at Oldsmobile Park, noting he felt caught off guard when the article appeared on the front page of the Lansing State Journal particularly because we continue to meet with the I.ugnuts on a weekly basis regarding operational issues and have routinely asked about the issue. Peter shared some facts regarding the issue so that the Board was informed and not put on the defensive should they be approached regarding this issue. Peter noted at the end of each season, as a part of our operational audit, we meet with the Lugnuts and discuss operational issues. Dennis Sykes indicated there was an immediacy to having this issue resolved prior to the winter months. Sykes noted that the suggestion is that we cut corners on the infield. He also noted that specific tests were conducted on the infield by the governing body of baseball and signed off on as a part of the construction process. 5. Lansing Center: The Lansing Center hosted 21 events in August which equated to 48 event days, equaling 1000 room nights for an economic impact of close to $414,000. In comparing the last FYE to this year, we have had 22 more events, $23,000 in rent, are 668 room nights ahead and have generated $268,000 in economic impact. He noted much of the surplus is due to Oldsmobile. Confirmations include: Volunteer LEPFA Board of Commissioners Meeting Page 5 September 23, 1997 Centers of Michigan- May, 1998, 1000 people to attend; Michigan Association of Certified Public Accountants - 500-600 people and a Bridal Fair in January, 1998. The Sales Department is working with the GLCVB on the following bookings: Michigan Department of Agriculture 2002 and Michigan Groundwater Association in 2001-2. He noted the past month's activities include: Spartan Food Show - 600 participants; "Pig Out on the Plaza" on September 10- Peter extended his thanks to those who sat at his table. On September 12-13 Life Changes Christian Center with 300 participants and September 14-16 Midwest Reps Tradeshow will be in-house. Nationwide Electronics Sale was in house this past week (2000 in attendance) along with Gordon Food Service on September 20 (250 reps, 4000 people). September 21 the Senior Expo is slated for Hall C and is the kickoff event for a week - long celebration for Seniors over 50. D. PERSONNEL COMMITTEE: Committee Chair James Butler noted a Personnel Committee meeting was not held in September, however, the Committee continues to look at the recognition programs for the employees that do an exceptional job, the performance plan update and will discuss the evaluation process so that employees understand what is expected of them and last but not least, the job posting process. Peter noted he has been working on information to pass along to the Committee and hopes to forward the information in the next several weeks. VII. COMMISSIONERS COMMENTS: A. Commissioner Charles Janssen: Commissioner Janssen noted he attended the Employee Picnic (as well as a number of other Board members)and noted it was a very good picnic. He commented that there seemed to be a lot of "espirit de corp" and the organization did a great job and he encouraged Board members to attend future events, as it is a good time to mingle and listen to the employees. He commended staff for the their efforts, and noted recognition was also given to Michael Wright for his service. Tad noted the "Picnic Committee" consisting of Tammie Seibert, Donna Roy and Renee Castilla were responsible for the picnic, as well as Fine Host. B. Commissioner James Butler: Commissioner Butler noted that he felt the resolution to return the $50,000 was outstanding, is very positive and could be a tool and a voice to show that we are making outstanding progress. Commissioner Butler also extended his thanks for the updated roster. Commissioner Butler questioned the status of the articles discussed previously on the Lansing Center and/or the overall operation to be featured in the newspaper? Peter noted he anticipates having the final audit numbers by September 30 and will endeavor to do something shortly thereafter and we are striving to have the newspaper in sync with the audit. He reported Channel 10- Mike Nichols has been calling him for a number of weeks, and is waiting for approval from the auditors and Board before releasing information. VIII. OLD BUSINESS: None. LEPFA Board of Commissioners Meeting Page 6 September 23, 1997 IX. NEW BUSINESS: None. THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, OCTOBER 28, 1997 AT 7:30 A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM . At 8:42 a.m. it was moved that the meeting be adjourned. MOTION: Commissioner Janssen SECOND: Commissioner Jeffries; motion carried. Respectfully submitted, 4". Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING OCTOBER 28, 1997 MINUTES At 7:30 a.m. Chairman Donald J. Ristow called the meeting to order in the Governor's Room of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933. COMMISSIONERS PRESENT: John Decker, Charles Janssen, Ellen Jeffries, Robert Lee, Cyril McGuire, Donald Ristow, and Charlotte Sinadinos. COMMISSIONERS EXCUSED: James Butler, Greg Koessel (Ex-Officio), Kate McNenly, Robert Swanson (Ex-officio) and Dennis Sykes (Ex-officio). OTHERS PRESENT: Heidi Brown, Marian Bryant, Tad Carper, Michael Meyers, Peter Sullivan, Mark Ter Haar- Lansing Entertainment and Public Facilities Authority; Jack Jordan and James Smiertka - City Attorney's Office, City of Lansing and Denise Wootton. III. ESTABLISHMENT OF THE AGENDA: There were no additions to the agenda. r- IV. PUBLIC COMMENT: None. `" V. APPROVAL OF THE MINUTES OF SEPTEMBER 23, 1997: The minutes of September 23,1997 stand approved as published. r, 4,' VI. REPORTS: A. CHAIRMAN'S REPORT: 1. December Meeting Change: Chair Ristow rescheduled the December 23 meeting to December 16 at 7:30 a.m. due to the holidays and scheduling conflicts. 2. Holiday Reception: Chair Ristow noted there will be a reception for Commissioners and Management Staff members and their spouses on December 16 at 5:30 p.m. Chair Ristow noted this is an opportunity for the Commissioners to meet the management team and to extend a "hats off' to all that has been accomplished during the past year. 3. Recent Press: Chair Ristow noted recently there has been positive press regarding LEPFA, however, he indicated there is one item that he believes is missing from the press and that is the Commissioners who serve so diligently and have helped bring about LEPFA's turnaround. Chair Ristow noted that if it were not for the Commissioner's hard work, their willingness to learn and their willingness to provide management with tools to get the job done, it would have not been accomplished. For all the above, Chair Ristow saluted the Commissioners and extended his thanks and gratitude for their hard work. LEPFA Board of Commissioners Meeting Page 2 October 28, 1997 4. Lansing Regional Chamber of Commerce- Minority Business Advocate of the Year Award: Chair Ristow noted that Commissioner Butler is not in attendance today because he is at the Lansing Regional Chamber of Commerce meeting receiving the LRCC- Minority Business Advocate of the Year Award. Chair Ristow extended his congratulations to James Butler. 