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HomeMy WebLinkAbout2021 LEPFA Minutes LANSING ENTERTAINMENT & PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING JANUARY 27, 2021 MINUTES At 8:00 a.m., Chairman Price Dobernick called the regular monthly meeting of the LEPFA Board of Commissioners to order via Zoom audio/video conferencing. COMMISSIONERS PRESENT: Tim Barron, Lansing, MI; Cindy Bowen, Lansing, MI; Price Dobernick, Lansing, MI; Robert Widigan (Ex-officio) Lansing, MI; Kenric Hall, Lansing, MI; Charles A.Janssen, Charleston, SC; Larry Leatherwood, Lansing, MI ; Charles Mickens, Lansing, MI; Brian McGrain (Ex- officio), Lansing, MI and James Stajos, DeWitt, MI. COMMISSIONERS EXCUSED: None. OTHERS PRESENT: Mindy Biladeau, Heidi Brown, Scott Keith,Jennifer McFatridge, Paul Ntoko and Tristan Wright- Lansing Entertainment & Public Facilities Authority; Lisa Hagen—Lansing City Attorney's Office and Judy Kehler, Chief Strategy Officer-City of Lansing and Eric Brewer, Consultant—City of Lansing. I. ESTABLISHMENT OF THE AGENDA: Motion was made by Chairman Dobernick for establishment of the agenda as presented; Second: Commissioner Leatherwood. Roll call vote was as follows: Yays: Commissioners Barron, Bowen Dobernick, Hall,Janssen, Leatherwood, Mickens, and Stajos. Nays: None Motion carried. II. PUBLIC COMMENT: Scott Keith noted he had spoken with Jack Alexander and extended Jack's regards.They discussed the challenges with the homeless at the stadium and noted that Mike Horning and Tristan Wright have installed gates in the alcove areas as added security measures. III. APPROVAL OF THE NOVEMBER 24, 2020 MINUTES: Chairman Price Dobernick requested a motion to approve the minutes as presented. MOTION: Commissioner Leatherwood SECOND: Commissioner Mickens Roll Call Vote: Yays: Commissioners Barron, Bowen Dobernick, Hall,Janssen, Leatherwood, Mickens, and Stajos. Nays: None Motion carried. IV. REPORTS: A. CHAIRMAN'S REPORT: Chairman Price Dobernick reported the following: 1. Board Meetings 2021: The meetings scheduled for 2021 is posted on the LEPFA Board portal on the Lansing Center page. Scott Keith continues to address Executive orders and will continue to update the Board on meeting dates and whether they will be in person and/or virtual. 2. CVB/LEPFA Annual Joint Board Meeting: Scott Keith will work on the annual joint GLCVB and LEPFA Board meeting and agenda with Julie Pingston for a meeting to be held virtually. B. FINANCE COMMITTEE REPORT: Committee Chair Leatherwood noted the Finance Committee met and he deferred to Jennifer McFatridge, Vice President of Finance, who reported the following for December 2020: LEPFA Board of Commissioners Meeting Page 12 January 27, 2021 1. Groesbeck Golf Course: December Operating Revenue was down compared to budget for December and is up for year-to-date. Due to a warmer December golfers were able to golf on the course. During December 2020, there were more than 160 rounds of golf played compared to December 2019 with 80 rounds. Groesbeck simulator season has been impacted by pandemic related restrictions. Operating Expenses were up compared to budget for December and were down for year-to-date. Categories providing the largest impact to the December budget include: Salaries/Wages/Fringes and Insurance/Bonding. In Salaries/Wages/Fringe, we have updated labor allocations to include VP and President and CEO wages/fringe. Insurance/Bonding expense is related to a change in our insurance carrier for a better rate. The expense in December reflects two months of fees for the new carrier (November and December) plus the December fee from our prior carrier. We will receive a coverage cancellation refund, and this change will yield $12,000 annual savings. There were no questions. 2. Jackson Field: Operating Revenue at Jackson Field typically comes from the concourse ATM machine. Revenue is up compared to budget for the month due to a refund of suite rental for the Capital Clash (MSU vs. UM) scheduled for April 2020. Payment was remitted in March prior to the pandemic. The fee was refunded late December 2020. Year-to-date revenue is behind budget as activities at the stadium have been impacted by the pandemic. Overall, Operating Expenses are down compared to budget for December and year-to-date. Categories providing the greatest impact to the budget include Salaries/ Wages/Fringes. In Salaries/Wages/Fringes, we have updated labor allocations to include VP and President and CEO wages. There were no questions. 3. Lansing Center: December year-to-date Operating Revenue decreased from last year by more than $2.8M or 95% due to Ingham County Health Department orders for gatherings, and due to limitations and restrictions on event size which continues to impact revenue. Revenue in December is attributed to Silver Bells ornament sales and sponsorship revenue. Overall, Operating Expenses are down compared to budget for the month and year-to-date. The credit balance in the Utilities category is attributed to a large credit in Steam. When the November invoice was received, it was the equivalent of a typical pre-pandemic level of operation. LEPFA's Maintenance Manager (Mike Horning) and Tristan Wright obtained an actual BWL meter reading rather than an estimate which resulted in a more than $31,000 credit on the December invoice. At the end of the sixth month of the fiscal year, the Lansing Center has captured 2% of the revenue budget and contained expenses to 13% of the budget. There were no questions. Commissioner Leatherwood motioned for approval of the Financial Report as presented. MOTION: Commissioner Leatherwood; SECOND: Commissioner Bowen Roll Call Vote: Yays: Commissioners Barron, Bowen Dobernick, Hall,Janssen, Leatherwood, Mickens, and Stajos. Nays: None The motion passed. 