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HomeMy WebLinkAboutLEPFA Minutes 1996 FINAL LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY—, BOARD OF COMMISSIONERS MEETING February 9, 1996 I=`II i' CLERK MINUTES " `'''`' '' CLERK At 1:35 p.m. Jim Smiertka called the meeting to order in the Governor's Room of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. MEMBERS PRESENT: James Butler, Glenn Friedly, Daniel Nickerson, and Charlotte Sinadinos. MEMBERS ABSENT: Donald Ristow. OTHERS PRESENT: Sharon Bommarito, City of Lansing; Heidi Brown, Lansing Center; Marian Bryant, Lansing Center; John Decker, City Market; Thomas Galyon, Greater Lansing ConventionNisitor's Bureau; Ron Onufer, City of Lansing; James Smiertka, City of Lansing, Robert Swanson, City of Lansing and Art Walker City of Lansing. If. CALL TO ORDER: Mr. Smiertka requested the record reflect this meeting of the Lansing Entertainment and Public Facilities Authority was called and duly noticed under the Open Meetings Act. Mr. Smiertka requested the members present express their waiver of notice of the hearing for the record: Sinadinos - yes; Nickerson - yes; Butler - yes; Friedly - yes. III. APPROVAL OF INTERIM BYLAWS: Smiertka distributed proposed interim bylaws for operational purposes until there is full Authority. The bylaws are standard bylaws and are consistent with the Articles of Incorporation. A. QUORUM: Under the proposed bylaws, a quorum is a majority of the qualified voting membership. Currently there are five (5) members, thus a quorum would be three (3). The issue is the number of affirmative votes needed to have an action effective. Under Mason's Rules of Order, it would be a majority of the qualified member which currently would be three (3). However, with the members being amended to ten (10) three may not be appropriate. Mr. Smiertka referenced item "1. C" on page three (3). This would require the favorable action of four voting (4) members, an alternative would be an affirmative vote of three (3). Swanson indicated following yesterday's Committee of the Whole meeting, there are recommended amendments to the Articles of Incorporation. One amendment is to change the City Market vendor representative's term to a one year term. If adopted, John Decker's LEPFA Board of Commissioners Meeting : Page 2 February 9, 1996 appointment will be confirmed. Also included in the items to be amended is expanding the Board to ten (10) members the first year and eight (8) the second year. This would require action on another four (4) appointments, which would be referred to Committee and acted upon week from Monday. Friedly moved to adopt the bylaws as presented, with the exception of the change that would allow for a quorum of three (3). SECOND: Butler. Change: page three (3) item C; second last line would require an action vote of three voting members of the commission. Revised to a majority of those present, but not less than three. Discussion ensued, Jim Smiertka clarified that a quorum would be a majority of the qualified members. Smiertka further clarified under Mason's Rules a majority of the quorum would be necessary to pass an item. This could be a majority of those present, a majority of three (3) or a majority of four (4). The motion was amended to reflect"a majority of those present." MOTION: Friedly SECOND: Nickerson; motion carried. B. ELECTION OF INTERIM OFFICERS: 1. Chairperson: Noting Donald Ristow's chairmanship of the current LEPFA Transition Committee and his involvement as a member and officer of the Greater Lansing Convention/Exhibition Authority, Friedly nominated Donald Ristow as Interim Chairman. Smiertka called for additional nominations. James Butler moved, based upon Ristow's knowledge and his ability to move aggressively ahead in an expedient manner that Don Ristow be elected Interim Chairman. Motion carried. 2. Vice Chairperson: James Butler moved that Daniel Nickerson be appointed as Interim Vice Chairman of the Authority. There were no further nominations. Motion carried. Vice Chairman Nickerson, in the absence of Chair Ristow assumed Chair duties of the meeting. 3. Secretary/Treasurer: Jim Smiertka explained the duties of the Secretary and Treasurer officers noting the Secretary signs documents and the minutes, is the official keeper of the minute book and keeps the LEPFA Board of Commissioners Meeting Page 3 February 9, 1996 Authority seal. The Treasurer is the official signer of financial statements and will present the reports and sign checks. M. Bryant explained that there is currently an automated, one signature check signing system. Smiertka explained as of this meeting the former Authority is dissolved. Smiertka explained checks and old accounts need to be changed from the old Authority to the new Authority. At 1:52 p.m. Thomas Galyon and Sharon Bommarito entered the meeting. Ms. Sinadinos nominated James Butler as the Secretary/Treasurer, Butler declined the nomination. Smiertka elaborated on the Treasurer position based on the Articles of Incorporation, "the Treasurer shall jointly with such other officers as designated by the Commissioner sign all promissory notes, checks and other obligations of the Authority when so ordered by the Commission. The Treasurer shall perform all acts incidental to the position of Treasurer fixed by the bylaws." Glenn Friedly nominated Charlotte Sinadinos as the Interim Secretary/Treasurer. Motion carried. Glenn Friedly offered the following resolution: RESOLUTION Charlotte Sinadinos be authorized to work with staff to convert the account designations from the old Authority to the new Authority and be authorized accordingly to sign and transact business on behalf of the new Authority. MOTION: Glenn Friedly SECOND: James Butler; Motion carried. At 2:07 p.m. Glenn Friedly moved that this body convene in closed session of the new Authority to review the specific contents of an application of employment for position of Chief Executive Officer of the Lansing Entertainment and Public Facilities Authority. SECOND: Sinadinos ROLL CALL VOTE: Butler - Yes; Friedly - Yes; Nickerson - Yes; Sinadinos - Yes. At 3:04 p.m. the committee reconvened to open session. II. CEO Sub-Committee: Glenn Friedly suggested the officers serve as the LEPFA CEO Selection Committee members. Nickerson appointed the following members to serve on the CEO Selection Committee: the Chairperson, Donald Ristow; the Vice Chairperson, Daniel Nickerson; the Secretary/Treasurer, Charlotte Sinadinos and James Butler for the LEPFA Board of Commissioners Meeting Page 4 February 9, 1996 purpose of reviewing the application and recommending an applicant, a proposed contract and specific bonus performance criteria. Friedly requested the committee be enlarged as the LEPFA Board of Commissioners enlarges. Smiertka indicated the bylaws allow for a regular meeting, Nickerson requested this action be postponed until all members have been appointed to the committee. THE NEXT MEETING IS SCHEDULED FOR WEDNESDAY, FEBRUARY 21 AT 7:30 A.M. AT THE LANSING CENTER. Respectfully submitted, c Charlotte Sinadinos, LEPFA Secretary/Treasurer Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING February 21, 1996 = ' MINUTES CITY CLERK At 7:35 a.m. Chairman Donald J. Ristow called the meeting to order in meeting Room 202 of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT: James Butler, John Decker, Glenn Friedly, Charles Janssen, Ellen Jeffries, Kate McNenly, Daniel Nickerson, Donald J. Ristow, Robert Swanson (Ex-officio), Dennis Sykes (Ex-officio), and Charlotte Sinadinos. COMMISSIONERS ABSENT: Greg Koessel (Ex-officio) and Timothy Nichols. OTHERS PRESENT: Michael Barber, Lansing Center; Scott Breckner, Consultant - Michigan State University; Heidi Brown, Lansing Center; Marian Bryant, Lansing Center; Thomas Galyon, Greater Lansing ConventionNisitor's Bureau; Lenora Jadun, City of Lansing; Robert Johnson, City of Lansing; Ron Onufer, City of Lansing; Ralph Sims; James Smiertka, City of Lansing; Ray Tadgerson, Capital Consultants; Jodi Upton, Lansing State Journal and David Wiener, City of Lansing. Chairman Ristow called the meeting to order and indicated Heidi Brown will be the recording secretary for the LEPFA Board. Chairman Ristow requested each Board member provide brief background information in conjunction with roll call. II. ESTABLISHMENT OF THE AGENDA: There were no additional agenda items. III. PUBLIC COMMENT: None. IV. CITY OF LANSING LIAISON REPORT: Chair Ristow stated there are currently-three (3) ex-officio City of Lansing Board attendees and at this time a liaison is not needed. Articles of Incorporation: Jim Smiertka distributed the LEPFA Articles of Incorporation to Board members and