5. Welcome: Chair Ristow welcomed Mark Ter Haar noting Mark is the Lansing City Market Manager and extended his wishes to Mark for success. Chair Ristow also welcomed Mr. Cyril McGuire to the Board of Commissioners. Commissioner McGuire shared his background with the Board of Commissioners noting he is a life long Lansing resident and has a background in labor as a GM employee. Mr. McGuire is a past president of UAW Local 652, he was an Educational Director for Community Action programs and currently is retired. Mr. McGuire noted he does free lance work and recently left the Fire Department and is leaving the National Council on Alcoholism Board in December. Mr. McGuire is the state Chair of the Randolph Institute and is looking forward the a challenge. B. SECRETARY/TREASURER'S REPORT — SEPTEMBER FINANCIALS: Committee Chair Sinadinos reviewed the following financial statements as approved by the Finance Committee for the period ending September 30, 1997: 1. Cash Reserve Funding Plan Memorandum: Sinadinos reviewed the memo enclosed in the Board packets, as approved by the Finance Committee, recommending approval of the funding level of a "Cash Reserve Plan" at$290,417 based on the fiscal year end 1997 net income of $440,417, less operating funds used for capital purchases of $100,000 and less the one time payment to the City of$50,000, leaving a balance of $290,417. The Finance Committee recommended the funding of this plan at the level of$290,000. MOTION: Sinadinos SECOND: Jeffries motion carried. 2. Lansing City Market: Total Operating Revenue exceeds last year by 62% or $6,315. Total Building Rental decreased by 11% or $1,159 over last year. Total Operating Expense increased by I10% or $19,837 over last year. Net Income (after subsidy) is $22,828 and Net Income after depreciation is $23,124. IRS coverage of expenses is 46%, last year it was 110%, last month it was 26%. The current ratio is 6.01, last month it was 2.28, and last year it was 2.24. Equity in Number of Days of Operation is 169.81, last month it was 115.63 and last year it was 470.20. Actual Operating Revenues are over budget by 31% or$3,912 and Actual Operating Expenses are under budget by 7% or$3,031. Total Operating Expenses year-to-date are $9,097 compared to budget $14,020. Total Operating Income is $9,473 compared to $5,675 as budgeted. Chair Sinadinos reported the excess revenue over budget is $22,828. 3. Oldsmobile Park: Chair Sinadinos noted Actual Operating Revenues are over budget by 100% or $845; Actual Operating Expenses are under budget by 23% or $14,394; Net Income (after subsidy) is $743; Net Income after depreciation is $8,881. Current ratio is 1.42, last month it was 1.18. Equity in Number of Days of Operation is 223.97 and last month it was 184.42. Chair Sinadinos noted the Total Event Development fund is now reflected on the Income Statement. LEPFA Board of Commissioners Meeting Page 3 October 28, 1997 At 7:43 Jim Smiertka entered the meeting. 4. Lansing Center: Total Operating Revenue exceeds last year by 46% or $236,523. Building Rental exceeds last year by 27% or $40,372; Total Operating Expense increased by 31% or $230,354. Net Income (after subsidy) is $8,529 and is $52,101 after depreciation. IRS coverage of expenses is 78%, 80% last month, and 69% last year. The current ratio is 1.51, it was 1.48 last month and was .79 last year. Equity in Number of Days of Operation is 52.01, last month it was 57.04 and last year it was 9.16. Operating Revenues are over budget by 12% or $81,137 and Operating Expenses are under budget by 4% or $41,038. Chair Sinadinos noted Food and Beverage is down slightly for the month, but is up considerably for year-to-date. Labor and Service income are also up, for the current period and year-to-date due in part to the Oldsmobile celebration. Salaries and Wages are up compared to the current period last year because we are more fully staffed. Chair Sinadinos noted the total cash position is currently at$50,000 compared to $238,000 and is due to the establishment of the Cash Reserve Plan. Under Restricted Assets, Capital is at$12,500, Cash and Cash Equivalents are at $270,093 and Accounts Receivables are at $19,906.53 for Total Restricted Assets at $302,500. Chair Sinadinos noted under Liabilities and Equity, Unearned Advanced Rent is at$266,190. Budget versus Actual under Food and Beverage and Tradeshow Utilities are up. Chair Sinadinos recommended the financial statements for Oldsmobile Park, the Lansing City Market and the Lansing Center for the period ending September 30, 1997 be received as published and the expenses for each entity for the month approved. MOTION: Commissioner Sinadinos SECOND: Commissioner Jeffries motion carried. 5. Remann Robson Annual Financial Audit Report- 1996/97: Marian Bryant reviewed the final report as submitted, noting the preliminary report was reviewed at the August Board meeting in detail and there are few changes noted from the preliminary report. Marian noted the first page is a standard letter indicating that they performed the audit and that the statements fairly represent the financial position of the LEPFA. Individual income statements and balance sheets have been developed for all three facilities. On page six under restricted assets which refers to the Cash Development Fund (on the Oldsmobile Park statement) it confirms how the fund was set up and where we are as of June 30, 1997 ($17, 830). Marian reviewed the Income Statements as previously reviewed for the three entities as of June 30, 1997 and no issues or concerns were noted. Marian noted there were no issues regarding the Balance Sheet and referenced the standard letter at the end of the report, which indicates that we complied with all the rules and regulations and that there were no instances of internal audit control that needed to be reported. Marian noted this report and a letter will be forwarded to the Mayor's office and City Council. Peter reported this was shared with the Finance Committee and wanted it to be shared with the Board before forwarding it to City officials. Chair Ristow noted the most important item in an audit is the management letter, and that the letter accompanying our audit had one item that recommended the accounting treatment of our stadium lease payments. Chair Ristow extended his congratulations to management staff and the Finance Committee noting this letter is indicative of the financial condition of the Authority and of the accounting methods incorporated and used. LEPFA Board of Commissioners Meeting Page 4 October 28, 1997 Chair Ristow moved that the independent auditors report accompanied by the financial statements and management letter as prepared and submitted by Rehmann Robson for the fiscal year ending June 30, 1997 be received as published. MOTION: Janssen SECOND: Decker motion carried. C. CHIEF EXECUTIVE OFFICER'S REPORT: 1. Union Issues: Peter noted the Foreperson's contract is undergoing wording changes that have been agreed to and will be returned to them for signature and it is hoped their contract will be finalized within the next 30 days. Regarding the AV Tech position, it remains unfilled at this time; the position was offered to a person in the bargaining unit who declined the offer. We continue to strive to finalize the agreement and fill the position. 