4. Audit Approval: Jennifer McFatridge noted as a formality the Audit was accepted in draft format and the audit must be accepted in full as there were no changes. The Auditor's review is on page three of the Board minutes and there were no findings, and it was an unmodified audit. LEPFA Board of Commissioners Meeting Page 13 January 27, 2021 Motion was made by Commissioner Leatherwood to accept the final draft of the Audit and submit it to the City of Lansing Administration for filing. MOTION: Commissioner Leatherwood. SECOND: Commission Janssen Roll Call Vote: Yays: Commissioners Barron, Bowen Dobernick, Hall,Janssen, Leatherwood, Mickens, and Stajos. Nays: None The motion passed. S. Budget Review: Scott Keith reviewed the budgets as follows, noting this was our best estimate for July 1, 2021 not knowing what the status will be by July 1 for LEPFA. a. Groesbeck Golf Course: Scott noted the recommendations are based on not having a year as good as 2020. We increased some areas and decreased or maintained contributions from the City. Salaries/Wages were adjusted to reflect the reallocation of positions. The budget recommended is for a normal business year. Commissioner Leatherwood questioned the salaries/wages and asked if it was to reduce costs. Scott explained that the reallocation at this time is to better reflect the work of the VPs for example. Typically, a Vice President is not allocated to Groesbeck, but the VPs are doing the work, as such it is based on performance, not just the position at this time. b. Jackson Field: Scott noted the budgets were based on having a full baseball season, no baseball, and a modified baseball season. All indications, with no schedule available, is that the season will start in May through September which will require 100% of a normal budget. There may be 8-10 teams, but that will have no impact on our budget, and may impact the City's revenue. We still will have lights, electricity costs, which will result in a slight decline in our revenue. Less attendance is anticipated based on the contribution decrease from the initial proposal. Scott noted the difference in season scenarios is $80,000 in utilities/repairs/ maintenance. Commissioner Barron noted this is a best/worse case scenario; best news is they play at 20%; Scott Keith noted the reduction on the expense side includes items such as insurance, but there still is the DLI assessment, $10,000 in miscellaneous, we will still have utilities, maintenance, etc. and the change is estimated at 20% between the season scenarios. Commissioner Barron thanked Scott for modeling all three scenarios. Scott noted we anticipate some events at the stadium and the season starting in May 2021. c. Lansing Center: Scott shared three models: 1. Full Operation —operating as normal, which is not realistic. 2. 60% Capacity—based what is currently on the books. 3. 40% capacity could change, it doesn't mean all events will be at 100% reduction in attendance, it allows for reduced Food and Beverage; reduced AV; all at a 40% reduction. The three different budgets still are presented blindly because we cannot predict business. Forty percent (40%) is with $975,000 in operating contribution which is on pace for this year. Sixty percent (60%) reduction results in an increase by $200,000 and the same for a 100% reduction. Zero percent (0%) is still the same as 40%. Scott noted it is all still fairly aggressive and noted Sales/Marketing was lowered based on information shared by Commissioner Hall, and Public Act Funding information through the GLCVB is all tough to predict and put together. Scott noted the budgets are the "best guess" for 2022 and we are still waiting for movement. For example, Michigan School Administrators cancelled all of their contracts through 2025. LEPFA Board of Commissioners Meeting Page 14 January 27, 2021 Commissioner Bowen clarified the three scenarios as a regular year, at 60% and at 40%; Scott noted that was correct and is based on building rental currently at 40%. Normally we are at 90%. Commissioner Bowen noted she appreciated how difficult it is and the different scenarios were reached in wisdom as the recovery will be slower as urban markets are looking at mid third quarter next year as more people chose to drive to outdoor locations within the state such as Traverse City, who had an amazing summer. Scott noted he agrees with cautious optimism and expressed his appreciation for the wisdom, such as Commissioner Kenric Hall's that was shared in Finance Committee. Scott noted we are in a drivable location, which could be to our advantage, but doesn't want to be too aggressive. Chairman Dobernick asked if the budgets needed to be accepted/adopted at this time. Scott Keith suggested the budgets need more revisions with the Finance Committee with review with the City's Finance Director in order to address questions and then it will be brought back to the LEPFA Board for approval in draft next month. Chairman Dobernick thanked Jennifer McFatridge and Commissioner Kenric Hall and noted the budgets will be brought back to the full board at a future meeting. C. STRATEGIC COMMITTEE REPORT: No report. The Committee will convene in February. D. PERSONNEL COMMITTEE REPORT: No meeting was scheduled. E. AD HOC COMMITTEE REPORT: The committee will meet in February. F. PRESIDENT & CEO REPORT: Scott noted the Strategic Planning Committee will meet to discuss upcoming repairs at the Lansing Center and potential capital proposals and discuss HB 4816. The Personnel Committee will also meet, and staff will start reviewing and updating the organizational chart by department. The CEO evaluation will be upcoming and employee reviews as well. Scott noted he will schedule the various meetings in the upcoming month. Application/Grant Funding: Scott noted the application was completed in December along with the certification required. He is following up with Senator Hertel/Kathleen on the grant progress as the application deadline was this week. We were not eligible for the Michigan Small Business Survival Grant, as it applied to small businesses 501c3's. The Save Our Stage Grant may apply to Center Park Production/Common Ground; the Lansing Center is not eligible based on 33% of its revenues required from ticket sales and Common Ground is not venue specific. The second round of PPE application process was 43 pages and municipal entities are not eligible to get funding through the government. The Save Our Stages Grant has stipulations about the number of employees, tickets, revenue, and brick and mortar facilities. Scott noted we will continue to review grants and keep moving forward. MDHHS Orders: We can host small events as we follow the section that states we can host small events (20 people per 1000 square feet to a maximum of 100 people per space). February 9 we host Arbor Con, with an expected attendance below 100; we will be able to service some events. The simulator will be a challenge with two people at a time now we can LEPFA Board of Commissioners Meeting Page 15 January 27, 2021 move to 3-4 and offer other services outside although as of February 1 we are able to service some food indoors. Scott reiterated the loss at the Lansing Center is 95% of our business is a significant number and we should share that over three properties our loss is 90% of our business. Commissioner Leatherwood asked if there was any opportunity for additional funding somewhere else? Scott noted the TCF