HomeMy WebLinkAbout2006 LEPFA Minutes LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
JANUARY 24, 2006
MINUTES D
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At 8:10 a.m. Chairman Sharon Peters called the meeting to order in the Governor's Room oif$ie Isinpj
Center; 333 E. Michigan Avenue; Lansing, Michigan 48933. -�u Rl
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COMMISSIONERS PRESENT: James W. Butler III, John Decker,Tim Haggart, Charles J�senElle�
Jeffries, Robert Johnson (Ex-officio), Kris Nicholoff, Sharon Peters, and Charlotte Sinadinon M
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COMMISSIONERS EXCUSED: Gerald Ambrose (Ex-Officio) and Cyril McGuire. � �
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OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, Eric Hart, Scott
Keith and Dirk Spillemaekers - Lansing Entertainment and Public Facilities Authority. Councilmember
Tim Kaltenbach, and Randy Hannan - City of Lansing.
III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda. Motion was
made to approve the agenda by Commissioner Butler; SECOND: Commissioner Haggart;
motion carried.
IV. PUBLIC COMMENT: There was no public comment.
V. APPROVAL OF THE MINUTES OF DECEMBER 13, 2005: The minutes of December 13,
2005 were adopted as presented. MOTION: Commissioner Sinadinos SECOND: Commissioner
Jeffries, motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
1.Welcome: Chairman Sharon Clayor Peters welcomed our new "city partners," Bob
Johnson and Randy Hannan and our newly elected City Council member, Tim
Kaltenbach and noted that we are very happy to have them join us. She noted with the
start of the New Year we have much to do in terms of financial matters and she
explained that she was unable to attend the Finance Committee meeting due to a family
emergency. Chair Peters noted that we have been very diligent in our financial matters
and have already begun to interface with the City and our other partners.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Periods Ending December 31, 2005:
Committee Chairman Charlotte Sinadinos reviewed the financial statements as follows:
a. Lansing City Market: Income Statement: Under Operating Revenues - Building
Rental is $3,399 and the previous year's amount was $4,721 and the difference is
attributed to loss of Schnitz Deli. Total Building Rental for year to date is $23,697
compared to$29,922. Total Operating Revenues for year to date are$31,739 compared to
$35,669. Operating Expenses- Salaries/Wages for year to date are$16,806 compared to
$23,182 due to the transition in Market Managers. Utilities for year to date are $24,235
which is up by about $2,000 from the prior year's total amount of $22,263. Total
Operating Expenses are $51,446 compared to$72,681 for an operating loss of($19,707)
which is down from the prior year's amount of($37,011).
LEPFA Board of Commissioners Meeting
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January 24, 2006
After taking into account the City Contribution and Interest, we have Net Income of
$7,732 compared to the prior year's amount of$5,706. Eric noted we have seen a 29%
increase in gas and a 12% increase in electricity, and in response we are shutting down at
night and are trying to maintain the costs even with the increases.
Balance Sheet: The cash position for the current year is at$46,341 compared to $56,381
for the prior year. Unreserved Equity is $166,636 compared to $171,993 for the prior
year.
Budget vs. Actual: Building Rental is $23,697 compared to $25,472 which indicates we
are behind budget by($1,774) for year to date. Total Operating Revenues for year to date
are less than budget by ($374). Operating Expenses - Salaries/Wages are better than
budget for year to date by $2,623. Utilities exceed the budgeted amount by ($4,729) for
year to date. Total Operating Expenses for the current period are better than budget by
$11,972. After taking into account the City Contribution and Interest we are better than
budget by $11,520 for year to date.
b. Oldsmobile Park: Income Statement: Revenues are $4. Event expenses (from Fright
Night) are$3,399 for a loss of($3,399)which was deducted from the Event Development
Fund. Salaries/Wages for year to date are $15,180 down from the prior year's amount of
$36,887 which is due to the allocation, which also affects Fringes/Related Costs. Utilities
for year to date are $36,545 compared to $35,638 for an Operating Loss for year to date
of($95,031)compared to the prior year's loss of($133,759). After taking into account the
City Contribution and Interest, we have income for year to date of$18,218 compared to
the prior year's loss of ($3,878).
Balance Sheet: The total cash position is $264,531 which exceeds the prior year's cash
total of$36,689. Unreserved Equity for the current year is$23,540 compared to the prior
year's amount of$65,749.
Budget vs. Actual: Operating Expenses- Salaries/Wages are better than budget for year
to date by $440; Utilities are higher than budget by ($1,057); and Insurance/Bonding is
better than budget by $716. Total Operating Expenses are better than budget by$26,246.
After considering the City Contribution we are better than budget for year to date by
$28,050. Bob Johnson questioned the receivables for this year compared to last year. It
was noted that last year's receivables included the suites.
c. Lansing Center September 30, 2005: Income Statement: Building Rental for the
current period is $32,863 compared to $31,768 and for year to date the amount is
$281,715 compared to $340,167 for the prior year. Food and Beverage for the current
period is $144,372 compared to $165,167 for the prior year; and for year to date the
figure is $984,497 which is down compared to the previous year's amount of$1,219,771
which equates to about a$330,000 difference for Food and Beverage. Equipment Rental
was up for the current period at$31,399 compared to$20,550 and year to date it is down
at$170,406 compared to $234,278. Tradeshow Utilities are up for the current period but
are down for year to date at$45,565 compared to$52,745. Total Operating Revenues for
the current period are $223,641 compared to $277,104 and for year to date they are
$1,549,307 compared to the prior year's amount of $2,074,869 which is down about
$525,000.
LEPFA Board of Commissioners Meeting
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January 24, 2006
Operating Expenses - Salaries/Wages for the current period are $116,706 compared to
$132,177 and for year to date the figure is $733,488 compared to$797,206. Utilities for
year to date are$266,274 which is down from the prior year's amount of$291,069 which
is down by $39,000 because we have had less events and great conservation practices by
Eric and the staff. Insurance/Bonding is down at$42,413 compared to$53,295 for year to
date. Food and Beverage Expense for year to date is$671,831 compared to$779,819 due
to less Food and Beverage sold.
Total Operating Expenses for the current period are$344,560 down from the prior year's
amount of$462,961 and for year to date they are$2,190,143 compared to$2,641,802 for
an Operating Loss year to date of ($640,835) compared to the prior year's loss of
($566,933). After taking into account City Contribution and Interest we have a loss year
to date of($326,681) compared to the prior year's loss of($148,053). Chair Sinadinos
noted that although the revenues are down, we have taken great pains and diligence to
reduce expenses and stream line items.
At 8:25 p.m. Commissioner Janssen entered the meeting.
Balance Sheet: Cash and Cash Equivalents for the current year are$355,000 compared to
the prior year's amount of$200,000. Under Liabilities - Accounts Payable are down at
$366,812 compared to $562,080. Unearned Revenue - Advanced Rent for the current
year, which is a sign of future business, is up at$386,029 compared to the prior year's
amount of$376,718. Unreserved Equity for the current year is ($253,267) compared to
$85,773 for the prior year.
Eric noted that there are some positives that we are seeing and he asked Marian to review
them; Marian indicated that our Cash is up and Accounts Payable are down and the
Accounts Receivables are down which are all positive signs despite our negative equity.
Budget vs. Actual: Building Rental for the current year is less than budget by ($21,657)
and for year to date Building Rental is less than budget by ($41,048). Food and Beverage
Revenues are less than budget by($25,727) for the current period and for year to date it is
less than budget by ($264,507). Total Operating Revenues are less than budget for the
current period at ($22,704) and year to date they are less than budget by ($442,880).
Operating Expenses- Salaries/Wages are better than budget by$124,626 for year to date
and Fringes are better than budget by $44,394. Utilities for year to date are better than
budget by $40,775. Insurance/Bonding is better than budget by $1,230. Total Operating
expenses for the current period are better than budget by$130,160 and for year to date the
figure is better than budget by$450,984. After netting expenses against revenues, we are
better than budget for year to date by $8,104. After taking into account the City
Contribution and Interest we are better than budget$9,629 for year to date.
Bob Johnson questioned the depreciation schedule as an operating expense; and noted that
typically it is a non-cash event and noted that typically as a tax liability you put back your
depreciation but from a cash flow stand point it's not a cash event. Eric noted that we are
required by GAAP and the problem we are facing is that the depreciation expense has
never been funded by the City, which means that what has been happening is a real
expense in our budget, but we have never received funding which means in any given year
we have to beat budget by $100,000 to break even.
LEPFA Board of Commissioners Meeting
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January 24, 2006
Eric noted that part of the solution last year was that we transferred much of our
depreciation back to the City along with the assets in relationship to the new bonding and a
long term solution between us and the City is needed as to how we address the
depreciation and explained currently that the equity number is coming from depreciation
which has been building for ten years. Chairman Peters thanked Bob for noting the issue
and indicated that it is an issue that Eric has been working on. Commissioner Butler asked
what the City can do to resolve the issue. Eric indicated at this point there are two
options: the City is holding the depreciation for the newly funded$4 million and they will
be City assets. The other option is to start funding depreciation in the budget process.
Bob suggested that this issue is one that may need to be addressed with the State
government because we are unable as public facilities/entities to take advantage of
depreciation in terms of a tax liability and others can in terms of tax credits; he asked if we
should look at depreciation in a similar realm in terms of the credit towards tax liability;
but we have to recognized it which as non-funded and therefore a drain on finances, which
is required by GAAP. Chairman Peters noted that it is nice to see that we are locking
hands in order to address the issue and that we are zeroing in to address it rather than
waiting. Commissioner Butler indicated that he brought the issue up today because we
have City guests and it gives us the opportunity to put the issues on the table and they will
have the opportunity to discuss those issues when we are not present. Eric noted that a
long term solution is needed because it is dwindling funds. Finance Committee Chair
Charlotte Sinadinos moved that the monthly financials for Oldsmobile Park, the Lansing
City Market and the Lansing Center be received as published and further that the monthly
expenses for each entity be approved. SECOND: Commissioner Haggart
Eric stated that the ancillaries are not being used by our clients which accounts for the
decrease in the numbers; however, the Operating Expenses are also being cut which is a
positive sign. Commissioner Nicholoff noted that last night at the Finance Committee the
costs for heating and cooling, and electric continue to glare out at him and he noted that if
we didn't have the increases in costs we would be in better shape; however, somewhere
the costs will have to be passed along. He noted it is terribly frustrating to run a business
when the economy is down and yet utility costs are going up and we are shutting off lights
and keeping a building cold which makes it looks like it is closed, and isn't very inviting
and it looks like we are out of business. He noted in terms of utilities costs we are just
seeing the tip of the iceberg and there are no suggestions as how to deal with it other than
what we are doing; but its having a terrible impact and it's only going to get worse.
Marian Bryant noted the variances in revenues and expenses (budget versus actual) was a
part of the process to revise the current year's budget and pending the approval of the
Board, the City, in a deal that we cut with the previous administration regarding the Act 99
depreciation, took back $47,000 from our subsidy and this is recognized in our subsidy
portion of budget versus actual, but we have not reduced our expenses by that amount.
This will be addressed in the budget revisions, so we will no longer see the big variances
in revenues and expenses and the expenses will be more in line with what our actual
subsidy is.
The motion carried to accept the Treasurer's report.
LEPFA Board of Commissioners Meeting
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January 24, 2006
2. FY06-07 Budget Revision:
a. Lansing City Market: Building Rental is going to be down this year compared to last
year and is due to the loss of a restaurant at the market. Parking revenues are holding
and our total Operating Revenues are projected to be less at $75,230. Fringes and
Related Costs include a 10% increase at all facilities for medical insurance and a 6%
increase for dental insurance. Utilities are at$50,800 compared to $39,000 for this
year and include a 33% increase for steam, a 25% increase for gas; and a 12% increase
for electric. Eric noted that we have been informed by the Board of Water and Light
that we will receive a 33% increase in steam for the next three years. We also made
the assumption that we won't be able to close the east side of the Market next year, and
if we are able to we will realize some additional savings; however we have some
potential leads coming in for space rental. Total Operating Expenses are projected to
be at$140,171 compared to $122,677 resulting in a subsidy of$64,941 which is an
increase over this year's amount of$45,857.
b. Oldsmobile Park: Events for the upcoming year were reviewed and include
Holywahooza - $3,500; MSU Baseball; Diamond Classic - $15,000; Home Run for
Hope - $2,000 for a total of about$30,000 which is down because there are no movies
or Fright Night projected because the stadium will be under construction during the off-
season with the $3 million upgrade. We are projecting $4,000 in revenues from the
ATM machine; Salaries/Wages expenses are $48,403 compared to $33,210 which is
due to the allocation of a portion of a maintenance position which was increased due to
the construction and is the same reason for the increase of the fringes. The new budget
also includes the TMO items, which includes paying 50% of all utilities (including
water and sewage) which we have not paid in the past. Maintenance and Repairs are
increasing due to the Nelson Trane Service agreement for maintaining the HVAC and
we will be taking on the total cost as opposed to splitting it with the Lugnuts. We are
also assuming the total costs for the elevator and are splitting Food and Beverage
50150. Total Expenses are projected to be $318,000 less the $4,000 in revenue results
in a subsidy of$314,000 or a $26,205 increase over last year. Eric noted the pro
forma for the Lugnuts agreement was $340,000 as was agreed to and approved by
Council; thus we are below the pro forma estimate even with the increase in utilities.
He noted the increases in costs were a part of the contractual agreement with the team.
Tim Kaltenbach asked where the revenue for Special Events is reflected. Marian noted
that it is reflected in the Event Development Fund (Balance Sheet) and it has been
agreed to that if the Event Development Fund ever exceeds $80,000 the overage goes
back to the City. Eric noted that fund is what drives events and can be lost in one
concert; right now the fund has declined due to the losses in events and we are trying to
produce events that contribute to the fund such as our partnering on a "Unity Festival"
with a producer that will assume the risk, but we will generate revenue in order to
bring the fund back up.
c. Lansing Center: Marian noted there are two columns to this budget; one column is
the 2005/6 Proposed Budget Revision and the other is the 2006/7 Proposed Budget.
LEPFA Board of Commissioners Meeting
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January 24, 2006
• Proposed Revised Budget for 2005/6: Building Rent is reduced by $60,000
and reductions are noted in Food and Beverage and all Ancillary Revenues.
Operating Revenue for the current year is $4,465,000 compared to
$4,850,000 (currently budgeted). Expenses have been reduced in many
areas including Utilities (reduced by $8,000), which is attributed to
conservation and a reduction in events; reductions were noted in the Food
and Beverage line items as well as depreciation. Total Operating Expenses
are projected to be $5,069,000 for this year compared to the current
budgeted amount of$5,556,000 for this year for a loss of($603,000)
compared to ($706,000). After taking out depreciation the amounts are
$530,000 compared to $577,000.
A motion was made by Commissioner Charlotte Sinadinos that the proposed revision of
the 2005-6 budget for the Lansing Center be adopted as published. SECOND:
Commissioner Janssen; motion carried.
d. Proposed Budget for 2006/7 for the Lansing Center: Building Rent has been
increased by about$38,000 compared to where we think we will come in this year for
a total amount of$958,000 for 2006-7. Food and Beverage is estimated at$2,674,000
for a Total Revenue amount of$4,623,000 compared to the revised amount of
$4,465,000. Expenses include increases in Salaries/Wages, in Events, and Utilities in
the amount of 33% for steam; 25% for gas; and 12% for electrical. Food and
Beverage includes Personnel, Cost of Goods and other costs. Total Operating
Expenses are $5,450,000 compared to the revised budget just approved in the amount
of$5,069,000 which equates to an income loss of($825,000) which includes $1,800 in
interest for a subsidy request of$825,000 compared to this year's amount of$530,000.
Eric noted the City Market numbers are rolled into this number so some of the
increases are at the City Market and $70,000 is steam if the 33% goes into effect. He
also noted that this year we also made a significant change in our health care and
employees all have co-pays of$20 with deductibles of$250 and $750; and $15, $25,
$45 and unlimited based on experimentals for drug co-pays and our employees pay
10% of the premium and so we have made significant cuts and the employees have
taken on a greater burden which resulted in last year's savings. Our employees also
accepted a 1% raise across the board and we are still negotiating with the UAW who
has not agreed to the 1%. Eric noted if we cut people, our competitive advantage will
begin to disappear; but we need,to have a balanced budget. He noted our personnel
and health care costs are 33% of our budget, the City's is 80% and so it is hard to cut
into our staffing because we are lean.
Tim Kaltenbach asked if the document includes the City Market. Marian noted that it
does not; the two numbers have to be added together. Bob Johnson clarified that the
2007 budget requested by LEPFA includes a $400,000 increase in the City contribution
for all entities. Marian noted that our budget was cut by $200,000 last year; which
Eric clarified that part of the discussion last year was that the cuts were one time cuts.
Committee Chair Sinadinos moved that the proposed budget for 2006-2007 Annual
Budget for Oldsmobile Park, the Lansing Center, and the Lansing City Market be
adopted as published. SECOND: Commissioner Haggart; the motion unanimously
carried.
LEPFA Board of Commissioners Meeting
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January 24, 2006
C. PRESIDENT& CEO'S REPORT: Eric Hart reported the following:
1. Occupancy Data: Eric noted that the Occupancy Data was distributed about three weeks
ago and while we have not collected the data in the past, we are now collecting it and he
stated that next month he will distribute the January data. Eric explained that we have seen
a decrease in our occupancy which is what we have been trying to address. The data
indicates that next year we should see a better year and this January it appears that we
should beat our previous occupancy. He noted the data clearly shows that January through
April we should have an expanded building (anything over 65% occupancy warrants
expansion in this industry). Our issue is that May through July our occupancy doesn't
warrant it and brings,down our total occupancy and November/December also bring the
numbers down. We should see increased occupancy in August through September of this
year which is a good sign. Eric noted as a result of this information we are changing sales
strategies with the CVB because they are trying to book events in January through April
which is our 80-90% occupancy period and they now realize that their sales efforts need to
move into the slower months. And we will change some of our sales strategies as well
based on our peak (premium rates) and slow periods (bargain rates) to drive business.
2. Web Site: Eric announced that the web site will be coming on-line and that the CVB has
given us $35,000 to bring our web site up to date in conjunction with theirs. Eric noted
that we have taken on a theme that is very similar to theirs and there is a new Lansing
Center logo, and the LEPFA logo will be distributed at the next meeting and the web site
will go on line soon.
3. Pension Plan: Eric reported that we had a bargaining unit come forward and ask that
we open our pension program to self-management, which is being researched. A
meeting was held with all employees and a survey will be distributed to determine
what the employees want. We will consider the needs of the employees and it will
be coming to the personnel committee within the next 60 days, or prior to the start of
the next fiscal year.
4. City Market Strategic Planning Group: Eric noted this group has met to discuss what
direction to take the Market and to determine the options. He also indicated that due to
the increases in utilities we will be adding surcharges to the contracts in the future for
vendors using certain types of equipment. A meeting will be held with the vendors first
and the charge will be discussed with the vendors as the new contracts come out.
5. Employee Manual: Eric noted at the last meeting there was a request from the public
concerning updating our Employee Manual. Eric reported that he has seen the first
draft version of the outline and Heidi is now assembling the bulk of it and we will try
to have a draft version by July for the Personnel Committee and the bargaining units to
review.
6. Finance Department- Marian Bryant:
LEPFA Board of Commissioners Meeting
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January 24,.2006
• Employee of the Month: Marian noted an email has been sent to all Board
members indicating that the January EOM will be announced today at 10:30
a.m. in room 101. Marian noted the committee has seen an increase in
nominations and she invited everyone to attend. Commissioner Butler asked
for an idea of what the recipient receives; Marian reviewed the list of items.
Commissioner Butler suggested that we have another plaque made or put the
current plaque in the full view of the public and suggested bringing the
Employee of the Month to the Board meeting if they so desire.
At 9:23 a.m. Randy Hannan exited the meeting.
7. Operations — Scott Keith: Scott reported we are still in negotiations with the UAW;
however a good portion of the contract was tentatively agreed to last week. Also
Operations is beginning to fill positions as we approach the busy season. Bids have been
sent on the capital improvement project e.g. concourse carpeting, tables, and cleaning of
the switch gear and we are working with the City on the purchase and rotation of a new
truck.
8. Food and Beverage— Bill Grove: Bill noted that we anticipate getting some revenue back
as we appear to be very busy for the next four months and this should be a positive time.
He noted we just came out of the MLK luncheon and we have several other large events
coming up including Flagstar Bank and the Chamber event, as well as our large public
shows. Bill noted we just finalized re-doing our wedding package which should help us
since this is the time of the year when we start booking the weddings for the upcoming
year and we have packages that should be more enticing. We have also just come out of
the wedding shows and we have had a lot of interest. We are also revamping our menu to
give it a different look and are coming up with new items to address a new look for our
repetitive business. He noted he is closing to finalizing the selection of a dish machine
and coolers, and other kitchen equipment.
9. Lansing Center: Linda Frederickson distributed the January Highlights report. Linda
noted that during the month of December we hosted 49 events, for 59 event days, which
included 13,000 visitors, utilizing 239 hotel rooms for an Economic Impact of just over
$250,000 for December. Linda noted we will be including occupancy information moving
forward.
• Potential New Business: A proposal was sent to the Michigan Department of
Information and Technology for a November, 2006 event; we are holding space
for a Peckham Holiday Party/dinner for 800 people; and a proposal was sent to
the Leona Group for a Charter School conference in September, 2006 for about
1,000 people. Linda noted we are also working with the CVB to improve our
corporate business and two pieces we have submitted proposals on just recently
and reflect that are for Target Stores for March, 2006 and a Texas Instruments
Conference. We also participated in the Business Showcase in an effort to try to
draw additional business for this fiscal year.
LEPFA Board of Commissioners Meeting
Page 9
January 24, 2006
• LEFPA Web Site: Linda reported that LEPFA is going through a revamping of
its web site with the focus on the Lansing Center and the Lansing Center
Services. She noted Lansing Center site will be in two phases, Phase I will focus
on a new logo as distributed, and PDF files for all of our services, which will be
available by February 3. Linda noted she will email a link to the Board for
review by January 30. She noted we will now be using a content management
system which means that 90% of the changes will be able to be made in house.
Phase II will include the Oldsmobile Park and City Market pages which will be
improved in March and Phase II of the Lansing Center will follow in April which
will allow for on-line ordering on a secure site for payment, so we can accept
payments and deposits on line.
Linda thanked the CVB for their support of the web site and the materials.
• Lansing City Market: Linda noted that we do have two very interested food
tenants and they are both looking at Schnitz' space. Linda explained that one is
Americana fare, and the other is a Mexican restaurant and both will received
draft leases. Linda noted that we did not receive the PPS grant that we applied
for in November, but we have been given information on a new grant opportunity
which is due by February 14. Linda noted the Chamber Dinner is February 21.
D. PERSONNEL COMMITTEE: No report.
E. LONG RANGE PLANNING COMMITTEE: Committee Chair Janssen noted that the
Committee had delayed meeting until a City contact for the committee was appointed and he
noted that now that the City Administration is in place, that he, Eric and the Committee need
to meet to brainstorm on Long Range Planning and what the Administration feels our role will
be in the process. Chairman Peters noted the City Market Committee is also a part of the
Committee's long range efforts. Chairman Janssen noted that they look forward to sharing
information with Bob.
VII. COMMISSIONER AND STAFF COMMENTS:
Those present made introductions around the table and the following comments were noted:
A. Commissioner Charlotte Sinadinos: Commissioner Sinadinos noted that she is the
Secretary/Treasurer and has been a board member since the Authority's inception and is also
the owner of the Knight Cap.
B. Commissioner Tim Haggart: Introduced himself to the new members.
C. Marian Bryant: Marian noted that she is the Vice President of Finance and has been with
LEPFA since 1989.
D. Scott Keith: Scott noted he is the Vice President of Operations and has been an employee since
2000.
E. Linda Frederickson: Linda noted that she is the Vice President of Sales and Marketing since
2000.
LEPFA Board of Commissioners Meeting
Page 10
January 24, 2006
F. Commissioner Ellen Jeffries: Commissioner Jeffries noted that she has been with LEPFA
almost since the inception, and is on the Finance Committee. Commissioner Jeffries also noted
that there was a very robust discussion at the Monday Finance Committee meeting and many
of the issues that were discussed today were brought up at the meeting. She welcomed Tim
and Bob.
G. Commissioner James Butler: Commissioner Butler welcomed the new Board members, and
noted he came on Board with Ellen. He also noted that he felt the Lansing Center did an
outstanding job with the inaugurations and that it was super and the reception went well.
He noted that it was indicated that the Lansing Center was easy to work with, including
Dirk and his staff. He also noted that the MLK luncheon was another great job, serving
over 1,200 people and the food was extremely good; and the commissioners indicated that
the Lansing Center was easy to work with and they were user friendly. He gave thanks for
today's pastries and the bagels and he reminded the Board of the dinner at the Knight Cap
and asked the Board to keep that in mind and Chair Peters asked Heidi to assist with
scheduling the dinner. He also noted that he is extremely proud and pleased with the
progress we have made with the CVB, especially in getting the web site squared away and
the amount of money they have obligated is outstanding. He noted what he really
appreciated, was at the joint meetings you can see the level of sincerity and commitment
and the progress that is being made and it seems that they are interested in us and we are
interested in them and they are starting to connect and that is a good thing. He also asked
if once the web sit is up if a demo could be given to the Board. Linda noted she will also
email the site to the Board as well.
H. Councilmember Tim Kaltenbach: Tim noted that he represents the Fourth Ward on the
west side. Congratulations were extended to Mr. Kaltenbach on his election.
I. Bob Johnson: Bob noted that he is the Director of Planning and Neighborhood
Development for the City of Lansing.
J. Commissioner John Decker: Commissioner Decker noted that he is a current Board member
and has a business at the City Market for ten years, Hickory Corners Nursery.
K. Commissioner Charles Janssen: Commissioner Janssen noted that he has been on the Board
almost as long as James and Ellen and he welcomed Bob and Tim. He also noted that having
the Chamber dinner at the Lansing Center creates a tremendous opportunity for us and he
wondered if there were special things that the Board could do, be it a welcoming letter, etc.
because there are so many businesses represented by the Chamber and this will be a good
opportunity for marketing our building. He noted if there was anything that could be done to
welcome the Chamber; such as the Board and staff welcoming guests, that he would be willing
to participate in welcoming them. Eric will send some ideas to the Board.
L. Bill Grove: Bill noted that he is the Vice President of Food and Beverage since 1997.
M. Heidi Brown: Heidi noted that she is the Executive Assistant since 1989.
N. Eric Hart: Eric noted that he is the President & CEO for 11 months, and he is happy to be
here.
LEPFA Board of Commissioners Meeting
Page 11
January 24, 2006
O. Commissioner Sharon Peters: Chairperson Peters noted that she is currently Chair of the
Board and also had the pleasure of working on the Transition Team Task Force and that we are
very excited about the regional concepts and our work with the CVB into new levels is very
important to the whole tone of the administration and council as we look at ways to move
forward. She noted the presence of the Bob, Tim and Randy is a good sign for us and she
thanked them for coming.
VIII.OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:45 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY,FEBRUARY 28,2006 AT 8:00
A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACE"- C.i f'`
AUTHORITY i'L
BOARD OF COMMISSIONERS MEETING 2006 API 21 Pi 3: 58
FEBRUARY 28, 2006
;
MINUTES L�c�c�n f-ITY C1 ERs{{
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At 8:10 a.m. Chairman Sharon Peters called the meeting to order in the Governor's Room of the Lansing
Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: James W. Butler III, John Decker, Charles Janssen, Ellen Jeffries,
Robert Johnson (Ex-officio), Kris Nicholoff, Sharon Peters, and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: Gerald Ambrose (Ex-Officio), Tim Haggart, and Cyril McGuire.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, Eric Hart, Scott
Keith and Dirk Spillemaekers - Lansing Entertainment and Public Facilities Authority. Councilmember
Tim Kaltenbach; Randy Hannan and Don Kuhlhanek - City of Lansing.
III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda. Motion was
made to approve the agenda by Chairman Peters; SECOND: Commissioner Sinadinos;
motion carried.