2. Lansing City Market: Tad introduced Mark Ter Haar, Lansing City Market Manager to the Board, noting his previous background and experience. Tad indicated Mark will focus on new vendor recruitment, which is important to the future success of the Market. Chair Ristow welcomed Mark. Peter reported that vendor elections took place and Wes Clark was elected as the President of the Vendor's Association; Pam Haddock is the Vice President, Mark Davies - Secretary; Don Grigg -Treasurer and Ruth Hills and Anna Harris as Trustees. Events held at the Market include Harvest Fest (October 10 and 11) which was very successful with a pancake breakfast in the morning, pumpkin carving, hay rides, etc. and the vendors reported the event was successful for them as well. Peter extended his thanks to James Butler and IBM for their sponsorship. Peter reported Market rental revenue is up by $600 over last year and recruitment efforts continue with 350 direct mail brochures mailed last week. Plans for Silver Bells in the City are underway and we will decorate the Market inside and out. There will be a pancake breakfast, visits from Santa, complimentary refreshments and the City Market will be a drop off for Toys for Tots. 3. Oldsmobile Park: Peter reported "Fright Night" at Olds Park has been held for six evenings with 7,000 people through the door to-date. Production this year compared to last year is superior and is due to the Operations and Marketing Departments; we hope to attract over 10,000 visitors this year and that the event will pay for itself. Tad publicly thanked the sponsors of "Fright Night" in particular Meijers stores and Andrews Chevrolet in Mason as well as Estes-Leadley for their donation. Tad indicated all of the haunted houses feed off one another and create a market for the season and we don't compete against one another. Peter noted further that we also offer the ticket prices at a competitive rate. Peter also thanked the high school drama groups that have help with Fright Night. The Marketing department is working with the MSU drama department on possible credit for students to perform at Fright Night next year so there will be consistency with the actors. Peter noted the interactive fountain was dedicated last evening by the Mayor and Tom Dickson. He also extended his thanks to all of the different building trades for all of their time, work and effort. Peter noted overall it was a nice dedication and was one of the first items the Lugnut charities have helped defray the costs on. Peter also extended thanks to Bob Kolt for soliciting the donations. LEPFA Board of Commissioners Meeting Page 5 October 28, 1997 The Oldsmobile Park infield will be dug up and changed weather permitting during the next several weeks. The Lugnuts have agreed to pay for the change as a capital upgrade. Peter reported Ice skating will take place again this year and the same amenities will be offered (i.e. skate rental, warming room, etc.). We are also looking at ways to improve operationally and increase advertising and promotion. 4. Lansing Center: The Lansing Center hosted 45 events, which equated to 68 event days, with over 15,000 in attendance, equaling 570 room nights for an economic impact of approximately $330,000. The Sales Department has been working with the CVB on a number of events including the Michigan State Nusmatic Society Meeting in the spring (3500 in attendance); Michigan Association of CPA's in June, 1998; the MEA Spring Representative Assembly for 2001-5 (850 attendance); the MEA Fall Assembly 2001-4; and the Auto Value Installer Conference in April, 1998 (1500 attendance). During the Past month the Sales Department has created 81 bookings. September event highlights include: the Governor's Educational Summit on September 23; Michigan High School Athletic Association Sportsman Summit on September 24 (800 in attendance 400 expected); Neighborhood Youth and Parent Prevention Partnership on September 27 (300 attended); Lansing Regional Chamber of Commerce Business Trade Fair (1500 attended); October 3 and 4 Michigan Council of Teachers of Mathematics were in-house with over 2000 in attendance (this is the first of three years for this event); October 5 the Book and Paper Show was in house(1500 in attendance);and October 11 the United Methodist Church(4000 people in attendance. J Crew was in house for the second year and during the first hour of the first day over 1000 people entered the show. Upcoming events include the Lansing School District Career Fair on November 11; the Women's Show will be held on November 14-16 with featured guests Richard Simmons and Peter Bergman; November 21 and 22 will be the Toughman competition and the Festival of Trees is scheduled for November 26 through the 30`b. 5. Miscellaneous: The ceremonial $50,000 check presentation of funds from LEPFA back to the City will take place this Thursday at 2:00 p.m. and Board members are welcome to attend. Peter noted Ellen Beal is mailing a pamphlet to the Lansing residents on her views and beliefs regarding a variety of topics which includes where she would cut funds. One of her replies was to not fund LEPFA and have LEPFA obtain funding from the TIFA district. Peter commented that we are not in the financial position that we were this time last year due to a lot of hard work by many people within the management staff, with the support of the Board. Peter noted we went from a $756,000 subsidy last year, to$200,000 this year and staff shouldn't have to fight for a reasonable city contribution. Peter indicated he mentions this because he is certain there will be questions during the budget hearings. Chair Ristow indicated he supports Peter's remarks and noted the PSD would not be able to support this organization and every dollar that is spent in this organization, much like the Convention Visitors Bureau, generates ten fold in economic impact and every business and retailer benefits immensely from the groups that come into LEPFA facilities. 6. Introductions: Chair Ristow welcomed Commissioner Robert Lee to the LEPFA Board of Commissioners. Mr. Lee indicated he is the Secretary/Treasurer of the Michigan Building Trades Council, is from the Saginaw area and has been with the Trades Council for 16 years. Mr. Lee hopes to relocate to Lansing within the next year. LEPFA Board of Commissioners Meeting Page 6 October 28, 1997 Chair Ristow also introduced Denise Wootton, a Lansing City Market vendor, noting she will be appointed to the LEPFA Board of Commissioners by Mayor Hollister and will be going to Council for approval for a term that is tentatively scheduled to begin January 1. She will replace Mr. Decker as the Lansing City Market representative. D. PERSONNEL COMMITTEE: Chair Ristow noted that one of the Personnel Committee's primary charges was to develop Employee/Personnel polices and benefit plans, a salary administration policy, an organizational chart, performance evaluation appraisal forms, merit increase guidelines and an incentive recognition program for personnel. He indicated that a great deal of work has gone into the plan; although the ultimate goal is not complete as of yet, there are several items which have been completed and are steps to reaching the goal. Committee member John Decker noted it was the charge of the Personnel Committee to develop a comprehensive salary administration plan and a policy and procedural manual. Commissioner Decker noted the committee has met several times over the past several months to discuss the personnel issues indicated in the letter from Personnel Committee Chair James Butler which was