funding is an option and we are looking at every opportunity and are being creative. We are looking at Zoom meetings within the Lansing Center with Chase and are looking at events at the stadium that we can share with the Lugnuts. Lugnuts Lease Agreement: Scott reported he is working on the Lease amendment with the City and he thanked Lisa; he noted the changes may not impact us but may impact the City and the Capital Plan as they are currently presented. RFP : Scott noted he received a RFPQ from the City on all City Structures and the Lansing Center was included in an article; the reality is the City is being creative on funding for Capital Improvements and the Lansing Center was included. HB4816: Kalamazoo is looking at building a new event center; our region is included in the funding and may allow for funding for improvements to the Lansing Center. Scott reported he is working with the CVB, the Chamber, and County to make certain everyone understands the state of convention business and look at opportunities for financing/funding of the Lansing Center. Scott note the City Council authorized the moving of LEPFA funds from Groesbeck to the Stadium to the Lansing Center and he expressed is appreciation to all worked to get the movement among entities in place. Virtual Meetings: Scott noted we will be setting up a virtual location in the Lansing Center with our AV supplier Chase Creative. It will be small revenue source for us with a percentage of the fees going to us. G. LEPFA VICE PRESIDENTS & STAFF REPORTS: 1. Tristan Wright: Tristan noted there are CIP and facility issues/concerns tied to heating components and leaks in the Lansing Center. Issue are in Hall C over the parking garage and with the temperatures getting close to below zero, there could be issues. Tristan also noted there is also issues with Hall A domestic water with 150 foot of piping resulting in no water and needs to be repaired when the building is vacant. The Lansing Center Riverside Concourse area has a heating coil that is leaking, and that coil dates back to 1994. The domestic water issue dates back to pipe installed in 1986. Mike Horning Is addressing the issues and has had one contractor in to obtain a quote and will keep moving forward. Tristan noted the CIP in 2019 addressed the Riverside Balcony and it continues to deteriorate. Overall, the building is hanging in there. LEPFA Board of Commissioners Meeting Page 16 January 27, 2021 The CIP for Groesbeck Golf Course addresses the maintenance barn roof leaks and the restroom attached to the Barn, and the main door needs to be replaced with one that is more energy efficient. 2. Heidi Brown: Heidi reviewed the vacant positions and noted we currently have 12 vacant full-time positions and one part-time. We had one Worker's Comp claim in December and one individual on long term disability. Since the November 2020 Board meeting Linda Whitbeck— Finance Department retired in December; Foodservice Department resignations include Kyle Powless, Supervisor and Executive Chef Patrick Shaffer both in December. Benefit renewal was completed in December effective January 1, 2021. COBRA coverage information was distributed to indefinitely laid off employees. Five (5) employees elected COBRA coverage 1— medical, 1-vision and 3 - dental. MRLA Employee Assistance Grant information was shared with staff, 11 full-time and 5 part-time employees requested employment Information for the application process. Preparation continues for the return to work and hiring process in anticipation of returning staff and filling vacant positions. The OSHA Summary has been completed and will be posted as required by February 1. There were three recordable occurrences in 2020. Commissioner Barron asked if we have developed any type of funding for people laid off. Heidi explained not that this time, we are sharing information as it becomes available and are staying with formal processes; we have distributed food and share information as it becomes available. 3. Paul Ntoko: Paul reported in terms of Groesbeck they are not structuring the 2021 season because of the initial lock down worked out well at Groesbeck in 2020 and we were open throughout most of the year. The 2021 budget allocates for minimum increases at Groesbeck with carts and rental increases. Food and Beverage will be based on what our vendors offer. Paul is working on prices for the upcoming season and hopefully the season will be the start of "normal." 4. Mindy Biladeau: Lansing Center Sales: Mindy reported we hosted the MI GOP Watch in November 2020 within the restrictions. The Lansing Center also hosted an IU walk through adhering to COVID-19 restrictions. Mindy noted cancellations are indicated in her report for November and December. In January we hosted an IATSE training and upcoming events include a scaled down Arbor Con due to restrictions. March 8 and 9 Michigan County Road Association is scheduled with modifications. A Dance Group— Imagine Dance is scheduled on March 5-7. Another dance group is also looking at March dates as well as Michigan Buggy Builders. Fall 2021 is becoming very busy and it appears people are now more comfortable scheduling and are hoping to see less restrictions. We are receiving many small wedding inquiries; many groups are signing contracts for 2022, 2023, and 2024 and some are multi-year contracts. Mindy noted she is doing lots of diagramming due to social distancing. Special Events: Silver Bells - Mindy is waiting on media stats and viewership numbers and will share the information once it is received. Work continues on the Groesbeck Marketing Plan which will include television, on-line, mobile, and print advertising. Advertising is set for the PGA and Golf Network highlighting Groesbeck and will be shown during a list of events for March through September. This will be a good way to get the message out that Groesbeck is a great product. LEPFA Board of Commissioners Meeting Page 17 January 27, 2021 Regarding Silver Bells, this year was quite a blow, but this year there was a lot of Input and word on the street is that the tree looked great, and there was no negative comments this year. Mindy shared media numbers regarding viewership but is awaiting the final numbers from FOX. Commissioner Charles Mickens noted it was a great pivot and he enjoyed the broadcast. He extended his thanks and "keep up the good work." Mindy noted she is working on modifying and re-tooling Margarita Fest and the Grand Concert Series. V. COMMISSIONERS COMMENTS: A. Scott Keith - Scott noted the Board Training with the City Attorney's Office will be held at the beginning of next