IV. PUBLIC COMMENT: There was no public comment.
V. APPROVAL OF THE MINUTES OF JANUARY 24, 2006: The minutes of January 24, 2006,
were adopted as presented. MOTION: Commissioner Janssen SECOND: Commissioner
Butler, motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
1.Welcome: Chairman Sharon Clayor Peters welcomed everyone. She also noted that
the Chamber dinner held here at the Lansing Center was beautiful and transferred the
exhibit hall into a good looking environment. She noted many present today
attended the Chamber dinner and the Board's presence was noted and appreciated, and
the Chamber was pleased. Chairman Peters thanked the Board and the staff for
working so hard to make that event a success. Commissioner Butler commented that it
was a good idea to have the Board members meet guests as hosts and he complimented
staff on the outstanding name badges; he noted they were very professional and he was
comfortable wearing them. Chairman Peters noted Board members should save
the badges and remember to wear them when they are serving as ambassadors for
LEPFA.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending January 31, 2006:
Committee Chairman Charlotte Sinadinos reviewed the financial statements as follows:
a. Lansing City Market: Operating Revenues- Building Rental for the current period is
down compared to the previous period at$2,272 compared to$4,028 and the difference is
attributed to loss of Schnitz Deli.
At 8:15 a.m. Commissioner Kris Nicholoff entered the meeting.
LEPFA Board of Commissioners Meeting
Page 2
February 28, 2006
Parking is up compared to the prior year at $10,044 compared to $5,122 for the prior
year. Total Operating Revenues for year to date are$44,054 compared to$44,854 for last
year. Operating Expenses- Salaries/Wages are down for year to date due to the change in .
management. Chairman Sinadinos noted utilities for the current period are down due to the
closing of the east side of the City Market($3,095 compared to $5,611) and this is a huge
decrease when taking into consideration that utilities have increased by 28%. Total
Operating Expenses for the current period are $12,613 compared to$12,000 for last year
and year to date the amount is$64,059 compared to$84,681 for an operating loss for year
to date of($20,497) which is down from the prior year's amount of($39,827).
After taking into account the City Contribution and Interest, we have revenue over
expenses of$10,013 compared to$6,821 for the prior year. Eric noted the closing of the
east side of the Market has been a significant savings for us ($12,000-$15,000) in
gas/heating costs and will help us to make budget.
Balance Sheet: Total Cash is $72,490 compared to $59,751 for last year. Accounts
Receivable are $146,944 compare to $142,539 for the prior year. Chair Sinadinos noted
the Unearned Revenue- Grant under Liabilities is a grant for marketing and sprucing up
the Market. Unreserved Equity is $168,917 compared to $173,108.
Budget vs. Actual: Building Rental for year to-date is less than budget due to the loss of
the deli at ($2,656) for year to date. Parking is better than budget by $5,668 and Total
Operating Revenues are better than budget by $3,066 due primarily to the parking.
Operating Expenses - Salaries/Wages are better than budget for year to date by $2,867.
Utilities exceed the budgeted amount by($4,574)for year to date. Marketing is better than
budget by $4,599. Total Operating Expenses for the current period are higher by $2,902
and for year to date we are better than budget for Operating Expenses by$8,068 and after
netting Revenues against Expenses we are better than budget by$11,135. After taking into
account the City Contribution and Interest we are better than budget by$11,044 for year to
date. Eric noted that the parking increase was due to the new state office building on
Washington and Michigan.
b. Oldsmobile Park: Income Statement: Event expenses are $6.65 and there is no
income/revenue so the amount was applied to the Event Development Fund. Under.
Operating Expenses-Salaries/Wages are$17,887 compared to the prior year's amount of
$42,964 which is due to the change in the allocation. Professional Services for the current
period are $2,000 is four months of the consulting for the turf management. Utilities for
year to date are$44,245 compared to$44,938. Miscellaneous for the current period is the
PSD tax of$10,000. Total Operating Expenses for year to date are$126,689 compared to
$157,918. After taking into account the City Contribution and Interest, we have income
for year to date of$9,265 revenues over expenses compared to the prior year's loss of
($8,285).
Balance Sheet: Total cash position is $150,447 which exceeds the prior year's cash total
of$20,510. The Net Event Development Fund is $56,856 compared to $54,506 for the
prior year. Accounts Receivable is down at$69,604 compared to $118,135 for the prior
year. Accounts Payable are up at$195,346 compared to$106,090. Unreserved Equity for
the current year is $14,580 compared to the prior year's amount of$61,359.
LEPFA.Board of Commissioners Meeting
Page 3
February 28, 2006
Budget vs. Actual: Operating Expenses- Salaries/Wages are better than budget for year
to date by $1,034 and Utilities are higher than budget by ($2,493). Total Operating
Expenses for the current period are higher than budget by ($9,885) and for year to date
they are better than budget by $19,108. After considering the City Contribution and
Interest we are better than budget for year to date by $20,870.
c. Lansing Center: Committee Chairman Sinadinos noted the Total Operating Revenues
of$545,142 are very good considering our benchmark of$500,000 is considered a very
good month. Building Rental for the current period is up at$103,172 compared to$97,195
for the prior year and for year to date the amount is $384,887 compared to $437,362,
which is down by about$52,000 compared to last year. Food and Beverage for the current
period is $268,772 compared to $218,405 for the prior year; and for year to date the
figure is $1,253,000 which is down by about $256,000 compared to the previous year's
amount of $1,510,000. Total Operating Revenues for the current period are $545,142
compared to $438,107 and for year to date they are $2,094,000 compared to the prior
year's amount of$2,512,000 for a decrease of about$418,000.
Operating Expenses- Salaries/Wages are down for year to date. Utilities for the current
period are up at$60,210 compared to $54,204 for the previous year and for year to date
they are down at$326,484 compared to$345,274. Food and Beverage Expense for year to
date is$813,004 compared to $917,047. Total Operating Expenses for the current period
are $457,500, which is down from the prior year's amount of$432,053 and for year to
date they are$2,647,000 which is less than the prior year's amount of$3,073,000, which
includes transition expenses. Excess Revenue over Expenses for the current period is
$119,936 and last year the figure was $28,608 for a year to date loss of ($206,744)
compared to a loss of($119,445) for the prior year.
Balance Sheet: Cash and Cash Equivalents for the current year are up at $257,119
compared to the prior year's amount of $239,228. Accounts Receivables are up at
$419,439 compared to $586,721. Accounts Payable are down at$419,437 compared to
$586,721. Unearned Revenue - Advanced Rent for the current year, which is a sign of
future business, is down at $404,827 compared to the prior year's amount of$420,913.
Unreserved Equity for the current year is ($133,331) compared to$114,342 for the prior
year.
Budget vs. Actual: Building Rental for the current year to date is better than budget by
$3,486. Food and Beverage Revenues is better than budget by $38,268 and our Total
Operating Revenues are better than budget for the current period at$116,325 and year to
date they are better than budget by $26,491. Operating Expenses - Salaries/Wages are
better than budget for year to date and Fringes are better than budget as well. Utilities for
year to date are better than budget by$15,794. Food and Beverage Expense is higher than
budget by ($12,612). Total Operating Expenses for the current period are higher than
budget by ($17,774) and for year to date the figure is better than budget by $158,272.
After taking into account the City Contribution and Interest we are better than budget by
$187,046 for year to date. Chairman Sinadinos noted that the figure listed($71,223)is the
number we need to beat budget by in order not to have a negative number on our equity
position. Commissioner Janssen questioned the PSD figure; Marian noted that the$35,000
is usually reflected in a different month, and it is a budgeted amount.
LEPFA Board of Commissioners Meeting
Page 4
February 28, 2006
Commissioner Butler asked Eric if he saw value in the PSD. Eric noted he does, but he
has serious concerns about the value we're getting out of it for what we are paying,
because while we receive marketing benefits with the local retailers, we do not get the
snow removal, the maintenance, and so we are paying twice because they can't meet our
needs due to our hours of operation and we pay contractor to maintain the front of the
building in terms of weeding, etc. Eric noted we are also paying for a marketing position
for the PSD, which is of concern when we are having difficulties keeping our staff given
our financial situation. Eric noted it is his understanding that the PSD funding is non-
negotiable because it is an assessment. Councilmember Kaltenbach noted he would check
the ordinance and report at the next meeting; Councilmember Kaltenbach asked if the
miscellaneous expense is for all three entities; Marian broke down the $35,000 fee as
$10,000 for the Lansing Center plus $10,000 for the Marketing position; $10,000 at
Oldsmobile Park and$5,000 for the Market. In addition we pay about$6,750 between the
three properties for weeding, watering, etc. and a portion of Oldsmobile Park fees are
picked up by the team.
Chairman Sharon Peters noted that this month's financials were much easier to listen to,
and that she appreciated Eric, Marian and Charlie for keeping the focus on the bottom
line.
Finance Committee Chair Charlotte Sinadinos moved that the monthly financials for
Oldsmobile Park, the Lansing City Market and the Lansing Center for the period ending
January 31, 2006 be received as published and further that the monthly expenses for each
entity be approved. SECOND: Commissioner Butler. Motion carried.
C. PRESIDENT& CEO'S REPORT: Eric Hart reported the following:
1. Occupancy Data: Eric distributed the first month of Occupancy Data as promised and he
will continue to present the information on a monthly basis. He noted that the average
occupancy was 70% and in the detailed report, Hall A was the busiest location with 94%
occupancy. He noted that the data supports the fact that we had a busy month and this data
for this month warrants expansion if we could maintain the usage throughout the year. He
noted the occupancy is similar to last year and it was a good month. He noted we are
expecting to see similar numbers in February and March, and April will be questionable
due to Delphi pulling their event at the last minute. Eric revisited the Cam-Tre matter and
note that they were paid by Delphi; however, Cam-Tre never paid us and they have
stopped payment on their judgments and we are currently going after their assets, but they
are unable to identify any assets at this time. Eric noted Cam-Tre did the same thing in
Dayton Ohio and they are seeking punitive damages and have asked us to testify against
them. Eric asked that if anyone has any further questions that they contact Eric.
Councilmember Kaltenbach asked if any of the Cam-Tre amount has been written off,
Marian noted that wrote off$20,000 and the balance has been set up as an "allowance for
bad debt" and is still on the books.
Bob Johnson questioned the occupancy equation and how long of a period of time should
the building sustain the occupancy numbers before we look at the expansion of the Lansing
Center? Eric noted a one or two year period; our issues are that we can sustain the
occupancy in bursts, but the off months of June, July, and December do not support the
expansion.
LEPFA Board of Commissioners Meeting
Page 5
February 28, 2006
Eric noted we have shared this information with CVB as well because they were
concentrating their efforts to book the building in the months that we are the busiest, and
they now understand that they need to concentrated their efforts toward filling our vacant
dates.
Commissioner Butler questioned the status between"contracted"versus "used";Eric noted
that the hall maybe blocked for cleaning, etc. which means that it is held, but not bringing
in revenue but it is counted in occupancy information. Commissioner Butler noted that
Lansing Center rental cost information would be of benefit to him and the Board in selling
the Lansing Center to groups and associations. Eric noted that he will provide the Board
with a full break down of our charges; he noted often we generate package deals and do
not charge structured rates.
At 8:46 a.m. Commissioner Janssen exited the meeting.
2. Client Evaluations: Eric also reviewed the Client Evaluation information for January,
2006 and noted that the overall important topics are the Assessment Data (facility, staff,
hotels, Lansing) and they are what he uses to gauge how well we are doing; additional
evaluation data includes the restrooms and temperature. Commissioner Butler questioned
the issues with Security; Eric explained that they typically get the abuse because they are
the "no/bad guy" and it is typical for them to take the hits in our industry and Security
generally receives similar rankings at other facilities. Commissioner Janssen questioned the
ranking for the City and the Hotel, and asked if the hotel ranking is because there is no
choice or because of dis-satisfaction. Eric noted the lack of hotels and the Radisson's
needs to update their hotel are the issues. Eric noted the rankings are increasing for both
the City and the hotels overall.
3. City Market: Eric reported that we have new vendors, and we will be announcing our
Open House on April 6, 7, and 8. April 3, 4, and 5 the vendors will be moving within the
Market so it will be closed. By the Open House we should have the new sound system
installed, and the new graphics and banners up.
4. Adado Riverfront Park: Eric noted we have been approached by the Administration and
they would like a Business Plan for the construction of a band shell in Adado Park and he
will bring the information to Long Range Planning.
Commissioner Butler questioned negotiation status between LCC and Common Ground.
Eric noted we have left messages for Ruth Borger and they have always been a good
supporter of ours, but with the current circumstances and changes in the administration,
we are assuming Common Ground is not a priority at this point. Eric noted he hopes to
meet with them in the next 30 days. Commissioner Butler asked if there is anything the
Board can do to help. Eric noted at this point it is not an urgent issue and if there isn't any
movement by the next Board meeting he may need help then.
Discussion returned to the band shell. Eric noted that the stage costs about $20,000
annually to build and it is a topic we have been discussing for some time, and we discussed
it with Bob Johnson and Bob took it to the administration and they asked for a business
plan. Bob noted the City is interested in the savings for Common Ground, but also is
interested in the uses beyond Common Ground in terms of Community events.
LEPFA Board of Commissioners Meeting
Page 6
February 28, 2006
Eric noted Ernie Topliss and the Symphony is interested in the band shell and would use it
for 6-8 events during the summer and we are checking with Boarshead Theater through
Larry Meyer's efforts as well as other community groups. Bob Johnson noted it opens up
Adado Riverfront Park for more events through a fee schedule that is approachable so that
we can see more activity; however, another issue is turf management.
5. Budget: Eric reported at this point we have not heard from the Administration yet; he note
that we should be hearing something in the next 30-45 days because the Administration is
still working through their process as well. Bob Johnson noted the City has to make a
presentation by March 27. Bob noted we should be contacted by Jerry Ambrose soon and
Eric will keep the Board informed and will follow up with Jerry. Chairman Peters noted
that the Board has sat with previous Mayor's and is willing to do so in conjunction with
Eric if the Mayor is willing.
6. UAW Contract: Eric noted a meeting is scheduled for today and we are down to a couple
of items and the remaining items are small, we are seeing progress and will see where we
are at.
7. Web Site: Eric thanked Linda for all of her hard work in getting the web site finished and
he noted that it has been an amazingly frustrating process. Linda noted we owe many
thanks to our partners at the CVB because it is a frustrating task when you have no money
and without their help the web site was not possible. Eric noted the letter being circulated
for Board signature thanking the CVB for their support. Eric demonstrated and walked
through the LEPFA web sites noting our new LEPFA and Lansing Center branding. He
noted the site is full-service now and purchases will be able to be made on line which will
assist our AV Department in terms of speed and accuracy on the floor orders. Phase II will
take place in April. The various links were noted to the CVB, the Chamber of Commerce,
hotels, the Lugnuts, the City, Common Ground, etc. Linda also noted the site allows us to
upload changes. Eric noted everything we do now has a "brand" and all of our forms have
the Lansing Center logo and a uniform looked;people can now order on line. Linda noted
the City Market and Oldsmobile Park sites will launch at the end of March. Eric stated
that soon you will see an announcement for the Unity Festival — 2 Night Tour which is
scheduled for June 24 at Oldsmobile Park and is a religious concert. He indicated that it is
not Holywahooza, and we will be partnering with the Unity Festival who will be the event
producer. We will also be renting to them our Inko-mat for the concert they will be
hosting in Grand Rapids the night before our event to cover our baseball field. The web
address is www.lepfa.com. Linda will send the links again. Chairman Peters commended
all involved.
D. PERSONNEL COMMITTEE: A meeting is scheduled for March 9 at 9:30 a.m. to discuss
the Alcohol Policy, the Electronic Policy, and the CEO's evaluation.
E. LONG RANGE PLANNING COMMITTEE: Committee Chair Janssen left a report with
Chairman Peters noting that the Committee is scheduled to meet on March 7 at 8:00 a.m.
At 9:16 a.m. Bob Johnson exited the meeting.
LEPFA Board of Commissioners Meeting
Page 7
February 28, 2006
F. CITY MARKET AD HOC COMMITTEE: Commissioner Kris Nicholoff reported that a
meeting is scheduled for March 14 at 3:30 p.m., and an all day meeting is set for March 29,
which will be a drop in forum for anyone interested in discussing the future of the City
Market. Eric noted the committee will meet with two consultants in the morning for a review
and will then open the meeting to the public and let the consultants listen to the
comments/public feedback. The consultants will develop a report from there with options for
the Market. Commissioner Nicholoff stated that the meeting will give those who choose to
attend a chance to hear what the people want and his only issue was maintaining control of the
meeting because it is a forum and structure will be needed just in case people get the
impression that meeting is for anything other than to share ideas, be creative and have fun.
Eric noted that the goal is to run the meeting similar to the Mayor's transition meetings
complete with a moderator. Commissioner Butler asked where the meeting will take place and
noted that it is important to make clear the purpose of the meeting. Chairman Peters noted that
Eric's idea to run the meeting at the Lansing Center in a public hearing approach is important
and allows input. Eric noted it will be worded appropriately on the public notice and they will
have a moderator.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Chairman Sharon Peters: Chairman Peters thanked Commissioner Butler who convened the
appointed members of the Board(Chair Peters husbanded attended in her absence) for dinner;
she noted it sounded like a wonderful time was had by all and she noted that the chance for the
Board to get together for informal networking is very important. She also thanked
Commissioner Sinadinos for extending her venue to host the dinner. Chairman Peters also
stated her appreciation of how well the Board works as a team, and how well the Board has
jelled with our City partners who have been attending our meetings and participating. She
extended thanks to Councilmember Kaltenbach, to Bob Johnson and Jerry Ambrose, and noted
this is a good year and we are off to a good start for the LEPFA Board and Management team.
B. Marian Bra: Marian thanked Commissioner Nicholoff for the breakfast and she thanked the
LEFPA staff for their work on the Chamber event. Marian informed the Board of a pension
meeting that took place as a result of issues brought forth by Dirk regarding how the pension
funds were invested, and the request for employees to have more input into the process.
Marian noted a meeting was held with the employees, and a representative of National City
Bank. A survey was taken after the meeting so that staff could privately share their thoughts
and it was apparent that the majority of the employees did not want change in the investment
process; but an employee advisory committee composed of three employees who will meet
with a representative of the bank, Eric, Marian, and Charlie Sinadinos was developed to offer
advise on the investing. The Employee of the Month announcement will be Thursday at 2:30
p.m. and all are welcome. She also noted a new server and computers will be going in as a
part of the capital investment.
C. Commissioner Charlotte Sinadinos: Commissioner Sinadinos thanked James Butler for the
delightful dinner. She also reported that she attended the Chamber of Commerce dinner and
enjoyed it very much and really enjoyed playing hostess and noted that the Board should do
that more often, as it was very well done and she enjoyed the food and set up.
LEPFA Board of Commissioners Meeting
Page 8
February 28, 2006
D. Linda Frederickson: Linda noted that the first four acts of Common Ground (Steve Miller,
Bonnie Rait, Styx and the Bangles) were announced and there are more to come. Linda
distributed the Lansing Center highlights and noted that the Common Ground information is
listed on the report. Linda also announced that Rivi's Deli takes possession tomorrow of
Schnitz' equipment/location at the Market, and they will be opening in two weeks. They will
be afforded two months rent free to get going; she encouraged everyone to support them.
E. Scott Keith: Scott reported that he and Eric met with HNTB regarding audits for the Lansing
Center and Oldsmobile Park, and he should have information by the next Board meeting. We
are moving forward on carpeting for the concourse, entrances of the building, and office area,
and tables and chairs are being selected. He noted he will be getting samples of fabrics and
colors for the chairs and he is working with a group of employees on the choice. It is hoped
that the chairs, carpeting and tables will be in by the end of April. A meeting will be held with
the Long Range Planning Committee next month to update them on the capital progress.
F. Commissioner Kris Nicholoff: Commissioner Nicholoff thanked James for dinner. He noted
that the Chamber dinner was nice; the room looked nice, it was easy to get around and the
food was good. He humorously thanked himself for breakfast this morning . . . and reiterated
that in regard to the City Market we are not being defensive, but we just want to make sure
that everyone has a comfortable manner to say what they want regarding the Market, and he
noted that it is a great way to learn and grow, and he expressed his excitement. He noted he
wants to make sure we have a good mechanism in place.
G. Commissioner Ellen Jeffries: Commissioner Jeffries echoed everyone's comments in thanking
James for the dinner and she noted that the food at the Knight Cap was good as well and noted
that it was a great idea. Commissioner Jeffries noted that the Chamber event was great and
she heard nothing but positive comments from the people that she greeted and talked to after
the event and they felt it was a big improvement over the Holiday Inn South. Commissioner
Jeffries noted at March 9 at 7:30 a.m. a LEPFA/CVB meeting is scheduled; and that "Kris
Rocks" as indicated in his email to everyone.
H. Councilmember Tim Kaltenbach: Councilmember Kaltenbach complimented staff on the
new web site and noted that it was a great job.
I. Commissioner James Butler: Commissioner Butler requested that the Board be made aware
of Common Ground announcements before they are released. He also noted the he was
glad and happy that everyone enjoyed their dinner and noted that Charlie Sinadinos and
staff did a great job, and that everyone was at the top of their game. He thanked Kris for
breakfast today and noted that he would be willing to pick up the cost of next month's
breakfast for the Board meeting on March 28. Commissioner Butler distributed an
invitation to the annual Black Lawyers dinner on March 10 honoring Mr. Butler. Mr.
Butler clarified the date of the Chamber dinner on the Highlights report; it was held on the
21" not the 201h. He also noted that the dinner was great and suggested that Commissioner
Sinadinos may want to come up with a Marketing strategy/promotion to capture some of
the attendees for next year for the Knight Cap.
J. Commissioner John Decker: Commissioner Decker thanked Kris for breakfast and he noted
that the Lansing Center/Chamber meeting was excellent.
LEPFA Board of Commissioners Meeting
Page 9
February 28, 2006
K. Bill Grove: Bill noted that we came out of January on a good note and that the positive trend
will be followed through in February with events such as the Chamber, Flagstar, Farm Bureau,
Deer and Turkey and the Golf Show.
L. Heidi Brown: Heidi thanked Commissioner Kris Nicholoff for breakfast.
M. Eric Hart: Eric noted that Kris and James rock. Eric strongly encouraged the Board to be on
hand for the Michigan Dental reception(LEPFA will purchase a limited number of tickets) and
he noted there may be a convenient time to have the Board here to welcome the Dental
Association. Commissioner Nicholoff noted that this is the 150`h Anniversary/Sesquicentennial
for the Michigan Dental Association on May 17-19 and that Lansing is now in their rotation
every three years since 2001; he noted he would discuss the day for the Board to be on hand
with Andrea from the MDA. Commissioner Butler asked Commissioner Nicholoff to elaborate
on the purchase of a new office building in downtown Lansing for Michigan Dental.
Commissioner Nicholoff noted that the MDA Trustees discussed whether or not they would
stay downtown Lansing at 230 N. Washington Square or move to an out lying green space. In
November Mayor Bernero and the Governor came to the MDA meeting and indicated that they
would be willing to help them find a way to stay in downtown Lansing; at the December
meeting it was voted that an existing space in downtown Lansing could also be considered and
90% of the 25 members agreed to continue to explore downtown. They considered the Mutual
Building which will require$5 million in renovations and this Friday/Saturday they agreed to
put an offer on the building and stay in downtown Lansing, which is a good thing and includes
renovating an existing building. He noted now at the annual meeting the House of Delegates
will approve (or not) the purchase/move and the feeling is that the House will approve it but is
not a done deal until it is approved. He noted they are 80% there and he thanked
Commissioner Butler for asking about the purchase. He noted the capital is the bull's eye on
the target and for most associations, governmental affairs is the number one issue. He noted
that he is happy to see that Lansing has adopted the marketing campaign denoting Lansing as
the bull's eye on the target, and that most associations need to be on the target as is the case
with Washington, DC.
Commissioner Butler asked if it would be good for the Governor and/or Mayor to make a pitch
again at the meeting. Commissioner Nicholoff noted that it would be a good thing and is on the
radar screen.
VIII.OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:46 a.m. a motion was made for adjournment by Commissioner Nicholoff, and the meeting was
adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, MARCH 28, 2006
AT 8:00 A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES
AUTHORITY
i BOARD OF COMMISSIONERS MEETING
MARCH 28, 2006
MINUTES
At 8:13 a.m. Chairman Sharon Peters called the meeting to order in the Governor's Room of the Lansing
Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT:Gerald Ambrose(Ex-Officio),John Decker,Tim Haggart, Ellen Jeffries,
Robert Johnson (Ex-officio), Sharon Peters, and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: James W. Butler III, Charles Janssen, Cyril McGuire, and Kris
Nicholoff.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, Eric Hart, Scott
Keith and Dirk Spillemaekers - Lansing Entertainment and Public Facilities Authority. Margo Vroman -
City of Lansing.
III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda. rMotion was
made to approve the agenda by Commissioner Sinadinos; SECOND: Commissioner Hart;
motion carried.
Fri
IV. PUBLIC COMMENT: There was no public comment. c "D FT1
V. APPROVAL OF THE MINUTES OF FEBRUARY 28, 2006: The minutes of Februa-f 2811-1-1
2006, were adopted as presented. MOTION: Commissioner Sinadinos SECOND: Cgmmig�*neP
Ha art, motion carried.
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VI. REPORTS:
A. CHAIRMAN'S REPORT:
Chairman Sharon Clayor Peters noted that LEPFA has once again had a very good and
busy month and that Eric has kept the Board aware of the activity through emails.
She noted we are currently in the City budget cycle and the budget has been
formally presented to the Council by the Mayor, and Chairman Peters noted that she
and Commissioner Butler attended the presentation of the budget last evening with Eric
and that when she reflected on where we were a year ago and where we are today, she
appreciates, as stewards of the dollar which is the Board's role, a much better
understanding on our part of where we are and that our dialog with the City is
stronger and more reality based. We still need the involvement of all of the LEPFA
Board members and she wanted to express her appreciation to Eric, Jerry and Bob for
getting off to good footing for this budget cycle.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending February 28, 2006:
Committee Chairman Charlotte Sinadinos reviewed the financial statements as follows:
1
a. LansinE City Market: Operating Revenues- Building Rental for the current period is
down compared to the previous period at$3,152 compared to $3,066 for the prior year,
and year to date the Building Rental is$29,121 compared to$37,016 for the prior year and
LEPFA Board of Commissioners Meeting
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March 28, 2006
Parking for year to date is$17,785 compared to the prior year's amount of$10,595. Total
Operating Revenues for year to date are$47,231 which is down by about$700 compared
to$47,955 for last year. Operating Expenses- Salaries/Wages are down for year to date
at$22,008 compared to $30,150 due to the restructuring of the Market Manger position.
Utilities for year to date are$31,094 compared to$32,904 and are down due to the closing
of the east side of the City Market. Total Operating Expenses for the current period are
$9,991 compared to $11,278 for last year and year to date the amount is $74,050
compared to$95,960 which is down about$22,000. Bottom line after taking into account
the City Contribution, we have Net Income for year to date of$5,776 compared to last
year's Net Income of$2,372. Eric noted in terms of the gas usage, this year it was about
1,675 ccfs, last year it was 5,700 ccfs which equates to about$7,500; he noted the closing
has resulted in a significant savings.
Balance Sheet: Total Cash for the current year is $66,347 compared to $47,592 for last
year. Accounts Receivable are up for the current year by about $10,000 at $146,757
compare to $136,119 for the prior year. Unreserved Equity for the current year is
$164,680 compared to $168,658.
Budget vs. Actual: Building Rental for the current period is better than budget by $546
and for year to-date it is less than budget by$2,110. Total Operating Revenues for year to
date are better than budget by$497. Operating Expenses- Salaries/Wages are better than
budget for year to date by $3,339. Utilities for year to-date are higher than budget by
$5,086. Total Operating Expenses for the current period are better than budget by$1,369
and for year to date they are better than budget by $9,438. After taking into account the
City Contribution we are better than budget by $9,831 for year to date.
Bob Johnson questioned after reviewing the Balance Sheet what the depreciation included,
e.g. the property, furniture/equipment, etc. Marian noted that there is no property in the
depreciation for any of the facilities because we don't own the property. Marian noted that
the depreciation on the buildings should be carried by the City.
b. Oldsmobile Park: Chairman Sinadinos noted that there was no Event Revenue and
Event Expenses are $5 which consisted of bank charges and was applied to the Event
Development Fund. Under Operating Expenses-Salaries/Wages are$20,583 for year to
date compared to the prior year's amount of$49,041 which is due to the change in the
allocation. Utilities for year to date are$50,787 which is less than the prior year's year to
date amount of$52,272. Total Operating Expenses for year to date are$143,415 which is
less than the prior year's amount of $191,322. After taking into account the City
Contribution we have Net Income for year to date of$11,413 compared to the prior year's
loss of($26,864). Bob Johnson asked who captures the revenue for Take Me Out to the
Ballgame; Eric noted it is captured by the City and it is a pass through for us.