distributed with additional Personnel Committee items prior to today's meeting. Commissioner Decker noted the following items were developed: organization chart; personnel policies (the determination of starting salaries for new employees, the performance evaluation overview for exempt employees, the training period for all new employees, and merit salary increases); the management and administrative non-exempt appraisal evaluation forms; the salary increase guidelines; the performance rating matrix; the incentive plan and the incentive plan overview. Commissioner Decker noted the Committee recommends as outlined in Commissioner Butler's letter an incentive recognition for the Director of Finance and the Director of Operations for fiscal year ending 1997 at an amount of 10% of their annual compensation, based on the criteria listed in the memo. Commissioner Decker moved that the recommendations of the Personnel Committee as outlined in the memorandum dated October 23, 1997 be approved in their entirety. MOTION: Decker SECOND: Janssen. Discussion ensued. Commissioner Janssen questioned if the incentive compensation amounts are budgeted and if there a maximum? Peter noted they are, and if are they are not used, they are carried over (monies accrued in the previous year goes against the past year). Commissioner Janssen questioned if the Board has the option to amend and/or revise the plan? Peter noted there is no employee contract per se, however it is assumed that the Personnel Committee will review the policies and procedures on an annual basis. Peter noted over the next several months the Personnel Committee will develop a formal policies and procedures manual. Peter noted, as indicated in Mr. Butler's letter, that he and the Personnel Committee felt very strongly that we needed to address two issues immediately and they were to establish salary administration (which has not been done for two years) and develop an incentive program which is geared to achieving and meeting budget. Peter noted this was discussed in the Personnel Committee and unanimously approved. Commissioner Jeffries questioned if they were approving all the items in Mr. Butler's memo or only the incentive plan? Chair Ristow indicated the motion includes all the items listed including the incentive plan. Jeffries asked if the incentive plan amount would be added to the base salary or would it be a one-time amount. Peter noted it would be a one-time award. Jeffries questioned if there are any other monies that may be awarded, i.e. cost of living and how often could promotions or reclassifications occur LEPFA Board of Commissioners Meeting Page 7 October 28, 1997 in a year. Peter noted new employees would be evaluated after six months and all other employees annually in June with recommendations by July. Reclassifications could occur during the year and could be discussed in the Personnel Committee. Jeffries questioned how the salary ranges were derived and how will they be updated? Peter noted this was discussed in the Personnel Committee meetings and will be reviewed minimally on an annual basis and adjusted each year to take into consideration industry trends. Mr. Smiertka clarified that in Michigan you should be clear in your policies and procedures manual because that can form a contract between an employer and employee. Be clear and specific. Peter noted everything presented has been reviewed by our labor attorney. Commissioner McGuire questioned if the people listed are the people that will be involved. Peter noted it would include all full time positions. Mr. McGuire questioned the language on page three under training period. Peter noted this issue was discussed in length at the Personnel Committee meeting and that the language is industry standard. Peter indicated he understood how the paragraph read, as well as the use of the word "may." The motion carried VII. COMMISSIONERS COMMENTS: None. VIII. OLD BUSINESS: None. IX. NEW BUSINESS: None. THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, NOVEMBER 25, 199 AT 7:30 A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM . At 8:52 a.m. it was moved that the meeting be adjourned. MOTION: Commissioner Janssen SECOND: Commissioner Decker motion carried. Respectfully submitted, Heidi K. Brown, Recording Secretary 011 �1 LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING November 25, 1997 r <<,, J MINUTES 2 6 "I 16 At 7:30 a.m. Chairman Donald J. Ristow called the meeting to order in the GoverirSjV&IroH lo't 1 gRK Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933. COMNIISSIONERS PRESENT: James Butler, John Decker, Ellen Jeffries, Robert Lee, Kate McNenly, Donald Ristow, Charlotte Sinadinos and Robert Swanson. COMMISSIONERS EXCUSED: Charles Janssen, Cyril McGuire, Greg Koessel (Ex-Officio), and Dennis Sykes (Ex-officio). OTHERS PRESENT: Heidi Brown, Marian Bryant, Tad Carper, Michael Meyers, and Peter Sullivan, - Lansing Entertainment and Public Facilities Authority and Denise Wootton. III. ESTABLISHMENT OF THE AGENDA: There were no additions to the agenda. IV. PUBLIC COMMENT: None. V. APPROVAL OF THE NHNUTES OF OCTOBER 28, 1997: The minutes of October 28,1997 stand approved as published. VI. REPORTS: A. CHAIRMAN'S REPORT: Chair Ristow noted the December 23 meeting has been changed to December 16 at 7:30 a.m. due to the holidays and scheduling conflicts. There will be a reception for Board members and management staff members and their spouses/guests on December 16 at 5:30 p.m. in the Governor's Room. Chairman Ristow also extended Happy Thanksgiving wishes to the Board and staff. B. SECRETARY/TREASURER'S REPORT— OCTOBER FINANCIALS: Committee Chair Sinadinos reviewed the following financial statements as approved by the Finance Committee for the period ending October 31, 1997: 1. Lansing City Market: Total Operating Revenue exceeds last year by 35% or$5,814. Total Building Rental decreased by 12% or $1,703 from last year. Total Operating Expense increased by 94% or $23,634 over last year. Net Income after the city contribution is $22,266 and Net Income after depreciation is $24,670. IRS coverage of expenses is 48%, last year it was 69%, last month it was 46%. Chair Sinadinos noted under Operating Expenses— "Salaries" are up due to cleaning services are now provided in-house and marketing expenses increased due to more marketing activity and timing. The current ratio is 3.80, last month it was 6.01, and last year it was 2.47. Equity in Number of Days of Operation is 179.87, last month it was 169.81 and last year it was 253.90. Actual Operating Revenues are over budget by 38% or $5,642 and Actual Operating Expenses are under budget by 12% or $6,576. LEFPA Board of Commissioners Meeting Page 2 November 25, 1997 2. Oldsmobile Park: Chair Sinadinos noted Actual Operating Revenues are over budget by 100% or $845; Actual Operating Expenses are under budget by 25% or$20,410; Net Income (after city contribution) is $2,536; Net Income after depreciation is $12,894. Current ratio is 1.53, last month it was 1.42. Equity in Number of Days of Operation is 261.76 and last month it was 223.97. Sinadinos noted the "Event Revenue" of$31,898.69 is due to Fright Night and "Event Expenses" of$18,298 which equals Event Income of $13,600; and has been applied to the Event Development Fund of$58,856. 