month's meeting. Scott expressed his thanks for the Board's kind words and the Board's help on keeping up employee morale. Scott also noted Eric Hart and his team will be hosting the Super Bowl in the midst of the challenges of a pandemic and he hopes Eric does well. B. Tristan Wright:Tristan reported typically the Dr. Martin Luther King, Jr. Luncheon is held at the Lansing Center; however, this year it was broadcast on WILX with Dr. Bernice King as the guest speaker. It was a one-hour program with musical guests, orchestra, and Tristan offered to share the link with those who would like to view the program. At the end of the program there was a tribute to James Butler. Commissioner Bowen noted she watched and was extremely impressed and would be interested in viewership numbers. She noted she was very touched by the tribute to James at the end. Commissioner Leatherwood noted it was an outstanding program and the participants did an outstanding job, and he extended his thanks to Tristan and Elaine. Chairman Dobernick there is a scholarship through the program established in memory of James and he will be contributing on behalf of the Plumbers and Pipefitters. VI. OLD BUSINESS: None. VII. NEW BUSINESS: No report. Vill. AJOURNMENT: At 12:25 p.m. Chairman Price Dobernick requested a motion for adjournment: Motion: Commissioner Leatherwood Second: Commissioner Mickens Roll Call Vote: Yays: Commissioners Barron, Bowen Dobernick, Hall, Leatherwood and Mickens. Nays: None Motion carried. THE NEXT MONTHLY MEETING IS SCHEDULED TENTATIVELY FOR: FEBRUARY 23,2021 8:00 a.m. Respectfully Submitted, Heidi Brown Recording Secretary LANSING ENTERTAINMENT & PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS SPECIAL MEETING February 23, 2021 MINUTES At 11:01 a.m. Chairman Price Dobernick called the special meeting of the LEPFA Board of Commissioners to order via Zoom audio/video conferencing. COMMISSIONERS PRESENT: Tim Barron, Holt, MI; Cindy Bowen, Lansing, MI; Price Dobernick, St.Johns, MI; Kenric Hall, Lansing, MI; Charles A.Janssen, Present with no audio; Larry Leatherwood, Lansing, MI Charles Mickens, Lansing, MI; Brian McGrain (Ex-officio), Lansing, MI, James Stajos, DeWitt, MI and Robert Widigan (Ex-officio) Lansing, MI. COMMISSIONERS EXCUSED: None. OTHERS PRESENT: Mindy Biladeau, Heidi Brown, Scott Keith,Jennifer McFatridge, Paul Ntoko and Tristan Wright- Lansing Entertainment& Public Facilities Authority;Jeremy Garza, Councilmember- Lansing City Council - Lisa Hagen—Lansing City Attorney's Office; and Eric Brewer, Consultant—City of Lansing. I. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda as published. At 11:04 a.m. Commissioner Barron entered the meeting. Chairman Dobernick moved to accept the agenda SECOND: Commissioner Leatherwood Roll Call Vote: Yays: Commissioners Barron, Bowen, Dobernick, Hall, Leatherwood, Mickens,and Stajos. Nays: None Motion carried. (Commissioner Janssen was present, but unable to vote due to no audio). 11. PUBLIC COMMENT: None. III. APPROVAL OF THE JANUARY 27,2021 MINUTES: Chairman Price Dobernick requested a motion to approve the minutes as presented. MOTION: Commissioner Barron SECOND: Commissioner Hall Roll Call Vote: Yays: Commissioners Barron, Bowen, Dobernick, Hall, Leatherwood, Mickens, and Stajos. Nays: None Motion carried. (Commissioner Janssen was present, but unable to vote due to no audio). IV. REPORTS: A. CHAIRMAN'S REPORT: Chairman Price Dobernick reported the following: 1. LEPFA Board of Commissioners—Annual Ethics Training Presentation: Chairman Dobernick noted LEPFA Board of Commissioners would participate in an Ethic's training Today as required by Lansing City Council Resolution#2020-190 which requires every member of a board, commission or authority authorized by City Ordinance or the city charter receive annual training on the ethics ordinance, conflicts of interest, and the Open Meetings Act. The training presentation began at 11:06 a.m. and ended at 11:28 a.m. Board members were asked to reach out to the City Attorney's Office with specific questions. Commissioner Leatherwood asked if copies of the presentation could be shared with those present. Scott Keith requested a copy of the presentation via Lisa,who noted this is a new training required by City Council resolution; she will LEPFA Board of Commissioners Meeting T' a - e 12 February 23, 2021 reach out to Heather Sumner for a copy of the presentation and will forward a copy to Scott Keith for distribution. Scott noted he will also share the presentation link, and all City of Lansing Board members are required to view the presentation and noted LEPFA has a FOIA link on our web site and we comply with FOIA and the Open Meetings Act. B. FINANCE COMMITTEE REPORT: Committee Chair Leatherwood noted the Finance Committee met and the Finance Committee offered the following motion for adoption by the LEPFA Board of Commissioners as presented on the screen and read by Commissioner Leatherwood: "The LEPFA Finance Committee recommends accepting the FY22 Budget in Draft Form with additional negotiations with City Administration that the Board shall receive in writing an allowance for changes in appropriations to the LEPFA Budget based on the City or LEPFA receiving additional funding through grants and/or funding designations outside of the general fund operating contribution." Commissioner Leatherwood deferred to Jennifer McFatridge, Vice President of Finance, who reported the following LEPFA Financials for January 2021: 1. Groesbeck Golf Course: January Operating Revenue is down compared to budget for the month and is up for year to date. Due to January weather, the simulator is being used in the clubhouse and the simulator season has been impacted by pandemic indoor restrictions. Operating Expenses finished up compared to budget for the month and down year to date. Categories impacting the January budget include salaries/wages/fringes and Insurance. Updated labor allocations including VP and President and CEO impact the salary/wages/fringe category. The insurance/bonding expense is related to a change in our insurance carrier for a better rate. The expense in January reflects two fees, one for the new carrier plus the December fee from our prior carrier that was prepaid; we will receive a coverage cancellation refund. The change will yield $12,000 annual savings. There were no questions. 