noted bylaws will be forthcoming. Smiertka indicated Kate McNenly and John Decker's appointments are not effective until February 22. V. CHAIRMAN'S REPORT: Chairman Ristow commented on the responsibility and exciting opportunity for each of the Commissioners. Ristow referenced two (2) goals for the Authority: 1. The formation of three (3) entities under one roof, thus operating more efficiently and reducing the economies of scale and LEPFA Board of Commissioners Meeting Page 2 February 21, 1996 2. By combining three (3) entities under one roof, they should function better as a team. Therein providing the user with even greater service excellence at the best value attainable. Ristow indicated the Transition Committee was appointed in November to select a Transition CEO. Michael Barber was selected as the Transition Chief Executive Officer and was contracted with the old Authority. Barber's contract expires February 15, with a 30 day extension to March 15. The second charge for the Transition Committee was to select a permanent CEO and the third charge is to identify the critical issues that face the Authority. Ristow reviewed the ten critical issues as outlined on the agenda, noting the Transition Committee is addressing the issues. Ristow noted the Transition Committee will continue to be a part of the LEPFA Board meeting report until approximately April 1, at which time the Transition Committee will be phased out. The LEPFA Board will eventually meet one time per month, with special meetings to be held at call of the Chair. At 7:42 a.m. Daniel Nickerson and Robert Swanson entered the meeting. Chair Ristow outlined the following challenges facing the Authority. Initial work has been done toward the formal search for a CEO. Once the CEO is on board, permanent bylaws will be established, a formal organization can be established and a formal operating agreement enforced. Ristow also noted formal recognition needs to be given to the former GLCEA Board of Commissioners. VI. APPROVAL OF THE MINUTES OF FEBRUARY 9. 1996: Chair Ristow indicated given no changes or corrections to the minutes; the February 9 minutes stand approved as published. VII. REPORTS: A. SECRETARY/TREASURER REPORT - January Financials (Lansing Center) Chair Ristow noted initially only the Lansing Center financials will be reviewed. The Finance Committee, Chaired by Bob Swanson is currently compiling budgets for all three entities. Marian Bryant reviewed the January Lansing Center financial statements as distributed. At 7:50 a.m. Bob Johnson entered the meeting. Financial Statements for January 31, 1996: Marian Bryant reviewed the Income Statement, noting total operating revenue exceeded last year's by 1% ($21,955). Building Rental is increased by 23% over last year ($92,649). Total events for last fiscal year were 460, with over 600 events expected for fiscal year 95/96. Total operating expense increased by 5% or $99,959 over last year and total net income after subsidy for January 31 is $108,168 (including transition LEPFA Board of Commissioners Meeting Page 3 February 21, 1996 expenses of$111,055.73). Internal Revenue coverage of expenses is 81% (84% last year). Chair Ristow moved the January, 1996 financial statements be received as published and the expenses for the month approved. MOTION: Friedly SECOND: Butler; motion carried. B. TRANSITION DIRECTOR'S REPORT: Mr. Barber congratulated members on their appointments. Barber noted 130 events were held this quarter, with projections for next quarter estimated above 160 with 600 events estimated for the year (30% above last year). At 7:55 a.m. Jodi Upton entered the meeting. Barber noted, in addition to the CEO search, two key positions, a Marketing Director and an Operations Director are vacant. Barber noted 2/3 of staff belong to collective bargaining units and three contracts need to be finalized or renegotiated. Barber noted we are negotiating with the bargaining units and have delayed finalization until the new CEO is on board due to economic implications and the length of the contract. Mr. Barber noted FOSTER, SWIFT, COLLINS AND SMITH has been working with Marian Bryant in the negotiation process and it is imperative that the continuity with the union representatives continue especially during this peak season. Barber noted Stephen Schultz is familiar with the contract history and is also working with Marian Bryant on a Personnel Policy manual. Glenn Friedly complimented Michael Barber on an excellent job and asked if Mr. Barber would be available to assist the new CEO during the transition period. Barber indicated he would be available to assist the new CEO on a consultation basis, but a new CEO needs to be in place as soon as possible. C. CRITICAL ISSUES FOR TRANSITION OF MEGA PARTNERS SUB- COMMITTEE: Chair Ristow introduced Scott Breckner, Consultant/Chair of the Transition Sub-Committee. Breckner reviewed and presented an update on the following transition sub-committees: 1. General Administration: This committee will review personnel analysis, budget implications, organization chart, summarization of calendars and schedules, and review the Lugnut agreement. This will be the clearinghouse committee for all the other committees and will review the documents and make a final recommendation to the new Authority. 2. Parking and Transportation: Committee Chair Lenora Jadun reported the committee has reviewed the parking and transportation issues surrounding the market, Lansing Center and Oldsmobile Park. An operations manual has been developed. Jadun indicated parking capacity is 6,900 parking spaces within a quarter mile of the stadium. Signs are being developed to direct visitors to LEPFA Board of Commissioners Meeting Page 4 February 21, 1996 parking, as well as prepaid suite holder parking and prepaid spaces for ticket holders. Premium lots will charge $4 to park. Policies and procedures will be developed, however, priority #1 is baseball. Jadun indicated the baseball parking system will be a separate accounting system. A study of 14 Class A, 5 AA, and 4 AAA parking facilities was completed and only two had shuttle systems. Special drop off and pick-up access for handicappers will be developed. Jadun reported working with the Lugnuts on a marketing campaign for parking including maps, signage, etc. and are working on expressway signage for the Lansing Center and Oldsmobile Park. It is anticipated Cedar and Larch Street will be closed 5-10 minutes to allow exiting from the ball games, with direction provided by the Lansing Police Department. 3. Booking Policies and Procedures: Breckner reported there has been discussion between Mike Barber and Tom Galyon regarding the booking of flat shows versus conventions and the potential for conflict. Riverfront Plaza issues pertaining to parties, scheduling, legal ramifications, alcohol use in City Parks, etc. are being discussed. Cheri DeClercq and David Wiener are working on the Community Service grant as it pertains to Oldsmobile Park. There are various issues surrounding the use of the complex. Dennis Sykes is working on developing license for use of the stadium. 4. Analysis and Development of Fixtures, Finishes and Equipment: The Lansing Center inventory list has been developed and reviewed as well as recommendations for the purchase of additional equipment. The Lugnuts are detailing their equipments needs. A listing of special event needs has been compiled with the use of a promoter. Sykes reported a contract for a marquee has been developed with Fairtron. An agreement for the rental of the tri panels is being developed and the marquee is scheduled to be up by April 3. Bob Swanson indicated the marquees will be located at Michigan and Larch and Michigan and Cedar and will be a message board as well. Oldsmobile paid to put their logos on the marquees. A sketch was distributed. Breckner reported John Decker is compiling a equipment and fixtures list as well for the City Market. 5. Finance: Committee Chair Robert Swanson indicated the Finance Committee has been reviewing the budgets for each of the entities as well as an indepth review of the agreement with the Lugnuts. The next scheduled meeting is March 1 and they are awaiting other committee reports to analyze financial impact. 6. Security: Scott Breckner reported for Committee Chair Jerome Boles. This committee is drafting an outline for procedures pertaining to evacuation, bomb, tornado and fire prevention. Procedure notices will be developed regarding the tornado warnings and the use of the public address system. Sykes indicated this will be compiled in a single document and an overall plan. A press conference LEPFA Board of Commissioners Meeting Page 5 February 21, 1996 will be held to forward information to the users. The information will be run through March and will address such issues as parking, handicapper accessibility, etc. to make the community comfortable with using the stadium. 