3. Lansing Center: Total Operating Revenue exceeds last year by 21% or $218,539. Building Rental exceeds last year by 4% or $12,316; Total Operating Expense increased by 25% or $268,504. Net Income (after city contribution) is$167,845 and is$226,079 after depreciation. IRS coverage of expenses is 92%, 78% last month, and 95% last year. Chair Sinadinos noted Building Rental is down slightly from this time last year$135,977 compared to$164,033 last year. October was a record month for this year and Total Operating Income from this year versus last year is $1,250,747 compared to $1,032,208 the previous year. The decrease is attributed to the rescheduling of events from October to,November. Under Expenses - Professional Services are higher than last October because the auditors were paid earlier this year. The current ratio is 1.79, it was 1.51 last month and was 1.16 last year. Equity in Number of Days of Operation is 63.94, last month it was 52.01 and last year it was 33.47. Operating Revenues are over budget by 15% or $164,733 and Operating Expenses are under budget by 6% or $87,745. Sinadinos noted Total Operating Income is over budget$4898,109 compared to $414,513 Chair Sinadinos moved that the financial statements for Oldsmobile Park, the Lansing City Market and the Lansing Center for the period ending October 31, 1997 be received as published and the expenses for each entity for the month be approved. MOTION: Commissioner Sinadinos SECOND: Commissioner Jeffries motion carried. Committee Chair Sinadinos noted next month the financial statements will not be in the packets, they will be reviewed at the Board meeting. The Finance Committee meeting will be held on Monday, December 15 at 4:30 p.m. due to the change in the monthly meeting. C. CHIEF EXECUTIVE OFFICER'S REPORT: 1. Union Issues: Peter noted the Facility and Maintenance Workers contract expires February 1998 and we will be meeting with them soon. Concessions and Food Service employees have solidified an agreement with Fine Host, which is effective until December 1999. Regarding the Foreperson's contract a tentative agreement was reached on November 20 and is a four-year agreement expiring in November, 2000. Peter noted the contract was sent to all Board members prior to today's meeting and it is hoped that it would be ratified today. Peter noted that the Forepersons are happy with the agreement. Chair Ristow moved that the tentative agreement between the Lansing Entertainment and Public Facilities Authority and Local 274 of IATSE AFL- CIO covering the Forepersons for the period of June 1, 1995 through June 30, 2000 LEFPA Board of Commissioners Meeting Page 3 November 25, 1997 be approved. MOTION: Commissioner Lee SECOND: Commissioner Decker motion carried. Peter noted the stagehands proposal, which expired in August has yet to be forwarded to LEPFA. Technical Services agreement is on hold due to the vacant position. 2. Lansing City Market: Peter reported Silver Bells in the City was held on Friday and the Market participated with a visit from Santa, a life size ginger bread house, face painting, two string bands, complimentary food and beverages and Saturday there was a pancake breakfast with a performance by the Blue Star Angels. Peter noted there are three new vendors this month. Rental revenues were down$120 this month compared to last year and occupancy is also down. Peter noted there has been a good response from the direct mailing and paid advertising, recruitment efforts continue. Surveys were distributed to the vendors to get their input on how to make the Market more successful. 3. Oldsmobile Park: Peter reported "Fright Night" was very successful. We made money on the event this year, and will do it again next year, but are considering additional sponsors as well as utilizing the MSU Theatre Department. Peter noted the infield renovation has been completed and we will see the results next spring. The Lugnuts oversaw the operation. Regarding utilities Peter reminded the Board that he and Tom Dickson did not agree on how to divide the utilities per the TMO agreement, thus he and Dickson have ultimately agreed to go to mediation. Peter indicated they both have different interpretations of the agreement and he would continue to keep the Board abreast of this issue. Ice skating setup and preparations are underway and the event will be the same as last year and will include a warming area complete with cable television, concessions, as well as numerous sponsor days/nights. Peter noted the sponsor monies have increased over last year and our goal is to reduce the loss and make money this year, however, the challenge will be the weather. The plan and goal is to have as many skating days as possible, last year we had 21 (the potential was 60) and we hope to improve. The liner will be laid in late November/early December; weather permitting. y 4. Lansing Center: The Lansing Center hosted 46 events, which equated to 76 event days, with over 29,000 in attendance, equaling 2600 room nights for an economic impact of approximately $870,000. In October the Sales Department generated 86 bookings including the Lansing Regional Chamber of Commerce in September, 1998 and the Channel 10 Boat Show has booked in January, 1998 and is a first time show. Conventions include a March 1998 Hospital Purchasing Show. Meetings and conferences include the Michigan High School Athletic Association in September, 1998, and in June, 1998 Michigan Works-Governor's School to Work in June, 1998. LEPFA Board of Commissioners Meeting Page 4 November 25, 1997 The Sales Department has been working with the CVB on a number of bids and includes the Michigan Agri-Business Association winter conference for 2000-4 as well as the Michigan Round and Square Dance Clubs Annual Convention for August 2000 and 2001. Events that occurred during the past month include the Diocese of Lansing Catechistical which was a one-day event that had over 700 attendees; Michigan Greenhouse Growers were in house in early November along with the Michigan Education Association. The annual Lansing Women's Show was held in mid- November and it was the second year for this event and they have requested a five- year agreement(the Lansing State Journal, Goff and Channel 6 sponsored the event). This past weekend we hosted the Toughman/Toughwoman competition and the event did well; the Model Railroad Show was also held on Sunday. The Festival of Trees move-in is underway and opens on Wednesday, the Celebration Ball will be held on Saturday. The Oldsmobile Sales Rally will be held on December 16 and 17. We also may house Governor Engler's "State of the State" address in January. Peter noted we hosted for the Mayor a "Suite Renewal Dinner" on November 24 for the founding eight suite holders at Oldsmobile Park. Peter noted Fine Host did a great job and numerous compliments were received. The Chef said a few words and was very creative and inventive. Peter indicated the primary reason for us hosting the event was to showcase Chef's abilities and talents with a number of VIP's within the business community and to encourage the folks to continue their commitment to the city. Chair Ristow questioned since the Agricultural Center at MSU has opened have we kept track of events that we have lost? Peter noted between$90,000 and$100,000 has been lost during the past fiscal year and is mostly attributed to the Horse Show that moved in June 1996, Shipshewanna