2. Jackson Field: Jackson Field Operating Revenue typically comes from the concourse ATM machine. Revenue for the month is down compared to budget and for year to date. Revenue is behind budget due to activities at the stadium being impacted by the pandemic. Operating expenses are down compared to budget for the month and for year to date. Categories impacting the budget include salaries/wages/fringes due to updated labor allocations including VP and President and CEO wages. There were no questions. 3. Lansing Center: Operating Revenue decreased compared to last year by more than $3.51VI or 96%. Ingham County Health Department orders/restrictions regarding gatherings, limitations and restrictions on event size continue to impact revenue. Most of the January revenue is attributed to a single event (IATSE Training) in conjunction with Chase Creative. Operating expenses finished down compared to budget for the month and year to date. At the end of the seventh month of the fiscal year, the Lansing Center has captured 2% of the revenue budget and contained expenses to 15% of the budget. There were no questions. LEPFA Board of Commissioners Meeting P e 13 February 23, 2021 Commissioner Leatherwood requested a motion to receive the January 2021 financial report as presented. MOTION: Commissioner Bowen SECOND: Commissioner Mickens Roll Call Vote: Yays: Commissioners Barron, Bowen, Dobernick, Hall, Leatherwood, Mickens, and Stajos. Nays: None Motion carried. (Commissioner Janssen was present, but unable to vote due to no audio). The motion passed. 4. Budget Approval: Chairman Dobernick noted the City of Lansing and LEPFA have difference in funding and the City subsidy is critical to the operations of LEPFA. The purpose of the motion is to substantiate that should we receive additional funding or an increase in revenue in the future LEPFA will return funding and vice versa. If the City of Lansing receives funding and is successful LEPFA will be able to receive funds in order to be able to continue to operate. Scott Keith commented that we want to be as flexible as possible as we set a budget and establish the flexibility in writing from the City so that LEPFA is able to make changes to the draft budgets which likely for the Lansing Center. Last year we had PP funding, which we don't have this year and are able to rely on. The following motion was displayed on the screen for review as follows: "The LEPFA Finance Committee recommends accepting the FY22 Budget in draft form with additional negotiations with City Administration that the Board shall receive in writing an allowance for changes in appropriations to the LEPFA Budget based on the City or LEPFA receiving additional funding through grants and/or funding designations outside of the general fund operating contribution." Discussion ensued, Commissioner Stajos questioned if the motion passes and if there are changes to the budget, what is the process. Commissioner Stajos requested clarification because he noted at this time last year we were asked to endure a significant budget cut, and Commissioner Stajos at that time asked and was told by Shelby Frayer, that all City of Lansing Departments across the board would receive reductions in their budget and in the final process that was not the case and LEPFA was the only entity that endured a $200,000 additional budget cut which is not what was shared with the LEPFA Board of Commissioners. Commissioner Stajos asked for comment from Robert Widigan or the City Attorney's Office on assurances and noted this is the justification for asking for assurance in writing. Robert Widigan responded he had no insight to previous budget discussions or actions, he noted budgets are reviewed and approved in a process through the Lansing City Council and the budget is contingent on State and Federal funding which all aligns when doing the budget (the State is August/September and Federal is March/April). The next step is the Mayor submits the budget information to City Council on March 22, 2021. Commissioner Stajos thanked Mr. Widigan for the information and noted it is a different time and he is in a different position, but he indicated he specifically asked a question of Shelby Frayer about those City departments that would be impacted by the budget cuts and she cut our budget not just one time, but twice without communicating it to the Board and despite her assurance that all City departments were being asked to take cuts. Commissioner Stajos stated the LEPFA Board wants to cooperate with the City and make sure LEPFA Board of Commissioners Meeting I' ,1ge 14 February 23, 2021 we all are moving forward on the same page as a partnership. Widigan indicated that he will talk with Scott Keith to get a better understanding. He noted COVID has impacted the City and they have had to cut $12 million and are waiting on state and federal funding. He indicated he felt the communication was better between Scott Keith and himself. Commissioner Stajos indicated he hoped that LEPFA would not be left out of the mix. Robert indicated the wording on the motion helps. Commissioner Dobernick extended his thanks. MOTION: Commissioner Barron SECOND: Commissioner Bowen Roll Call Vote: Yays: Commissioners Barron, Bowen, Dobernick, Hall, Leatherwood, Mickens, and Stajos. Nays: None Motion carried. (Commissioner Janssen was present, but unable to vote due to no audio). C. STRATEGIC COMMITTEE REPORT: A meeting is scheduled tomorrow to discuss improvements at the stadium, and regular capital improvements at the Lansing Center and Groesbeck Golf Course. D. PERSONNEL COMMITTEE REPORT: Personnel Committee Chairman Bowen noted a meeting was held this week. Items discussed were Jennifer McFatridge's resignation and Personnel Committee Chair Bowen noted it was an honor working with Jennifer on the Finance Committee and she complimented Jennifer's level of work and flexibility and noted her opinions were to be appreciated. Committee member Bowen wished Jennifer well, and noted she will be missed. Scott noted we are looking at recruitment and Jennifer has offered to help get us through to May 1 with statements for Board, which is all very much appreciated. Chair Bowen noted Org Chart review was also discussed to address potential changes in positions and to look at roles and responsibilities and Scott will bring back to the Personnel Committee as items are addressed. Chairman Bowen also applauded the team for staying on top of everything and staying the course. Partial Pension Plan Vesting changes were also discussed as pertains to COVID relief. Scott noted currently we have a sliding vesting plan scale and what the change to the plan is indicating that everyone will be at 100%vested immediately (laid off or separated employee as well) and the date involves plan members from March 13, 2020 to March 31, 2021 and we have until March 31 to comply. The