7. Operations and Technical Issues: The committee is defining lease issues with the Lugnuts as they pertain to operations i.e. turf, snow removal, and HVAC. The committee is waiting for expenditure items for the Lugnuts. Lugnuts will be responsible for ticket takers, ushers, maintenance, etc. City Market operations have not been detailed. Turf management issues - Trey Rogers, consultant from Michigan State University has been working with Dennis Sykes. Sykes noted there is a two year agreement with Mr. Rogers due to the multi-purpose nature of the stadium. At 8:37 a.m. Ralph Sims exited the meeting. Breckner indicated the Downtown Mall Environs has a plan for the location of downtown vendors, with guidelines to be developed. Of concern is the location of vendors outside the stadium (merchandise and food and beverage vendors). Smiertka noted the Principle Shopping District issue is also on the table and there is a district that has to be developed and would control vendor operations under another board. Smiertka has recommended the stadium not be included in the Principle Shopping District, thus allowing control within this board. Sykes indicated no food or drink will be allowed to be brought into the stadium. Bob Johnson noted in terms of the Downtown Mall Environs, there is no prohibitory forces surrounding the stadium and there needs to be a regulatory body. The Principle Shopping District would assume the role of the Downtown Mall Environs and would take over vendor approval. To exclude the stadium from the district is of concern to the LEPFA board because the Lansing Center is a public facility and they don't control the sidewalk. Smiertka indicated this is an issue which needs to be discussed. The committee will review this issue further. 8. Information Systems: Mike Barber reported this committee is reviewing information systems that will best facilitate all properties in terms of scheduling, report writing, set-up, and a finance package. The current system does not include finance packaging. Other applications are being reviewed in conjunction with a consultant. 9. Marketing and Promotions: Breckner reported they are meeting with Linda Fredrickson regarding marketing. Concerts at Olds Park are being discussed as well as ticketing issues. Sykes stated TMO will handle ticket sales with an advertising packet. Brainstorming for the City Market is on-going. 10. Grand Opening Committee Meeting Ray Tadgerson reported the Grand Opening Committee, chaired by Liza Estlund Olson continues to meet. Three LEPFA Board of Commissioners Meeting Page 6 February 21, 1996 events have been scheduled, the first is the March 31 by invitation only party for workers, suppliers, vendors, etc. The UofM versus MSU game is scheduled and April 5 from 11:00 a.m.-3:00 p.m. will be the ribbon cutting ceremonies. D. Sykes reported there will be a second grand opening in May when the weather is warmer. Mr. Tadgerson indicated the financing is being done by Mary Blood of the ConventionNisitors Bureau through the sale of banners with a goal of $85,000. Friedly noted it would be helpful if issues could be quantified in terms of goals, objectives and guidelines. The Board needs to state tasks in a generic, clear way. Friedly indicated a set of goals appropriate for the Board to evaluate its own performance and objectives are needed. Breckner indicated a mission statement is needed and goals and objective statements. However, the Authority will have to work through the process, as there is a deadline and for the committee to make their recommendations. Barber noted the process to establish goals and objectives requires another timetable. Ristow noted the purpose of the Authority is to generate economies of scale by combining three entities and giving the user a warm fuzzy feeling in getting the better value for their dollar. The combining of the three entities and the Authority overseeing those entities is the immediate goal. Vill. OLD BUSINESS: None IX. NEW BUSINESS: A. Bylaw Change: Chair Ristow indicated there are several bylaws in need of revision. Of immediate concern is the signature of the Treasurer with the Chairperson of the Commission. The Authority currently uses a facsimile signature due to the amount of checks requiring signature. Ristow recommended and moved item "E" page three be changed to . . .all checks of the Authority shall be executed by either the Treasurer, his/her facsimile signature, the Chief Executive Officer or Chairman of the Commissioners of the Authority." At 9:07 a.m. Lenora Jadun exited the meeting. MOTION: Sinadinos Discussion ensued regarding the check signing process and the need for a flexible system. Smiertka indicated Articles of Incorporation require the treasurer be bonded, and there be two signatures, however, other officers can be selected for signature and a facsimile signature can be used. Mike Barber stressed the immediacy of having an expedient checking signing procedure in place. Chair Ristow moved that the interim bylaw pertaining to item LEPFA Board of Commissioners Meeting Page 7 February 21, 1996 "E" on page three shall be amended as follows: "All checks of the Authority shall be executed by the Treasurer, and the Chairperson or the Chief Executive Officer or their facsimile signatures of the Commission of the Authority." MOTION: Nickerson SECOND: Sinadinos, motion carried. At 9:32 a.m. it was moved to adjourn to closed session to review applications and recommendations for the Chief Executive Officer position. MOTION: Sinadinos SECOND: Janssen, motion carried. At 10:17 a.m. motion was made to arise out of closed session. MOTION: Nickerson SECOND: Butler, motion carried. B. CEO Selection Committee Appointees: John Decker was appointed to serve on the CEO Search sub-committee and Bob Swanson will serve in ex-officio capacity. C. Combining of LEPFA Transition/Board Meeting: Discussion ensued regarding the combining of the LEPFA Transition and Board meeting. The meetings will remain combined until the Transition Committee has completed its charge. At 10:30 a.m. the meeting was adjourned. MOTION: Sinadinos SECOND: Nickerson, motion carried. THE NEXT MEETING IS SCHEDULED FOR WEDNESDAY, MARCH 6, AT 7:30 A.M. AT THE LANSING CENTER IN MEETING ROOM 201. Respectfully submitted, Heidi K. Brown, Recording Secretary Adopted with corrections noted at the March 6, 1996 LEPFA Board of Commissioners meeting. Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING March 6, 1996 MINUTES Py F �-• I r. �l C1 I� L.--`:i S1.i J CI i i U f-r_ I� At 7:35 a.m. Chairman Donald J. Ristow called the meeting to order in meeting Room 201 of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT: James Butler, John Decker, Ellen Jeffries, Kate McNenly, Timothy Nichols, Daniel Nickerson, Donald J. Ristow, Robert Swanson (Ex-officio), Dennis Sykes (Ex-officio), and Charlotte Sinadinos. COMMISSIONERS ABSENT: Glenn Friedly, Charles Janssen and Greg Koessel (Ex-officio). OTHERS PRESENT: George Astengo, Raber Associates; Michael Barber, Lansing Center; Scott Breckner, Consultant - Michigan State University; Heidi Brown, Lansing Center; Marian Bryant, Lansing Center; Ralph Sims; James Smiertka, City of Lansing; Dirk Spillemaekers, IATSE Local 274 and David Wiener, City of Lansing. III. ESTABLISHMENT OF THE AGENDA: Chairman Ristow requested under VI. Reports item "E. Profile of Operations" be added to the agenda. At 7:35 a.m. Charlotte Sinadinos and David Wiener entered the meeting. IV. PUBLIC COMMENT: Chairman Ristow introduced Dirk Spillemaeker, President of IATSE Local 274. Mr. Spillemaeker stated the history of IATSE as it pertains to the entertainment business. Spillemaeker stated he is present to urge the Commissioners to appoint a Chief Executive Office and noted currently, the local is "celebrating" one year anniversary contract expiration dates (in March and April) for the custodial, maintenance, set-up, forepersons, and AV technician staff members. Spillemaekers further noted these staff members have kept a low profile during the past year, and indicated in the past promises have been made and not kept and cited several examples of employee frustration such as the Local had not received the Lansing Center's policies and procedures until two weeks ago. Spillemaeker reiterated the Local's commitment to the Mayor's project and requested in the future, they be given more opportunity to speak to the Council, Commissioners and to the CEO. Spillemaekers noted they are