Balance Sheet: Total cash position for the current year is $156,272 which exceeds the
prior year's cash total of$22,422. The Net Event Development Fund for the current year
is $56,861 compared to $54,509 for the prior year. Accounts Receivable are $65,604
compared to$159,407 for the prior year and the change is attributed to the reduction in the
suites. Unreserved Equity for the current year is $16,723 compared to the prior year's
amount of$42,783.
LEPFA Board of Commissioners Meeting
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March 28, 2006
Budget vs. Actual: Operating Expenses- Salaries/Wages are better than budget for year
to date by$777 and Utilities are higher than budget by($2,771). Total Operating Expenses
for the current period are better than budget by$3,343 and for year to date they are better
than budget by$22,542. After considering the City Contribution we are better than budget
for year to date by $24,262.
c. Lansing Center: Committee Chairman Sinadinos noted using the benchmark of
$500,000 we had a good month for the current period for February and had Total
Operating Revenues of $543,778 compare to the prior year's amount of $456,319.
Building Rental for the current period was$129,247 compared to the prior year's amount
of$121,005 and for year to date the amount is$514,135 which is less than the prior year's
amount of$558,367. Food and Beverage for the current period is$326,544 compared to
$258,804 for the prior year; and for year to date the figure is $1,579,000 which is less
than the previous year's amount of$1,768,000. Total Operating Revenues for year to date
are $2,638,000 which is less than the prior year's amount of$2,969,296.
Operating Expenses - Salaries/Wages for year to date are $1,032,869 which is less than
the prior year's amount of $1,055,337. Utilities are down for year to date at $378,343
which is less than the prior year's amount of$399,357. Food and Beverage Expense for
the current period is $164,193 compared to $151,714 and for year to date the amount is
$977,198 which is less than the prior year's amount of $1,068,762. Total Operating
Expenses for the current period are$475,834, which is down from the prior year's amount
' of $444,634 and for year to date the figure is $3,123,478 which is less than the prior
year's amount of$3,518,491. Netting Revenues against Expenses we have a loss year to
date of($484,942) compared to last year's loss of($549,194). After taking into account
the City Contribution and Interest we have a loss year to date of($106,700) compared to
the prior year's year-to-date loss of ($128,433) and for the current period we have
revenues over expenses of$100,044 compared to the prior year's loss of($8,988). Eric
noted that the Lansing Center is also down about 75,000 kilowatt hours in usage in one of
our busiest months, so the conservation measures are equaling savings, he noted we are
also down on our steam costs as well.
Balance Sheet: Total Cash and Cash Equivalents for the current year are $400,569
compared to the prior year's amount of$413,773. Unearned Revenue - Advanced Rent
for the current year, which is a sign of future business, is$372,507 compared to the prior
year's amount of$389,491. Unreserved Equity for the current year is($33,286)compared
to $105,353 for the prior year. Chairman Sinadinos noted that two months ago our
negative equity position was ($253,000); last month it was ($133,331) and this month we
have a negative ($33,286).
Budget vs. Actual: Building Rental for the current period was better than budget by$547
and for year to date it was better than budget by$4,033. Food and Beverage Revenues are
better than budget for the current period by$16,544 and for year to date it was better than
budget by$54,812. Total Operating Revenues are better than budget for the current period
at$8,473 and for year to date they are better than budget by$35,271. Operating Expenses
- Salaries/Wages and Fringes/Related Costs for the current period were higher than
budget and for year to date they are better than budget. Utilities are higher than budget for
the current period by($2,962)and for year to date they are better than budget by$12,832.
LEPFA Board of Commissioners Meeting
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March 28, 2006
i
Food and Beverage Expense is higher than budget for the current period by($21,470) and
is higher for year to date by ($34,083). Total Operating Expenses for the current period
are higher than budget by($45,359)and for year to date the figure is better than budget by
$112,913. After taking into account the City Contribution and Interest our current period
variance was higher than budget by ($36,322) and we are better than budget by$150,724
for year to date. Chairman Sinadinos noted that the figure listed ($71,223) is the amount
of depreciation in our current budget that we must beat in order to break even and not have
a negative number on our equity position.
Finance Committee Chairman Charlotte Sinadinos moved that the monthly financials for
Oldsmobile Park, the Lansing City Market and the Lansing Center for the period ending
February 28, 2006 be received as published and further that the monthly expenses for each
entity be approved. SECOND: Commissioner Haggart. Motion carried.
Chairman Peters noted she previously forgot to mention in her report that the LEPFA
Employee of the month meeting will follow our Board in the Governor's Room and
those Board members who are able to attend were encouraged to remain.
C. PRESIDENT& CEO'S REPORT: Eric Hart reported the following:
1. Lansing State Journal- View Point: Eric noted the View Point regarding the Market as
i originally distributed to the Board was too lengthy at 860 words and was pared down to
500 words with an informational box to be included to announce the open house. Eric
noted the original request came from the Journal in conjunction with the open house.
Chairman Peters stated this was a good thing for us to do, and that is important that we
share information on things that are important to LEPFA and she also commended Eric on
the approach that he took which, was inclusive of the Board's thinking via email for the
development of the piece. She thanked Eric and the staff.
2. Price Coopers Waterhouse Information: Eric noted that he gave this information to the
Board last year noting that it is the industry standard and is the benchmark. He noted it is
good information for the Board and that we are now collecting our data so that it is closer
to their information. He noted his goal is be able to compare our data to theirs using their
criteria. Eric noted that we are ahead in some areas and behind in other areas(e.g. labor,
food and beverage, etc) and that he would be happy to address any questions.
3. Thank You: Eric reported that there is a note enclosed from Marian for the Board's
information.
4. Electronic Communication Policy: Eric noted the draft policy is being presented to the
Board for approval, and it has been distributed to the Personnel Committee as well. Once
approved by the Board it will be presented to the Unions for a meet and confer. He noted
the policy is for Electronic Communications and it limits employee access for putting any
information on their work computers because it is costing LEPFA money when people use
downloads (via viruses) considering our recent purchase of the network and individual
computers. He noted we also have a capital plan to continue to upgrade our systems and
the policy sets limits on what can be done on the computer and determines what data is
LEPFA data and what is the employee's. Eric noted Margo has reviewed the policy.
LEPFA Board of Commissioners Meeting
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March 28, 2006
5. LEPFA Web Site: Eric noted he reviewed the web site earlier and hopefully everyone is
happy with the new look. Also, the thank you letter was sent to the CVB and they were
appreciative of the letter.
6. Common Ground: Two more bands have been confirmed and will not be announced for
two weeks due to the genre of the groups and we have one more group that we hope to
confirm for Sunday night. He noted that we feel this is one of our stronger line ups and
that we will begin addressing different genres of music such as a jazz night based on
routing.
D. PERSONNEL COMMITTEE: Committee Chairman Haggart moved that the Electronic
Policy as presented to the Board be accepted and approved for sending to the Unions.
SECOND: Commissioner Sinadinos; motion carried. Committee Chair Haggart noted within
the next month the Board will have to evaluate Eric and the Personnel Committee will then
need to go into close session next month.
E. LONG RANGE PLANNING COMMITTEE: Chairman Peters noted that the ideas moving
forward are a piece of our Long Range Planning and asked if there are any further comments.
Eric Hart noted that after our discussions with the Mayor's office and our budget presentation,
the Authority's Expansion Plan will be shared with the Administration. He noted the plan
discusses more regionalism, regional funding sources to expand the Lansing Center, etc. Eric
noted that we have also been discussing plans for the City Market and how the results may
j impact a Lansing Center expansion. He noted that the Long Range Committee also wanted to
make sure that any improvements we are doing now will enhance any expansion activities, e.g.
a new marquee, enhancements to the old marquee, etc. Bob Johnson reminded Eric to be sure
to work with his staff in terms of the sign/code enforcement. Eric also noted the Capital Plan
was also given to the Long Range Committee on our projections and meetings will continue on
the capital plan and following next year we will put forth a capital plan for continued
maintenance of the Lansing Center and Oldsmobile Park based on the contracts.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Marian Bryant: Marian noted that the RFP for a benefits consultant is out; the deadline was
Friday for interested bidders to express their interest and only two of the four potential bidders
responded that they were interested, so we will be moving forward with the two vendors via a
selection committee comprised of a union staff member, and several staff members. Marian
noted the process is expected to be completed by the end of April.
B. Commissioner Charlotte Sinadinos: Commissioner Sinadinos noted that she is excited about
Common Ground and it looks like we have a good line up and a great variety.
C. Jerry Ambrose: Mr. Ambrose expressed his appreciation of the relationship that has been
developed with the Administration as well as the hot coffee. He also suggested that
Councilmember Allen be made aware of the Market web page. He also expressed the Mayor's
support of all parts of the Authority's business which has been noted in the budget process; and
many people have noticed his support as well. Eric noted we will do our homework with the
Council.
LEPFA Board of Commissioners Meeting
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March 28, 2006
I
D. Linda Frederickson: Linda noted that the next phase of web development will begin next
month. She noted on the Lansing Center portion of the web site currently there are only PDF
forms and they will be moved to electronic versions including the electronic capabilities to
make payments on the web sites. She noted we will also work on the reproduction of printed
collateral material to include our stationery. She also noted that next Thursday, Friday, and
Saturday is the spring open house at the Market and that the Market will return to regular
hours. The open house will include vendor promotions and gardening knee pad giveaway.
She also noted that MSU plays baseball this weekend at Oldsmobile Park. Linda noted that on
the back of the highlights information she has included Common Ground updated information
that has been publicly announced.
E. Scott Keith: Scott reported that as of yesterday we have come to a tentative agreement on the
contract with the UAW and we will be formalizing that and sending it to our lawyers for
review and he hopes to have a draft contract. He also brought a sample of the concourse
carpet. Eric noted that the task that they put the Architects on was to neutralize the building
and the deep greens to more earth tones/conservative contemporary approach. Chairman Peters
suggested bringing Councilmember Bauer to the building when the carpet is installed. Scott
noted half of ordered arrived yesterday and rest will arrive in October. The exhibit hall chairs
should arrive in about a week. The meeting room chairs will be in by the beginning of May.
Eric noted the carpet was installed first for Michigan Dental.
F. Commissioner Ellen Jeffries: Commissioner Jeffries complimented staff on the web site; and
j the LSJ Viewpoint; she also thanked James for breakfast.
G. Bob Johnson: Bob noted that Mayor Bernero in his "State of the City" address announced
the "Grand Vision" and that they will begin embarking on it and that he will include Eric
as they start to formulate an approach in terms of scope, mission and the general direction
of that effort; he noted that very soon they hope to bring some stakeholders together to
begin.
H. Bill Grove: Bill noted that as we can see by the figures we had a good February and we
anticipate a good March. He also noted that Food and Beverage's addition to the building
upgrade will be new dish machine.
I. Eric Hart: Eric noted that he will be on vacation beginning March 31 through Monday, April
10. Eric also noted that the Employee Manual is about 75% written and we continue
addressing policies and are on track to present it to the bargaining units by July for meet and
confer discussions. Also the "LEPFA Bucks" program will begin April 1. The RFQ for the
HVAC upgrade/repairs and light system is at our attorney's office for review and he hopes to
have something in hand by early May so that he can meet with the administration. He also
cautioned that we have two tough months in April and June, and that staff has been instructed
to stop spending, and we are running mean and lean. Our other concern is the impact the
sewer project will have on our pick up business; which has helped our financial outlook to-
date.
VIII. OLD BUSINESS:
No report.
LEPFA Board of Commissioners Meeting
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March 28, 2006
IX. NEW BUSINESS:
No report.
At 9:04 a.m. a motion was made for adjournment by Commissioner Sinadinos, and the meeting was
adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, April 25, 2006 AT
8:00 A.M. AT THE LANSING CENTER IN ROOMS 203-4.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
The minutes were approved as amended at the April 25 meeting to reflect Commissioner Butler
as excused and not present. MOTION: Commissioner Nicholoff; SECOND: Commissioner
Sinadinos, motion carried.
l
I
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
APRIL 25, 2006
MINUTES
At 8:12 a.m. Chairman Sharon Peters called the meeting to order in the Governor's Room of the Lansing
Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: Gerald Ambrose (Ex-Officio), James W. Butler III, John Decker, Tim
Haggart, Charles Janssen, Ellen Jeffries, Robert Johnson(Ex-officio), Chris Nicholoff, Sharon Peters and
Charlotte Sinadinos.
COMMISSIONERS EXCUSED: Cyril McGuire.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, Eric Hart, Tracy
Hodges, Scott Keith, and Tarena Smith - Lansing Entertainment and Public Facilities Authority.
Councilmember Tim Kaltenbach and Margo Vroman- City of Lansing.
III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda. Motion was
made to approve the agenda by Commissioner Butler; SECOND: Commissioner Janssen;
motion carried.
IV. PUBLIC COMMENT: There was no public comment.
V. APPROVAL OF THE MINUTES OF FEBRUARY 28, 2006: The minutes of March 28,
2006, were adopted with the following change noted in attendance, Commissioner Butler was listed
as present and he should have been reflected as excused. MOTION: Commissioner Nicholoff
SECOND: Commissioner Sinadinos, motion carried to approve the minutes as amended.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
Chairman Sharon Clayor Peters noted it has come to the Board's attention that Tarena
Smith is moving on to higher and greater things and it is with happiness for her and
great regret for LEPFA that she makes this announcement. Chair Peters noted that
Tarena has been with LEFPA for a long time and has worked her way up and has given
great customer services. She noted while we have lost a few staff members, Tarena is
one that the Board interacts with a lot and she expressed her gratitude for Tarena's
presence this morning. Chair Peters asked Tarena to tell the Board what she will be
doing. Tarena reviewed her LEPFA work history and noted that her new position is
with Global-Spectrum which manages Cardinal Stadium out of Phoenix, and she will be
Director of Event Services and she will be responsible for Event Managers, the AV
Department, Parking, the Box Office, the two Sport Fields and will be responsible with
the VP of Operations for the Fiesta Bowl. Tarena thanked everyone at the meeting,
noting it has been a very interesting transition, and the changes that she has seen over
the past ten years have been exciting and some have been challenging including the
multitude of events. She noted her last day will be May 5 and she will be on the road
May 5 and will start on May 15. Commissioner Butler requested a resolution for
Tarena based on her outstanding service and the years of service with LEPFA to
recognize the fabulous job she has done for LEPFA. Eric noted we will be hosting a
party/luncheon on May 5 at 11:00 a.m. and he invited the Board and noted we will
present Tarena with gifts. Commissioner Peters suggested that the resolution be
coordinated with the luncheon.
LEPFA Board of Commissioners Meeting
Page 2
April 25, 2006
Motion was made to present Tarena with a resolution from the Board of
Commissioners. Support: Commissioner Haggart; motion was unanimously approved.
Chairman Peters thanked Tarena and extended her best wishes.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending March 31, 2006:
Committee Chairman Charlotte Sinadinos reviewed the financial statements as follows:
a.Lansing City Market: Operating Revenues- Building Rental for the current period is
down compared to the previous period at$1,677 compared to $3,581 due to the move to
the west side of the Market and the loss of Schnitz Deli. For year to date the Building
Rental is$30,798 compared to$40,597 for the prior year. Parking for the current period is
$12,150 compared to $5,283 for the prior year and year to date parking is $29,935
compared to$15,878 which is up by about$15,000. Total Operating Revenues for year to
date are$61,083 compared to$56,854. Operating Expenses - Salaries/Wages are down
for year to date at $25,313 compared to $35,159. Utilities for the current period are
$2,794 which is less than the prior year's amount of $4,608; and for year to date are
$33,888 compared to $37,513 and are down due to the closing of the east side of the City
Market. Total Operating Expenses for the current period are$10,820 compared to$12,311
for last year and year to date the amount is $84,871 which is down compared to the prior
year's expenses of$108,271which is down about$23,000. After netting Income against
Expenses we have a year to date loss of($23,787) compared to the prior year's loss of
($51,416); after taking into account the City Contribution, we have Net Income for year to
date of$11,387 compared to last year's Net Income of$2,900. Commissioner Janssen
asked if the rent would increase now that the deli is in the Market. Linda noted we will
see an increase when they start paying in June. Eric noted we also have more vendors
now as well. Commissioner Butler questioned the difference in reference to Parking. Eric
noted the difference is attributed to an increase in permit parkers due to the new State
office building and once the lot on Cedar/Michigan closes for the CSO project we expect
more flow; but Parking has also suggested that we will be charged administrative costs.
Commissioner Butler noted the reduction in expenses by $23,000 and in particular the
Salaries/Wages and he asked for clarification. Eric noted that our previous Market
Manager was paid at a much higher level. However the position was reclassified and
moved to the Operations Department and it is more of a supervisory role and the
marketing responsibilities were moved to the Sales/Marketing Department so the job title
was separated. Eric cautioned we will have to look at further compensation for the current
supervisor because he is paid considerably lower than the previous manager and is doing a
great job. Commissioner Butler asked why the numbers were lower under the marketing
line item. Linda noted we will begin to see more funding listed because the open house
was held in April and$6,000 was spend in straight advertising and will be reflected in next
month's financials. Marian Bryant noted that the expenses for this month are for the
development of the web site. Eric noted that we changed our marketing efforts and
purchased mobile billboards and the "Market Watch" with more of our efforts
concentrated on "grass roots" which should result in long term reductions and lower costs.
LEPFA Board of Commissioners Meeting
Page 3
April 25, 2006
Bob Johnson noted that$25,000 was approved by City Council for Market marketing and
he questioned how it is reflected. Eric clarified that it is reflected on the Balance Sheet,
under Liabilities - Unearned Revenue Grant in the amount of$16,415 of which $9,000
has already been spent; this is a "pass through" and is not reflected on the financial
statements because it was a gift. The funds have been used for banners, some marketing,
the open house, the sound system, and the rest will be coming on line (e.g. the
consultants).
Balance Sheet: Total Cash for the current year is $60,965 compared to $79,593 for last
year. Unreserved Equity for the current year is $170,291 compared to $169,186.
Budget vs. Actual: Building Rental for the current period is less than budget by ($1,422)
and for year to date it was less than budget by ($3,532). Parking for year to date is better
than budget by$11,680. Total Operating Revenues for the current period were better than
budget by $7,686 due to parking, and for year to date they are better than budget by
$8,183. Operating Expenses- Salaries/Wages are better than budget by$4,129. Utilities
for the current period are better than budget by$456 and for year to-date they are higher
than budget by ($4,629). Total Operating Expenses for the current period are higher than
budget by $374 and for year to date they are better than budget by $9,063. After netting
Expenses against Revenues we are better than budget by $17,247. After taking into
account the City Contribution we are better than budget by $17,130 for year to date.
b. Oldsmobile Park: Event Revenues for the current period were $1,715, due to MSU
baseball; and Event Expenses for the same event are$1,403 for an event income of$311
which was applied to the Event Development Fund. Under Operating Expenses -
Salaries/Wages for the current period are down at$4,260 compared to last year's amount
of $6,810 and for year to date the figure is $24,844 compared to $55,851 for the prior
year due to the allocation change. Utilities for the current period are $3,985 compared to
$5,064 and for year to date the figure is$54,773 compared to$57,336 for the prior year.
Maintenance of Equipment is $4,477 for the current period compared to $1,310 for the
prior year and for year to date the figure is $14,513 compared to $8,141 due to our
responsibility for the Oldsmobile Park Service agreement. Marketing is $2,750 for the
current period and is for the stadium portion of the web site. Total Operating Expenses for
year to date are $166,807 compared to last year's figure of$362,343 (last year's figure
was higher due to the Oldsmobile Park maintenance project). Income for year to date is
$6,897 compared to last year's loss of($44,474).
Balance Sheet: Total cash position for the current year is$97,122 which exceeds the prior
year's cash total of $52,772. The Net Event Development Fund for the current year is
$57,162 compared to$54,491 for the prior year. Unreserved Equity for the current year is
$12,500, which is less than the prior year's amount of$25,155.
Budget vs. Actual: Operating Expenses- Salaries/Wages are better than budget for year
to date by $67.96 and Utilities are higher than budget by ($493). Maintenance of
Equipment is higher than budget by ($3,866). Total Operating Expenses for the current
period are higher than budget by$5,316 and for year to date they are better than budget by
$17,225. After considering the City Contribution we are better than budget for year to date
by $18,903.
LEPFA Board of Commissioners Meeting
Page 4
April 25, 2006
c. Lansing Center: Committee Chairman Sinadinos noted using the benchmark of
$500,000 March was a very good month with Total Operating Revenue amounting to
$650,276 compared to the previous year's amount of$552,941. Building Rental for the
current period was $146,622 compared to the prior year's amount of$121,680 and for
year to date the amount is $660,757 which is less than the prior year's amount of
$680,047. Food and Beverage for the current period is $370,325 compared to $310,486
for the prior year; and for year to date the figure is $1,950,000 which is less than the
previous year's amount of$2,079,000. Equipment Rental for year to date is$355,708 and
is less than the prior year's amount of $392,481. Tradeshow Utilities are $130,595
compared to $131,210 for year to date for the prior year. Labor Services are up at
$118,544 compared to $116,509 for year to date last year. Total Operating Revenues for
year to date are $3,288,000 which is less than the prior year's amount of$3,522,000.
Operating Expenses- Salaries/Wages for year to date are$1,218,000 which is less than
the prior year's amount of $1,231,000. Utilities for the current period are $55,622
compared to $55,268 for the prior year and for year to date the figure is $433,965
compared to $453,626 for the prior year. Food and Beverage Expense for the current
period is $182,057 compared to $180,889 and for year to date the amount is $1,157,000
which is more than the prior year's amount of$1,249,000. Total Operating Expenses for
the current period are $529,040 compared to $540,333 for the prior year and for year to
date the figure is $3,651,000 compared to $4,058,000. We have a net loss of($362,296)
compared to the prior year's net loss of ($536,586). After taking into account the City
Contribution and Interest we have a net income of $153,256 for the current period
compared to the prior year's current period amount of$41,122 and for year to date we
have a Net Income of$47,965 compared to the prior year's loss of($87,310). Chairman
Sinadinos noted this is the first time in a long while that we have had a positive figure for
Net Income. Eric noted while the revenues were up for this month, we were also able to
cut expenses in a busier month and we had less business/revenue last year and our
expenses were higher so we are really trimming and he noted that the Vice Presidents and
staff should be commended. Chair Peters noted the CEO should be commended as well.
Balance Sheet: Total Cash and Cash Equivalents for the current year are $446,000
compared to the prior year's amount of$214,242. Total Accounts Receivables are up at
$683,928 compared to$253,441 for the prior year. Unearned Revenue- Advanced Rent
for the current year is $364,307 compared to the prior year's amount of $410,416.
Unreserved Equity for the current year, which is a positive number for the first time since
July, is in the amount of$121,378 compared to $146,476 for the prior year. Chairman
Sinadinos noted that last month we had a negative equity position of($33,000)and prior to
that the amount was ($133,331).
Budget vs. Actual: Building Rental for the current period was less than budget by($6,260)
and for year to date it was less than budget by($2,226). Food and Beverage Revenues are
better than budget for the current period by$25,323 and for year to date it was better than
budget by $80,135. Equipment Rental for year to date was less than budget ($8,414).
Labor Service is better than budget by$2,416. Total Operating Revenues are better than
budget for the current period at$50,488 and for year to date they are better than budget by
$85,716. Operating Expenses- Salaries/Wages for year to date are better than budget by
$52,422 and Fringes/Related Costs for year to date are better than budget by $32,064.
LEPFA Board of Commissioners Meeting
Page 5
April 25, 2006
At 8:45 a.m. Tim Kaltenbach exited the meeting.
Utilities are higher than budget for the current period by($6,725) and for year to date they
are better than budget by $6,107. Food and Beverage Expense is higher than budget for
the current period by ($5,441) and is higher for year to date by ($38,147). Total
Operating Expenses for the current period are higher than budget by ($22,712) and for
year to date the figure is better than budget by $91,609. After factoring revenues against
expenses we had an income for the current period of$27,775 and for year to date we have
an income of$177,370. After taking into account the City Contribution and Interest our
current period variance was higher than budget by$28,258 and we are better than budget
by$180,392 for year to date. Chairman Sinadinos noted that the figure listed($71,223)is
the amount of depreciation in our current budget that we must beat in order to break even
and not have a negative number on our equity position.
Chairman Peters commended Secretary/Treasurer Sinadinos for a very thorough report and
noted that it is very helpful, and her notations are helpful. She also commended the
Finance Office and Marian and Eric's ability to keep on top of the issues as well as the
entire team and their belt tightening. She also noted given the situation we dealt with not
long ago, the turn around that we are seeing and thoroughness with which the topics are
being discussed, as well as the inclusion of the Board in turning things around is
appreciated and she extended her thanks, noting we still have a lot of work to do, but we
are currently seeing positive trends. She also noted she appreciated everyone's
attentiveness to the comments made during the report and that it is good to see people
engaged .
Finance Committee Chairman Charlotte Sinadinos moved that the monthly financials for
Oldsmobile Park, the Lansing City Market and the Lansing Center for the period ending
March 31, 2006 be received as published and further that the monthly expenses for each
entity be approved. SECOND: Commissioner Haggart. Motion carried.
C. PRESIDENT& CEO'S REPORT: Eric Hart reported the following:
1. HVAC Proposals: Eric noted that today we meet with potential HVAC proposers for
HVAC upgrades for the Lansing Center. Today will be the first phase, we will answer
questions on the proposal process and the proposals will be due in two weeks. He noted
we are presently experiencing HVAC related issues, last week we were down to two (2)
compressors out of eight(8). The compressors are back up and running and that is due in
part to our new employee who specializes and is certified in HVAC.
2. Carpeting: Eric noted that the carpeting is in and hopefully it meets everyone's standards.
He noted it is much brighter and we have received numerous compliments; also the tables
are in and we are going to start seeing changes. He also noted that the repairs to the front
of the building may be more costly than originally estimated and may have to be re-
evaluated and he will continue to keep the Board updated.
3. Oldsmobile Park Improvements: Eric noted that the bid documents and drawings are
completed and the bid will be published.
LEPFA Board of Commissioners Meeting
Page 6
April 25, 2006
4. City Market Presentation: Eric reminded those present about the meeting set for May 3 at
6:00 p.m. at the Lansing Center in rooms 203-5; it will include a presentation by Kent
Schutte and Larry Lund (who developed the last document on the City Market) and they
will present a revised update and will discuss new trends. They will also serve as
moderators of the discussion. The presentation has been announced via press releases and
in the "Market Watch."
5. Client Evaluations: Eric noted that information was omitted last month and it has been
distributed including the occupancy data for the Board's information. An error was noted
in March's occupancy percentage and will be updated and redistributed next month.
6. LEPFA Budget Hearing_ Eric noted LEPFA is slated to go before Council on May 2 at
4:30 p.m. in Council Chambers and he invited all members who are able to attend to join
the staff(an email has been sent).
7. Annual Mayor's Diversity Event: Eric noted the Mayor has expressed interest in
LEPFA's producing an annual diversity event similar to the event that took place this past
weekend. Eric believes we will work with the administration to create and/or expand the
current event into an ethnic festival event.
At 8:58 a.m. Bob Johnson exited the meeting.
8. Common Ground: Eric reported that we have confirmed additional bands, but he doesn't
have the information. Commissioner Butler asked if there are still dates that are open;
Eric noted that Sunday night is not filled. Linda noted that confirmations for Common
Ground are listed on the back of the Highlights information. Eric noted that Tuesday,
Thursday, Saturday and Sunday are not complete. Eric noted we will continue to update
the Board, and if anyone has specific questions they should contact Eric. He also noted
that sales are ahead of last year, sponsorship revenues are behind last year considerably,
and we project that we will be behind last year by $70,000 - $80,000 due to GM. He
noted we do have pick ups and are concentrating on smaller sponsorships. Commissioner
Butler asked if Christman and Boji are sponsors and he asked Mr. Ambrose to meet with
them. Eric noted Gillespie will be participating this year and LAFCU has come on board
via the UAW. Eric noted he will reschedule the meeting that was set with the Board to
discuss sponsorships and he requested a list of potential sponsors from the Board.
9. Vice President's Reports:
A. Finance Department — Marian Bryant: Marian reported that the Benefits RFP
generated two companies that were interested in the process and the review committee
has met (the committee includes a couple of employees), and the committee went
through the presentations and has selected a consultant that will be working with us
with a long-term contract. The investment meeting has been set with the bank, the
employees and Charlie Sinadinos and we will be moving forward. She also noted that
interviews are taking place to fill the Accounting Manager position and during that
process the May financials may be delayed. She noted she will be out of the office for
several days during May and therefore the Board will not receive their financials in the
Board packet and she is not sure if they will be available for the Board meeting, and if
they are not ready for the meeting they will endeavor to get them out as soon as
possible with a brief explanation.