and the Boat Show. Peter noted that the facility will never compete with us in terms of tradeshows and conventions; but has the ability to compete for smaller consumer/gate shows. D. PERSONNEL COMMITTEE• Committee Chair James Butler reported the Committee continuously focuses on improving our personnel insight and process and based on the things that have been done, the Committee has made outstanding progress. Peter and the Personnel Committee members are to be commended for doing an outstanding job. Chair Butler extended his apologies for not being able to attend last month's Board meeting and indicated that he understood that John Decker did an outstanding jobs. Chair Butler reported the committee continues to focus on job descriptions and are also going to write some additional descriptions in reference to the personnel policy and procedure manual. Chair Butler noted that they are pleased that the salary ranges are in compliance with the industry, and are very aggressive as well. Chair Butler noted that Peter and management are in the process of looking at key salary increases and that will be done very soon. Butler noted there are several positions that are open at this time including the receptionist, and as always we try to reflect the community that we serve, so we are looking at diversity as well. Mr. Butler introduced himself to Commissioner Lee and welcomed him to the Personnel Committee. L EPFA Board of Commissioners Meeting Page 5 November 25, 1997 Chair Butler noted that the primary objective is to make sure that we continue to make the improvements that are necessary to make sure that we are one of the best run organizations in the city in reference to personnel issues. VII. COMMISSIONERS COMMENTS: Commissioner Butler requested the "Standing and Special Committee" sheet be updated and that the Nominating Committee was not reflected. Chair Ristow noted the committee list will be updated January 1 and the Nominating Committee is an appointed committee. VUL OLD BUSINESS: None. IX. NEW BUSINESS: None. THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, DECEMBER 16, 199 AT 7:30 A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM , At 8:10 a.m. it was moved that the meeting be adjourned. MOTION: Commissioner Butler SECOND: Commissioner Sinadinos motion carried. Respectfully submitted, Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING December 16, 1997 MINUTES At 7:30 a.m. Chairman Donald J. Ristow called the meeting to order in the Governor's Room of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933. COMMISSIONERS PRESENT: James Butler, John Decker, Charles Janssen, Ellen Jeffries, Cyril McGuire, Kate McNeely, Donald Ristow, Charlotte Sinadinos, Dennis Sykes and Robert Swanson. COMMISSIONERS EXCUSED: Greg Koessel (Ex-Officio) and Robert Lee . OTHERS PRESENT: Heidi Brown, Marian Bryant, Tad Carper, Michael Meyers, and Peter Sullivan, - Lansing Entertainment and Public Facilities Authority. III. ESTABLISHMENT OF THE AGENDA: Chair Ristow requested under VI. Reports, item B Secretary/Treasurer's Report that item 2, "Recommendation on Rental Carpet Purchase" be added to the agenda. IV. PUBLIC COMMENT: None. V. APPROVAL OF THE MINUTES OF NOVEMBER 25, 1997: The minutes of November 25,1997 stand approved as published. VI. REPORTS: A. CHAIRMAN'S REPORT: Chair Ristow noted he and several Board members attended the Annual Employee Christmas Appreciation Night on December 11. Chair Ristow felt the event was very well done and on behalf of the Commissioners who did attend he thanked staff for a wonderful evening. Chair Ristow reminded Board members of the reception this evening beginning at 5:30 p.m. in the Governor's Room B. SECRETARY/TREASURER'S REPORT— NOVEMBER FINANCIALS• Committee Chair Sinadinos reviewed the following financial statements as approved by the Finance Committee for the period ending November 30, 1997: At 7:35 a.m. Bob Swanson entered the meeting. 1. Lansing City Market: Total Operating Revenue exceeds last year by 8% or $1,789. Total Building Rental decreased by 5% or $802 from last year. Total Operating Expense increased by 85% or $29,917 over last year. Net Income after the City contribution is $16,928 and Net Income after depreciation is $17,438. IRS coverage of expenses is 40%, last month it was 48%, last year it was 68%. The current ratio is 3.28, last month it was 3.80, and last year it was 3.94. Equity in Number of Days of Operation is 150.24, last month it was 179.87 and last year it was 259.81. Actual Operating Revenues are under budget by 9% or $2,597 and Actual Operating Expenses are under budget by 5% or $3,694. LEFPA Board of Commissioners Meeting Page 2 December 16, 1997 2. Oldsmobile Park: Chair Sinadinos noted Actual Operating Revenues are over budget by 100% or $845; Actual Operating Expenses are under budget by 25% or $25,168; Net Income (after City contribution) is $5,059; Net Income after depreciation is $17,566. There were no event revenues for November and Operating Expenses are under budget. Sinadinos noted "Event Expenses" of$7,517.66 are attributed to Fright Night and start-up costs for ice-skating and were subtracted from the Event Development Fund. Current ratio is 1.42, last month it was 1.53. Equity in Number of Days of Operation is 257.80 and last month it was 261.76. Sinadinos noted that on the Balance Sheet under "Event Development Fund" the current balance is $51,339.18 and was $58,856 last month. 3. Lansing Center: Total Operating Revenue exceeds last year by 17% or $231,401. Building Rental exceeds last year by 7% or $26,883, Total Operating Expense increased by 18% or$261,718. Net Income (after City contribution) is $196,804 and is$269,057 after depreciation. IRS coverage of expenses is 93%, 92% last month, and 93% last year. Chair Sinadinos noted Building Rental is over budget for the current period as well as year-to-date; Food and Beverage sales are over budget for the current period as well as for year-to-date; Equipment Rental is slightly under for the month and for year-to-date; trade show utilities are up; and Labor and Service are down for the month, but well over last year's total. Under Expenses - Food and Beverage is under budget compared to the same period last year at$96,000 which brings a net of $60,000 in Food and Beverage. The current ratio is 2.04, it was 1.79 last month and was 1.65 last year. Equity in Number of Days of Operation is 66.45, last month it was 63.94 and last year it was 54.62. Accounts Receivable is $538,552 and $150,000 of that has already been collected since the end of November. Accounts Payable is under budget compared to last year. Advance Rents are up compared to last year, which is a good indicator of future business. Operating Revenues are over budget by 8% or $115,432 and Operating Expenses are under budget by 7% or $132,477. Sinadinos noted Total Operating Income for the current period is under budget but over budget for the year; Salaries and Wages are in-line compared to budget, however, there are still several unfilled positions reflected in this amount. Total Operating Expenses for the current period are under budget for the current period, as well as for the year to date. Chair Sinadinos moved that the financial statements for Oldsmobile Park, the Lansing City Market and the Lansing Center for the period ending November 30, 1997 are received as published and the expenses for each entity for the month are approved. MOTION: Commissioner Sinadinos SECOND: Commissioner Janssen; the motion carried. 