collectively working to better the Lansing Center and noted IATSE is working on several innovative licensing programs including a licensing program for integrated skills which will serve the Lansing Center and various other entities involved with IATSE Local 274. At 7:37 a.m. Dennis Sykes and Robert Swanson entered the meeting. At 7:40 a.m. Jim Smiertka and Ralph Sims entered the meeting. Spillemaeker noted 500 plus events per year are serviced at the Lansing Center by the Local and noted he is always available to field any questions and will work to make this project successful for everyone. Commissioner Butler questioned Mr. Spillemaeker's statement regarding the opportunity to speak to the council and asked if he had been denied the opportunity to approach the council previously. Spillemaekers noted a lack of follow-up regarding IATSE involvement with the Oldsmobile Park Grand Opening. LEPFA Board of Commissioners Meeting Page 2 March 6, 1996 At 7:43 a.m. Art Walker entered the meeting. Butler questioned the statement, " . . . promises were made but not kept." Spillemaekers noted this was in regard to the previous Authority and noted the negative effect on employee morale. Spillemaekers stated this is slowly changing under Mr. Barber, and indicated the Local's desire to turn this into the best possible facility. V. APPROVAL OF THE MINUTES OF FEBRUARY 21, 1996: Mr. Swanson requested the three ex-officio city members be reflected in the minutes as "Commissioners." Chair Ristow indicated given no further changes or corrections to the minutes the February 21, 1996 minutes stand approved as published and corrected. VI. REPORTS: A. CHAIRMAN'S REPORT: Chair Ristow.complimented Lansing Center staff on the letter received from the Michigan Municipal League Conference. B. NEW LEPFA CEO SEARCH SUB COMMITTEE: Committee Chairman Daniel Nickerson noted CEO Search Committee members are: James Butler, John Decker, Donald Ristow and Charlie Sinadinos. Nickerson reported the committee met last week with Mike Barber, Bob Swanson and Dennis Sykes to gather basic operations information, in an effort to match the operations with the qualifications of the candidates. Resumes were reviewed and discussed with the Transition Committee and Mr. George Astengo of Raber and Associates. Nickerson noted Mr. Astengo has been very cooperative in obtaining the candidates. The committee will interview candidates and the Authority Chairman will coordinate a special meeting and press conference to receive the recommendation of the CEO Selection Committee. C. TRANSITION DIRECTOR/INTERIM CEO: Michael Barber reviewed the Lansing Center in- house events for the week and noted last weekend the Buggy Builders were in-house and this weekend the Annual Sports and Fishing Show will be in house. Barber noted staff members are serving on Transition Sub-Committees, which gives them an opportunity to be involved as we consolidate with the other facilities under the management team. Barber noted food and beverage will exceed $350,000 in sales in March, and will exceed $1.42 million during the next four months. Collective bargaining meetings are on-going and management has presented them with a personnel manual which they are reviewing and will come before this Board for final adoption. D. CRITICAL ISSUES FOR TRANSITION OF MEGA PARTNERS: Scott Breckner, Consultant/Chair of the Transition Sub-Committee indicated the committee's mission continues to be submission of a rough draft no later than the first week of April. Breckner noted some of the sub-committee's reports are written. Breckner reviewed the following: 1. General Administration: This will be the clearinghouse for most of the committee reports and will review the rough drafts and make a final recommendation. 2. Booking Policies and Procedures: Breckner reported the Lansing Center has assumed responsibility for contracting, servicing and managing events for the Riverfront Park. Breckner noted a meeting was held with Diane Brewer of Riverfest and Kelly Thompson from the Downtown Business Association to discuss the potential for interacting those organizations and their activities and their impact on the Riverfron.t. Development. Brewer forwarded various policies and applications pertaining to use which will be incorporated in the final report. LEPFA Board of Commissioners Meeting Page 3 March 6, 1996 Programming options are being developed for Oldsmobile Park. A number of acts are being considered and Mr. Sykes office continues to receive applications for use. Events have been booked and will be announced individually. 3. Operations and Technical Issues: Sykes noted there is a clear understanding of the Lugnuts as a part of their TMO lease as well as the responsibilities of the City and they are at closure. a. Turf Management: Trey Rogers, the Michigan State University Turf Management Specialist has contracted with the City for approximately six (6) months. Rogers will arrive in time for the stadium opening and this short term contract will not obligate the Authority to a long term contract. Rogers will be on-call regarding the turf and the City Attorney is working on the agreement. b. Licensing Agreement: Mr. Smiertka is working on the licensing agreement for contracting of events in the ballpark. _ c. City Market: John Decker is working on the City Market report and is developing a listing of the programming priorities to be recommended as a part of the vendors operation. They are working with Bob Johnson on a schedule of events that were held in the City Market during the past year. d. Cost Analysis: Cost estimates have been received by Rick Snead, Lugnuts Director of Operations. The Lugnuts are responsible for providing operational support for Oldsmobile Park events. Costs have been recommended by Snead at $1500 per event, averaging 740 per head to cover expenditures. e. Vendors Conflict: Breckner revisited the conflict with product vendors located on Cedar and Larch Streets and the prohibition of bringing food and beverage into the park. This issue is still in committee. Breckner reported there is transition going on between the Malls and Environs Committee and the development of the Principle Shopping District. It is anticipated it will come to closure upon approval by City Council. At 8:37 a.m. Ralph Sims exited the meeting. 4. Marketing and Promotions: Breckner reported the committee met and discussed all the potential uses of the stadium along with Pat Cook, Kelly Thompson, Diane Brewer and members of the Convention/Visitors Bureau staff. Breckner indicated there is a lot of excitement regarding the Riverfront area and the relationships that could develop between the Malls Environs Committee and Riverfest activities. Potential new uses for the City Market and incorporation with Lansing Center activities were discussed. Breckner will recommended a $30,000 budget for national and regional marketing for the new complex and noted it is of particular importance during this first year to sell the program. A minimum of $15,000 per year is recommended for subsequent years and this is subject to change as the project moves forward. Breckner indicated all agreements will be included in the final report. Bob Swanson reported the Lugnuts have exclusivity with the concessionaire and the scoreboard operator. They will provided staff at the rates negotiated, or the Authority will be free to bring in its own staff or contract with someone else. 5. Information Systems: Hooper and Andrews are reviewing the Delphi System and other software options. Mr. Barber noted two systems are under review, Concentrics and Ungerboeck. LEPFA Board of Commissioners Meeting Page 4 March 6, 1996 Sykes noted his staff has been consolidating the Lansing Center, stadium and city events including Parks and Recreation and indicated this will be forwarded to the Lansing Center. 