LEPFA Board of Commissioners Meeting
Page 7
April 25, 2006
At 9:04 a.m. John Decker exited the meeting.
B. Marketing Department- Linda Frederickson: Linda noted she will hand out the
Event Highlights prior to the start of the meetings moving forward. She noted that the
March occupancy was significantly higher for the Lansing Center at 76.8% for this
year compared to 60% for last year. Linda noted that she did send an email to Board
regarding the luncheon for Tarena; she noted we will be giving Tarena a print of the
Lansing Center and encouraged the Board to visit the Reception Desk at the Lansing
Center this Thursday and Friday if they are interested in signing the matting for the
photo for Tarena. She also noted the "Market Watch" will be forthcoming around
May 5 in conjunction with Mother's Day. Linda noted we will be selling Common
Cards on specific dates at Sparrow Hospital. At Oldsmobile Park we are still hosting
MSU baseball games and this weekend MSU plays UM; and the following weekend
they will play Ohio State. Next weekend the "Home Run for Hope" baseball series
will also take place and this year's guest is Haslett. The Diamond Classic will take
place on May 24.
Commissioner Butler asked Mr. Ambrose to meet with the Board to discuss
sponsorships and Common Ground direct deposits for City Employees may be
reviewed and discussed; Mr. Ambrose agreed to attend.
C. Operations Department - Scott Keith: Scott reported that the carpeting is
completed and we are waiting for meeting room chairs and it is anticipated that the
exhibit hall chairs should be here in time for Michigan Dental.
D. Food and Beverage Department- Bill Grove: Bill noted that the dish machines
have been ordered and they should be installed around the second week of July.
Additional equipment has also been ordered and the steamers should be arriving any
day and Food and Beverage continues to move along.
D. PERSONNEL COMMITTEE: Committee Chairman Haggart noted that they have decided to
wait on Eric's contract and compensation package until after the budget has been approved.
Committee Chairman Haggart moved that Eric's contract be extended for a year; and the
Committee will come back to the Board(most likely next month)to go over the nuts and bolts.
SECOND: Commissioner Nicholoff; motion carried unanimously. Chairman Peters extended
her thanks to Eric for his guidance and willingness to let the Board wait until the budget
process is complete.
Chairman Peters noted she will not be at next month's meeting and has communicated her
absence with the Vice Chair, Ellen Jeffries, who will Chair the meeting. She noted she will be
interacting with Tim and Eric in the interim.
E. LONG RANGE PLANNING COMMITTEE: Committee Chairman Janssen noted that there
is no report.
LEPFA Board of Commissioners Meeting
Page 8
April 25, 2006
VII. COMMISSIONER AND STAFF COMMENTS:
A. Chairman Sharon Peters: Chairman Peters noted she will be asking Board members to serve
on the Nominating Committee for our Officers election. Elections will be in June and the
transfer in August.
B. Marian Bryant: Marian noted that the Employee of the Month meeting is today at 2:45 p.m. in
room 203 and it is scheduled at 2:45 p.m. so that the meeting takes place between shifts to
encourage employee attendance.
C. Commissioner Charlotte Sinadinos: Commissioner Sinadinos noted that the May 22 Finance
Committee meeting may or may not take place depending on the status of the financials. She
noted the monthly Finance Committee meeting will be moved to 3 p.m. for the summer
months.
D. Commissioner Tim Haggart: Commissioner Haggart noted that the carpet looks good and he
also noted that the new employee uniforms look good but questioned the light colored uniform
pants.
E. Jerry Ambrose: Mr. Ambrose noted a "good job" and Chairman Peters expressed thanks to
Mr. Ambrose for his attendance.
F. Commissioner Kris Nicholoff: Commissioner Nicholoff noted that Michigan Dental is excited
about hosting their event at the Lansing Center and expressed his thanks.
G. Commissioner Ellen Jeffries: Commissioner Jeffries noted she also wanted to thank Jerry
Ambrose for his attending the Finance Committee meetings and she noted that it is helpful for
the Committee to have him in attendance. She noted that this month's financials are also
showing Eric's operations expertise and his cost savings efforts. She also noted that the carpet
looks great and she extended her best wishes to Marian and her husband with their medical
journeys.
H. Commissioner James Butler: Commissioner Butler noted that he wished to echo Ellen's
comments regarding Marian. He also indicated that he wished to thank Eric for the updates
and for keeping the Board informed and he also noted that the carpet looks great.
Commissioner Butler inquired about the person sitting next to Heidi. Heidi introduced Tracy
Hodges, Operations Administrative Assistant, who will be taking over Board meeting minutes
as Heidi takes on additional HR duties. Commissioner Butler commented that he will miss
Tarena; however, she did not say, and for the Board's edification, she will be going to work
for Peter Sullivan. He also asked that the Board members be notified in advance of Employee
of the Month meetings.
I. Commissioner Charles Janssen: Commissioner Janssen noted that he dittos all the comments
made regarding Marian and her spouse and the comments regarding Eric and the great job he
is doing and our Senior Staff with all of the budget issues and for making the budget work and
we are having a good year due to their hard work.
LEPFA Board of Commissioners Meeting
Page 9
April 25, 2006
J. Eric Hart: Eric noted that we are about 80% done with the Employee Manual and we are
wrapping up Payroll and Personnel policies now, but the bulk of it is written/drafted and
the Managers have been given sections for review and input so that it can be modified. He
noted he is hopeful to have it to the Board by the June or August meeting. He noted we
have to do a "Meet and Confer" with Unions on the manual and a draft copy will be sent to
the Board at the same time that it is sent to the Unions. Chairman Peters noted for
reference that this is our first manual in ten (10) years; and she asked the Board to be
aware of the time that is being put into it because it has not been kept up in the past and
will be of great help in daily Operations. Eric noted it is a part of Heidi's new
responsibilities. Chairman Peters expressed her appreciation of the time process.
Chairman Peters thanked all present for their time and attention.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:22 a.m. a motion was made for adjournment by Commissioner Janssen, and the meeting was
adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, May 23, 2006 AT
8:00 A.M. AT THE LANSING CENTER IN THE GOVERNORS ROOM.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
70
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LANSING ENTERTAINMENT AND PUBLIC FACILITIES
AUTHORITY RECEIVED
BOARD OF COMMISSIONERS MEETING ZI)QE3 ��� IS
PH3, 27
May 23, 2006
MINUTES LANSlt,'C CITY CLERK
At 7:59 a.m. Vice-Chairman Ellen Jeffries 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, Tim Haggart, Charles Janssen, Ellen Jeffries, Cyril
McGuire, Kris Nicholoff, Robert Johnson (Ex-officio), and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: Gerald Ambrose (Ex-Officio), James W. Butler III, and Sharon
Peters.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, Eric Hart, Tracy
Hodges, Scott Keith, Dirk Spillemaeckers- Lansing Entertainment and Public Facilities Authority.
Councilmember Tim Kaltenbach and Margo Vroman- City of Lansing.
III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda.
IV. PUBLIC COMMENT: There was no public comment.
V. APPROVAL OF THE MINUTES OF APRIL 25, 2006: A request for approval of the
minutes from the April 25, 2006 meeting was asked for by Vice-Chairman Ellen Jefferies, the minutes
of April 25, 2006 were unanimously approved.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
There were no reports from Vice-Chairman Ellen Jeffries on behalf of the Chairman.
At 8:00 a.m. Vice-Chairman Ellen Jeffries moved for a motion to go into closed
session to discuss Eric Hart's annual performance. MOTION Tim Haggart SECOND
Charles Janssen, motion carried.
Yes: Tim Haggart, Charles Janssen, Ellen Jefferies, Cyril McGuire, Charlie
Sinadinos.
At 8:07 a.m. John Decker arrived.
At 8:15 a.m. a motion was made to return to their regular monthly meeting. Yes:
John Decker, Tim Haggart, Charles Janssen, Ellen Jeffries, Cyril McGuire and
Charlie Sinadinos.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending April 30, 2006:
Committee Chairman Charlotte Sinadinos reviewed the financial statements as follows:
LEPFA Board of Commissioners Meeting
Page 2
May 23, 2006
a. Lansing City Market: Operating Revenues - Building Rental for the current period
is $4,589 exceeding the prior year's amount of $3,786. For year to date the Building
Rental is $35,387 less than $44,384 for the prior year. That year to date figure does
include money from the vendors grant for Rivis Deli. Total Operating Revenues for
year to date are $65,707, exceeding the prior year's $60,675 by about $5,000 due in
part to parking revenues. Operating Expenses - Salaries/Wages for year to date are
$28,944 which is less than the prior years $38,887. Utilities for the current period are
$2,825 which is less than the prior year's amount of 3,217; utilities usage is down due
to the move to the west side. Total Operating Expenses for the current period are
$8,081 compared to $9,672 for last year and year to date the amount is $92,391
compared to the prior year's expenses of $117,943. For the current period we have
Revenues of $102.64 compared to the prior year's current period loss of ($414.27).
Year to date we have revenues of $12051.58 compared to the prior year's revenue of
$2,485 after taking into account the City Contribution and Interest.
Balance Sheet: Total Cash position for current year is similar to last year. Current year
is $71,895 compared to last year's $71,916. Accounts Receivable is $134,996
compared to last years $96,569. We have unreserved equity for the current year of
$170,955 compared to last year's amount of$168,772.
Budget vs. Actual: Building Rental for the current period is better than budget by
$1,336 for year to date it was less than budget by ($2,196). Total Operating Revenues
for the current period were better than budget by $1,336 and for year to date they are
better than budget by $9,519 (due to parking revenues). Operating Expenses -
Salaries/Wages are better than budget by $3,487. Utilities for the current period are
better than budget by $425 and for year to-date they are higher than budget by
($4,203). Total Operating Expenses for the current period are better than budget by
$1,817 and for year to date they are better than budget by $11,442. After netting
Expenses against Revenues we are better than budget by $20,962. After taking into
account the City Contribution we are better than budget by $20,832 for year to date.
At 8:20 a.m. Robert Johnson entered meeting.
b. Oldsmobile Park: Event Revenues for the current period were $10,596, due to
MSU baseball, and Event Expenses for the same event are $6,735 for an event income
of $3,861 which was applied to the Event Development Fund. Under Operating
Expenses - Salaries/Wages for the year to date are down at $29,490 compared to last
year's amount of $63,172 and Fringes/Related costs are $9,329 compared to the prior
year's at $17,222 due to the allocation difference. Utilities for the current period are up
$7,040 compared to $4,342 due to the building having a lot of use (we had 26 games in
30 days). Year to date Utilities are $61,814 which is higher than the prior year's
$61,678. Maintenance of Equipment is $4,092 for the current period, that figure
includes the payment of the sign of $3,125. Maintenance of Facilities for this current
period of $2,896 included a new water heater at $2,200. Total Operating Expenses for
the current period are $25,052 compared to last year's figure of $41,349. Total
Operating Expenses for year to date are $191,859 compared to the prior year's amount
of$403,693 (last year's figure was higher due to the suite repairs).
LEPFA Board of Commissioners Meeting
Page 3
May 23, 2006
Taking into account city contributions Revenues over Expense for year to date are $724
compared to last year's loss of($65,960).
Balance Sheet: Net Event Development Fund for the current year is $61,024 compared
to the prior year's $56,895. Accounts Payable are down for the prior year at $160,089
compared to $241,771 due to not filling as many suites as last year. Unreserved Equity
for the current year is $10,207 compared to the prior year's amount of$6,073.
Budget vs. Actual: Operating Expenses - Salaries/Wages are better than budget for the
current period by $2,207 and for year to date they are better than budget by $2,139.
Utilities are higher than budget for the current period by ($1,824). For year to date
Utilities were higher than budget by ($2,318). Maintenance of Equipment for year to
date is higher than budget by ($6,775) due to the maintenance agreements. Total
Operating Expenses for the current period are higher than budget by ($8,967) and for
year to date they are better than budget by $8,258. After considering the City
Contribution we are better than budget for year to date by $9,223.
C. Lansing Center: Building Rental for the current period was $85,036 compared to
the prior year's amount of$110,988 and for year to date the amount is $745,794 which
is less than the prior year's amount of$791,036 with is down about $44,000. Food and
Beverage for the current period is $300,896 less than the prior year's $323,103 and for
year to date the figure is $2,251,000 which is less than the previous year's amount of
$2,402,000. Equipment Rental for year to date is $410,781 and is less than the prior
year's amount of $473,167. Total Operating Revenues for the current period are
$480,614 which is less than the prior year's amount of$561,272.
Operating Expenses - Salaries/Wages for year to date are $1,352,846 which is very
close to the prior year's amount of $1,364,482. Utilities for the current period are
$52,023, exceeding the prior year's $49,208; for year to date we have $485,989 less
than last year's amount of $502,834. Food and Beverage Expense for the current
period is $137,416 less than the prior year's $153,509 and year to date expense of
$1,295,294 compared to the prior year's $1,403,161. Total Operating Expense for the
current period is $416,399 compared to the prior year's amount of $490,669. Year to
date Operating Expense is $4,067,509 less than prior year's $4,549,495. Total
Operating Expenses were down by the about $75,000 and Revenues were down by
about $80,000; Chair Sinadinos noted expenses are being held in line very well. Excess
Revenues over Expense for the current period are $106,445 compared to prior year's
amount of$168,884; year to date the amount is $154,410 compared to the prior year's
Revenues of$81,573
Balance Sheet: Total Cash and Cash Equivalents for the current year are $339,416
compared to the prior year's amount of $159,748. Total Accounts Receivables for the
current year are $711,326 compared to $391,543 for the prior year. (Due to an overall
busier spring). Unearned Revenue - Advanced Rent for the current year is $348,894
which is less than the prior year's amount of $368,855. Unreserved Equity for the
current year is $227,823 compared to $315,360 for the prior year. Chairman Sinadinos
noted that last month was the first month we had a positive equity (in the prior months
we have had negative equity).
LEPFA Board of Commissioners Meeting
Page 4
May 23, 2006
Budget vs. Actual: Building Rental for the current period was less than budget by
($3,988) and for year to date it was less than budget by ($6,214). Food and Beverage
Revenues are less than budget for the current period by ($29,103) and for year to date
it was better than budget by $51,032. Equipment Rental for year to date was less than
budget by ($12,945) and for year to date less than budget by ($21,359). Total
Operating Revenues are less than budget for the current period at $47,515 and for year
to date they are better than budget by $38,245. Operating Expenses — Salaries/Wages
for year to date are better than budget by $62,095 and Fringes/Related Costs for year to
date are better than budget by $39,037. (Due to vacancies). Utilities are higher than
budget for the current period by ($3,126) and for year to date they are better than
budget by $2,980. Food and Beverage Expense is better than budget for the current
period by $16,456 and is higher for year to date by ($21,690). Total Operating
Expenses for the current period are better than budget by $43,316 and for year to date
the figure is better than budget by $134,926. After factoring Revenues against
Expenses were better than budget for year to date by $173,171. After taking into
account the City Contribution and Interest our year to date figure is better than budget
by $176,839. Chairman Sinadinos noted that the figure listed ($71,223) is the amount
of depreciation in our current budget that we must beat in order to break even and not
have a negative number on our equity position.
At 8:32 a.m. Kris Nicholoff entered the meeting.
Finance Committee Chairman Charlotte Sinadinos moved that the monthly financials
for Oldsmobile Park, the Lansing City Market and the Lansing Center for the period
ending April 30, 2006 be received as published and further that the monthly expenses
for each entity be approved. SECOND: Commissioner Haggart. Motion carried.
Vice-Chairman Jeffries asked Marian Bryant to explain the Pension Plan for Lansing
Center employees. Marian stated: one of the features for the employee pension plan is
involuntary cash out which means if an employee leaves and has less than $5,000 we
can pay them out without asking what they want us to do with their money. The IRS
regulations have changed on this and they would require a rollover to an IRA. Our
attorney advised us that it would be expensive to administer. They suggested that we
lower the limit of the voluntary cash out amount to $1,000. If they have $1,000 or less
we can cash them out. This is purely an administrative matter; we usually ask our
employees what they want us to do with their money before paying them out. This is
an administrative matter in order to comply with the IRS regulations. Commissioner
Nicholoff asked; "If I worked for LEFPA for a couple years or less, based on hours
worked, if I left during that period and I had $3,000 what happens to it?" Marian
stated this amendment relates to the thrift plan and there are two portions to our plan
the Thrift plan and the Savings Plan. The Thrift Plan has the employer's 12% and the
employees' who contributed over 7.5% (the 7.5% goes into the Savings Plan).
Commissioner Nicholoff asked if they have more than $5000 what happens. Marian
noted, there is a form that they fill out that explains what they want us to do, a lump
sum payout or rollover. They can leave it in the plan if they wish. However if an
employee has less than the $5,000 we do not have to give them the option and can just
pay them out. But we still give the options even though we do not have to.
LEPFA Board of Commissioners Meeting
Page 5
May 23, 2006
There is a provision in the contract that if they come back to work for LEFPA they can
start out where they were if the money was left in; if they have taken it out they have
the option to pay it back. Commissioner Sinadinos moved for an approval of the
amendment change in the involuntary cash out limit from $5,000 to $1,000 on the
employee pension plan. SECOND: Commissioner Haggart, Motion Carried.
PRESIDENT& CEO'S REPORT: Eric Hart reported the following:
1. New Employee: Eric noted that today one of our newly hired employees resigned to
accept a job with MSU. Eric indicated we have options with other interviewees and we
will be working on that right away. We have a new Event Coordinator, Rachel
Sarkella. We have hired a second Event Coordinator Kyrie Elliot, she worked for us
last year at Common Ground and presently works with MSU.
2. Labor Contracts: Eric noted that in regards to the UAW we currently have 3 units up
for negotiations; Facility workers, Foreperson and Maintenance. At present the
Facilities have approved their contract and the Forepersons vote today. Maintenance
has rejected their contract. We will be back in negotiations with Maintenance to figure
out what issues there are.
3. HVAC: Eric noted that two companies have submitted proposals and will be having
onsite interviews in the next couple weeks. Tim Haggart has been asked to sit on the
committee along with the Finance Director and Marty Riel. The committee will select
the company to install our HVAC upgrades.
4. MI Dental Recap: Eric noted this was a very successful event. Commissioner Nicholoff
and the Michigan Dental Association have indicated they felt it was successful. Eric
noted: we do have something for Commissioner Nicholoff but we will give it to him in
June or August and may ask for Andrea to come to the meeting also. Eric asked
Commissioner Nicholoff is they had any feedback he stated, yes he can not say how
happy everyone was with the event. Commissioner Nicholoff indicated this was their
150 year celebration and that we are a proud dental state and all the Michigan Dental
Association members realized the effort made by Lansing Center employees to make
this a great event. He commented that the service was outstanding, the facility was
clean, it was their highest attendance and he only heard great things from Michigan
Dental Association Board, members and staff. The only complaint was the Pedway,
which may be as simple as painting and cleaning. This is being looked into by the City
Transportation Department.
5. Equipment Purchases: Eric noted that Food and Beverage ovens are in and the
dishwashers are to be installed right after July 4, 2006. All full time employees have
new uniforms and are working on purchasing the part time employees uniforms right
now.
6. Oldsmobile Park: Eric noted that bids were due next Friday but we are going to extend
it one week. We have two contractors that are having issues, so we will be extending
to the May 31". The water meter has been installed to segregate water sprinklers so that
LEPFA Board of Commissioners Meeting
Page 6
May 23, 2006
7. we are not paying sewer fees on them any more. Eric asked if the Board is interested
in using the suite for some time in August.
8. City Market: Eric noted the numbers are up and we have new vendors. (the Mushroom
guy is great). Be a Tourist is coming up on June 3`d and the Chili Cook-off June 2nd.
At 8:49 a.m. Robert Johnson exited the meeting.
9. Common Ground: Eric reported that the last major announcement will be Friday night.
We were going to move Keith Anderson, but wanted to stay with Cheap Trick. We are
still considering leaving one stage dark due to handling issues, we are unsure if we
want to push the budget due to the fact that GM sponsorship is down. Eric thanked
Kris Nicholoff, Charlie Janssen and James Butler for helping get more sponsorship.
10. Information: Eric noted that he will be out of the office starting June 3-8' to teach at
Oglebay (an industry management school). Eric noted it is an honor, since there are
only 18 people in the industry asked to teach. Eric noted they are adopting thus
sometime in the next 12 months he will have an extended leave without notice. He will
not know when he will have to leave until about 3 or 4 week prior to leaving.
11. Vice President's Reports:
A. Finance Department - Marian Brest: Marian reported that on June 1 the new
benefits program too effect. We have elected to stay with Humana and now have
two different options to our plan. Our agent and employees felt the majority of the
employees do not come close to the out of pocket cost, and the employees seem to
be accepting this plan and most have chose the base plan. The next item for review
is our pension plan. We are having an Employee Committee meeting on May 30
with Charlie Sinandinos and five employees to discuss our options. The Employee
of the Month is scheduled for following today's meeting, you are all welcome to
attend.
B. Marketing Department - Linda Frederickson: Linda distributed the Event
Highlights and upcoming events. Linda noted the Greater Lansing Business
Monthly Event introducing the new young professionals networking on the river
walk. The Diamond Classic is at Oldsmobile Park this month along with Michigan
Mile on the June 3 and Christian Concert 2 Night Tour is on the June 24. April
occupancy to add to your occupancy reports verses last year April is down slightly
at 44.01% versos 64.95%. Invitations to the Sponsorship Party for Common
Ground have been passed out. The party is June 14`h at the Atrium on Washington
Avenue (the old theater). Eric interjected encouraging everyone to come, stating
this is a great networking event.
C. Operations Department - Scott Keith: Scott reported that we do have another
new employee in Maintenance, Bill Vander Ploeg, and he is doing very well. Scott
noted that John Decker and he have worked hard on the landscaping on the south
west corner of the building. We should be receiving new banquet chairs by the
next board meeting. Scott is beginning negotiations with IATSE.
LEPFA Board of Commissioners Meeting
Page 7
May 23, 2006
D. Food and Beverage Department - Bill Grove: Bill noted that the new
equipment is in.
C. PERSONNEL COMMITTEE: Committee Chairman Haggart stated the only thing he has
is Eric's evaluation and compensation. It was discussed in a closed session that Eric be
given a 3% raise and be reimbursed for business and entertainment expenses. Committee
Chairman Haggart moved that this suggestion be accepted SECOND: Commissioner
Nicholoff; motion carried unanimously.
D. LONG RANGE PLANNING COMMITTEE: Committee Chairman Janssen noted that
there is no report.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Marian Bryant: Marian noted that because she was out for a few weeks last month the
financials were not in the board packets. She noted we have brought in a former employee
as a consultant and she thanked the Board for their support.
B. Commissioner Charlotte Sinadinos: Commissioner Sinadinos thanked Michigan Dental
Association, and noted they were very good for business.
C. Commissioner Kris Nicholoff: Commissioner Nicholoff noted that Michigan Dental
Association held a raffle for a new car. All tickets were sold before the event started and
they raised $50,000 for the Michigan Dental Foundation. They give scholarships to those
who want to explore a dental career. This foundation is always seeking applications.
D. Commissioner Cyril McGuire: Commissioner McGuire noted it is good to be back.
E. Commissioner John Decker: Commissioner Decker noted it is good to have Cyril back.
F. Commissioner Charles Janssen: Commissioner Janssen congratulated staff and Eric on the
good work on the client evaluations. (Highest overall satisfaction nothing was low, and that
is really good). He noted the clients seem to be unsatisfied with the hotel situation.
G. Heidi Brown: Heidi introduced Tracy Hodges, the Operations Administrative Assistant
who will be taking over some of the Board responsibilities and taking minutes at these
meetings.
H. Commissioner Ellen Jeffries: Commissioner Jeffries noted a welcome back to Cyril, also
welcomed and thanked Tracy for helping out. She thanked the Lansing center staff and
Eric noting the building looks great. Commissioner Jeffries noted that the Board would
liked to have done more for Eric but due to budget constraints it was not possible; however
that does not mean he is not worth 20%.
LEPFA Board of Commissioners Meeting
Page 8
May 23, 2006
VIII. OLD BUSINESS:
Eric Hart: Eric gave an update on the employee manual, noting we are down to the financial
portion of the manual. The emergency procedures we will check on them but we might be
pushing the manual out without that intact to get the policy at least within the first stage. The
goal is to have it out in August or within the next 30 to 60 days.
IX. NEW BUSINESS:
No report.
At 9:13 a.m. a motion was made for adjournment by Commissioner Jefferies, and the meeting was
adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, June 27, 2006
AT 8:00 A.M. AT THE LANSING CENTER IN THE Banquet Room 3.
Respectfully submitted,
Tracy Hodges, Recording Secretary
LANSING ENTE' '41NMENT AND PUBLIC FACILIT AUTHORITY(LEFPA)
200612007 Board of Commissioners
OFFICERS
ELLEN JEFFRIES (Chairman) OFFICE: 373-5300
3229 Moores River Dr. FAX: 373-1986
Lansing, MI 48911 HOME: 482-4416
TERM EXPIRATION: June 30, 2007 EMAIL: eieffries senate.michigan.aov
KRIS T. NICHOLOFF (Vice Chairman)
Michigan Dental Association OFFICE: 346-9405
230 N. Washington Square, Suite 208 FAX: 372-0008
Lansing, MI 48933 HOME:
TERM EXPIRATION: June 30, 2008 CELL: 881-5100
EMAIL: Knichol@michigandental.org
CHARLOTTE S. SINADINOS (Secretary/Treasurer) OFFICE: 484-7676
The Knight Cap HOME: 337-0554
1003 Darlington Ave. OR
East Lansing, MI 48823 337-8587
TERM EXPIRATION: June 30, 2009 CELL: 927-9695
EMAIL: KCChas@aol.com
COMMISSIONERS
GERALD AMBROSE (Ex-officio)
Chief of Staff OFFICE: 483-4141
Office of the Mayor FAX: 483-4524
9th Floor, City Hall HOME: 676-4896
124 W. Michigan Ave. CELL: 230-9793
Lansing, MI 48933 EMAIL:jambrose@ci.lansing.mi.us
JAMES W. BUTLER III OFFICE: 517-373-3499
State of Michigan — Dept. of Labor & Economic Growth FAX 517-373-3150
Michigan Broadband Development Authority HOME: 332 0910
400 Washington Sq. CELL: 517-230-8989
Lansing, MI 48913 EMAIL: butleo4@michigan.gov
TERM EXPIRATION: June 30, 2008
JOHN DECKER (Lansing City Market Rep) CELL: 517-927-3864
10971 Wattson Rd. EMAIL: HickoryRose@msn.com
Bath, MI 48808
TERM EXPIRATION: June 30, 2007
TIM HAGGART
Plumbers and Pipefitters Local 333 OFFICE: 393-5480
5405 S. Martin Luther King Blvd. FAX: 393-0798
Lansing, MI 48911 CELL: 202-3755
TERM EXPIRATION: June 30, 2008 EMAIL: thaggart@local333.com
CHARLES A. JANSSEN OFFICE: 371-8262
FOSTER, SWIFT, COLLINS & SMITH, PC FAX: 371-8200
313 S. Washington Sq. HOME: 485-3004
Lansing, MI 48933-2193 EMAIL: cjanssen@fosterswift.com
TERM EXPIRATION: June 30, 2009 CELL: 290- 8282
(OVER PLEASE)
ROBERT JOHNSON (Ex-officio)
Department Head
City of Lansing OFFICE: 483-4068
Planning & Neighborhood Development Dept. FAX: 483-6036
316 N. Capital Ave. Suite D-1 HOME: 485-5673
Lansing, MI 48933 EMAIL: Johnson@ddansing.mi.us
CELL: 256-9101
SHARON CLAYTOR PETERS
Michigan's Children OFFICE: 485-3500
428 W. Lenawee. FAX: 485-3650
Lansing, MI 48933 HOME: 485-0897
CELL: 285-7998
TERM EXPIRATION: June 30, 2007 EMAIL: peters.sharon@michiganschildren.org
DERRICK QUINNEY OFFICE: 487-5966
Michigan State—AFL-CIO FAX: 487-5213
419 Washington Sq., Suite 200 HOME: 371-2415
Lansing, MI 48933-2138 CELL: 449-1514
TERM EXPIRATION: June 30, 2009 EMAIL:dquinney@miaflcio.org
RESOURCE PERSONNEL
Brigham Smith
Margo Vroman OFFICE: 483-7638 Margo
City of Lansing 483-4320 (B. Smith)
Office of the City Attorney FAX: 483-4081
5th Floor, City Hall HOME:
124 W. Michigan Ave. EMAIL: mvroman@ci.lansing.mi.us
Lansing, MI 48933 bsmith@ci.lansing.mi.us
LEPFA STAFF
333 E. Michigan Ave.
Lansing, MI 48933
FAX: 483-7439
MAIN LINE: 483-7400
LEPFA.com
Office Extension Cell Home Email Addresses
Eric D. Hart 483-7400 x208 505-8503 327-3277 Eric@LEPFA.com
Heidi Brown 483-7400 x202 267-1075 Heidi@LEPFA.com
Marian Bryant 483-7400 x203 699-0701 Marian@LEPFA.com
Linda Frederickson 483-7400 x234 980-6553 543-1972 Linda@LEPFA.com
Bill Grove 483-7400 x222 229-3962 Pgr 622-3045 BiIIG@LEPFA.com
Tracy Hodges 483-7400 x229 Tracy@LEPFA.com
Scott Keith 483-7400 x231 980-6561 669-0181 Scott@LEPFA.com
Revised: 6/06
LANSING ENTERTAINMENT AND PUBLIC FACILITIES
r G AUTHORITY
BOARD OF COMMISSIONERS MEETING
June 27, 2006
MINUTES
At 8:00 a.m. Chairman Sharon Peters called the meeting to order in the Ballroom 3 of the Lansing
Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: John Decker, Gerald Ambrose (Ex-Officio), Charles Janssen, Ellen
Jeffries, Cyril McGuire, Kris Nicholoff, Robert Johnson (Ex-officio), James W. Butler III, Kris
Nicholoff, Sharon Peters and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: Tim Haggart
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, Eric Hart, Tracy
Hodges, Scott Keith, Dirk Spillemaeckers- Lansing Entertainment and Public Facilities Authority.