CEO evaluation, and review of the document was also discussed with the process to start in a couple of weeks. Jennifer thanked Cindy Bowen for her very kind words, and she thanked the staff, her peers, and the Board and noted she learned a lot. Jennifer noted she is willing to work on and through the transition in any capacity and is willing to assist in the process in any way she can, which is more than she received when she started. She noted she cannot thank the Board enough for the opportunity to work with them. Chairman Dobernick noted the Board will very much miss all she has done in the past and is certain she will be successful in her new endeavor. E. AD HOC COMMITTEE REPORT: Scott Keith reported the committee met last week and discussed several funding options including the Michigan Strategic Fund and Sheltered Venue funding. HB 4816 was signed by the Governor in January which pertains to the excess 4% bed tax for convention and event centers for improvements and some operating costs. The use of the Lansing Center as a vaccination site was discussed as well as the MSU Pavilion, Dwight Rich LEPFA Board of Commissioners Meeting Patio 15 February 23, 2021 the Fair Grounds, Sears, Meijer, etc. with the ICHD. It was noted DeVos Center was receiving $12,000 per day as a vaccine site. F. PRESIDENT& CEO REPORT: Scott Keith reported we hosted the Engineering Exams successfully. We are also using the Lansing Center as a virtual studio for virtual meetings with Chase Creative for in person and online meetings. As a part of the joint meeting with the LEPFA Board and the GLCVB Board Scott will share funding and how it impacts us. With the restrictions in place and how it is affecting us. Scott is also working with Julie Pingston and the Michigan Association of CVBs. Currently, we are able to host small events with some restrictions. Scott also noted that the TCF facility (formerly COBO Convention Center) hosted a Volleyball Tournament under the indoor sports definition. They are allowed one (1) adult per participant. Scott indicated he reached out to the GLVB Sports Authority regarding their ability to host the tournament. Application/Grant Funding: Michigan Strategic Fund — regular application has been submitted and Scott reported he was told Wednesday or Thursday we would hear this week regarding a timeline. Sheltered Venues is a federal grant and Scott indicated he checks daily, and the industry provides updates. Lugnuts Lease Agreement: The lease has been amended as of last week and overall, it doesn't impact LEPFA's financials. $1.25 million bonding is allowed per MLB development based on facility guidelines with authorization from the Oakland As to approve what we currently have for example, our 780 feet compared to 800 feet requirements for the locker rooms. We will have to switch the lighting to LED which will allow saving on the utilities and maintenance. The lights are old, and it is difficult to shut off certain banks of lights, which can be done with the new LED system. Scott noted he will meet with the BWL and look at all options including funding. An additional requirement is a second hitting tunnel and we are looking at creative ideas o keep costs down and comply. Also, they are requiring an additional locker room for females. Advocating Efforts: Scott noted he is working on advocacy efforts with Julie Pingston and the Michigan Association of Convention Visitors Bureaus, including the Impact on meetings and events and has sent letters that include the Board and the Mayor. Scott reported he is also attending Capital Caucus meetings to make them aware of our plight and the need for funding. Virtual Meetings: Scott reported LEPFA has built a virtual studio with our partners Chase Creative. The studio is portable and currently located in the Governor's Room. We have some contracts, and he extended his thanks to Price Dobernick and Jeremy Garza for booking the studio and for using the Lansing Center until people feel comfortable coming back to the Lansing Center in person. Scott noted it is not a lot of revenue/money but is a start to returning to face to face meetings. Commissioner Bowen thanked Scott for the efforts on the virtual studio but questioned the value as our industry finds ways to minimize, for example, leases due to Food and Beverage. When you add value,there should be money made and it is hoped not to lose value or money by giving it away. Scott indicated we are trying to gain as we get a rental fee and a percentage of Chase's fee, which will hopefully translate into a return and it is seen as a short-term solution. Price Dobernick assured all present nothing is being given away. LEPFA Board of Commissioners Meeting Page 16 February 23, 2021 G. LEPFA VICE PRESIDENTS & STAFF REPORTS: 1. Tristan Wright: No additional report. 2. Heidi Brown: Heidi noted her report is contained in the Administrative report; she thanked Jennifer McFatridge and noted she will be greatly missed and also extended her thanks to the Board Members who sent messages of support. 3. Paul Ntoko: Paul noted prices for 2021 are going up and he will be getting prices approved and updated to the Groesbeck site. 4. Mindy Biladeau: Mindy reported there was some movement compared to January in terms of events and limitations. Arbor Con was held and had 75 people in the building and was a virtual and hybrid event. Michigan Environmental and Great Lakes Energy Department held exams and will be back in May as well. It was their first time at the Lansing Center, and they are hosting future bookings. Imagine Dance Challenge will be held on March 5-7 and will host a modified dance competition. Regarding Silver Bells, last month Mindy indicated she would have viewership numbers and she is happy to share over 20,000 households watched the broadcast and the event would be 9 out of 81 if it was prime time. Mindy noted the data is cool and displays a great success and is proud of the event viewership, especially during a pandemic. Scott Keith noted we also received positive comments from Arbor Con and thanked the entire team; all stepped in to get the group in and it was a challenging group for a challenging time. Compliments were also extended to the CVB staff. Scott also thanked Paul for stepping in at Groesbeck as he has jumped in during Scott Horgan's absence and is working on rates and set up and outings. He also noted there will be a big loss with Jennifer leaving and noted since day one she stepped in without a flinch and never looked back. Jennifer is always on the up and did he job to the best of her abilities, and never had to question anything she