6. Analysis and Development of Furniture, Finishes and Equipment: Breckner reported they have received a City Market equipment list(current equipment). They have also received and distributed a four page equipment needs list from the Lansing Center. Included in the Lansing Center's report is equipment needed to meet ADA requirements and revenue stream equipment for the Authority at an estimated cost of $500,000. Breckner indicated it is important to give consideration to and identification of a replacement fund. Breckner noted a special events list has been compiled. Breckner will recommend that special event equipment (i.e. staging, lighting, chairs, tarps, etc.) be leased in the first year. Information has been forwarded to Mr. Sykes regarding promoters that have such equipment available for lease to support a major event. Butler questioned the difference in the concept for Michigan Fest. Breckner indicated there is no difference and we would probably use the same type of system. The key will be at least 10,000 seats, coordination of the production and use_of video screens. Sykes noted it is best to lease equipment until we are certain how systems will operate. Sykes indicated there are many business aspects that need to be reviewed during this first year including the various acts and the cost to the consumer as well as the wear and tear on the stadium. Breckner noted they are shooting for a major event the last week in May, July 4th weekend and Labor Day weekend. A "Monthly Movie" event is being considered for the stadium. Mr. Swanson indicated a maintenance/capital reserve plan should be addressed very soon. Smiertka suggested looking at capital financing for the future. Ristow indicated this must be completed to address ADA concerns. Sykes indicated the stadium will have ADA equipment for the hearing impaired. 7. Grand Opening Committee Meeting: Breckner reported the Grand Opening Committee, chaired by Liza Estlund Olson is moving forward. Swanson indicated banner sales have produced $55,000 to-date with a potential for more sales. Invitations have been drafted and the"Hard Hat" reception on March 31 at the City Market has been organized. The April 3 MSU opening baseball game tickets have gone on sale with 2,000 sold. April 5 will be the Lugnuts opening day. Sykes addressed Mr. Spillemaekers comments regarding IATSE involvement, encouraging anyone interested to attend the Grand Opening Committee meetings and further noted the meetings are each Thursday at 4:00 p.m. Breckner noted the Lugnuts have established an information number 483-PARK (7275) for parking and transportation information, voice mail response and event information. Butler requested a consolidated summary list of the grand opening ceremonies. Sykes indicated that information will be available at the next board meeting. Butler also requested a list of those invited. Sykes noted Liza Estlund Olson has compiled a listing of the events and will forward the information. Mike Barber reminded the Board that we are one third owners of a suite with the ConventionNisitors Bureau and Pace Partners. E. PROFILE OF OPERATIONS: A. Financial Operations: Bob Swanson distributed and reviewed the Finances for the three entities for the 1997 year. 1. Lansing Center Preliminary Budget 1996-97: Swanson indicated this budget was compiled and approved under the former Board with the understanding that it may be revised. Operating revenues were estimated slightly under $4,000,000 and total operating expenses are estimated at $4,600,000 and a subsidy of $550,800 was noted. Swanson noted the subsidy has dropped over the last three years and explained $20,000 was moved to a Community Services fund LEPFA Board of Commissioners Meeting Page 5 March 6, 1996 to be used for events at the Lansing Center. The committee has recommended increasing this amount for Lansing Center and stadium groups. A change in food service is noted since the inclusion of Fine Host as the food and beverage provider (noting a $2.5 million revenue stream). Swanson noted there is no debt service for the building because it is handled through TIFA and parking is not listed as a revenue because the parking revenues are the City's. Mike Barber discussed more.creative methods of generating revenue such as telephone systems, decorating service revenue, corporate sponsor ships, advertising panels, in-house advertising, etc. Ellen Jeffries questioned how the deficit is handled. Swanson noted the Lansing Center has a reserve. Ristow noted there is a $100,000 - $55,000 capital reserve fund and this is used for replacements i.e. carpet. Swanson indicated there are sizable transition costs that are currently included and while they are a one time thing, the budget would be much more positive. Ellen Jeffries questioned how the budget is closed with a deficit? Chair Ristow noted the financials are reviewed monthly and will be reviewed for all three entities. The CEO, the treasurer and Finance Committee can recommend budget adjustments between now and June 30. Swanson reviewed the summary of projected revenues and expenses for the stadium as it relates to the revenues stream related to the debt service. Swanson reviewed the statement as projected in November, 1995 noting most of the stadium revenue streams will come directly to the city. Under the lease arrangement the City earns 10% of the ticket sales gross revenues, from the sale of novelties and souvenirs, concessions, food and beverage/concessions and stadium advertising (estimated at $500,000). Swanson noted the City also has money from the suites there are 26 luxury suites, 24 are for lease (one belongs to city and one to the club). Of the 24 for lease, the city earns 100% revenue from five of the boxes at $25,000 per year; all the suites are on a three year contract. The city leased 4 of 5 and one went to Oldsmobile. The city also sold some of the TMO boxes, which the city receives $15,000 and the team receives $10,000. The team has leased the remainder at $15,000 and the City receives one third of the lease. The City sold the naming rights to Oldsmobile for a 15 year deal for $100,000 per year. The parking is 100% City revenue ($250,000 estimate). The City events and promotions revenue will come through the sale of two marquees at Michigan & Larch and Michigan and Cedar at $100,000-150,000 per year and the remaining will be generated from non-baseball events. The debt service will be $1.5 million per year for 15 years based on what we know of the costs and a reserve for maintenance has also been set aside at $60,000. Swanson noted City events will include MSU games at the stadiums, and the numbers are becoming hard numbers, with a sellout expected for the April 3 game and they are considered a part of the $250,000 estimated for City events. Dennis Sykes indicated the City will be allotted 30 dates and we have to tell them which dates we are picking. TMO gets 30 days to pick 5 dates and every other date goes to the Authority. Swanson has indicated the Lugnuts do not have their schedule yet and MSU is ready to schedule their 1997 dates. Sykes noted the Lugnuts will submit their schedule next fall (they already have MSU's schedule) and the Authority will have 30 days to pick dates, then the team will have 30 days to pick their five non-baseball events, the remaining dates revert to the Authority. Swanson noted the only baseball we can have is amateur baseball. Smiertka noted we must realize we are setting precedent. The stadium is controlled by the Authority and Lugnuts are lessees; the Authority owns and operates the stadium. During their games they are responsible for the maintenance of all the operation expenses and we can use them for other events, but we maintain control via our license. Sykes reviewed the following items: , LEPFA Board of Commissioners Meeting Page 6 March 6, 1996 1. Stadium Completion: - Although the stadium is opening on April 3, the construction and completion of the stadium remains on-going. Outdoor painting will be on-going and there is external steel that will need to be painted and finishes and fixtures that will not be completed. Concessions and suites are the concentration now. Lugnuts will sell tickets at the Lansing Mall and will work out of Washington Square for now. Construction and completion of the punch list will require follow-up. The preliminary punch list has been reviewed. 2. Stadium Use Plan: A draft plan dealing with the security inside and outside of the stadium has been developed. Safety of attendees is of primary concern. Traffic movement is included as well as parking. 3. Accessibility: Of importance is making sure the handicapped community is aware that the facility is 100% accessible and how they can reach all areas of the stadium. Directions lay out handicap seating and hearing devices. CATA is also a part of the plan. An emergency evacuation plan is being developed by the fire department. Sykes indicated a production has been developed by channel 28 and will be broadcasted by TCI and Horizon. The production will include diagrams and will have to be modified. 4. Decision Making Policies: These are draft policies that will be used for decision making regarding event booking and is currently being reviewed by the City Attorney's office; it will then be forwarded to City Council. These policies are guidelines for booking. 5. Promotions: The new Director will need to look at ways to underwrite projects, festivals, etc. Sykes noted Breckner has completed a stadium report that will include research and recommendations based on various stadiums throughout the country. 