Councilmember Tim Kaltenbach.
III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda. Motion was
made to approve the agenda by Commissioner Butler; SECOND: Commissioner Janssen;
motion carried.
IV. PUBLIC COMMENT: Eric Hart noted there are three new employees at the Lansing Center:
John Breslin as Sales Manager, Two Event Coordinator Rachel Sarkella who graduated from Michigan
State University in May with a degree in Marketing, and Kyrie Elliott also a graduate of Michigan State
University and a past Common Ground Intern. Chairman Peters welcomed them.
V. APPROVAL OF THE MINUTES OF MAY 23, 2006: There were no amendments to the
minutes. Motion was made to approve the agenda by Commissioner Butler: SECOND: Commissioner
Jeffries: motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
At 8:14 a.m. Bob Johnson entered the meeting
Chairman Peters noted we are going into our busy season for Common Ground. She
also noted the Board of Commissioners leadership will change today. Chairman Peters
stated Lansing Center has gone through some major changes and we have been able to
cope with these changes successfully and are able to move forward.
Chairman Peters announced that Cyril McGuire will be resigning from the LEFPA
Board of Commissioners. She acknowledged his community and board participation.
Commissioner McGuire thanked the Board for all their fellowship over the years. At
that time Commissioner McGuire was presented with a commemorative picture of the
Lansing Center and plaque for Years of Service ranging from 1997-2006.
LEPFA Board of Commissioners Meeting
Page 2
June 27, 2006
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending May 31, 2006:
Committee Chairman Charlotte Sinadinos reviewed the financial statements as follows:
a. Lansing City Market: Operating Revenues - Building Rental for the current period
is $4,946 exceeding the prior year's amount of$5,832 which is down about $900. For
year to date the Building Rental is $40,333 less than $50,215 for the prior year.
Parking year to date is $29,935 up from the prior year's $15,878. Total Operating
Revenues for year to date are $70,688 exceeding the prior year's $66,542 by about
$4,100 (due in part to parking revenues). Operating Expenses - Salaries/Wages for
year to date are $31,999 which is less than the prior year's $42,676. Utilities for the
current period are $3,073 which exceeds the prior year's amount of $2,424. Year to
date are $39,786 which is less than the prior year's $43,155; down about $3,200.
Utilities usage is up due to several humid days. Total Operating Expenses for the
current period are $7,934 compared to $23,049 for last year and year to date the
amount is $100,325 compared to the prior year's expenses of $140,993 which is
$40,000 less than the prior year. For the current period we have Excess Revenues over
Expenses of $607 compared to the current period loss of ($11,590). Year to date we
have revenues of$12,658 compared to the prior year's loss of($9,105)
Balance Sheet: Total Cash for the current year is $63,102 compared to prior year's
$92,290. Accounts Receivable is $135,183 compared to prior years $95,076. We have
Unreserved Equity for the current year of $171,562 exceeding prior year's amount of
$157,181.
Budget vs. Actual: Building Rental for the current period is ($198) less than budget and
for year to date it was less than budget by ($2,394). Parking year to date is better than
budget by $11,681. Total Operating Revenues are better than budget by $9,321 for the
year (due to parking). Operating Expenses - Salaries/Wages are better than budget by
$3,421. Utilities for year to date are higher than budget by ($4025). Total Operating
Expenses for year to date are better than budget by $12,983. After taking into account
the City Contribution we are better than budget by $22,161 for year to date.
b. Oldsmobile Park: Miscellaneous Revenue for the current period is $1,140 due to
the ATM. Event Revenues for the current period are $17,780; due to MSU baseball,
Home Run for Hope and two Diamond Classic Events. Event Expenses for the same
events are $16,575 for an event income of $1,205 which was applied to the Event
Development Fund. (More revenue and expenses will come in next month) Under
Operating Expenses - Salaries/Wages for the year to date are $31,937 compared to last
year's amount of $71,929 due to the allocation change. Professional Services for the
current period are $3,000 and for year to date are $10,500 compared to the prior year's
$2,438. Utilities for year to date are $66,258 compared to the prior year's $65,875.
Maintenance of Equipment for year to date is $19,372 compared to the prior year's
$12,532. Excess Revenues over Expenses for the current period are $4,574 compared
to the prior year's amount of $640. Year to date income of $5,299 compared to the
prior year's loss of($65,320)
LEPFA Board of Commissioners Meeting
Page 3
May 23, 2006
Balance Sheet: Total Cash for the current year is $146,029 exceeding the prior year's
$111,486. Net Event Development Fund for the current year is $62,229 less than the
prior year's $69,436. Unreserved Equity for the current year is $15,987 compared to
the prior year's amount of$17,588.
Budget vs. Actual: Operating Expenses — Salaries/Wages are less than budget for year
to date by ($2,147) (due to there being three pay periods in May). Professional
Services are better than budget by $1,964. Utilities are higher than budget for year to
date by ($1,546). Total Operating Expenses for the current period are better than
budget by $574 and for year to date they are better than budget by $8,833. After
considering the City Contribution we are better than budget for year to date by
$10,221.
c. Lansing Center: Building Rental for the current period is $109,312 compared to the
prior year's amount of$100,546 and for year to date the amount is $855,106 compared
to the prior year's amount of $891,582, with is down about $36,000. Food and
Beverage for the current period is $193,976 compared to the prior year's $239,129 and
for year to date the figure is $2,445,012 compared to the previous year's amount of
$2,641,700, down about $196,000. Equipment Rental for year to date is $484,398
compared to the prior year's amount of$552,826. Trade Show Utilities for year to date
are $161,518 higher than the previous year's $157,749. Total Operating Revenues for
the current period are $424,137 compared to the prior year's amount of$441,238. Year
to date Total Operating Revenues are $4,193,565 compared to the prior year's amount
of$4,524,749 which is down about $331,000.
Operating Expenses — Salaries/Wages for year to date are $1,532,505 compared to the
prior year's amount of $1,495,896. Utilities for the current period are $53,488,
compared to the prior year's $39,576 (due to more usage and higher rates). For year to
date we have $539,478 less than the prior year's amount of $542,411 for activities.
Maintenance of Equipment and Maintenance of Facilities figures are down compared to
the prior year's. Food and Beverage Expense for year to date is $1,439,634 compared
to the prior year's $1,536,313 down about $96,000. Total Operating Expense for the
current period is $481,467 compared to the prior year's amount of $421,842. Year to
date Operating Expense is $4,548,977 less than prior year's $4,971,337 giving a loss
for the current year of ($355,411) compared to the prior year's loss of ($446,587).
Excess Revenues over Expenses for the current period are $27,894 compared to the
pervious year's $69,296 and year to date Revenues are $182,305 compared to the prior
year's $150,869. Note that the 2005 Common Ground profits are listed under the
Other Non-Operating Income Expenses.
Eric Hart noted Occupancy is up. This is notable in the Rent but not the ancillaries;
this is due to the mix of events. April event Revenues were tied more to Food and
Beverage making the amount higher. Noted in May was a busier month in spite of the
lower Revenue.
LEPFA Board of Commissioners Meeting
Page 4
May 23, 2006
Balance Sheet: Total Accounts Receivables for the current year are $518,602 compared
to $547,889 for the prior year. Unearned Revenue - Advanced Rent for the current
year is $377,110 compared to the prior year's amount of$320,397. Unreserved Equity
for the current year is $255,718 compared to $384,656 for the prior year.
At 8:30a.m. Kris Nicholoff entered the meeting.
Budget vs. Actual: Building Rental for the current period was less than budget by
($12,918) and for year to date it was less than budget by ($19,133). Food and Beverage
Revenues are less than budget for the current period by ($56,023) and for year to date
it was less than budget by ($4,991). Equipment Rental for year to date was less than
budget by ($7,756). Tradeshow Utilities, labor Services, etc... are better than
budgeted. Total Operating Revenues are less than budget for the current period by
($49,193) and for year to date they are less than budget by ($10,948). Operating
Expenses - Salaries/Wages for the current period are higher than budget by ($40,012),
(Due to three pay periods in May) and for year to day better than budget by $22,083.
Utilities are higher than budget for the current period by ($4,591) and for year to date
they are higher than budget by ($1,611). Food and Beverage Expense is higher than
budget for the current period by ($14,596) and for year to date ($36,287). Total
Operating Expenses for the current period are higher than budget by ($64,099) and for
year to date the figure is better than budget by $70,826. After taking into account the
City Contribution and Interest the year to date figure is better than budget by $107,186.
Finance Committee Chairman Charlotte Sinadinos moved that the monthly financials
for Oldsmobile Park, the Lansing City Market and the Lansing Center for the period
ending May 31, 2006 be received as published and further that the monthly expenses
for each entity be approved. SECOND: Commissioner Jensen. Motion carried.
Finance Committee Chairman Charlotte Sinadinos presented a recommendation that the
bad debt expensed last year and set up as an allowance for bad debt in the amount of
$22,493 be written off. These items were turned over to the City Attorney who was
unable to collect as well. In addition a recommendation to set up these accounts as an
allowance for bad debt this current year was made. Efforts will continue to collect bad
debt in the amount of $5,309. Chairman Peters noted the amount of bed debt in the
current year is substantially lower. A motion was made to by Commissioner Jeffries to
write off the bad debt and set up the allowance for bad debt, and continue efforts to
collect the accounts. SECOND: Commissioner Butler. Motion carried.
C. PRESIDENT& CEO'S REPORT: Eric Hart reported the following:
1. Client Evaluation: Eric noted all categories are up but one. The question stating
"Would you recommend the Lansing Center and use it again?" is down one percentage
point. Satisfaction with the staff and with Lansing in general percentages has gone up.
He noted the four categories at the top are of primary focus. Restrooms have gone up;
Temperature is still has challenges but are being worked on currently.
Commissioner Butler suggested a spreadsheet with the prior year's percentages to have
as a comparison. Eric indicated he would get this sheet together.
LEPFA Board of Commissioners Meeting
Page 5
May 23, 2006
2. Financials: Eric noted that though the center is getting back on track, June has typically
been a six digit loss month. This is due to the closing out of the year. He stated that
this year we are going to be very close; the budget will either be break even, loss a
little or make a little. Eric gave compliments to the staff with a 26% cut in budget for
the current year there were no layoffs and was able to manage, cut and modify
spending of expenses to match the budget. He also noted the approach to the budget
has changed to more of a cost control method rather than an attack on revenue.
3. City Market: Eric noted that an article was distributed from the Noise, noting John
Decker's daughter was on the front cover. He stated this is a good article, as there are
more people attending the market. New vendors and building upgrades have help.
Eric noted that there will be a big fall celebration this year. This will be a fall wrap-up,
mirroring the spring opening. Vendors have given coupons that were released with the
latest Market Watch for this event.
4. American Dental Association: Eric noted this was a very successful event. Stating the
Association has signed a contract to return in 2009. Eric gave Commissioner Nicholoff
an opportunity to speak. Commissioner Nicholoff stated the American Dental
Association has voted to keep their offices down town. Noting the plan is for the
offices to be built on top of the Capital View Building. There will be two floors added;
the Dental Association will be on the eleventh and twelfth floors. At this time Kris
Nicholoff.was presented a framed copy of the American Dental Association Poster
celebrating their 150"' Anniversary.
5. Employee Manual: Eric noted the draft version of the Employee Manual is done. It has
not gone for legal review yet. Stating once the new Personnel Committee is appointed
by the new Chairman it will be given to them for review.
6. Common Ground: Eric noted that the final announcement for performers was made
last night (June 28, 2006); Etta James will be performing Saturday night. He also
noted ticket sales are strong. Currently sales are behind 2004 but far ahead of 2005.
Also stating we are down in sponsorships. As a reminder there will be no Common
Cents this year, the festival will be cash only. Noting Common Cents was the number
one complaint listed on the web site. Commissioner Butler asked if there was an issue
with a media partner not supporting the festival. Eric stated yes there is an issue with
one of the media partner no longer supporting the festival due to Tim Barron being an
emcee. Noting no agreement has been made with them. Currently the festival is using
other means of marketing. Choices will need to be made by next year as this media
partner is a critical part of the marketing release. Continuing to state this media group
is currently making demands and responding to these demands will set more issues in
motion, as this is a community festival. Commissioner Butler applauded the Major, the
City of Lansing for supporting the Festival.
LEPFA Board of Commissioners Meeting
Page 6
May 23, 2006
7. Utilities: Eric noted there is a proposal from the Board of Water and Light to raise
steam costs by 65%, notification of this came two weeks ago. Stating there will be a
public hearing on this issue. Eric noted that for the past year meetings have been held
with the Board of Water and Light and a plan was developed for a 33% raise in steam
costs over the next three years. He stated that the announcement of the 65% came after
the Lansing Entertainment and Public Facilities budget was approved. He stated he is
unaware if the proposed amount is for sure in light of the hearing. Gerald Ambrose
noted the proposed raise is not official until after the results of the public hearing.
Commissioner Butler asked if the LEPFA Board could do anything to help in this
situation. Gerald Ambrose stated the members could at least come to the public
hearing. Commissioner Jensen asked what the current budget is for steam. Eric noted
currently it is 30%. With the current proposal by the Board of Water and Light it will
cause a $78,000 short fall in the budget. Noting the facility and the city are currently
choosing a proposer to put together an energy management plan to upgrade the lighting,
water fixture and HVAC through the building. Commissioner Butler asked for a date
of the public hearing, a list of the board member for the Board of Water and Light with
contact information, and a summary for the points of interest. Eric indicated a
summary similar to the Common Ground summary will me distributed.
8. Mention of Cyril: Eric stated he would like to thank Cyril personally for all he has
done over the years for LEPFA and for himself since he has been here.
9. Vice President's Reports:
A. Finance Department - Marian Bryant: Marian reported that the finance
department has rehired a former employee to file the vacant position. Stated she
would like to thank Heidi for all her hard work on the employee Manual. She
reported the health committee brought forth an employee health and wellness
program, which brings in Health Wise University. Health Wise will evaluate 10
areas such as, Cancer screening, heart, diet, and fitness. A meeting was held with
the employees and this program was well received. Noting the Authority is paying
for this program for the employees. Eric noted we did not have the money to buy
the top level of health insurance the Authority wanted to buy for the current year.
Instead a comparable plan was chosen and was reconfigured to a more preventative
program. Stating the savings difference is the pricing of plans is what gave the
funding for this program, therefore the program does not have a negative effect on
the budget. Eric noted it should help the budget as the employees will be healthier.
Marian reported the employee investment committee had made recommendations as
to an investment plan with National City bank. Noting the new plan was placed
into affect July 10, 2006.
B. Marketing Department - Linda Frederickson: Linda reported Jon Breslin has
been hired at the new Sales Manager. She distributed the recap sheets indicating
the economic impact of the Lansing Center there were 66 events, with 87 event
days. Noting that the Chamber has booked a Dinner and a Disney Training session
in the fall. Potential new business is the Children Charter of Courts. This event
will bring about $30,000 of business. Linda thanked the board members who came
LEPFA Board of Commissioners Meeting
Page 7
May 23, 2006
to the Common Ground Sponsorship Party, it went very well. Tonight is the
Common Ground Volunteer training event here at the Center.
Eric noted that with the Disney Training event the city had not currently been told
that there is space on Oct 27"' for a private training of staff from the Lansing Center
and the City. Stating there is space for 150 people and the Lansing Center will be
using from 30-50 of them.
Linda reported that the Centers web site is currently beta testing the pay online
option. Stating the credit card company is currently running fake transactions to
test the system. This will allow clients to pay room rentals, utilities, and make
deposits through the web site.
C. Operations Department — Scott Keith: Scott reported that agreements in
contract negotiations have been reached with three of our bargaining committees.
IATSE has suspended all negotiations until August 1". Oldsmobile Park, Irish
contraction has been award Phase one of the construction project. Noting with the
Capital project security camera bids have gone out and staff is working on
purchasing smaller items. Currently we will be installing a new trash removal
program that is enclosed to help with the elimination of birds, and cut down on
energy costs.
D. Food and Beverage Department— Bill Grove: Bill noted the Banquet Manager
for the last seven to eight years, Cathie Field, has resigned. Currently no decisions
in regards to this position have been made. He noted the new refrigerator is being
installed allowing one of the older refrigerators to be converted into a much needed
freezer. Noting that numbers were down in April and May but anticipate they will
be up in June to compensate, allowing the department to finish the year our
strongly.
At 9:14a.m. Gerald Ambrose exited the meeting
D. PERSONNEL COMMITTEE: Committee Chairman Haggart not present to give report.
E. LONG RANGE PLANNING COMMITTEE: Committee Chairman Janssen noted that
there is no report until after Common Ground.
F. NOMINATING COMMITTEE REPORT Commissioner Butler reported the committee
met in May and the final tally for nominations are; Chairman Ellen Jeffries, Vice-Chairman
Kris Nicholoff, and Treasurer Charlotte Sinandinos. Commissioner Janssen moved to
accept the current nominations. SECOND John Decker. Motion carried.
G. POINT OF INFOMRATION: Chairman Peters noted that in August there will be a new
member of the Board for the City Market. Also stating there will be a new Board member
appointed by the City.
LEPFA Board of Commissioners Meeting
Page 8
May 23, 2006
VII. COMMISSIONER AND STAFF COMMENTS:
A. Marian Bryant: Marian had no comments.
B. Commissioner Charlotte Sinadinos: Commissioner Sinadinos stated she is looking forward
to Common Ground as she volunteers regularly.
C. Commissioner Kris Nicholoff: Commissioner Nicholoff had no comments.
D. Robert Johnson (Ex-officio): Mr. Johnson commented that the entertainment for Common
Ground is outstanding this year.
E. Commissioner Ellen Jeffries: Commissioner Jeffries thanked Chairman Peters for her
service as Chairman, stating she did a wonderful job. Noting that she also volunteers for
Common Ground and it is a wonderful experience.
F. Commissioner James Butler: Commissioner Butler commented that he would like to
volunteer for Common Ground. He also noted the vehicle operations policy is and
excellent idea and gave a recommendation: to add a requirement that personnel must
maintain a valid driver license at all times. Commissioner Butler commented he learned the
Center is changing our phone system and asked for an update. Scott Keith informed the
Board and Commissioner Butler the project is currently in the middle of transition. At this
time the system has been changed from 30 individual phone lines down to 18. More
upgrades and equipment will be coming soon. Also noting the transition is going very well.
Commissioner Butler also complimented Eric for his outstanding fiscal management and
appreciated the updated sheets sent out on a regular basis. Continuing to compliment Eric
on IAAM teaching opportunity. He also asked if he could obtain an updated Commissioner
and Staff Roaster. Butler also thanked Chairman Peters for her outstanding leadership.
G. Commissioner Charles Janssen: Commissioner Janssen thanked Chairman Peters and all
members for a wonderful job. Also stating will be volunteering for Common Ground, and
the artist line up is great.
H. Tim K: Commented that last night the City Council did approve the newest board Ex-
Officio member.
I. Bill Grove: Commented the reason Cathie Field did not receive a farewell luncheon was
she wished not to receive one.
J. Eric Hart: Eric thanked Sharon for a good year as Chairman and continuing to thank the
Centers staff for a year of hard work under stressful situations. Eric also noted the
Marquee on the side of the building is still under draft, adding any help the board can give
in getting the Marquee approved by the zoning committee is appreciated. Continued on to
thank the board for allowing him the time off to teach at IAAM, it was an honor to teach
his peers.
LEPFA Board of Commissioners Meeting
Page 9
May 23, 2006
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:33 a.m. a motion was made for adjournment by Chairmen Peters, and the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, August 22, 2006 AT 8:00
A.M. AT THE LANSING CENTER IN THE Governor's Room.
Respectfully submitted,
Tracy Hodges, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES,
AUTHORITY
BOARD OF COMMISSIONERS MEETINGS C`
August 22, 2006
MINUTES
At 8:04 a.m. Chairman Ellen Jeffries called the meeting to order in the Governor's Room the>
Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: Gerald Ambrose (Ex-Officio), James W. Butler III, Ellen Jeffries,
Robert Johnson (Ex-officio), Sharon Peters, Derrick Quinney and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: John Decker, Tim Haggart, Charles Janssen and Kris Nicholoff
OTHERS PRESENT: Heidi Brown, John Breslin, Marian Bryant, Linda Frederickson, Eric Hart,
Tracy Hodges, Scott Keith, Dirk Spillemaeckers- Lansing Entertainment and Public Facilities Authority
and Margo Vroman- City of Lansing.
III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda. Motion was
made to approve the agenda by Commissioner Butler; SECOND: CommissioneF jansse
Commissioner Charlotte Sinadinos; Motion carried.
IV. PUBLIC COMMENT: Linda Frederickson introduced the new Sales Manger, John Breslin.
Mr. Breslin stated he comes to the Lansing Center with 20 years of experience from 5 star
destination resorts. Mr. Brelsin intents to review the event patterns of the Lansing Center and
with that become more proactive in bringing business in. Continuing on he thanked people that
have been here for a considerable amount of time but we have lost business and it is his intent
to bring business back. Noting the Sales and Marketing brochure has just been completed and
sales will be distributing the brochures this week.
V. APPROVAL OF THE MINUTES OF MAY 23, 2006: There were no amendments to the
minutes. Motion was made to approve the agenda by Commissioner Peters: SECOND:
Commissioner Butler: motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
Chairman Jeffries thanked Commissioner Peters for doing a wonderful job.
Chairman Jeffries welcomed Commissioner Derrick Quinney to the Board and
commends Commissioner Quinney for his involvement is Common Ground as he was a
volunteer at this year's event.
Chairman Jeffries informed the board she heard nothing but good things about Common
Ground, thanking Heidi Brown for being a wonderful Team Leader. Noting that all the
extra time that is put in to Common Ground is appreciated by the Board and by the
City.
f
LEPFA Board of Commissioners Meeting
Page 2
August 22, 2006
Chairmen Jeffries noted she has called a few Board Members in regards to Committee
Appointment. Stating there will not be many changes, but she is planning to have that
completed by the next meeting.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending June 30, 2006: Committee
Chairman Charlotte Sinadinos reviewed the financial statements as follows, noting that
the copies distributed are drafts until the Audit is complete:
At 8:10 a.m. Robert Johnson entered the meeting.
a. Lansing City Market: Operating Revenues - Building Rental for the current period
is $9,707 exceeding the prior year's amount of $9,666. For year to date the Building
Rental is $50,191 less than the prior year's amount of$59,882. Parking for the current
period is $8,115 exceeding the prior year's $4,964. For year to date Parking is $38,050
exceeding the prior year's $20,842. Total Operating Revenues for year to date are
$88,701 exceeding the prior year's $81,208 by about $7,500. Operating Expenses -
Salaries/Wages for year to date are down at $37,159 compared to the prior year's
$48,982. Utilities for year to date are $43,121 which is less than the prior year's
amount of $46,196, down about $3,000. Total Operating Expenses for the current
period are $11,818 less than the prior year's $17,924. Year to date Operating Expenses
are $112,144 less than the prior year's expenses of$158,917. Taking into account the
City Contribution and Interest for the current period we have Excess Revenues over
Expenses of $9,605 compared to the pervious year's amount of $2,332. Year to date
we have Revenues of$22,413 compared to the prior year's loss of($6,772).
Balance Sheet: Total Cash for the current year is $61,123 less than the prior year's
$72,267. Accounts Receivable for the current year is $147,995 exceeding the prior
year's $102,687, which includes the loan to the Lansing Center. Unreserved Equity for
the current year is $181,318 exceeding prior year's amount of$159,514.
Budget vs. Actual: Building Rental for the current period is better than budget by $685.
For year to date the amount is less than budget by ($1,558). Parking year to date is
better than budget by $13,550. Total Operating Revenues for the current period are
better than budget by $2,559. Year to date amount is better than budget by $12,031.
Operating Expenses - Salaries/Wages for year to date are better than budget by $1,709.
Utilities for year to date are higher than budget by ($4,108). Total Operating Expenses
for the current period are higher than budget by ($1,607). For year to date are better
than budget by $11,375. After taking into account the City Contribution we are better
than budget by $23,256 for year to date.
Commissioner Sinadinos asked for questions. Commissioner Ambrose asked why the
Accounts Receivable was so high. Eric informed the Commissioner it is due to the
loans to the Lansing Center for Operating expenses.
LEPFA Board of Commissioners Meeting
Page 3
May 23, 2006
b. Oldsmobile Park: Miscellaneous Revenue for the current period is $566 due to the
ATM. Event Revenues for the current period are $28,940; due to Michigan Mile,
Diamond Classic and the 2 Nite Tour. Event Expenses for the same events are $13,874
for an event income of $15,066 which was applied to the Event Development Fund.
Operating Expenses - Salaries/Wages for the year to date are $36,289 down from the
prior year's amount of$78,927 due to the allocation change. Utilities for year to date
are $71,311 compared to the prior year's $70,692. Total Operating Expenses for the
current period are $29,985 exceeding the prior year's amount of$23,053. Year to date
$237,285 less than the previous year's amount of $289,599. For a current period loss
of ($10,544) compared to the prior year's income of $404 and the year to date loss of
($5,245), compared to the prior year's loss of($64,915).
Commissioner Sinadinos noted this is the first year in many years that Oldsmobile Park
Events have had an income for year to date at $9,665.
Balance Sheet: Total Cash for the current year is $164,462 exceeding the prior year's
$31,795. Due to the type of events, Commissioner Sinadinos gave kudos to Eric Hart
for his selections of events contributing to the increase. Net Event Development Fund
for the current year is $75,595 exceeding the prior year's $67,629. Accounts Payable
year to date is $343,697 compared to the previous year's $119,500. Due to the amount
owed to the Lansing Center Unreserved Equity for the current year is $20,508
compared to the prior year's amount of$16,088.
Budget vs. Actual: Operating Expenses - Salaries/Wages are higher than budget for
year to date by ($3,088). Utilities are higher than budget for year to date by ($1,336).
Maintenance of Equipment is higher than budget by ($13,058). Total Operating
Expenses for the current period are higher than budget by ($12,851) and for year to
date they are higher than budget by ($4,018). After considering the City Contribution
and Interest we are higher than budget for year to date by ($2,778).
Eric Hart noted the $13,000 that is over budget on Maintenance of Equipment is part of
the TMO agreement which includes a 50150 split on service agreements; we were
already in a budget cycle therefore half the costs were picked up as of January 1st. Eric
noted there were emergency repairs needed to the concrete in the seats. This repair
was to be part of the renovations project that could not wait. Eric noted that the budget
was on track until the emergency repairs were needed.
c. Lansing Center: Building Rental for the current period is $54,540 compared to the
prior year's amount of $35,272 and for year to date the amount is $909,647 less than
the prior year's amount of $926,854. Food and Beverage for the current period is
$236,317 exceeding the prior year's $152,311 and for year to date the figure is
$2,681,329 compared to the previous year's amount of $2,794,012. Equipment Rental
for year to date is $544,012 compared to the prior year's amount of $572,872. Trade
Show Utilities for year to date are up at $168,250 compared to the previous year's
$161,084. Labor Service year to date is $160,261 exceeding the prior year's amount of
$153,732. Total Operating Revenues for the current period are $398,221 compared to
the prior year's amount of$221,996. Up $176,000 for the Current Period. Year to date
LEPFA Board of Commissioners Meeting
Page 4
August 22, 2006
Total Operating Revenues are $4,586,186 compared to the prior year's amount of
$4,746,746 which is down about $169,000.