4. Exhibit Hall Carpet Purchase: Michael Meyers reviewed the carpet purchase information as presented at the November 24 Finance Committee meeting. He noted carpet was last purchased in November 1995 at a cost of$37,000. During that two- year period we realized an income of$140,000 in carpet sales. Currently our carpet is worn and in order to stay competitive it needs to be replaced. It is anticipated that we will spend between $40,000 and $50,000 on new carpet and we are looking to purchase a better quality and longer wearing carpet. LEPFA Board of Commissioners Meeting Page 3 December 16, 1997 Improvements have been made on how to better care for the carpet and as well as storage of the carpet, which will extend the life of the carpet. The bid process is underway and hopefully will be completed by the end of December. However, because the next Board meeting is not until the end of January, which would delay the purchase process by a month to six weeks, and because we would not have a product to sell we would lose a share of the market, therefore he hoped to have approval to move forward with the bids and carpet purchase. Commissioner Janssen questioned if it is common in the industry for a facility to sell carpet? Peter indicated it is, although we are only one of the few facilities in Michigan that sells the carpet ourselves, and last year alone we netted about $80,000 from carpet sales. Commissioner Butler questioned why a decision had to be made today to purchase the carpet prior to having all the bids in? Michael noted because the December Board meeting was moved up, all the bids are not in and available for review at this time, and because discussions have been ongoing with Artcraft regarding carpet options, i.e. LEPFA receiving a percentage of their sales. Artcraft's proposal to secure all Lansing Center carpet sales was at a lower percentage than anticipated and it was apparent that it would be more profitable for us to sell the carpet, and as such, the process needs to be expedited. Tad noted in terms of sales, knowing that we have the carpet is critical and will assist in the sales process. Commissioner Butler questioned what would determine the difference between$40,000 and$50,000 in carpet costs. Michael noted two years ago we paid$37,000 for new carpet; Peter explained that there are additional charges for cutting and shipping of the carpet and so to list an exact amount for the carpet is difficult at this time. Michael noted we need different cuts for the carpet and the current carpet was not cut properly and this contributed to its wearing. Bob Swanson questioned where the funding for the carpet would come from? Chair Ristow noted it would come out of cash and would be noted under the Furniture and Fixtures line item on the Balance Sheet. It is hoped that the carpet will have a three- year life span and that the depreciation would be over a 30-month period. Peter noted further that the carpet we have is inferior to the carpet we are looking at and we now have carpet racks to store it properly, all which should make the carpet last longer. Peter noted that for an investment of$37,000 we netted approximately $125,000 in carpet sales. In addition, our rate is nine cents a square foot and Art Craft's is 29 cents, and our rate will increase, which will increase revenues. Finance Committee Chair Sinadinos moved that "The Finance Committee recommends for the Board of Commissioners consideration the approval of the purchase of new factory-cut rental carpeting at a cost not to exceed $50,000; and further, that Management proceed accordingly on obtaining acceptable bids and following review by Management, to purchase said carpeting." SECOND: Commissioner McGuire, motion carried. C. CHIEF EXECUTIVE OFFICER'S REPORT: 1. Union Issues: Peter reported the Forepersons contract is completed, they signed the contract as approved by the Board of Commissioners last month. He indicated we are still awaiting the stagehands proposal, and continue to work on filling the Tech Services position. Board of Commissioners Meeting Page 4 December 16, 1997 2. Lansing City Market: Peter reported there is one new vendor at the Market, Julie Cole, who will be preparing fresh juices and vegetarian eggrolls and will have organic items to offer as well. Rental revenues were down by $105 this month compared to last year and occupancy is also down by about 5-7%. Peter noted several of the vendors are expanding their space and several have moved from the east side to the west side of the Market. A good response has been noted from the direct mailing and paid advertising and recruitment efforts continue. Surveys were distributed to the vendors to get their input on how to make the Market more successful. 3. Oldsmobile Park: Peter reported we are focusing on ice-skating and have finalized set- up with the help of City Services, specifically the Fire Department and the Board of Water and Light, we are waiting on the weather. Sponsors are lined up and we will keep the Board abreast of any items of concern and the goal is to open following the Christmas Holiday. Peter noted the infield project is completed, however the Lugnuts have forwarded a letter suggesting that if the infield is not in good repair after ice-skating that LEPFA would correct whatever we harm. Peter noted we responded with a letter indicating that we have some concern regarding drainage of the infield and for the Lugnuts to take a look at it, and that should the ice-skating be deemed as the reason for something to be wrong with the infield, then we would act accordingly. Peter noted he brought the issue to the Board's attention because it is an area of sensitivity between the Lugnuts and LEPFA. Peter noted there was nothing new to report regarding utilities, and he is waiting for a response from Tom Dickson regarding the mediator. Peter noted we are looking at summer events for the Park and they include a contemporary Christian festival which will be new, Fiesta Del Verano and other concerts. Peter noted July 4 there will not be a Lugnuts game this year and we will do the July Fourth concert, as well as a concert on July 3. 