6. Main Entrance Hall Fame: Oldtimers and kids pictures relative to the history of athletics in the capital city will be displayed in the main entrance area. 7. Legal Agreements: Sykes noted the agreement is driven by 11 major legal agreements and a list is compiled of the agreements with Oldsmobile, the turf agreement, TMO agreements, MSU agreements, sale of tickets, and many legal documents that have been developed and this legal aspect is important. These agreement will have to be analyzed and sorted out and there will be a de-briefing on the agreements, that will capture the discussions and spirit of the agreements. Swanson, Smiertka and Sykes did most of the work and Sykes noted they will be available to answer questions. Kate McNenly questioned if the de-briefing would benefit the board. Sykes indicated this would be helpful as it pertains to legal as well as building issues. B. City Market: Bob Swanson reviewed the City Market budget. Revenues are$57,600 projected from the monthly stalls and parking around the market. The City is reviewing the parking at this time. Expenditures $103,000 projected for a $45,000 deficit and the budget does not include as much advertising/marketing as last year. There is a current subsidy at $83,000. Mayor Hollister will recommend a subsidy for the Lansing Center and the market and an operating budget for the stadium as well. Swanson indicated the Authority and the new CEO will have to develop the operating structure of the market. John Decker report currently the City Market has 100 stalls with 14 current vendors and 45-60 in the summer thus the revenue stream is at 50%. Decker noted the market vendors have been working with monthly leases for over one year. Ristow noted currently parking revenue for 11 months out of the year are greater than revenues generated by the market itself. LEPFA Board of Commissioners Meeting Page 7 March 6, 1996 C. Riverfront Plaza: Swanson reported this is a two million dollar project surrounding the Lansing Center and the Authority will control that including the gazebo area. Swanson indicated this area will become a revenue center as the area is leased out. D. Personnel Operations and Bookings: Michael Barber reviewed the Personnel, Operations and Booking operations. Barber noted his original charge was to look at the administration, operations, marketing, advertising, corporate sponsorships, booking, finance including budgets, and food and beverage. Barber noted a final report regarding all areas will be prepared at the conclusion of the performance audit. Because we are short not only a CEO, but a Marketing and an Operations Director, Barber agreed to monitor the operations on a day to day basis since last October as the Interim Director and worked to help scope out, write and recommend a profile for the CEO. Sykes noted the Riverfront Plaza is monitored by his office as well, and is funded by TIFA. The completion date is slated for the first part of May and that project is being coordinated by Pat Cook and a punch list and follow up will be compiled by Pat Cook. Barber noted the FF&E has been discussed, providing economies of scale and duplicating purchases and maintenance and shared use of equipment. Barber has met with staff to develop new techniques for event planning and budgeting and the implementation and settling of events. Time has been spent with clients as well. The organizational structure and operations has been reviewed. Communications within the facility and external need to be focused on, hotel groups, restaurants, the ConventionNisitor's Bureau, the airport, downtown business and how we approach and implement this communication. The Lugnuts contract has been included, the new CEO, the working relationship with the tenants and contract administration. The market and vendors need to be addressed, summer is soon approaching and they need to discuss their concerns. Collective bargaining, has been on-going and a significant time has been spent with them with three contracts expired last May, and finalization of the agreements should be one of the first agenda items for the new CEO. VII. OLD BUSINESS: None. VIII. NEW BUSINESS: Jim Smiertka asked that the Operating Agreement be placed on the agenda for the next meeting. At 9:50 a.m. the meeting was adjourned. MOTION: McNenly SECOND: Decker, motion carried. THE NEXT MEETING IS SCHEDULED FOR WEDNESDAY, MARCH 20, 1996 AT 7:30 A.M. AT THE LANSING CENTER IN BANQUET/BALLROOM 2. Respectfully submitted, IVA(4 Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY _ BOARD OF COMMISSIONERS MEETING - March 20, 1996 >> I r, MINUTES At 7:37 a.m. Chairman Donald J. Ristow called the meeting to order in Banquet Room 2 of t: s� Lansi"n'�' Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT:James Butler, John Decker, Glenn Friedly, Charles Janssen, Ellen Jeffries, Greg Koessel (Ex-officio), Kate McNenly, Timothy Nichols, Daniel Nickerson, Donald J. Ristow, Robert Swanson (Ex-officio), Dennis Sykes (Ex-officib), and Charlotte Sinadinos. OTHERS PRESENT: Michael Barber, Lansing Center; Scott Breckner, Consultant - Michigan State University; Heidi Brown, Lansing Center; Marian Bryant, Lansing Center; Liza Estlund Olson, City of Lansing; Mayor David C. Hollister; Lenora Jadun, City of Lansing; Jack Jordan, City of Lansing; James Smiertka, City of Lansing; Dirk Spillemaekers, IATSE Local 274 and Peter C. Sullivan. III. ESTABLISHMENT OF THE AGENDA: Chairman Ristow requested under VIII. New Business "Operating Agreement" be added to the agenda. IV. PUBLIC COMMENT: Jim Smiertka introduced Jack Jordan, a new employee of the City Attorneys office. V. APPROVAL OF THE MINUTES OF MARCH 6, 1996: The minutes of March 6, 1996 stand approved as published. At 7:45 a.m. Mayor David Hollister and Dennis Sykes entered the meeting. VI. REPORTS: A. CHAIRMAN'S REPORT: 1. Mayor Hollister Welcome: Chair Ristow welcomed Mayor Hollister to the meeting. Mayor Hollister indicated he had returned from a stadium tour with the Lansing State Journal editor and managing editor. Mayor Hollister noted the community's excitement regarding baseball in Lansing and further noted the Lansing Center is a world-class building. Hollister noted we are on the cutting edge and stated he is looking to the Board to make good, tough business decisions and to make the best business deals. Mayor Hollister noted he is thrilled with the transition process development as well as the Board's patience and encouraged everyone to proceed. Mayor Hollister welcomed Peter Sullivan. Chair Ristow welcomed Mayor Hollister and thanked him for his support. 2. LEPFA Monthly Meeting: Chairman Ristow noted after the April 3 meeting the board will meet monthly on the fourth Tuesday. The late date in the month will accommodate the preparation of the monthly financial statements. 3. Interim Director Contract Extension: Chairman Ristow noted Michael Barber has consented to exercise his last 30 day contract extension (on his original contract) and will stay through April 15. Chair Ristow expressed his gratitude to Barber for his efforts since October. B. NEW LEPFA CEO SEARCH SUB COMMITTEE: 1. Introduction of Peter Sullivan: Committee Chairman Daniel Nickerson introduced Peter C. Sullivan as the candidate selected by the CEO Search Committee. Chair Nickerson highlighted Mr. Sullivan's resume noting his work and educational history. The committee was especially LEPFA Board of Commissioners Meeting Page 2 March 20, 1996 impressed with Mr. Sullivan's $1.1 million reduction in subsidy in Jacksonville through new and increased bookings. Nickerson noted when the CEO Committee came together, they agreed they wanted someone astute in administration and could manage with integrity and were in search of someone with energy, enthusiasm, and spark; thus, Mr. Nickerson introduced Peter Sullivan. Sullivan expressed his delight in being here and noted he look forward to the new and exiting challenge and to working with the Board and Mayor under the new Authority 2. Employment Agreement: Jim Smiertka noted the Search Committee's many hours spent interviewing and negotiating the contract. Smiertka reviewed the Employment Agreement as negotiated between the Authority and Mr. Sullivan. Under the agreement Sullivan is designated as the Chief Executive Officer, General Manager, and Executive Director of the Public Facilities Authority which includes the Lansing Center, the City Market, Oldsmobile Park and the Riverfront Amphitheater and any other facilities that may become part of the agreement. Smiertka noted the general duties and reviewed specific goals and objectives as outlined in the employment agreement. Smiertka