Operating Expenses - Salaries/Wages for year to date are $1,770,987 exceeding the
prior year's amount of$1,717,428. Utilities for year to date are $603,550 compared to
the prior year's $594,453. Food and Beverage Expense for year to date is $1,613,556
compared to the prior year's $1,697,308 down about $83,000. Total Operating
Expense for the current period is $593,691 compared to the prior year's amount of
$550,347. Year to date Operating Expense is $5,137,668 less than prior year's
$5,521,684 down about $409,000. Excess Revenues over Expenses for the current
period loss are ($152,130) compared to the pervious year's loss of($311,243) and year
to date Revenues are $30,174 compared to the prior year's loss of($160,373).
Balance Sheet: Total Cash for the current year is $656,964 compared to the previous
year's amount of $418,000. The advance from the City for Common Ground still
appears in that figure it has not been transferred over to the Common Ground fund
making the figure seem higher. Unearned Revenue - Advanced Rent for the current
year is $360,362 compared to the prior year's amount of$332,716. Unreserved Equity
for the current year is $103,587 compared to $73,413 for the prior year.
Budget vs. Actual: Building Rental for the current period was better than budget by
$8,545 and for year to date it was less than budget by ($10,587). Food and Beverage
Revenues are higher than budget for the current period by $86,321 and for year to date
it are higher than budget by $81,329. Equipment Rental for year to date is better than
budget by $18,012. Total Operating Revenues are better than budget for the current
period by $137,000 and for year to date they are better than budget by $121,051.
Operating Expenses - Salaries/Wages for the year to date are higher than budget by
($25,259). Fringes/Related Costs are better than budget for year to date by $39,143.
Utilities are higher than budget for year to date by ($16,800). Maintenance of
Equipment is higher than budget for year to date at $ ($1,488). Maintenance of
Facilities are higher than budget by ($10,450). Total Operating Expenses for the
current period are higher than budget by ($144,542) and for year to date the figure is
higher than budget by ($68,715). Operating Income (Loss) for the current period is
higher than budget by $7,541 and for year to date the amount is better than budget by
$52,336. After taking into account the City Contribution and Interest the current
period is higher than budget by ($5,788) and for year to date is better than budget by
$58,512
Commissioner Ambrose asked when it was expected to get the final financial reports as
everyone was given drafts. Marian Bryant stated the audit begins on Monday; August
28, 2006 therefore it will be a month before it is finalized. Based on the numbers in
the draft Marian does not expect any significant changes once the audit is complete.
Commissioner Johnson noted that the $280,000 swing in the combined budget from a
($232,000) loss to a $47,000 to $48,000 gain needs to be commended.
LEPFA Board of Commissioners Meeting
Page 5
August 22, 2006
Finance Committee Chairman Charlotte Sinadinos moved that the monthly financials
for Oldsmobile Park, the Lansing City Market and the Lansing Center for the period
ending June 30, 2006 be received as published and further that the monthly expenses
for each entity be approved. SECOND: Commissioner Peters. Motion carried.
C. PRESIDENT& CEO'S REPORT: Eric Hart reported the following:
1. Common Ground: Eric noted this year was a good year. Financials are not in yet,
expense were considerably higher in some areas this year. Eric stated that there is still
a wait for some bills to be submitted. Eric figures it will be early October when the
financials will be in. Eric stated that attendance was up; ticket revenues were up as
were the costs. Eric informed the board that we are looking for new sponsors for next
year's event and several areas of new revenue for the festival. Eric reported that there
is a possibility there may be a legal matter in the future. Eric stated that currently the
City is working with the Festival on this. Eric stated it is not a legal matter with the
festival itself but more with one of the Partners to the festival, noting that no
information in regards to this matter is being discussed at this time.
2. Informational: Eric thanked the Board for the accolades on the budget though he feels
the credit goes to the Vice Presidents, Managers and the staff of the Lansing Center.
Eric noted that everyone made considerable sacrifices over the year in their personal
finances and insurance coverage. Eric will pass on the Boards thanks to the staff.
Eric thanked Commissioner Peters for the time she served as Chairman. Noting
Commissioner Peters came in as Chairman during a difficult financial time. At that
time Commissioner Peters was presented with a bouquet of flowers, a plaque and gift
certificate. Commissioner Peters spoke commending the staff and Eric for turning
things around.
3. Health wise: Eric noted the employees have participated in a full medical assessment.
Eric stated this program is part of the overall five year plan presented to the employees
last year. Eric continued by stating that those employees that participated in the
program received $100 toward their out of pocket health costs. Eric stated it is hoped
to keep this program as an annual event.
4. Position Vacancies: Eric noted there are new vacancies in the Sales and Maintenance
departments. Eric stated that Jeff Pluff the Creative services Coordinator has accepted
a position with Michigan State University Credit Union and Bill Vander Ploeg has
accepted a position with a refrigeration company which more closely meets his HVAC
skill level. Eric noted that the Creative Services position has been advertised for.
LEPFA Board of Commissioners Meeting
Page 6
August 22, 2006
5. Employee Manual: Eric noted hard copies will be given the Commissioner Peters and
Commissioner Butler along with an electronic version. Eric informed both
Commissioners that Heidi will be contacting them and Commissioner Haggart to set up
a meeting for feedback, to get the manual revised and out to the unions to be finalized
and distributed in November.
6. Capital Repairs: Eric noted repairs are still ongoing. Stating last month there were
intermittent issues with the phone system as the Lansing Center changed over the phone
switch. Eric noted that the cost for this was less than expected due to the current
switch being in better condition than accepted and was able to continue use, allowing
those capital funds to be moved to other areas for spending. Eric noted that today,
August 22, 2006, the East half of the building is without power to allow for the
electrical switch gear to be taken apart and cleaned, stating that the West half of the
building will go through the same process within the next 30 to 45 days. Eric noted
that next Thursday August 31, 2006 the water will be shut off to the building leaving no
rest rooms or kitchen. Stating that do to the audit there will be prota jons brought in for
use. Noting this is due to the Michigan Avenue construction.
7. Oldsmobile Park: Eric noted renovations will start soon. Stating the finalization of one
contract will be this week, the architect chosen left the project so a new one had to be
chosen. Eric noted Irish Construction was awarded the contract to begin after the finals
with the Lugnuts. Eric continued stating the architect is hopeful to have the bulk of the
work done by December and do the punch list in the spring.
8. HVAC: Eric stated next week a meeting including Commissioner Ambrose will be
held in regards to the Performance Contract. Eric noted the Lansing Center has had
three compressors fail in the last one and one half months, which required using Capital
money to repair and replace.
9. Ne otg iation: Eric noted active negotiations with the UAW are continuing. One of the
units has still not signed their contract; their representative left the Authority and a new
representative for UAW will be assigned to over see this building. Stating currently the
Authority is waiting for the UAW to reopen negotiations. Eric noted IATSE is close to
accepting the contract.
10. Website: Eric noted that Phase 2 of the website is complete. Stating there is a new
look. Linda Frederickson noted that Diane Stehower, our Staff Accountant A/R, has
been working closely in developing the pay on line system. Linda stated that the week
after Labor Day a press release will go out along with a cover letter to clients
explaining the changes.
11. Client Surveys: Eric noted the client surveys requested by Commissioner Butler have
been distributed. Eric noted from 2005 to 2006 there is a considerable difference in the
ratings both on the facility and the staff for June and July. Stating our clients are
starting to rate us higher which is a good sign. Eric noted that the rating most
concentrated on are the top four, noting all four are up considerably.
LEPFA Board of Commissioners Meeting
Page 7
August 22, 2006
12. Occupancy Eric noted that June is the beginning of the summer slip noting the
difference again in July. Eric also noted that though the numbers are lower they are
still better than previous years.
13. Vice President's Reports: Note: Chairman Jeffries asked if the Vice Presidents would
also introduce themselves the Commissioner Quinney in their reports.
A. Finance Department - Marian Bryant: Marian reported most of her areas has
been covered through the meeting including Health Wise University and the current
audit.
B. Marketing Department - Linda Frederickson: Linda Introduced herself as the
Sales and marketing Vice President. Linda reported proposals for the National
Police Collectors show in 2009, the Archery Trade Association in December 2006,
the Michigan State University's Annual Science Banquet this year as well, for over
$25,000 worth of Revenue. Linda stated focus is on October as September is
shaping up well for business. Linda noted the Authority is working with the
Convention and Visitors Bureau in an attempt to have the National Coalition for
Black Meeting Planners hold an event with the Lansing Center in the spring of
2008.
Linda reported in June and July there were 53 events with 69 event dates for over
16,000 people in the building.
Linda extended a thank you to the Convention and Visitors Bureau for their help
with the visitor packets noting with out their help the authority would not have
them. Linda noted she had copies available for the board to look at.
Linda reported at the City Market there will be a fall event from September 14`h -
16`h. Linda stated the Market Watch was mailed out on August 24`h. Linda
reported that last week all vendors were invited to participate in a Chamber seminar
on Small Business, which introduced the attendees to small business resources
available in the area through the Chamber in partnership with Lansing Community
College.
C. Operations Department - Scott Keith: Scott reported the new banquet room
chairs arrived one week ago.
D. Food and Beverage Department- Bill Grove: Not present
D. PERSONNEL COMMITTEE: Committee Chairman Haggart not present to give report.
E. LONG RANGE PLANNING COMMITTEE: Committee Chairman Janssen not present
to give report.
F. NOMINATING COMMITTEE REPORT: Report not needed.
LEPFA Board of Commissioners Meeting
Page 8
August 22, 2006
VII. COMMISSIONER AND STAFF COMMENTS:
A. Commissioner Charlotte Sinadinos: Commissioner Sinadinos stated she enjoyed Common
Ground, stating it was a great choice of entertainment.
B. Commissioner Gerald Ambrose: Commissioner Ambrose supported Commissioner
Sinadinos comment in regards to Common Ground.
C. Commissioner Derrick Quinney: Commissioner Quinney thanked the board for inviting
him to participate. Further commenting that volunteering for Common Ground was very
interesting and the festival is a wonderful event of the community. Commissioner Quinney
stated he will be available to assist as the board as needed.
D. Commissioner Butler: Commissioner Butler complimented the staff on an excellent job
well done on Common Ground. Commissioner Butler referenced the legal issue asking will
it affect the festival in a negative way. Eric stated that is uncertain until more feedback
comes from the City Attorney's office. Stating this is an issue from the first year of
Common Ground and it will not affect the Lansing Entertainment and Public Facilities
Authority in any way. Commissioner Butler asked to see a summary sheet that compares
the festival year to year.
E. Commissioner Peters: Commissioner Peters commented that Common Ground even with
the rain. Commissioner Peters also commented that the client packets look good and
complimented the staff on them.
F. Margo Vroman: Introduced herself as being with the City Attorneys office.
G. Heidi Brown: Commented thanked Ellen for volunteering for Common Ground.
H. Tracy Hodges: Introduced herself as being Lansing Centers Operations Assistant.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:00 a.m. a motion was made for adjournment by Chairmen Peters, and the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, September 26, 2006 AT
8:00 A.M. AT THE LANSING CENTER IN THE Governor's Room.
Respectfully submitted,
Tracy Hodges, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES
AUTHORITY
BOARD OF COMMISSIONERS MEETING
September 26, 2006 `' �? �-n
MINUTES i
~1
c-' N l
At 8:03 a.m. Chairman Ellen Jeffries called the meeting to order in the Governor's Roorli_�-, tTe �-T1
Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
<�
COMMISSIONERS PRESENT: James W. Butler III, John Decker, Charles Janssen, Ellen M rieS;
Robert Johnson (Ex-officio), Kris Nicholoff, Sharon Peters, and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: Gerald Ambrose (Ex-Officio), Tim Haggart, and Derrick Quinney
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Eric Hart, Tracy Hodges,
Scott Keith, Dirk Spillemaeckers- Lansing Entertainment and Public Facilities Authority and
Councilmember Tim Kaltenbach.
III. ESTABLISHMENT OF THE AGENDA: Commissioner Jeffries asked if there were any
suggested changes to the agenda. There were no changes to the agenda.
IV. PUBLIC COMMENT: Dirk Spillemaeckers announced that AMTA (Audio Visual
Maintenance Technician Association) has two employees that will no longer be primarily available for
this venue.
At 8:04 a.m. Robert Johnson entered the meeting.
This is due to lack of scheduled hours. Continuing to say this is not a criticism of the Lansing
Entertainment and Public Facilities Authority but more a criticism of the times. Mr. Spillemaecker
explained what the results of this would be, by stating the Audio Visual Maintenance Technician
Association is a small unit that is now reduced to one half of its capacity. Noting the members he is
speaking of are George Francis and Tim Bugenske. Mr. Spillemaecker gave a summary as to how
these members are recompensed and why this has become, in his opinion, a severe problem. Noting
these members are primarily paid by the client, meaning they are here when supplemented charges are
brought to the client, George Francis is mainly a Video and Electrical Technician and Tim Bugenske is
Rigging and Electrical.
At 8:06 a.m. Tim Kaltenbach entered the meeting.
Continuing to note that since purchases of electrical by the client are down these members services are
not as required as they have been in the past; the result is these members have not made an appearance
here. Stating with families to support their situations has now become critical so these members will go
and work elsewhere in the industry. Mr. Spillamaecker stated this venue will be loosing a lot by this,
George Frances is a professional who has worked out of Chicago and New York in Audio Visual
Technology, for example, is recognized on a first name basis by Governor Granholm. Continuing that
with Mr. Francis the Governors wants and needs are already met before she enters the building, noting
this is the kind of relationship these members have with current clients. Stating that if the continuity
these members have with the client is lost then Lansing Entertainment and Public Facilities Authority is
losing something very valuable.
Mr. Spillamaecker stated he can not make any suggestion; he can only give the Board of
Commissioners background and state why these members are doubly disappointed. Stating that both
members were
LEPFA Board of Commissioners Meeting
Page 2
September 26, 2006
addressed in a meeting with Patrick Talty, the former Vice President of Operation, where promises
were made which have not been met for whatever reason, the economy or change in administration.
Noting these members, as recognized by Merck were given positions titled at regular part time. At this
time Mr. Spillamaecker would not call these members positions that, stating due to this these members
have quietly stopped working at this venue. Noting in the near future some arrangements could be made
in view of the fact that a major portion of their costs to the Lansing Center are passed along to the
client. Noting this service is not like facilities or regular maintenance which is absorbed by the Lansing
Center where benefits also have to be augmented, these member have their own benefits. Continuing
with Eric Hart's generosity through negotiation these members have received a 10% co-pay from
Lansing Entertainment and Public Facilities Authority so they may continue some insurance policies on
their own, which is the extent of the benefits. Mr. Spillemaecker noted this is not the same extent
given to other employees.
Mr. Spillamaecker stated he has spoken with Scott Keith, Vice President of Operations and was assured
by the year 2008 these members situations will be better. Stating in the mean time these members still
have to eat and sustain their families. Continuing to note is it worth the Lansing Centers while to
subsidize these members in some way; these members are not going to sit back when there are other
means of income out there.
Mr. Spillamaecker stated he has conversed with Eric Hart and Scott Keith and has not seen any
avenues. Noting that with the combined resources of the Board of Commissioners a solutions can be
reached that will allow the Lansing Center to retain these valuable members on a regular part time
basis. Stating the work hours of these members, in spite of Patrick Talty's ensurance has decreased
significantly. Mr. Spillameacker stated these members were promised three years ago that their hours
would be sustained and goes no less than one half time and no higher than three quarters, therefore the
members planned accordingly.
At 8:11 a.m. Sharon Peters entered the meeting.
Mr. Spillameacker asked the Board of Commissioners if a plan could be devised that would allow the
Lansing Center to keep these, in his opinion, very valuable employees. Asking for the Boards serious
consideration in this matter.
Chairmen Jeffries stated she will send this matter to the Personnel Committee for review. Noting that
the Board is making no promises as to resolution but will review this matter thoroughly.
V. APPROVAL OF THE MINUTES OF August 22, 2006: Chairman Jeffries noted there is an
error with stating Charles Janssen made a Motion that should have been Charlotte Sinadinos as Charles
Janssen was not present, an amendment will be created. Approval of the minutes was passed
unanimously.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
Chairman Jeffries had no report.
LEPFA Board of Commissioners Meeting
Page 3
August 22, 2006
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending July 31, 2006:
a. Lansing City Market: Operating Revenues - Building Rental for the current period
is $5,599 exceeding the prior year's amount of $4,551. Utilities for the current period
are $161 due to the vendors being charged a small amount for utilities. Operating
Expenses - Salaries/Wages for current period are down at $1,826 compared to the prior
year's $2,685. Utilities for the current period are $3,445 down from the prior year's
amount of$3,716. Marketing for the current period is $5,000. This amount is the City
Market's portion of the web site. Total Operating Expenses for the current period are
$11,929 exceeding the prior year's $8,722. Year to date we have Revenues Over
Expenses of$95.19 compared to the prior year's amount of$907.
Eric Hart noted that the $5000 in Marketing is strictly the web site, a one time
payment. Stating as part of getting the web site completed the final payment was in this
fiscal year.
Balance Sheet: Total Cash for the current year is $57,459 less than the prior year's
$71,729. Accounts Receivable for the current year is $141,829 exceeding the prior
year's $109,735. Unreserved Equity for the current year is $181,413 exceeding the
prior year's amount of$160,421.
Budget vs. Actual: Building Rental for the current period and year to date are better
than budget by $618. Total Operating Revenues for the current period are $5,795
compared to the budgeted amount of $5,363. Making Total Operating Revenues better
than budget by $432. Operating Expenses - Salaries/Wages are better than budget by
$671. Utilities are better than budget by $788. Total Operating Expenses for the
current period are better than budget by $2,959. After taking into account the City
Contribution we are better than budget by $3,392.
b. Oldsmobile Park: There were no Event Revenues for the current period. There
were Event Expenses of $79.24 which was applied to the Event Development Fund.
Miscellaneous Revenues for the current period are $ 1,358. Operating Expenses -
Salaries/Wages for the year to date are $2,996 compared to the prior year's amount of
$1,536 due to the allocation change. Utilities for year to date are $9,557 compared to
the prior year's $5,326.
Commissioner Sinadinos noted Oldsmobile Park is now under the new TMO
Agreement and are now paying one half of the all Utilities including water.
Marketing for the current period is $3,775 due to the web site. Maintenance of
Equipment for the current period is $1,791 compared to the prior year's $718 due to
the cost of service agreement in the new TMO. Maintenance of Facilities is up at
$2,423 which is also part of the new agreement (HVAC repairs). Total Operating
Expenses for the current period are $26,730 exceeding the prior year's amount of
$13,226. Excess Revenues over Expenses for the current period are $799
LEPFA Board of Commissioners Meeting
Page 4
September 26, 2006
compared to the prior year's amount of$6,072.
Balance Sheet: Total Cash for the current year is $206,033 compared to the prior
year's $83,638. Net Event Development Fund for the current year is $75,515
compared to the prior year's $66,779. Accounts Payable year to date is $333,846
compared to the previous year's $194,483. Unreserved Equity for the current year is
$21,229 compared to the prior year's amount of$21,311.
Budget vs. Actual: Operating Expenses - Salaries/Wages are higher than budget for
year to date by ($290). Utilities are higher than budget for year to date by ($480).
Total Operating Expenses for the current period are higher than budget by ($654.40)
After considering the City Contribution and Interest we are better than budget for year
to date by $36.60.
c. Lansing Center: Building Rental for the current period is $18,520 compared to the
prior year's amount of $14,845. Food and Beverage for the current period is $57,431
less than the prior year's $62,036. Equipment Rental for the current period is $6,119
compared to the prior year's amount of $3,311. Parking for the current period is
$2,572. Total Operating Revenues for the current period are $90,735 compared to the
prior year's amount of$83,104 which is up $7,600 for the Current Period.
Operating Expenses - Salaries/Wages for year to date are $73,539 compared the prior
year's amount of$73,763. Utilities for year to date are $54,038 compared to the prior
year's amount of$42,263. Maintenance of Equipment for the current period is $5,323
compared to the prior year's amount of $1,145, due to phone equipment and fork lift
repair. Maintenance of Facilities for the current period are $3,981 compared to the
prior year's amount of$9,776. Food and Beverage Expense for year to date is $52,328
compared to the prior year's $66,623. Total Operating Expenses for the current period
and year to date are $266,816 compared to the prior year's amount of $263,797 for an
operations loss year to date of ($176,080) compared to the prior year's amount of
($180,693). Excess Revenues over Expenses for the current period are ($104,934)
compared to the pervious year's loss of($87,272)
Eric Hart noted in the Utilities there is a dramatic difference. He stated that the steam
bill was large due to the HVAC system failing, and the units need to be running
continuously to build up enough capacity to cool the building. Eric noted this is one of
the hidden costs of the failing HVAC system. This has not been verified but it is
believed to be why the amount is so high.
Balance Sheet: Total Cash for the current year is $595,662 compared to the previous
year's amount of $118,225. Total Accounts Receivable for the current year are
$557,442 compared to the previous year's $138,813. Unearned Revenue - Advanced
Rent for the current year is $446,612 compared to the prior year's amount of$354,060.
Unreserved Equity for the current year is ($1,899) compared to ($13,859) for the prior
year.
Budget vs. Actual: Building Rental for the current period was better than budget by
$2,070. Food and Beverage Revenues are less than budget for the current period by
($2,568). Equipment Rental for year to date is better than budget by $2,261. Total
LEPFA Board of Commissioners Meeting
Page 5
September 26, 2006
Operating Revenues are better than budget for the current period and year to date by
$2,777. Operating Expenses — Salaries/Wages for year to date are better than budget by
$1,502. Fringes/Related Costs are better than budget for year to date by $5,152.
Utilities are better than budget by $1,253. Maintenance of Equipment is higher than
budget by ($3,580). Food and Beverage is better than budget by $19,398. Total
Operating Expenses are better than budget by $33,097. Factoring Revenues against
Expenses we are better than budget by $35,875. After taking into account the City
Contribution and Interest we are better than budget by $37,991.
Finance Committee Chairman Charlotte Sinadinos moved that the monthly financials
for Oldsmobile Park, the Lansing City Market and the Lansing Center for the period
ending July 31, 2006 be received as published and further that the monthly expenses for
each entity be approved. SECOND: Commissioner Decker. Motion carried.
C. PRESIDENT& CEO'S REPORT: Eric Hart reported the following:
1. Entertainment Express: Eric noted that two weeks ago the Board was given information
on this new CATA bus route from Lansing to East Lansing, Stating it is being called
the Entertainment Express because it is being run Thursday, Friday, and Saturday
nights from 7:30 p.m. to 2:30 a.m.. Reporting the Express is designed to provide
unique night time transportation through the entertainment corridor, Michigan Avenue.
Continuing, the Express stops in East Lansing, in Lansing and along the corridor. Eric
reported there is some risk for Lansing Entertainment and Public Facilities Authority to
participate in the project. Eric is requesting from the Board of Commissioners
permission to sign a contract with CATA that will obligate the Lansing Center to
$95,000. Noting there has been strong verbal commitment in the amount of $75, 000
in sponsorship. Continuing there are also two fund raising groups currently out raising
money for this project, stating he does not see this as risking the Lansing Centers
bottom line. Information was passed to the Board giving an overview of the purpose
for this project and partners involved, stating the Convention and Visitors Bureau is the
title sponsor for this project. Noting that CATA has worked hard to keep the cost to a
minimum. Eric reported service will most likely begin late October early November.
Eric noted the trolley being used for the Express holds 40 people, stating that CATA
has agreed to put on more busses to this route if needed at their expense. Eric reported
Lansing Entertainment and Public Facilities is taking the lead on promoting the
Entertainment Express. Continuing there will be a big kick-off reception, noting please
disregard the October 5`h date, the correct kick-off will be more toward Halloween
though no start date has been solidified. Eric reported three major hotels in the area;
Radisson, Marriot, and Kellogg Center have all made a money pledge.
Chairman Jeffries asked if the $96,500, including marketing, will come from the
Lansing Entertainment and Public Facilities Authorities budget. Eric stated it would
come out of the operations budget of the trolley. Currently $105,000 is the goal of
money being raised, the Lansing Center would be obligated to $95,000 under contract,
and there are other methods such as trades and promotions leaving a possibility that the
$105,000
LEPFA Board of Commissioners Meeting
Page 6
September 26, 2006
could be reduced. For example: graphic design, there has been a commitment from
Carmon Knass to some design a poster as part of a sponsorship for free. Therefore,
that expense has been reduced.
Commissioner Peters expressed she feels this is a good idea for the City of Lansing.
Also expressed gratitude for Eric's involvement.
Commissioner Sinadinos asked if the construction on Michigan Avenue would interfere
with the initial start date. Eric indicated that the trolley would still run on Michigan
Avenue, stating that there are no games at Oldsmobile Park so the bus would more than
likely bi-pass that stop.
Tim Kaltenbach expressed his excitement about this project and asked if there were any
projections as to the number of ridership. Eric stated projections were done and the
$95,000 includes that amount, it was estimated at about $15,000 based on 100 people
per night over 52 weeks. Continuing that CATA will continue to run its normal route,
the Express is supplementing Route One which stops running at an earlier hour than the
Express. Tim stated that Thirsty Thursday was on the route schedule which starts
about one hour earlier than the Express, asking if the times will be changed to
accommodate that. Eric stated the hours within the contract are flexible. The intent is
to stay with the core times with minor adjustments for such events and holidays.
Commissioner Nicholoff asked if the intent of the project is to get people from East
Lansing to come to Lansing. Eric stated no, it is a regional trolley designed to move
people between the two cities as an equal trade of patrons, allowing them to have easy
movement between cities to spark business.
Eric requested a motion be made to give him approval to sign a contract with CATA to
bring this program to the city. Motion made by Commissioner Peters. SECOND:
Commissioner Sinadinos. Motion carried
2. Client Evaluations: Eric reported as requested, the Board was provided with the current
year as well as the pervious years reports. Noting there is a significant increase in the
satisfaction with the Facility, Staff and the City of Lansing. The Lansing Center has
been actively working with the staff to show the importance of customer service and
will continue to do more. Eric gave the staff being in uniforms as an example.
Restrooms are cleaner and the building is being repaired. Eric reported that the entire
Lansing Center front line staff will be attending a Disney training session on customer
service.
3. Vice President's Reports:
A. Finance Department — Marian Bryant: Marian reported the Employee of the
Month meeting will be held Wednesday September 27, 2006 at 11:15a.m. in
the Governor's Room, inviting the Board to attend. Noting an ATM machine
has been put in at the City Market; the instillation will bring in some Revenue
but is more for convenience to customers.
LEPFA Board of Commissioners Meeting
Page 7
September 26, 2006
B. Marketing Department - Linda Frederickson: Linda reported there were 33
events for July creating 41 total event dates making the economic impact
$177,000.
Linda noted some booking recaps; Great Lakes Feis for the years of 2008,
2009, 2010. Martin Luther King Luncheon on January 15, 2007. Michigan
Agri-Business will return for their 2007 conference. Also Michigan Veterinary
in 2008, 2010. Along with Michigan Snowmobile in 2007 and 2008, this will
be in October.
Linda noted that Occupancy is up from 2005 to 2006.
At 8:54 a.m. Robert Johnson exited the meeting
Linda reported that the web site is done and working in regards to payment on
line. Continuing to report the print collateral production is completed.
Linda reported the City Market Fall Festival was held September 14-16"' and
did well. Noting the next event scheduled for the City Market is Silver Bells
on November 17`h.
C. Operations Department - Scott Keith: Scott reported Oldsmobile Park
renovations have begun. Noting if you wish to visit the site you need to stop in the
front office at Oldsmobile Park for a hard hat as this is a requirement to enter the
site. Continuing to report negotiations are currently going slow. As of October 9"'
both Full Time Maintenance positions have been filled.
D. Food and Beverage Department - Bill Grove: Bill reported the Capital
Improvement Projects for Food and Beverage are complete, explaining the new
improvements will be more efficient in time and utilities. Noting the Board is
welcome to visit the kitchen to view the new items.
Bill noted he is in the interview process to fill the vacant Banquet Manager
position.
Bill reported the Red Hatters were here and left very happy, which might lead to
regional and national event considerations.