brought forward. He thanked Jennifer for her leadership over the past 5 years as VP and all ten years. V. COMMISSIONERS COMMENTS: A. Price Dobernick: Chairman Dobernick thanked Jennifer and wished her the best of luck. Vi. OLD BUSINESS: None. VII. NEW BUSINESS: Councilmember Garza indicated that he heard the budget concerns loud and clear and will advocate for LEPFA and encouraged those present to reach out to him as an advocated. Vill.AJOURNMENT: At 12:21 p.m. Chairman Price Dobernick motioned for adjournment, second: Commissioner Mickens LEPFA Board of Commissioners Meeting Page 17 February 23, 2021 Roll Call Vote: Yays: Commissioners Barron, Bowen, Dobernick, Hall, Mickens,and Stajos. Nays: None Motion carried. (Commissioner Janssen was present, but unable to vote due to no audio). Commissioner Leatherwood exited the meeting at 11:58 a.m. THE NEXT MONTHLY MEETING IS SCHEDULED TENTATIVELY FOR: MARCH 23,2021 Time TBD Respectfully Submitted, Heidi Brown Recording Secretary LANSING ENTERTAINMENT & PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS SPECIAL MEETING March 23, 2021 MINUTES At 2:00 p.m. Chairman Price Dobernick called the monthly meeting of the LEPFA Board of Commissioners to order via Zoom audio/video conferencing. COMMISSIONERS PRESENT: Tim Barron, Lansing, MI; Price Dobernick, Lansing, MI; Kenric Hall, Lansing, MI; Charles Janssen, Grand Haven, MI; and Charles Mickens, Lansing, MI. COMMISSIONERS EXCUSED: Cindy Bowen, Larry Leatherwood, Brian McGrain (Ex-officio),James Stajos, and Robert Widigan (Ex-officio). OTHERS PRESENT: Mindy Biladeau, Heidi Brown,Scott Keith, Paul Ntoko and Tristan Wright- Lansing Entertainment& Public Facilities Authority; Lisa Hagen—Lansing City Attorney's Office; and Eric Brewer, Consultant—City of Lansing. I. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda as published. Chairman Dobernick requested a motion to accept the agenda. MOTION: Commissioner Barron SECOND: Commissioner Hall. Roll Call Vote: Yays: Commissioners Barron, Dobernick, Hall,Janssen, and Mickens. Nays: None Motion carried. II. PUBLIC COMMENT: None. III. APPROVAL OF THE FEBRUARY 23, 2021 MINUTES: Chairman Price Dobernick requested a motion to approve the minutes as presented. MOTION: Commissioner Barron SECOND: Commissioner Mickens Roll Call Vote: Yays: Commissioners Barron, Dobernick, Hall,Janssen, and Mickens. Nays: None Motion carried. IV. REPORTS: A. CHAIRMAN'S REPORT: Chairman Price Dobernick reported the following: 1. Nominating Committee: Chairman Dobernick reported he would be reaching out to Board members for volunteers for the Nominating Committee, as he plans on creating the committee in the near future.The committee will bring forth a slate of officers and Board members can expect calls, or are welcome to sign up for the committee. He is also working with Scott Keith on a joint meeting with the GLCVB in mid-April in order to have a shared discussion on what we have gone through as groups and on a regular basis as well as a general discussion on ways to help each other. B. FINANCE COMMITTEE REPORT: Chairman Dobernick deferred to Scott Keith in Committee Chairman Leatherwood's absence. Scott Keith shared the financials on the screen and reported the following LEPFA Financials for February 2021: LEPFA Board of Commissioners Meeting Page 12 March 23, 2021 1. Groesbeck Golf Course: Groesbeck Golf Course opened yesterday for walking golfers only. Golf carts will be in next week and we should be at full operation soon.The Income Statement indicates that revenue is up over last year and is flat for this period. Simulator use is down due to the COVID restrictions and it picked up in March when there were less restrictions, and it is hoped we can close the gap and make up the difference. Expenses are up over last year due to reallocation of salaries/wages/fringes in July. The remaining expenses are down for the month and the year(except for utilities). Excess revenue is up due to the salaries. The Balance Sheet indicates Accounts Receivables are outstanding due to balance due from Lansing Catholic Central which they indicate is due to staff changes and are in the process of catching up. In the category of Budget versus Actual—revenue is down for the month,while year to date exceeds budget. Expenses—two items are over in correlation to revenue—product sales are up; merchandise is up because purchases were made earlier to capture special deals and is why it is higher. Overall,Groesbeck Golf Course exceeded budget and the team did a great job. 2. Jackson Field: The team did a great job maintaining expenses which is common for this time of the year due to opening the stadium,which generally means repairs and maintenance expenses. Under revenue, current year expenses are behind due to COVID restrictions, no events means revenue is down. Expenses are up due to the reallocation and fringes. There is a savings on utilities due to being vacant for a year, which means we are ahead by about$30,000. The Balance Sheet indicates Accounts Receivable are up due to outstanding funds from the City, of the$38,000 total, $32,000 is related to the City. Budget versus Actual—is behind on revenue due to the restrictions. Operating Expenses are down by$34,000 in utilities and maintenance of facilities and equipment. Costs will be increasing and are coming up with the start of the season with de-winterizing, repairing broken window(s), hanging nets, the elevator repair, and the freezer repair all will decrease any savings. We have not been billed for DLI and the suite rental as we are waiting on parameters for renewal and answers to questions such as the number of people allowed in the suite and the cost,which have not been determined. 3. Lansing Center: Revenue is down by 97% but is up over last month. Scott noted he doesn't anticipate it going up as it has been a year and we may see it decrease significantly in comparison to last year. Revenue—there were events in February,which was great, but demonstrated small events cost more than if we didn't have them at all. Expenses increased with revenue related items. We had a loss of$115,000 with a $500,000 loss this fiscal year. In terms of the balance sheet, nothing has changed, the equity position is negative which will remain so for a while. We will likely be required to track on how funding is spent which will affect the bottom line. Budget vs.Actual is down to$145,000 in revenue, expenses held even in utilities; we need actuals and anticipate it will change. Excess Revenues over Expenses equate to a loss of$159,000 resulting in$455,000 behind budget. A motion was made to accept the Financial Statements for Groesbeck Golf Course,Jackson Field,the Lansing Center for February 2021 as presented. MOTION: Commissioner Barron SECOND: Commissioner Janssen Roll Call Vote: Yays: Commissioners Barron, Dobernick, Hall,Janssen, and Mickens. Nays: None Motion carried. 