indicated the contract is a three year contract with an annual compensation of $110,000 with a provision for a bonus program that will be worked out by the Authority within 60 days. There are typical fringe benefits as made available for Authority employees with provisions for vacation, sick, and disability as well as relocation expenses and closing costs. Smiertka noted there are provisions for termination for cause. There are no provisions for termination without cause. Smiertka recommended the Authority approve the agreement subject to his final approval of references and his recommendation of the final agreement. Chair Ristow offered the following motion subject to Mr. Smiertka's checking of references: That Mr. Peter C. Sullivan be employed as the Lansing Entertainment and Public Facilities Authority Chief Executive Officer effective April 15, 1996 and further that the Chairman and Secretary/Treasurer of the Authority be authorized to execute an employment agreement on behalf of the Authority, with Mr. Sullivan, the contents which have been previously approved by the parties. MOTION: Nickerson SECOND: Butler; motion unanimously carried. Nickerson thanked the members of the Selection Committee: James Butler, John Decker, Don Ristow, Charlie Sinadinos, Bob Swanson and Jim Smiertka. At 8:00 a.m. Mayor Hollister exited the meeting. C. SECRETARY/TREASURER - FEBRUARY FINANCIALS (Lansing Center): Marian Bryant distributed and reviewed the financial statements for February 29, 1996 for the Lansing Center. Bryant reviewed the Income Statement noting the total operating revenue exceeds last year by 5% or$96,719 and total building revenue exceeds last month by 21% or$111,968; Bryant noted for the month, building rental is up 15% from last year; food and beverage is up 25% from last year and most ancillary income is up. Bryant reported operating expenses also increased by 5% or 124,825 and net income after subsidy is -$48,504. Bryant noted last month the net income was -$108,000 and the turn around is attributed to the Grand Opening line which is non-operating revenue near$40,000 that has no expense associated with it and helps to reduce the loss. This account will net out with the expenses and the expenses and revenue will become the same and will have no effect on the bottom line. IRS coverage of expenses is 85% this month. Our current ratio is 1.26 compared to last month at 1.12 and last year at 1.15. Accounts receivable are down by about 30%; February collection rate is up by 20% and total collection rate has increased by about 7%. Bryant reported our equity in the number of days of operation has increased to 31.72% compared to last months 26.64%. Actual operating expenses are over budget 6% or$107,891, while the actual operating expenses are also over budget by less than 1% or $10,576. Glenn Friedly questioned who is responsible for the insurance coverage for all facilities? Ristow noted the coverage right now for the Center is the Center's responsibility. Swanson noted the LEPFA Board of Commissioners Meeting Page 3 March 20, 1996 stadium and market are insured by the City and Lansing Center is insured by the Authority. This is an issue that will be part of the operating agreement discussions. Sykes indicated Doug Rubley is discussing TMO's risk management including insurance coverage with them and they are covered. Chair Ristow moved the financials for the Lansing Entertainment and Public Facilities Authority /Lansing Center for the period ending February 29, 1996 be received as published and the expenses for the month be approved. MOTION: Nichols SECOND: Butler; motion carried. D. TRANSITION DIRECTOR/INTERIM CEO: Michael Barber reported business at the Lansing Center continues to be strong and reported through February we have held 297 events which computes to 2339 rooms. To-date there have been 29 conventions, 22 gate shows, 80 banquets and 166 professional meetings/conferences/exams. Barber noted last weekend the Michigan Horse Council was in-house and they used all space, there 20,000 in attendance and over $33,000 in concessions revenue. Barber noted he has been working with Tom Galyon and Stephen Moore to measure the economic impact of gate shows and a questionnaire was distributed at the Horse Show. Barber is working with Marian on a profit and loss form which will show the bottom line. Barber noted Accounts Receivable have increased by 21% and he complimented Marian and her staff and Bob Swanson for the change in the distribution of the subsidy which goes more in hand with the quarterly flow of business. Barber reported the Belen Ballroom sign is ordered. E. CRITICAL ISSUES FOR TRANSITION OF MEGA PARTNERS: Scott Breckner, Consultant/Chair of the Transition Sub-Committee indicated many of the issues have been identified and resolved. Mr. Breckner reviewed the following outstanding issues: 1. Analysis and Development of Furniture, Finishes and Equipment: Breckner reported this committee is coming to closure and at the last Board meeting the Lansing Center FF&E listing was discussed. They are also in the process of working on rental issues as they pertain to speciality programming in Oldsmobile Park. They have requested cost estimates for rental of items such as staging, spotlights, decking, tarps, etc. and included in the report will be a listing of sources for speciality programming for concert events. 2. General Administration: This group will review the final rough draft of the committee reports and will prepare a final recommendation. Breckner indicated it is his hope to have the report to the Chair by Wednesday, March 27 and will then review the report with the full Board. 3. Booking Policies and Procedures: Breckner reported the Lansing City Council approved the booking policies and procedures for Oldsmobile Park at Monday's (March 25, 1996) City Council meeting. They are working on programming recommendations for Oldsmobile Park. 4. Operations and Technical Issues: The following items were discussed: a. Turf Management: Breckner indicated the turf consultant is developing a punch list for the combination of major events in Oldsmobile Park, with the turf the primary issue of concern. The TMO lease, as well as the responsibilities of the City, are at a closure. b. Vendors Conflict: Breckner noted the vendor/cart issues remains unresolved. Bob Johnson noted vendors are considering locations on Cedar and Larch Streets; however, the prohibition of bringing food and beverage into the park remains a concern as well as the traffic flow. Michigan and Cedar and Larch are the corridor areas within the stadium and are the areas of concern for the Malls and Environs Committee and in the development of the Principle Shopping District. There is a change recommended in the ordinance regarding a regulated area so people cannot pull up to the curbside and/or sell LEPFA Board of Commissioners Meeting Page 4 March 20, 1996 out of their vehicles. The issue has not been resolved and is still in discussion. Swanson indicated there is concern that there not be vendors and in particular on the north side of Michigan Avenue. At 8:25 a.m. Lenora Jadun entered the meeting. 5. Marketing and Promotions: Breckner reported the final meeting is today at 10:00 a.m. and will include the various entities that represent the community, i.e. the ConventionNisitors Bureau, Parks and Recreation Department, the Lansing Center, etc. to identify the potential programming options and how to market the complex. Swanson indicated the recommendations from this committee have been forwarded to Bob Swanson and a $30,000 budget has been established for the first year. Discussions have also ensued regarding cross promotions. 