D. PERSONNEL COMMITTEE: Committee Member Sharon Peters reported the committee
did an initial review and approval of the Employee Handbook which is an essential tool.
Eric Hart requested the Board go to a closed session to discuss his performance review.
At 9:16 a.m. role was taken to enter into the closed session.
COMMISSIONERS PRESENT: James W. Butler III, John Decker, Charles Janssen, Ellen
Jeffries, Kris Nicholoff, Sharon Peters, and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: Tim Haggart, and Derrick Quinney
LEPFA Board of Commissioners Meeting
Page 8
September 26, 2006
At 9:51 role was taken to call the meeting to order.
COMMISSIONERS PRESENT: James W. Butler III, John Decker, Charles Janssen, Ellen
Jeffries, Kris Nicholoff, Sharon Peters, and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: Gerald Ambrose (Ex-Officio), Robert Johnson (Ex-officio),
Tim Haggart, and Derrick Quinney
Commissioner Butler noted the Personnel Committee has done a wonderful job. Commissioner
Butler moved that the Personnel Committee report be accepted as proposed. SECOND:
Commissioner Janssen. Motion carried.
Commissioner Butler stated there will be another committee meeting to delve deeper into some
of the issues discussed.
E. LONG RANGE PLANNING COMMITTEE: Committee Chairman Janssen reported
updates on the following; Noted the Trolley is a great idea for the city and thanked Eric for
his participation. Noted that Impression 5 is planning a Facility Expansion.
Chairman Janssen reported the committee's main focus was the HVAC system. Noting the
current HVAC system if very old, outdated and failing. Stating Lansing Center staff has
been working with the City update and improve the system to reduce energy costs that
resulted in RFP's being sent out. Chairman Janssen reported that two proposals were
received for review from Honeywell and Nelson Trane. Noting after review the Honeywell
proposal was chosen to be the more comprehensive proposal which is a seven million dollar
project, including renovation or replacement to lighting, roof materials, and radiant heat,
fans, fire alarm system and more. Stating this project is supported by a guaranteed energy
saving which is common in this industry. Continuing to state that in the past the Lansing
Centers energy savings projections have more than surpassed the projected amount.
Chairman Janssen reported the Committee members are satisfied with the proposal and
understand it is a large project but is a good investment as the current problems will only
continue to get worse. Therefore Chairman Janssen recommended the proposal be
approved.
Eric Hart noted when we asked for 4 million we actually asked for more, we were
estimating on the cost of performance and we did indicate there would be a performance
contract. Noting the only issue is the expectation was the project would cost between 2-4
million and it is a 7 million dollar project. This is due to the major increase in the cost of
copper, all the electrical is copper wiring. Eric noted that in a proposal it was talked about
taking out the equipment we have now and replacing it with exactly what is there now.
Stating this would not be a good plan as the equipment has a life of 15 to 20 years and then
would be doing exactly what it is doing now. Noting no energy savings can be generated
by doing this.
Chairman Janssen reported this proposal also takes into consideration the possible future
expansion of the Lansing Center.
LEPFA Board of Commissioners Meeting
Page 9
September 26, 2006
A Motion was made by Commissioner Decker to approve the proposal by Honeywell and
move it to the Administration to be taken to the City. SECOND: Kris Nicholoff. Motion
Carried.
F. NOMINATING COMMITTEE REPORT: Report not needed.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Marian Bryant: Marian commented she is still awaiting the budget final draft from the
auditors. Noting the numbers are still remaining the same.
B. Commissioner Charlotte Sinadinos: Commissioner Sinadinos stated she liked the
Entertainment Express.
C. Commissioner Kris Nicholoff: Commissioner Nicholoff commended Eric on his
participations with the Entertainment Express stating he went above and beyond his duties.
Continuing to state the Michigan Dental Association has approved a 6.6 million dollar
investment to down town Lansing to build three floors on top of the Capital View Building,
as Legal Papers were signed in Washington DC last week.
D. Linda Frederickson: Linda commented that she seen Commissioner Sinadinos TV
commercial and it was nice.
E. Commissioner Butler: Commissioner Butler asked if Eric Hart could stay after the
meeting.
F. Commissioner Peters: Commissioner Peters commented that the transformation period
between Board members and Lansing Center administration has been very pleasurable
continuing to thank Eric for his job well done.
G. Commissioner Janssen: Commissioner Janssen agreed with Commissioner Peters pointing
out he feels Linda Frederickson did an outstanding job on the new graphics and brandings.
H. Eric Hart: Eric commented that more information on Common Ground will come soon.
Currently information is still coming in. Noting there is a legal issue with a partner not
with the festival, when information becomes available it will be distributed as to how it will
or will not affect Lansing Entertainment and Public Facilities Authority.
I. Chairman Jeffries: Chairman Jeffries agreed with commissioners Peters and Janssen as to
the outstanding efforts during the transitions.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
LEPFA Board of Commissioners Meeting
Page 10
September 26, 2006
At 10:01 a.m. a motion was made for adjournment by Chairmen Jeffries, and the meeting was
adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, October 24,
2006 AT 8:00 A.M. AT THE LANSING CENTER IN THE Governor's Room.
Respectfully submitted,
Tracy Hodges, Recording Secretary
At the September 26, 2006 Chairman Jeffries made the following change to the August 22, 2006
minutes: Charles Janssen should be reflected as Charlotte Sinadinos in session III Establishment of the
Agenda. Motion Seconded by.
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING �CGI\+�.-D
October 24, 2006 f
l5
MINUTES
At 8:07 a.m. Chairman Ellen Jeffries called the meeting to order in the Governor's RocLirggg abe—Ia4iUg
Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: John Decker, Tim Haggart, Ellen Jeffries, Kris Nicholoff, Sharon
Peters, Charlotte Sinadinos, and Derrick Quinney.
COMMISSIONERS EXCUSED: Gerald Ambrose (Ex-Officio), James W. Butler III, Charles Janssen,
and Robert Johnson (Ex-officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Eric Hart, Tracy Hodges, Scott
Keith, Dirk Spillemaeckers- Lansing Entertainment and Public Facilities Authority and Councilmember
Tim Kaltenbach.
III. ESTABLISHMENT OF THE AGENDA: Commissioner Jeffries asked if there were any
suggested changes to the agenda. There were no changes to the agenda.
IV. PUBLIC COMMENT:
V. APPROVAL OF THE MINUTES OF SEPTEMBER 26, 2006: Chairman Jeffries asked if
there were any changes to the previous minutes. The minutes were approved and passed unanimously.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
Chairman Jeffries complimented the Finance Committee for their hard work as Revenues
are up and Expenses are down.
Chairman Jeffries asked the Long Range Planning Committee and the Personnel
Committees to let the Board know of their next meeting date and time during their reports
today.
At 8:09 a.m. Derrick Quinney entered the meeting.
B. SECRETARY/TREASURER'S REPORT:
Finance Chairman Charlotte Sinadinos noted the Finance Committee review August and
September 2006 Financial Reports. The Finance Committee decided to review the most recent
September Financials.
1. Monthly Financial Statements for the Period Ending September 30,2006:
a. Lansing City Market: Operating Revenues —Building Rental for the current period is
$4,558 exceeding the prior year's amount of $4,025. Year to date Building Rental is
$14,807 exceeding the prior year's amount of $12,826. Total Operating Revenues for
year to date are$15,602 exceeding the prior year's amount of$12,931. Operating
LEPFA Board of Commissioners Meeting
Page 2
September 26, 2006
Expenses — Salaries/Wages for year to date are $8,843 less than the prior year's amount
of$9,569. Utilities for the current period are $3,053 exceeding the prior year's amount of
$2,929. Utilities for year to date are $10,174 compared to the prior year's amount of
$9,990. Total Operating Expenses for the current period are $8,274 exceeding the prior
year's amount of$6,151. Year to date Operating Expenses are $29,809 compared to the
prior year's amount of $25,933. Year to date Revenues Over Expenses are $4,482
compared to the prior year's amount of$2,129.
Balance Sheet: Total Cash for the current year is $83,848 compared to the prior year's
amount of $20,837. Unreserved Equity for the current year is $185,804 exceeding the
prior year's amount of$161,643.
Budget vs. Actual: Building Rental for year to date is less than budgeted by ($62.34).
Total Operating Revenues for year to date are less than budgeted by ($413). Utilities for
year to date are better than budget by $2,527. Total Operating Expenses of $29,809
compared to the budgeted amount of $36,997 making Total Operating Expenses better
than budget by $7,187. After taking into account City Contributions we are better than
budget by $6,774.
b. Oldsmobile Park: Total Operating Revenue from the ATM machine for the current
period is $1,138 and for year to date is $4,312 compared to the prior year's amount of
$3,218. There were no Event Revenues for the current period. There is a $5 charge in
Event Expenses for bank charges that was deducted from the Event Development Fund.
Operating Expenses - Salaries/Wages for the current period are $3,736 compared to the
prior year's amount of$3,209 due to the allocation change and year to date are $11,210
compared to the prior year's amount of$7,660. Utilities for the current period are$8,968.
This amount is an estimate as the correct invoice has not been received from the Board of
Water &Light. Compared to the prior year's amount of$4,641. Year to date Utilities are
$28,266 compared to the prior year's amount of$15,088. based on the TMO, similarly
based on the new TMO agreement, LEPFA's share of Utilities and Maintenance contracts
has increased.
Total Operating Expenses for the current period are $20,681 exceeding the prior year's
amount of$16,195 and for year to date is $73,299 compared to the prior year's amount of
$43,553. Excess Revenues over Expenses for year to date are $9,528 compared to the
prior year's amount of$16,289.
At 8:15 a.m. Tim Kaltenbach entered the meeting.
Balance Sheet: Total Cash for the current year is $440,598 compared to the prior year's
amount of $260,604. Net Event Development Fund for the current year is $75,505
compared to the prior year's amount of$58,603. Unreserved Equity for the current year
is $29,947 compared to the prior year's amount of$23,352.
Budget vs. Actual: Operating Expenses — Salaries/Wages are better than budget for year
to date by $890. Total Operating Expenses for year to date are $73,299 compared to the
budgeted amount of $85,443 making Total Operating Expenses better than budget by
$12,143. After considering City Contributions and Interest we are better than budget for
year to date by $14,454.
LEPFA Board of Commissioners Meeting
Page 3
September 26, 2006
c. Lansing Center: Building Rental for the current period is $54,290 compared to the
prior year's amount of$29,250. Building Rental for year to date is $141,432 exceeding
the prior year's amount of $74,542 which is up $67,000. Food and Beverage for the
current period is $212,651 greater than the prior year's amount of $127,664. Food and
Beverage for year to date is $426,771 compared to the prior year's amount of$307,130.
Total Operating Revenues for the current period are $317,223 compared to the prior
year's amount of$198,244 for year to date is $695,475 exceeding the prior year's amount
of$461,979 which is up$233,000.
Operating Expenses — Salaries/Wages for year to date are $365,908 compared the prior
year's amount of $350,049. Utilities for the current period are $49,242 exceeding the
prior year's amount of $45,762 and for year to date is $160,243 compared to the prior
year's amount of $131,715, which includes the new steam rates. Maintenance of
Equipment for the current period is $7,662 compared to the prior year's amount of
$1,943. Food and Beverage Expense for current period is $119,411 less than the prior
year's amount of$124,716 and for year to date is $281,225 compared to the prior year's
amount of$296,731. Salary and Wages —Food and Beverage Expense there were three
pay periods compared to two pay periods, last year causing the visible discrepancy.
At 8:17 a.m. Sharon Peters entered the meeting.
Total Operating Expenses for the current period are $378,758 compared to the prior
year's amount of$423,721 and year to date are $1,093,566 compared to the prior year's
amount of$1,032,473 for a net operating loss of($398,090) compared to the prior year's
amount of($570,494). Excess Revenues over Expenses for the current period are $9,229
compared to the pervious year's loss of ($168,608) and year to date net loss of
($186,278)compared to the prior year's ($398,216).
Balance Sheet: Total Cash and Cash Equivalent for the current year are $342,000
compared to the prior year's amount of$223,000. Unearned Revenue—Advanced Rent
for the current year is $441,434 compared to the prior year's amount of$409,576 which
is up $31,000. Unreserved Equity for the current year is ($86,843) compared to
($324,803)for the prior year.
Budget vs. Actual: Building Rental for the current period is less than budget by ($7,593);
year to date is better then budget by $1,891. Food and Beverage Revenues are less than
budget for the current period by ($7,348) and less then budget for year to date by
($3,228). Total Operating Revenues for the current period are less then budget by
($62,628) and for year to date are less then budget by($44,674).
Utilities for the current period are better than budget by $6,049 and for year to date are
$5,632. Salaries and Wages and Food and Beverage are both better than budget. Total
Operating Expenses for the current period are better than budget by $56,052 and for year
to date are $119,786. Factoring Revenues against Expenses we are better than budget by
$75,112 for year to date. After taking into account the City Contribution and hiterest we
are better than budget by$79,834.
Eric Hart noted under Labor Service there is a variance of $43,000 we are behind in
Revenues. Stating this is one of the issues that Mr. Spillemaeckers spoke of last month.
There is not enough call for Stage Hand labor, Audio Visual Tech labor, Clean up labor.
Clients are not ordering this service right now though it is starting to turn around.
LEPFA Board of Commissioners Meeting
Page 4
September 26, 2006
Eric stated it was budgeted much higher in anticipation of having major productions that
did not take place but the Food and Beverage event mix in September took care of some
of that.
Marian Bryant noted that the Bottom Line for year to date shows a negative $186,000
but it was budgeted for a negative $266,000. Therefore we lost money but are still ahead
of budget by$80,000. Marian stated that you can loose money and be ahead of budget.
Finance Committee Chairman Charlotte Sinadinos moved that the monthly financials for
Oldsmobile Park,the Lansing City Market and the Lansing Center for the period ending
August and September, 2006 be received as published and further that the monthly
expenses for each entity be approved. SECOND: Commissioner Haggart. Motion
carried.
Chairman Sinadinos stated the Finance Committee met with Mark Ketner and reviewed
the draft for the 2005-2006 Audit. There will be continued review and some changes will
be made, when the Audit is final there will be Board discussion of it.
C. PRESIDENT& CEO'S REPORT: Eric Hart reported the following:
1. Client Evaluations: Eric noted that Client Evaluations for September 2006 and a copy of
September 2005 have been passed out. Noting that 2006 is averaging well ahead of last
year in relationship to what the clients are rating us on with the satisfaction of the facility
and staff.
2. Board Identification Budges: Eric stated to receive an updated parking badge please see
Heidi for picture and signatures.
3. Trolley: Eric noted that tomorrow September 27"" at 9:15 a.m. at the CTC there will be a
press conference with both the Mayor's of Lansing and East Lansing, the CVB, and
Lansing Center and is expected to last about 15 minutes.
4. Board Christmas Party: After discussion the Christmas Party will be held on December
7, 2006 in the Pub of the Lansing Center. Commissioner Peters asked for the menu to be
the same as last year. Eric stated the there is possibility that the reception will be opened
to some of the LEPFA Partners,though this is still under discussion.
5. Committee Meetings: Eric reported Long Range Planning and Personnel Committee
meetings have been scheduled, please inform the Committee Chairman if you are
planning to attend.
6. City Market: Eric reported the financials look good. A wine shop opening soon and Eric
noted that the vendor may not sell other wine only the wine he makes. The flooring is in
and the vendor will be in to do some decorating, with the anticipation of opening in the
next 30—60 days. Eric stated the Wine Shop will be located in the old cafeteria and will
be a small walk in shop.
Eric reported that after Silver Bells the west side will be shut down again this year based
on the amount of energy savings and the vendors did better by being together verses
separated.
LEPFA Board of Commissioners Meeting
Page 5
September 26,2006
Eric reported he has given the Strategic Committee a revised version of the current
Operational Plan for the City Market. Eric noted a meeting will be held with the Vendors
Association to discuss the new plan. Eric stating that there might be one or two vendors
that have some concerns, but he intended to work with those vendors to alleviate those
concerns. Eric reported the proposal is to make the west side year around vending and
the east side would become a seasonal market to be open from April to around Silver
Bells depending on the amount of clientele along with changing the hours of the year
round and an abbreviated schedule for the seasonal east side. Eric reported that other
parts of the plan are to possibly get an Intern for Nick Hughes, along with beginning
coordinated educational activities, and establish the Friends of the Market.
7, Energy Management: Eric reported the Board approved forwarding to the City a $7.1
million plan for energy upgrade to the facility. Eric noted there were some hidden costs
within the estimate and he has been working with the City Finance Director for the last
30 days on reconfiguring the numbers. Noting that there may be some portions of the
project eliminated that do not provide any cash savings toward energy management, i.e.
the fire panel, (instead of getting an automated fire panel the old one will still be used),
noting it is safe but has to be manually silenced. Eric stated at first glance the City would
need to underwrite $200,000 annually. (the Energy Management Group made the
assumption that the City had a Capital Plan to which the City does not). Eric reported a
meeting was held on September 25, 2006 so the City Finance Director was sure the
Lansing Center was comfortable with the cuts it was taking in the plan which is being
projected at $153,000 annually in energy savings and another $50,000 in operational
savings so the Center would take about a $200,000 cut in subsidies based on energy
management. Eric reported it was debated at the above meeting to cancel the project and
place all new air conditioning units on the building and not addressing anything else, but
to do so would cost about two $2.5 million and in 15 years the center would be back in
the same situation it currently is in.
Eric reported that between the Mayors office and the Lansing Center the new plan has
been worked out.
8. Vice President's Reports:
A. Finance Department—Marian Bryant: Marian had no report.
B. Marketing Department — Linda Frederickson: Linda reported the September
economic impact as follows: there were 48 events, and 58 event days,for 13,000
people in the building that contributed to about 1300 hotel rooms for a$500,000
impact. Comparing this fiscal year to last year to date event dates are up and
room nights are up.
Booking Highlights: Brain Injury is booked for 2008-2009, Hospital Purchasing
for 2007, Michigan Digital for October 2007. Linda reported that new business
proposals were sent to the International Carnival Glass Association for July
2007 for $10,000 worth of business, National Collation of Black Meeting
Planners for April 2008, Profession Photographers of Michigan for 2009, Mid-
Michigan Radio Group Car Show in 2007 for$20,000 in business.
Linda reported the LEPFA will have a booth in the Greater Lansing Business
Monthly Business Expo on November 2, 2006.
LEPFA Board of Commissioners Meeting
Page 6
September 26, 2006
Linda reported regarding Oldsmobile Park there will be a Founders Dinner on
November 14`n for the three remaining founding suite holders. Commissioner
Nicholoff asked who the three remaining founders are; Linda stated they are
General Motors, Board of Water&Light, and Capital Construction.
Linda reported for the City Market, the Market Watch will come out the second
week of November.
C. Operations Department— Scott Keith: Scott reported in a coordinated effort from
several departments, staff took a trip to Grand Rapids to tour DeVos Place to see
how the building has changed and how they run their day to day operations.
Scott reported we have hired two new Maintenance workers, and are currently
interviewing Facilities Workers and are seeking a new Foreperson.
Scott reported negotiations are still ongoing with IATSE.
D. Food and Beverage Department — Bill Grove: Bill reported the Banquet
Coordinator position had been filled by the previous Supervisor allowing a
current employee to fill the new Senior Supervisor position so there are no
changes in the department's number of employees. The Assistant coordinator
position will not be filled at this time, allowing to capitalize on the Senior
Supervisor assisting the Banquet Coordinator leaving Food and Beverage at full
staff currently.
D. PERSONNEL COMMITTEE: Committee Chairman Tim Haggart stated there is no report
but noted the next meeting is scheduled for October 26, 2006 at 1 p.m. Eric Hart reported
that the Lansing Center has a trade agreement with the Lansing Chamber of Commerce to
host the Disney Institute training on October 9`n and 10`'. Currently the Lansing Center is
sending individuals to the management segments, and the entire staff along with members of
the City will be going through the Customer Service portion of the program on Friday, and
the Board is welcome to attend.
E. LONG RANGE PLANNING COMMITTEE: Chainnan Jeffries reported the next meeting
is scheduled for November 16, 2006.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Commissioner Charlotte Sinadinos: Commissioner Sinadinos stated the Finance and Board
meeting in December will be held on the 181n and 19`n
B. Commissioner Peters: Commissioner Peters stated that by the year end she will be moving
and within the next year the City will need to choose another Lansing resident to replace her.
Sharon will be contacting the Mayor's office to tender her resignation.
C. Chainnan Jeffries: Chairman Jeffries stated she is sorry to hear Sharon is leaving.
VIII. OLD BUSINESS:
No report.
LEPFA Board of Commissioners Meeting
Page 7
September 26,2006
IX. NEW BUSINESS:
No report.
At 9:00 a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR
TUESDAY, November 28, 2006 AT 8:00 A.M. AT THE LANSING CENTER IN THE Governor's
Room.
Respectfully submitted,
Tracy Hodges,Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
November 28, 2006
MINUTES
At 8:08 a.m. Chairman Ellen Jeffries called the meeting to order in the Governor's Room of the
Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: James W. Butler I11, John Decker, Charles Janssen, Ellen Jeffries,
Robert Johnson (Ex-officio), Sharon Peters, Derrick Quinney and Charlotte Sinadinos,
COMMISSIONERS EXCUSED: Gerald Ambrose (Ex-Officio), Tim Haggart, and Kris Nicholoff
OTHERS PRESENT: Heidi Brown, Marian Bryant, John Breslin, Eric Hart, Tracy Hodges, Scott
Keith-Lansing Entertainment & Public Facilities Authority, and Councilmember Tim Kaltenbach-City
of Lansing.
III. ESTABLISHMENT OF THE AGENDA: Commissioner Jeffries asked if there were any
suggested changes to the agenda. There were no changes to the agenda.
At 8:10 a.m. John Decker entered the meeting.
IV. PUBLIC COMMENT:
V. APPROVAL OF THE MINUTES OF SEPTEMBER 26, 2006: The minutes of October 24,
2006, were adopted with the following change noted to the page headers the date should state
October 24, 2006. Page 4 section C item 3 should state the date of the press conference as
October 27, 2006 also Page 4 section C item number 6 the East side of the City Market will be
shut down after Christmas. MOTION: Commissioner Peters SECOND: Copmissioner
Sinadinos, motion carried to approve the minutes as amended.
-�=
CID c___
VI. REPORTS:
ry ;�
A. CHAIRMAN'S REPORT: Chairmen Jeffries has no report. N i-1l
B. SECRETARY/TREASURER'S REPORT:
_ a
i T
1. Monthly Financial Statements for the Period Ending October 31, 2006:=Connittee
Chairman Charlotte Sinadinos reviewed the financial statements as follows:r
a. Lansing City Market: Operating Revenues - Building Rental for the current period
is $4,899 exceeding the prior year's amount of $4,135. Year to date Building Rental is
$19,706 exceeding the prior year's amount of $16,961. Parking amount is $8,050.
Total Operating Revenues for year to date are $28,783 exceeding the prior year's
amount of$17,191. Primarily due to parking. Operating Expenses - Salaries/Wages for
year to date are $11,973 compared to the prior year's amount of $12,097. Utilities for
the current period are $3,419 exceeding the prior year's amount of$2,811. Utilities for
year to date are $13,593 compared to the prior year's amount of $12,801. Operating
Expenses for year to date are $8,639 compared to the prior year's amount of $6,056.
Operating Expenses for year to date are $38,448 compared to the prior year's amount
of $31,989. Year to date Revenues over Expenses are $14,091 compared to the prior
year's amount of$4,345.
LEPFA Board of Commissioners Meeting
Page 2
November 28, 2006
Balance Sheet: Total Cash for the current year is $79,520 compared to the prior year's
amount of$10,868. Accounts Receivable for the current year is $120,196 compared to
the prior year's amount of $156,810. Unreserved Equity for the current year is
$195,569 exceeding the prior year's amount of$163,860.
Budget vs. Actual: Building Rental for the current period is better than budget by $119
and year to date is better than budget by $56. Total Operating Revenues for year to date
are $28,783 compared to the budgeted amount of$28,109 making Operating Revenues
are better then budget by $674. Operating Expenses-Salaries/Wages is better then
budget by $687 for year to date. Utilities are better than budget by $ 3,342. Total
Operating Expenses for the current period are better than budget by $1,887 and for
year to date are better then budget by $9,075. Expenses Revenues over Expenses for
year to date are better then budget by $9,750
Commissioner Butler asked what the Accounts Receivable amount is for. Marian
Bryant replied it is the money owed to the City Market by the Lansing Center.
b. Oldsmobile Park: There were no Event Revenues for the current period. There is a
$5 charge in Event Expenses for bank charges that was deducted from the Event
Development Fund. Operating Expenses - Salaries/Wages for the current period are
$6,800 compared to the prior year's amount of $2,518. Utilities for year to date are
$28,868 compared to the prior year's amount of $20,272. Maintenance of Equipment
for year to date is $5,799 compared to the prior year's amount of$3,167. Maintenance
of Facilities for year to date is $6,309 compared to the prior year' amount of $2,050.
Commissioner Sinadinos reminded the Board that due to the new TMO agreement more
is being paid in maintenance of equipment.
Total Operating Expenses for the current period are $22,805 exceeding the prior year's
amount of$13,030 and for year to date is $96,105 compared to the prior year's amount
of$56,583. Excess Revenues over Expenses for year to date are $13,328 compared to
the prior year's amount of$22,742.
Balance Sheet: Total Cash for the current year is $313,510 compared to the prior
year's amount of $234,319. Net Event Development Fund for the current year is
$75,500 compared to the prior year's amount of $65,832. Unreserved Equity for the
current year is $33,743 compared to the prior year's amount of$37,034.
Budget vs. Actual: Operating Expenses - Salaries/Wages are higher than budget for
year to date by $2,302. Utilities for year to date are $10,359. Total Operating
Expenses for the current period are better than budget by $9,536 and for year to date
are $19,615, taking into account City Contributions we are better than budget by
$22,360.
c. Lansing_Center: Building Rental for the current period is $75,427 compared to the
prior year's amount of $107,267. Building Rental for year to date is $216,860
exceeding the prior year's amount of $181,810 which is up $35,000. Food and
Beverage for the current period is $246,058 down from the prior year's amount of
$334,668. Food and Beverage for year to date is $672,830 compared to the prior year's
LEPFA Board of Commissioners Meeting
Page 3
November 28, 2006
amount of $641,798 which is up $30,000. Equipment Rental for year to date is
$136,119 compared to the prior year's amount of $92,325. Tradeshow Utilities for
year to date is down at $30,655 compared to the prior year's amount of $33,875.
Labor Services for year to date are
$25,212 compared to the prior year's amount of $17,520. Total Operating Revenues
for the current period are $407,283 less than the prior year's amount of $526,900 for
year to date is $1,102,759 exceeding the prior year's amount of $988,879. Operating
Expenses-Salaries/Wages for year to date are $526,005 compared to the prior year's
amount of $479,248, due to the current period having three pay periods. Utilities for
year to date $210,270 compared to the prior year's amount of $181,958. Food and
Beverage Expense is down at $436,915 compared to the prior year's amount of
$443,783 for an Operating Loss year to date of($452,468) compared to the prior year's
loss of ($456,428). Excess Revenues over Expenses for the current period are $25,369
compared to the previous year's amount of $160,802 and year to date net loss of
($159,634) compared to the prior year's ($237,414).
Eric Hart noted that Maintenance of Equipment and Facilities cost are up due to
materials purchased to fix parts of the building which are not part of Capital Purchases
such as; plywood, wallpaper, etc.
Balance Sheet: Total Cash and Cash Equivalent for the current year are $235,818
compared to the prior year's amount of $199,662. Unearned Revenue — Advanced
Rent for the current year is $421,382 compared to the prior year's amount of$406,342.
Unreserved Equity for the current year is ($60,250) compared to ($164,000) for the
prior year.
Budget vs. Actual: Building Rental for the current period is less than budget by
($31,150); year to date is ($29,259). Food and Beverage Revenues are less than budget
for year to date by ($22,171). Equipment Rental for year to date is better then budget
by $18,826. Labor Services for year to date is less than budget by $(41,376). Total
Operating Revenues for the current period are less then budget by ($47,141) and for
year to date are less then budget by ($91,815).
Operating Expenses-Salaries/Wages for year to date are better than budget by $4,747.
Utilities for year to date are better than budget by $10,897. Maintenance of Equipment
and Facilities are higher then budget for year to date. Food and Beverage for year to
date is better than budget by $34,439. Total Operating Expenses for the current period
are less than budget by ($15,974) and for year to date are better than budget by
$105,087. This leaves Operating Income better than budget by $13,271. After taking
into account the City Contribution and Interest we are better than budget by $19,037 for
year to date.