4. Budget Review: Scott Keith reported based on a meeting held with Robert Widigan and Jeff to review the budget with a contingency plan,they are working through the language and have a contingency budget for the Lansing Center. Mayor Schor will present the budget to City Council with Robert Widigan and he will share numbers for us to review. Last year we received $798,000 this year we anticipate $797,500. Scott noted now it is impossible to anticipate July 1 through the fall. We are developing a LEPFA Board of Commissioners Meeting Pa `fe 13 March 23, 2021 budget on the assumption of returning to events with 10%of capacity. We still have funding potential from the TCF funding pool and from federal funding. Scott indicated we are doing the best we can with what we have been dealt with the contingency if we do not receive funding from the City. Scott noted he will create a regular budget with various funding scenarios. C. STRATEGIC COMMITTEE REPORT: No report. D. PERSONNEL COMMITTEE REPORT: No report. E. AD HOC COMMITTEE REPORT: No report. F. PRESIDENT& CEO REPORT: Scott Keith reported the following: Capacity: There has been a change in capacity for stadium events which is now at 20%capacity. This topic has been discussed with the Capitol Caucus especially for outdoor capacities which affect stadiums such as Comerica Park(Tigers). Twenty percent capacity for the Lugnuts would be around 2,000. TCF Funding: Scott Keith reported a public meeting was held with Senator Hertel and the funding has been delayed due to several facilities not having turned in their paperwork, and they are responsible for holding up the process. It is anticipated funding should be available by May 1,with spending to take place by September 30 and reports due in September. Senator Hertel and our Lobbyists are working on funding. Scott reported he has been meeting with Representatives individually via Zoom and is discussing the plight of the Lansing Center and Hospitality Industry in general as well as changes with stadiums with the MLI3. Michigan Association of CVB's Hearing: The hearing was held last week and was 30 minutes long. Julie Pingston and Artcraft spoke and shared data. Challenges are still in place for the Restaurant industry, the Lansing Center and the GLCVB, as well as for our teams. Lobbyists have been discussing what we can do with Senator Hertel at the Lansing Center based on the type of event. Scott noted he is asking for better clarification on events and asking why casinos are allowed to operate at 30%capacity,which is an example of the inconsistencies. Currently we are at 300 people with social distancing and are not eating and sitting at one location. It is hard to host/find events with these limitations. Scott thanked the team for their patience. Scott discussed the group at Fenner yesterday as they were disobeying orders and it was discovered by the media,the group was not adhering to orders and this group was at the Lansing Center previously. The concern is the media is policing and enforcing event restrictions. We remain careful and cautious while doing what we can to remain compliant while understanding and trying to be forward thinking on our COVID plan. There were no questions for Scott Keith regarding his report. G. LEPFA VICE PRESIDENTS & STAFF REPORTS: 1. Tristan Wright: Tristan reported Mike Horning, LEPFA Maintenance Manager is doing a great job on de-winterizing the stadium. The nets will be up at the stadium by April 5 for the Lugnuts Golf Event. The nets are up early this year, due to good weather and it is good to have this done before the gates open. The Lansing Center is hanging in there. LEPFA Board of Commissioners Meeting 11a " e 14 March 23, 2021 2. Heidi Brown: Heidi noted her report is contained in the Administrative report; she reviewed the vacant positions and noted we are in the process of filling positions at Groesbeck Golf Course (3 seasonal positions) and the VP of Finance position. Effective March 22, 2021 staff will return to 100%of their salary, and their health care premium costs will increase from 8%to 10% in conjunction with the return to full salary. There have been no Worker's Comp claims for 90 days. Unemployment and employee inquiries continue as well as routing phone calls. In February we had one short-term disability, one long-term disability and one FMLA covered leave (same as short-term disability). There were no employee referrals. 3. Paul Ntoko: Paul noted Sunday was the final day of the simulator season at Groesbeck. Yesterday was opening day at the course with 125 golfers thanks to the sunny, warm weather. Paul noted it looks to be the top opening day. Half of the golf carts will be arriving today, and the rest will arrive by the end of the weekend,weather depending. All leagues are returning from last year and it appears we will be adding 2-3 leagues. Chairman Dobernick asked about Food and Beverage on opening day; Paul noted products sold out in every category. Paul also noted there were no mask issues. Paul will be reviewing the menus and it appears we will be able to add 6-8 extra weeks to the season and we hope to make the most of it. 4. Mindy Biladeau: Mindy reported in February Arbor Con was in the building as well as Michigan Great Lakes Energy. There have been many cancellations due to the restrictions. After this Thursday we would have hosted six groups which is a good sign and offers light at the end of the tunnel. Mindy noted she is getting sales leads/calls and the challenge is navigating groups with the restrictions. The good news is that people a looking to host events again. Events are picking up in the Summer and Fall and Mindy is optimistic. Mindy is currently working through special events and is concentrating on the Grand Concert Series and Groesbeck Golf Course Marketing April through September. Thursday Price will host a virtual meeting at the Lansing Center. V. COMMISSIONERS COMMENTS: None. VI. OLD BUSINESS: None. VII. NEW BUSINESS: None. Vill. AJOURNMENT: At 2:43 p.m. Chairman Price Dobernick moved to adjournment, MOTION: Commissioner Janssen SECOND: Commissioner Hall Roll Call Vote: Yays: Commissioners Barron, Dobernick, Hall,Janssen, and Mickens. Nays: None Motion carried. THE NEXT MONTHLY MEETING IS SCHEDULED TENTATIVELY FOR: APRIL 27,2021 Time TBD Respectfully Submitted, Heidi Brown Recording Secretary