4. Lansing Center: The Lansing Center hosted 35 events in November, which equated to 61 event days, with over 35,000 in attendance, equaling 1700 room nights for an economic impact of approximately$500,000. During November, the Sales Department generated 58 bookings including Donnel Productions for 1998 and 1999 (estimated room rental at$20,000 a year); J. Crew Clothing Sale has been confirmed for 1998 at an estimated room rental of$13,000. In May of 1998 and 1999 we have booked the Beaute' Craft Supply Company Show ($11,000 in room rental). November highlights includes the Festival of Trees (14,000 in attendance) which included five (5) Teddy Bear Teas, the Senior High Tea and the Celebration Ball and the Temptations were at the Lansing Center on Saturday with 70 trees and 30 gingerbread houses sold. The Holiday Open House was held with 2300 in attendance and there were many positive comments received; changes this year included moving the stage to the air wall, a piano bar outside of Hall C and a dessert hour. Peter noted there also was a piano sale at the same time and they sold 19 out of 29 pianos. December 8-10 was exam week for Landscape Architects, Builders Exams and the Veterinary Exams. December 9 the Lansing Regional Chamber of Commerce Member Mixer was held with 300 people in attendance. Board of Commissioners Meeting Page 5 December 16, 1997 Upcoming events include the Oldsmobile National Sales Rally on December 16 and 17 and Fest Eve is December 31. New Years Day we will host the Mayor's swearing in ceremony and a teen concert featuring "Immature" which is geared toward a younger crowd. The WILX Boat Show will be held on January 2-4 which replaced our other Boat Show that moved to the Agricultural Center. The Bridal Show will be held on January 4. Peter noted work continues on the 98/99 budgets which will be discussed with the Finance Committee in January. Chair Ristow extended congratulations to Bob Swanson for receiving national recognition. D. PERSONNEL COMMITTEE: Committee Chair James Butler noted he continues to meet with Peter regarding Personnel issues and noted at this time there are several positions that are open, including the Receptionist position and an accounting position. Chair Butler indicated he and Peter continue to met in advance regarding critical issues to minimize the impact to LEPFA at any point, especially as to how they will impact the Commissioners. Personnel performance issues and probation were addressed this month as the result of an individual receiving severance pay, to make sure we minimize impact and to make certain LEPFA does the right thing in regard to these types of issues. Title changes were also discussed to make sure they were in-line in terms of management and to make sure that they were addressed in the proper way as it pertains to the organizational chart. Chair Butler noted we continue to focus on improvement in terms of personnel benefits and morale to make sure we establish a spirited work force and noted he felt the employee Holiday Party had double the attendance compared to last year and was a nice event. Chair Butler noted he wanted to let the Board know, especially from the employee side, that on personnel type issues the they continue to move forward in a positive vein to make sure that they are reflective of LEPFA and the right type of leadership and management are brought forth on the terms based on leadership. VIE. COMMISSIONERS COMMENTS: Commissioner Sykes noted that a dinner was hosted at Joe Pandy's home with various community leaders to discuss economic development and the possibility of building a Performing Arts Center. Sykes noted he felt the discussion was good and spirited and questions were raised on the part of Michigan State University as to whether or not a facility would compete with the Wharton Center. The end result was that everyone was very supportive of a feasibility study and a smaller group of folks are developing a "Request for Proposal" which will go out for a competitive bid in mid- January and the cost of the feasibility is estimated at$100,000-150,000 (with a contractor selected by March 1). Currently three or four different sites are being considered with the focus on the market, the cost, and preliminary design with input from the greater Lansing Community; and is the result of a Business Plan developed by Boarshead, Lansing Symphony and the Arts Council. Sykes noted there are other groups that can participate in this type of a facility and education will play a big part in this facility. He noted the interest to the LEPFA Board is that the facility would fall under the responsibilities of the Authority and will require the Board's consideration. Sykes noted the Committee would meet again on January 5 to review the RFP draft. Mr. Sykes indicated he met with Bill Wright of the Wharton Center last week, noting he felt it was important that he let Mr. Wright know what they are attempting to do and to find out what his concerns may be. LEPFA Board of Commissioners Meeting Page 6 December 16, 1997 Mr. Wright will review the RFP. Currently we are considering a 1500-1800 facility and the purpose of the Center is not to compete with the Wharton Center, but to offer more options and attempt to accent downtown Lansing. Currently, the committee is looking at ways to raise private monies and Sykes noted that the facility would be driven by public dollars, which means it will go to a bond issue in the spring of 1999. Sykes noted MSU's School of Music may be tied in with the facility and MSU's President McPhearson is not threatened by the competition. Chair Ristow asked if the feasibility study would include a business plan? Peter replied that the feasibility study will determine if we move forward and answer questions, i.e. marketing analysis. Peter noted there are many variables that the feasibility study will address, and will determine whether or not we take on the project. Sykes noted the facility would not produce the revenue needed to run the facility and one way or another would need to be subsidized. Sykes noted potentially this will bring different types of business to downtown and the feasibility will hopefully answer questions. Sykes indicated when the RFP is finished he will share the information with the Board. VIII. OLD BUSINESS: None. IX. NEW BUSINESS: None. THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, FEBRUARY 3, 199 AT 7:30 A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM. Chair Ristow extended warmest best wishes for a joyous holiday season. At 8:28 a.m. it was moved that the meeting be adjourned. MOTION: Commissioner Sinadinos SECOND: Commissioner McGuire motion carried. Respectfully submitted, Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY 1997-8 Board of Commissioners JAMES W. BUTLER III '`.=.k,;E i�'; - t` OFFICE: 377-3709 1476 Stonegate FAX: 377-3745 East Lansing, MI 48823 "•;-� r� ( '� TOME: 332-0910 TERM EXPIRATION: June 30, 1998 U% 3S,1`G Ci T Y CLERK JOHN L. DECKER OFFICE: 267-9868 3309 Franette Rd. FAX: 886-2946 Lansing, MI 48906 HOME: 886-2946 TERM EXPIRATION: June 30, 1997 CELL PH: 267-9868 PAGER: 255-5712 CHARLES A. JANSSEN (Vice Chairman) OFFICE: 371-8262 FOSTER, SWIFT, COLLINS & SMITH, PC 313 S. Washington Sq. FAX: 371-8200 Lansing, MI 48933-2193 HOME: 485-3004 TERM EXPIRATION: June 30, 1997 ELLEN JEFFRIES OFFICE: 373-5300 3229 Moores River Dr. FAX: 373-1986 Lansing, MI 48911 HOME: 482-4416 TERM EXPIRATION: June 30, 1998 GREG KOESSEL (Ex-officio) City of Lansing OFFICE: 483-4164 Internal Audit FAX: 483-7630 10th Floor, City Hall HOME: 124 W. Michigan Ave. Lansing, MI 48933 KATE MCNENLY OFFICE: 487-1000 The McNenly Group FAX: 372-3262 1026 N. Washington HOME: 887-1768 Lansing, MI 48906 TERM EXPIRATION: June 30, 1999 DONALD J. RISTOW (Chairman) OFFICE: 487-2020 Ristow & Associates FAX: 487-2020 610 W. Ottawa, Suite #1406 HOME: 487-2020 Lansing, MI 48933-1064 TERM EXPIRATION: June 30, 1997 CHARLOTTE S. SINADINOS (Secretary/Treasurer) OFFICE: 484-7676 1003 Darlington Ave. FAX: East Lansing, MI 48823 HOME: 337-0554 OR TERM EXPIRATION: June 30, 1997 337-8587 ROBERT SWANSON (Ex-officio) City of Lansing OFFICE: 483-4505 Finance Department FAX: 483-4524 8th Floor, City Hall HOME: 371-2795 124 Michigan Ave. Lansing, MI 48933 (OVER PLEASE) Page 2 DENNIS J. SYKES (Ex-officio) City of Lansing OFFICE: 483-4060 Planning & Neighborhood Development FAX: 483-6036 316 N. Capital Ave. Suite HOME: Lansing, MI 48933 Revised: 8/97