Eric Hart noted the Balance sheet does not balance due to a new account added to the
spreadsheet that is not being picked up by the formula. Stating a revised Financial will
be distributed.
LEPFA Board of Commissioners Meeting
Page 4
November 28, 2006
Commissioner Butler asked why under Operating Expenses-Salaries/Wages, based on
the budgeted amount, is $20,000 more. Commissioner Sinadinos replied it is due to
there being three pay periods in October and noted that Food and Beverage will show
be same.
Finance Committee Chairman Charlotte Sinadinos moved that the monthly financials
for Oldsmobile Park, the Lansing City Market and the Lansing Center for the period
ending October 31, 2006 be received as published and further that the monthly
expenses for each entity be approved. Motion carried. Commissioner Sinadinos stated
the final audit report is in and the Finance Committee has reviewed it. She noted it is a
clean audit, asked Marian Bryant to give an overview to the Board.
Marian Bryant reported Page 1 displays the Auditor's independent report which
indicates it is a clean audit, as it has been every year. Page 3 is the Balance sheet for
all three entities, Page 4 is the Income sheet for all three entities, page 5 is the Cash
flow for all three entities and explains how all money was spend and reconciles the net
loss of each entity to the amount of money spend on cash operations. She noted there
are schedules for the Pension Fund with related notes. Attention was called to the note
on page 10 under Restricted Access the very last paragraph is revised in order to
emphasize the Cash Reserve account and Equity position. In previous years the Equity
Position was not referenced. LEPFA wanted to highlight the differences in these
accounts so people who reference the audit will not confuse the two accounts.
Marian stated that in the back of the report there is a Management Letter the Auditors
are required to complete. It points out that LEPFA does not have enough financial staff.
Under normal circumstances a financial person would not touch more than one portion
of the areas they are working on. LEPFA does not have enough staff for this and most
businesses do not. Marian stated the Auditors will continue to point this issue out in
order to minimize any problems that could occur.
Commissioner Peters stated at one point Marian Bryant had indicated adjustments had
been make to separate duties in the Financial office, asking if there is anything further
that can be done to help minimize problems that may occur. Marian replied that each
month everything is reviewed several times and Marian is required to sign off on all
reviews.
Chairman Jeffries stated it is a typical Management comment to smaller organizations
to make strides to check and recheck.
Commissioner Sinadinos made a motion to accept the final copy of the audit as
published. Motion passed unanimously.
Eric stated he would strongly recommend comparison of this audit to the previous
audits as you will see dramatic differences in the financial position of the Authority.
Continuing to state the hard work of the employees does show in the audits results.
C. PRESIDENT& CEO'S REPORT: Eric Hart reported the following:
LEPFA Board of Commissioners Meeting
Page 5
November 28, 2006
1. Client Evaluations and Occupancy: Eric reported the Occupancy reflected in the
financial statements for October is down from the previous year by 15% at an $110,000
difference. In 2005 LEFPA and occupancy was approximately 58% and this year it was
approximately 48%.
2. October: Eric stated the facility has lost clients over the years due to the building
conditions, competitiveness and space. Currently the Radisson, the Convention and
Visitors Bureau, and LEPFA are working together to improve business in October
2007. Eric indicated that part of the issue is the Radisson's October rates. (in October
they have higher rates due to past increased bookings). Eric stated this was discovered
six months
3. ago while reviewing the booking cycle. Eric stated that with a combined effort
Community Health has rebooked for 2008 and 2009, Caged Birds for 2008, and are
currently seeing improvements in bookings, while continuing to look three to five years
ahead. Eric stated all three organizations have matched their calendars and all three
sales teams are actively pursuing new business to fill in the holes.
Commissioner Peters asked if the construction on Michigan Avenue effected bookings.
Eric Hart stated the construction affected all down town businesses, noting that in
September there was a slight increase in business in the beginning of the month and
then business slowed back down toward the end. Continuing, November is better and
December is showing new client bookings.
4. Employee Benefits: Eric stated that during the last Board meeting a member of the
public, also a LEPFA employee, gave comment in regards to employee benefits; stating
there were concerns that the current pension plan is too conservative (they are showing
a current return of 3-4%). Eric stated that the Investment policy was set up to be very
conservative as the employees of the Authority do not contribute to Social Security.
Eric stated an employee committee was formed to review different investment packages
and they selected a self balancing plan; noting that with the first statement there are
significant returns. Eric noted the committee discussed watch this plan over the next
six months, and in early April the plan would be looked at again and changes will be
made if necessary. Eric stated he believed the employee was satisfied with that answer.
Eric stated that the employee indicated that the Financial Committee had chosen a plan
that the employee committee had not chosen. Stating that upon verification with the
employee committee, the committee did choose another pension plan, but was open to
accepting the current plan if there were justifiable reasons. Eric stated the justifiable
reason for choosing the current plan was because it has no fees attached and the
employee committee's choice had higher fee structures.
Commissioner Butler reported the employee also requested a hearing with the Personnel
Committee to have his questions answered. Commissioner Butler stated an open
meeting was held to answer all questions the employee had with great respect. He
stated that at the end of the meeting the employee was asked if he felt the committee
was fair in its responses and if every concern he had was answered, with the employee
LEPFA Board of Commissioners Meeting
Page 6
November 28, 2006
stating yes. Commissioner Butler stated it was the intent of the committee to
demonstrate that the Personnel Committee has an open door policy and is
willing to listen to employee concerns.
5. Health Care Plan: Eric reported that Health Wise sent their preliminary report of the
employee testing done and it reflects what the employees learned, that the employees
need to lose weight and become more active. Stating that many of the employees have
already moved in a positive direction to better their health and some employees found
out they have potentially serious conditions in time to address them.
6. Trolley: Eric reported the Entertainment Express is going well and riders are up to an
average of about 200 per weekend, Friday and Saturday are the biggest days, with
Thursday's being slower. Eric stated that currently LEPFA is working with the City of
East Lansing to find a solution, continuing that at this point $80,000 of the $95,000 has
been raised with 9-10 months left to raise the remaining funds.
7. Employee Manual: Eric reported that changes to the draft are being sent to the various
committees for review, with a distribution goal of the beginning of January.
8. HVAC: Eric reported the proposal was placed on hold by the City Council as it was a
late item to the agenda and the City did not let any late items on the agenda, stating the
proposal will most likely be on Monday's agenda. Eric stated at this point there are no
signs it will be rejected by the City Council. Eric stated he may send a letter to the
Council informing them the project will take 16 weeks to complete making it April of
2007 if the project is started by the end of the year.
9. Vice President's Reports:
A. Finance Department - Marian Bryant: Marian reported LEPFA will be
working with the members of Health Wise to develop opportunities for
employees to a lead better life style, such as Weight Loss programs. Marian
stated the Wellness Committee will meet Thursday November 30"
Eric stated again that one of the major benefits to this program was some
employees found out they have what could be potentially serious conditions and
are now being treated, which has potentially lowered future health costs, which
is the main reason for doing this program.
B. Marketing Department - John Breslin: John reported the following occupancy
information for the month of October: there were 59 events, 66 event days,
16,200 people in the building, and 1131 room nights at the Radisson for a total
Estimated Economic Impact of Lansing being $567,742.
Booking Highlights: Arts and Education Center signed for April 17-17, 2008,
and we may possibly be issuing a contract for 2007. We will be hosting the
Governor's Inauguration on January 1, 2007 4000 people in attendance, (room
rental $10,915, Food and Beverage $6,834). Michigan Association of
Community Mental Health, Cesar Chavez for 2007 with about 1200 people in
attendance. Hospital Purchasing for October 2007, Michigan Association for
LEPFA Board of Commissioners Meeting
Page 7
November 28, 2006
Art Education in January 29, 2008 and January 27, 2009.
John stated new business proposals have been sent to the following;
Association of Food and Drug Officials for 2009, with possible revenues of
$12,420, Greater Lansing Business Monthly for 2007, and Michigan Minority
Business Council for 2007, with possible revenues of$15,000.
John invited the Board to attend the Lansing Center open house on December
5`h from 4 p.m. to 6 p.m. John noted room improvements will be showcased
along with Food and Beverage set up to introduce new sales packets.
John gave a reminder of the Board of Commissioners Holiday party on
December 7`h in the Pub Area.
C. Operations Department - Scott Keith: Scott reported it is his belief that IATSE
agreed to ratify their contract in a meeting held last evening, and negotiations
on going with the UAW.
Scott reported in regards to Capital Purchases the Long Range Planning
Committee has reviewed changes, and currently purchases are being made by
LEPFA for other parts of the building not related to Capital Purchases.
Scott reported there are two new employees in the Operations Department.
Eric stated the air walls will be replaced soon, starting with the smaller rooms
and the drapes in the Governor's Room are being replaced by the new year, and
possibly by the next board meeting.
Commissioner Janssen asked if Scott would provide a Capital purchases
summary and a summary of building repairs to the entire Board.
At 8:56 Sharon Peters exited the meeting.
Scott stated there were some areas of significant savings and there were some
prioritizing of some areas of repairs, allowing money to be moved to where it is
most needed. Scott noted in a couple weeks they will begin shoring underneath
the building.
Scott reported there was a meeting with MDOT to review the findings of
HNTB regarded the building support on the Michigan Avenue side. The State
of Michigan has become involved with the bridge drainage. Scott stated the
grating of the bridges is defective which is creating damage to the buildings
support. Scott stated that the City will be pulling the bricks in front of the
entrances to the Lansing Center entrances and replacing them with paved
stained and stamped concrete.
Commissioner Janssen asked for the bridge repair time line. Scott indicated it
would be spring 2007. Commissioner Janssen also asked if there will be
compensation for the damage that will be done until then. Eric stated LEPFA
LEPFA Board of Commissioners Meeting
Page 8
November 28, 2006
will be responsible for repairing its side of the building. The upper work and
support issues will be absorbed by MDOT and will range between $30 -
$60,000.
Commissioner Butler asked if the pedway issues have been discussed with the
City. Scott Keith stated a meeting was held one month ago, and Andy
Kilpatrick will address cosmetic repairs such as the carpet and painting in the
spring.
Commissioner Butler asked when winterizing (reglazing) the windows would
take place. Scott stated it would take place in the spring and the specifications
will be done on the pedway for the roof, window glazing and sealing.
Commissioner Butler asked if as a Board of Commissioners is there anything a
member can do to help move this project forward. Eric stated the City Council
understands the issues at hand with the pedway, that it was not designed
properly. Stating the Lansing Center has extracted the carpets, painted all the
door frames and interior from the Lansing Center to the parking structure. Eric
stated it is a four million dollar project just to fix the air conditioning and the
structure. Stating it is possible the plan will be to put windows in it that will
open allowing it to be ventilated. Commissioner Butler stated he will contact
the Mayor on this subject.
C. Food and Beverage Department — Bill Grove: Bill reported the Food and
Beverage Capital purchases are in place. Also a Shed was purchased and
placed under the building near Food and Beverage to house returnable items
accumulated during events and to remove messy item from the basement.
Bill stated he was a member of the Employee Committee in charge of
researching the Pension plan. Stating at the end of the meeting that was held the
committee had chosen two plans, the Allegiant and Janis, with the
understanding that what ever plan made the most sense would be the plan
chosen. Noting there was no definitive decision by the committee, with a
review of the plan chosen in the near future.
Eric noted that December 7"' is the Holiday party, which will be different this
year as LEFPA partners have been invited to allow the Board to meet and get to
know them.
Eric gave an update of the City Market, stating that Silver Bells went very well,
Santa was a hit and there were people in the building until after 10 p.m. Also
there is a Vendor's Association meeting to go over the new Operations Plan
that was presented to them. (Eric stated he believed hours of operation and
making the east side all permanent vendors will receive negative responses
from some vendors).
D. LONG RANGE PLANNING COMMITTEE: Chairman Janssen thanked Scott Keith and
Eric Hart for keeping the committee informed on how the Capital funds are being spent.
He asked if it is possible to have a list of fixed items and money spent and the next priority
for the next meeting. Chairman Jeffries agreed it is a good idea.
LEPFA Board of Commissioners Meeting
Page 9
November 28, 2006
VII. COMMISSIONER AND STAFF COMMENTS:
A. Commissioner Charlotte Sinadinos: Commissioner Sinadinos thanked Marian and her staff
for the hard work put into having a clean audit.
B. Commissioner Butler: Commissioner Butler stated on November 14" a dinner was held for
the Founding Suite holders at Oldsmobile Park, and asked why the Board members were
not invited to this dinner, as a lot of the current Board members where instrumental getting
the suite holders on board. Eric Hart stated the Board Chairman was invited because the
dinner was for already existing Suite holders. Eric stated another reason for only inviting
the Chairman of the Board was to keep costs down while ensuring there was Board
representation. Commissioner Butler stated that other organizations always ask all Board
members to attend such events.
Commissioner Butler stated he felt the Board ID badges are a good idea and appreciated the
fast turn around.
Commissioner Butler stated there is a tribute to Diana Byrum on December 71" and asked if
that will interfere with the Board Holiday Party. Eric Hart stated it will not impact the
Holiday party although there will be some VIP's in the building. Commissioner Butler
asked what the Capital City Holiday Gala is Eric Hart stated it is an event produced by
Chris Hollmans Group who has partnerships with the Chamber and the CVB with LEPFA
being a silent partner.
C. Commissioner Quinney_ Commissioner Quinney thanked Marian for a good job with the
audit.
D. Chairman Jefferies: Chairman Jeffries noted that in the Board Packets the meeting dates
for 2007 were included. Chairman Jeffries thanked the personnel committee, specifically
James Butler for meeting with the employee to give them a forum.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:30 a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR
TUESDAY, December 19, 2006 AT 8:00 A.M. AT THE LANSING CENTER IN THE Governor's
Room.
Respectfully submitted,
Tracy Hodges, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING ,'ECEI``ED
December 19, 2006
MINUTES Z � r Chu L- �' i Lf: �
r GL E R
At 8:05 a.m. Chairman Ellen Jeffries called the meeting to order in the Governorssl'R6,61'of"tQe
Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: Charles Janssen, Ellen Jeffries, Derrick Quirmey, Charlotte
Sinadinos, and Kris Nicholoff
COMMISSIONERS EXCUSED: Gerald Ambrose (Ex-Officio), James W. Butler III, John Decker,
Tim Haggart, Robert Johnson (Ex-officio), and Sharon Peters.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Eric Hart, Tracy Hodges,
Scott Keith-Lansing Entertainment & Public Facilities Authority, and Councilmember Tim Kaltenbach-
City of Lansing.
III. ESTABLISHMENT OF THE AGENDA: Commissioner Jeffries asked if there were any
suggested changes to the agenda. There were no changes to the agenda.
IV. PUBLIC COMMENT:
V. APPROVAL OF THE MINUTES OF NOVEMBER 28, 2006: The minutes of November
28, 2006, were adopted with the following changes: section III change Commissioner to
Chairman, section VI part A correct spelling of Chairmen to Chairman, section VIII correct
spelling of Jefferies to Jeffries. MOTION: Commissioner Janssen SECOND: Commissioner
Sinadinos, motion carried to approve the minutes as amended.
VI. REPORTS:
A. CHAIRMAN'S REPORT: Chairman Jeffries stated that everyone did a nice job at the
December 5, 2006 Lansing Center Open House. Noting it would be nice to repeat the
Open House again in 2007, also thanking John Breslin for his personal tour.
At 8:10 a.m. Derrick Quinney entered the meeting.
Chairman Jeffries stated that the holiday party went very well and she received a lot of
good feedback with many compliments on the food and decor; stating it was a good idea
to have the Partners attend.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending November 30, 2006:
Committee Chairman Charlotte Sinadinos reviewed the financial statements as follows:
a. Lansing City Market: Operating Revenues — Building Rental for the current period
is $4,290 exceeding the prior year's amount of$3,487 which is up by about $800. Year
to date Building Rental is $23,996 exceeding the prior year's amount of$20,448. Total
Operating Revenues for year to date are $33,307 exceeding the prior year's amount of
$28,364 by about $5,000.
LEPFA Board of Commissioners Meeting
Page 2
December 19, 2006
Operating Expenses - Salaries/Wages are down for year to date at $14,793 compared to
the prior year's amount of $14,964. Utilities are down for the current period at $4,746
exceeding the prior year's amount of $4,934. Utilities for year to date are $18,340
compared to the prior year's amount of $17,736 which is up about $600 for year to
date. Total Operating Expenses for the current period are $10,581 compared to the
prior year's amount of $9,438. Operating Expenses for year to date are $49,029
compared to the prior year's amount of$41,428 which is up about $7,600. Revenues
over Expenses for the current period, there is a loss of ($989) compared to the prior
year's income of $5927. The year to date amount is $13,101 compared to the prior
year's amount of$10,273.
Balance Sheet: Total Cash for the current year is $110,345 compared to the prior year's
amount of $30,448. Accounts Receivable for the current year are down. Unreserved
Equity for the current year is $194,716 exceeding the prior year's amount of$169,787.
Budget vs. Actual: Building Rental for the current period is better than budget by $74
and year to date it is better than budget by $130. Parking for year to date is better than
budget by $1,119. Total Operating Revenues for the current period are less than
budget by ($74) and for year to date are better than budget by $600. Operating
Expenses-Salaries/Wages are better than budget by $899 for year to date. Utilities are
better than budget by $2,829 for year to date. Total Operating Expenses for year to
date are better than budget by $8,970. Excess Revenues over Expenses for year to date
are better than budget by $9,570.
b. Oldsmobile Park: There were no Event Revenues for the current period. There is a
$5 charge in Event Expenses for bank charges which was deducted from the Event
Development Fund. Operating Expenses - Salaries/Wages for the current period are
$3,775 exceeding the prior year's amount of $2,819. (due to a change in wages from
1/3 Maintenance to 2/3), and for year to date are $21,786 exceeding the prior year's
amount of $12,997. Utilities for the current period are $4,530 compared to the prior
year's amount of $7,117. For year to date Salary/Wages are $33,398 compared to the
prior year's amount of $27,390. Total Operating Expenses for the current period are
$18,752 compared to the prior year's amount of $25,176; for or year to date they are
$114,857 compared to the prior year's amount of $81,759. Excess Revenues over
Expenses for year to date are $20,748 compared to the prior year's amount of$16,441.
Balance Sheet: Total Cash for the current year is $402,531 compared to the prior
year's amount of $321,305. Net Event Development Fund for the current year is
$75,495 compared to the prior year's amount of $60,262. Unreserved Equity for the
current year is $41,157 compared to the prior year's amount of$25,163.
Budget vs. Actual: Operating Expenses - Salaries/Wages are higher than budget for
year to date by ($2,094). Utilities for year to date are better than budget by $16,366.
Total Operating Expenses for the current period are $18,752 compared to the budgeted
amount of$24,474 leaving an amount better than budget by $5,721 and for year to date
are better than budget by $25,337. After taking into account City Contributions we are
better than budget by $28,082.
LEPFA Board of Commissioners Meeting
Page 3
December 19, 2006
c. Lansing Center: Total Operating Revenue for the current period is $369,868
compared to the prior year's amount of $337,093. Building Rental for the current
period is $77,875 compared to the prior year's amount of$67,041. Building Rental for
year to date is $294,735 exceeding the prior year's amount of $248,851. Food and
Beverage for the current period is $227,172 compared to the prior year's amount of
$198,425. Food and Beverage for year to date is $900,003 exceeding the prior year's
amount of$840,224. Equipment Rental for year to date is up. Tradeshow Utilities are
down and Labor Services are up for the year to date. Total Operating Revenues for
year to date are $1,472,628 which is better than the prior year's amount of$1,325,973.
Operating Expenses-Salaries/Wages for year to date are $662,349 compared to the
prior year's amount of $616,781. Utilities for year to date are $254,200 compared to
the prior year's amount of $225,618. Food and Beverage Expense for the current
period is $119,897 compared to the prior year's amount of $120,828 and for year to
date is $556,813 compared to the prior year's amount of $564,611. Total Operating
Expenses for year to date are $1,956,775 compared to the prior year's amount of
$1,845,582. Excess Revenues over Expenses for the current period are $48,057
compared to the previous year's loss of ($15,577) and year to date net loss of
($111,627) compared to the prior year's net loss of($252,991).
Balance Sheet: Total Cash and Cash Equivalent for the current year are $284,214
compared to the prior year's amount of$284,579. Unearned Revenue - Advanced Rent
for the current year is $395,218 compared to the prior year's amount of $384,220.
Unreserved Equity for the current year is ($12,192) compared to ($179,578) for the
prior year.
Budget vs. Actual: Building Rental for the current period is better than budget by
$14,490; and year to date is less than budget by ($14,769). Food and Beverage
Revenues are better than budget for the current period at $27,172 and for year to date
by $5,001. Total Operating Revenues for the current period are less then budget by
($324) and for year to date are less than budget by ($92,139).
Operating Expenses-Salaries/Wages for year to date are better than budget by $29,906.
Utilities for year to date are better than budget by $22,259. Food and Beverage for
year to date is better than budget by $43,969. Total Operating Expenses for the current
period are better than budget by $55,517 and for year to date are better than budget by
$160,604. After taking into account the City Contribution and Interest we net income
of ($111,627) compared to the budgeted amount of ($185,566) leaving the year to date
amount better than budget by $73,938.
Finance Committee Chairman Charlotte Sinadinos moved that the monthly financials
for Oldsmobile Park, the Lansing City Market and the Lansing Center for the period
ending November 30, 2006 be received as published and further that the monthly
expenses for each entity be approved. Motion carried.
Commissioner Sinadinos noted the budget must be turned in by January 15, 2007.
Sinadinos noted on January 12, 2007 the committee will meet and she welcomed any
board members to attend.
LEPFA Board of Commissioners Meeting
Page 4
December 19, 2006
Chairman Jeffries stated the financials are going in the right direction.
C. PRESIDENT& CEO'S REPORT: Eric Hart reported the following:
1. City Anniversary Eric reported that in 2008 Lansing will be celebrating its 150 year
Sesquicentennial, and he has been asked to Chair the celebration. Eric noted that
LEPFA will be in the lead, the CVB and other organizations will be involved and
meetings will begin in January.
2. Festival of Trees: Eric stated research is being done in regards to reviving the Festival
of Trees.
3. Executive Summary: Eric distributed a summary regarding a new proposed event he
would like to contract with, and he asked for the Board's approval to move forward
with. Eric stated the Mayor had an initiative toward Health and Wellness, and he was
approached by Impression 5 Museum regarding improving the Capital City River Run.
Eric stated currently the run will be going to a '/z marathon format which is the only
one in Michigan. Eric stated there will be a Fitness Expo on Saturday at the Lansing
Center, and he is currently working with a third party (Pete Bosheff) to create a bike
race. Eric noted the Lansing Center has focused on the Fitness Expo.
Eric noted this event has minimal financial risk to LEPFA, (free rent and expensing out
cost), with a top exposure of $10420,000. Eric stated there is interest in the title
sponsorship, though nothing is signed yet. Eric noted attending the event will be free
to the public, although fees will be paid by marathon participants and vendors to
support the Expo
Commissioner Janssen asked if the highest cost will be $20,000. Eric stated yes but is
not anticipating getting close to the number. Commissioner Janssen made a motion to
approve the LEPFA Fitness Expo. SECOND: Derrick Quinney. Motion approved.
4. Entertainment Express: Eric stated the trolley sponsorship information distributed is
confidential please review it. Eric stated new marketing will be out soon and that the
Michigan License and Beverage Association withdrew their offer after being
approached by East Lansing Business Owners.
5. Employee Holiday Party: Eric invited the Board to attend the LEPFA Employee
Holiday Party on December 22, 2006 from lla.m. - 1p.m.
6. City Market: Eric reported the larger vendors are embracing the permanent move to the
west side. Eric stated the wine vendor backed out, but another vendor is interested in
the space.
Eric reported that the hours of operation are an issue with the Vendors Association.
Eric stated the vendors are going to recommend no changes to the current hours of
operation. Eric stated he has told the vendors association that no change in hours is not
a possibility, noting they will be allowed to help modify hours of operation. Noting
new hours will be implemented.
LEPFA Board of Commissioners Meeting
Page 5
December 19, 2006
7. Client Evaluation: Eric noted the difference in the past two years with a significant
improvement over all.
Commissioner Janssen asked if this information could be shared with the City Council.
Eric stated he would share this information with them at the next Committee of the
Whole meeting.
8. Common Ground: Eric reported that the City has agreed to support the Festival again
this year. Offers are out to entertainment, and sales are up at this time. Eric stated that
during this year's festival parking will be free in all designated City lots, with shuttle
service to the festival grounds. Eric stated 2006's festival has just wrapped up and the
Festival did make money.
9. Vice Presidents' Reports:
a. Finance Department - Marian Bryant: Marian reported LEPFA has adopted a
family for Christmas, a single mother with four children ages 6 months to 9
years old. Marian stated the employees have been very generous to the family
as they have just been given a home to live in from Advent House. Marian
welcomed any donations as they were a homeless family until just recently.
b. Marketing Department - Linda Frederickson: Linda reported that January is
the start of a very busy public show season. Linda reported for the month of
November there were 62 events, totaling 74 event dates, with 14,000 people in
the building, with 694 room nights at the Radisson for an economic impact of
$470,000.
Booking Highlights: Linda reported that the Michigan Sheriff Association has
booked for October 2007 (worth $15,000). Michigan Association of
Community Mental Health Boards for 2008, rebooked Caesar Chavez dinner
for 2007, Hospital Purchasing in October 2007 (worth $17,000), and St.
Gerard's fund raising reception (worth $17,000).
New Business: Linda reported proposals were sent to the following: Michigan
Jaycees for November 2007 (worth $11,000) in Food & Beverage and $4,000
in rent, Roma Century Show with $9,000 in rent, and Michigan Minority
Business Council for January with $17,000.
Linda reported that in January the Lansing Center will participate in three
Bridal Shows in the area, stating one is at the Lansing Center. (the Lansing
Center holds 35-40 wedding receptions each year).
City Market: Linda reported a press release will go out this week regarding
the winter move and hours of operation changes.
Linda reported the new Creative Service Coordinator Emily Brozovic will start
January 2, 2007. Emily comes to LEPFA from the Saginaw News.
LEPFA Board of Commissioners Meeting
Page 6
December 19, 2006
Linda reported an electronic Common Ground commercial was sent out and
will be resubmitted again in the future.
c. Operations Department - Scott Keith: Scott reported a summary of the Capital
Purchases has been distributed to the Board. Noting Page 2 demonstrated the
dollars for dollars and indicates where monies have been allocated and moved.
Scott stated the last page shows items completed and not completed, stating
currently $1.7 of the $4 million has been spent. Scott stated the most current
item is the instillation and repair of the marquee signs on the building and in the
back parking lot. Scott noted Linda Frederickson will head research into
renting the signs to clients.
d. Food and Beverage Department - Bill Grove: Bill reported the Food and
Beverage income was up in November and estimates December to be the same.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Commissioner Charlotte Sinadinos: Commissioner Sinadinos stated the Holiday party was
very nice.
B. Commissioner Janssen: Commissioner Janssen stated the holiday party was very nice and
the location worked very well.
Commissioner Janssen asked in regards to Common Ground if there is going to be any
improvements to the park or adding surcharges to the tickets. Eric stated at the State level
the band shell was put into the Capital Outlay, and it appears the Governor is going to veto
it. Eric stated it is a project Gretchen Whitmer would like done and he will be working
closely with her. Parks and Recreation have been informed of the current plan and the
improvements.
Commissioner Janssen asked Eric to explain what the Legislation was on the table to
increase the hotel tax in Grand Rapids. Eric Hart stated the bill to increase hotel tax in
Kent county did pass. Eric stated that House Bill 6606 was to increase the hotel tax in Kent
County by 2%. Eric stated the bill was written to exclude areas based on population so that
the only locality that met the criteria was Kent County. Eric reported that the bill was sent
to the House before lobbyists were aware allowing it to the pass, but the bill was stopped in
the Senate and modified to include Lansing which passed. The modified bill went back to
the House and the modified bill failed by 5 votes. At this point the bill went to the
Conference Committee and came out of this committee with all the modification stripped.
Commissioner Janssen encouraged Board members to use their contacts to support vetoing
this bill. Eric stated that a letter has been sent to the Governor requesting she veto this bill;
he will share it with the Board members.
LEPFA Board of Commissioners Meeting
Page 7
December 19, 2006
C. Commissioner Quinney: Commissioner Quinney stated the holiday party was wonderful.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:15 a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR
TUESDAY, January 23, 2007 AT 8:00 A.M. AT THE LANSING CENTER IN THE Governor's
Room.
Respectfully submitted,
Tracy Hodges, Recording Secretary