6. Information Systems: Awaiting a report from Andrews and Hooper regarding the Delphi computerized system and software options. Barber noted the Concentrics system has been demonstrated and the Ungerboeck system will be reviewed on March 27. Barber noted we are moving forward with the Delphi system and at the same time are looking at an accounting/finance system to compliment the system we currently have. 7. Security: Dennis Sykes reported the security report has been released through a press conference with the Mayor and City Council. Sykes reported it deals with the main transportation routes, directional signage, location of parking spaces, handicapper parking spaces, group/bus operations, stadium entrances, Lansing Police Department services, CATA bus services, stadium emergencies. The Lansing State Journal will provide an insert and there will be maps available. A 29 minute tape has been developed introducing the community and region to the different freeway exits while emphasizing safety. Lenora Jadun has done an excellent job in identifying all the parking available. Scott Breckner will include the report in the final consolidated report. Barber encouraged everyone to call 4832PARK." Lenora Jadun commented that they have worked with MDOT on signage and hope to have signs in by April 1. Parking has been identified and they will be accepting money when people arrive to park and will continue to monitor and adjust as needed. Jadun indicated if there are any questions to feel free to contact her. Sykes noted there will be a debriefing on the morning of the April 4th to make adjustments for the Lugnuts game on the fifth. Charles Janssen questioned what will happen when there is a game going on and an event at the Center? Jadun indicated the Lansing Center will take precedence and they have been working on coordinating parking and there shouldn't be a parking problem. The north Grand Ramp will be available and they will continue to coordinate for each event and will need to identify parking needs. Sykes noted there is a master list of all the city events compiled last fall. A shuttle system to and from the state lots may also be used as needed. There will also be private lots available. 8. Finance: Bob Swanson indicated he had no report. Swanson noted the Mayor's budget will be presented next Monday to City Council and will he will recommend current subsidy levels. The City Market will be at $120,000, $150.000 for the stadium and $30,000 for the Market. They will go to City Council next Monday and will be reviewed in April and in April/May the charter council will adopt a budget for 1997. 9. Grand Opening Committee: Liza Estlund Olson reported the banners are being completed with the names with all banners hung by Saturday, March 30. Mary Blood has reached the goal of $80;000 with several $1000 banners sold. A detailed itinerary of all the activities taking place on all three days will be forwarded to the LEPFA Board. The Hard Hat party will take place on March 31 with 1700-1800 expected to attend. Bob Johnson is organizing tours and will be doing a chain cutting ceremony. There will be food and beverage tent at the market as well as a band. LEPFA Board of Commissioners Meeting Page 5 March 20, 1996 April 3 the MSU vs. UofM baseball game will take place with a reception from 11:00 a.m. - 1:30 p.m.; with an unveiling of the natural statue at noon. Anticipated attendance is 800 - 1000. The concourse of the Lansing Center will house the reception and then the attendees will move across the street for the unveiling of the natural, the playground equipment will be ready and there will be tours as well. At 3:30 p.m. the activities will begin with the MSU game. The legislature has been invited. A cake will also be provided for Mayor Hollister's birthday on April 3 Friday, April 5 will be the community celebration. The Lansing concert band will perform as well as J&J Sound, with clowns, hot dogs chips and Pepsi to be provided. There will be a replica of the stadium baked by MSU and will be a cake for 3000. Red towel will be given away on the 5th that say "Lets Go Nuts" with the Oldsmobile Park symbol on the towel. Oldsmobile will have their blimp, there will be Bravadas displayed and programs will be given away. Brick purchasers will be invited as well. 10. Marquee: Dennis Sykes reported three tri panels have been purchased by State Employees Credit Union, and Sparrow Hospital purchased two panels. Marquee installation will take place on Monday, March 25 and operator training will take next place next week. At 8:52 a.m. Ellen Jeffries exited the meeting. Computer training will include Lansing Center staff and the equipment will be installed in the Lansing Center. The training will include Steve Hayward, Lansing Center staff and staff from Lenora Jandun's office. Sykes noted the marquees are on the corners of Michigan/Cedar and Michigan/Larch. Sykes indicated the stadium is 97% complete and items such as painting need to be completed. The purpose of the media walk through the stadium is to ward off any criticism and to explain that the stadium is incomplete at this stage. Jim Smiertka indicated City Council adopted a host suite and ticket promotion policy under the agreement. Smiertka indicated the policy puts the burden on the Executive Director for providing a policy on developing a procedure that is 1/3 City Council, 1/3 Authority and 1/3 community groups for the 70 games. The policy will address how the tickets should be used, ticket distribution and the issuing of tickets. Commissioner Butler questioned who is responsible for vendor cart resolution, when will it be resolved? Will it be done prior to the park opening? Bob Johnson indicated what is needed is an ordinance approved by Council to protect the area so that people don't just pull up. This ordinance will deal with where vendors will potentially be located outside the stadium but the ordinance expands the Downtown Mall Environs district, to activate the district to regulate the vending activity near the curbside. Chair Ristow expressed his thanks to all members of the Transition Committee who have volunteered their time to get the Transition and sub-committees working together. VII. OLD BUSINESS: None. At 9:02 a.m. Liza Estlund Olson exited the meeting. VIII. NEW BUSINESS: Chair Ristow indicated City Council is concerned that the operating agreement be worked on as soon as possible. Ristow noted he will appoint a committee that will work with the CEO and attorney to start working on the operating agreement process. Smiertka reviewed the purpose LEPFA Board of Commissioners Meeting Page 6 March 20, 1996 of the operating agreement and further noted regarding the City ownership of the facilities, the Authority will operate the facilities, however, they belong to the City of Lansing. Smiertka indicated the proposed relationship would be that of an agency relationship and the City would appoint the Authority as an agent through the operating agreement. Smiertka distributed a sample of an agreement presented to Council in October which is based on operating agreements from other cities with an entertainment and public facilities. Smiertka indicated the agreement is a 15 year agreement and gives the Authority the license that sets all the parameters of the agreement and gives the Authority complete control. Revenue allocation is up for discussion with the goal to have the Authority responsible for their operation including revenue and debt service. City Council input in terms of the budget will be forthcoming in addition to use of the facility issues. Smiertka indicated there is concern within City Council regarding the operating agreement and in particular the City Market and they would like to get some resolution. Greg Koessel indicated one of the concerns is that the City Market be open only on Saturdays, and this is now what the City Council resolution recommends. The Ways and Means will review the Market issue at today's Ways and Means meeting. Ristow indicated he would like to set a time table of 60 days for completion of the agreement. Glenn Friedly questioned who executes the agreement on behalf of the City and does it require City Council approval? Smiertka indicated it will require Council approval. Smiertka indicated there are some areas of concern surrounding the City Market. Greg Koessel noted at this point the basic concerns are the hours of operation, the vendors would like to have a bigger role in the Market, and would like to be able to make decisions such as hours of operation, access to the facility, and the parking issue. Mike Barber questioned as we move forward in developing an operating agreement between the Authority and City, which hat will Smiertka wear, the City or the Authority and/or both? Commissioner Janssen noted on the Operating Agreement, he did not understand how the Authority could proceed without having its own legal representation from a standpoint that it is going be impossible to avoid conflicts on every issue; and as administrations change the relationship may change. Janssen indicated there is unavoidable conflict with the City and City Council would be happy to have the Authority represented by someone else at a later date if there is any issue. Smiertka indicated the city attorney's office represents the Authority and the Authority is operating in the capacity of an agent for the City. Smiertka indicated members of the Authority and City Council are all professionals and after the Operating Agreement is executed there will not be conflict of an adversarial situation because the issues will be defined and there will be no relationship between the City Council and the Authority other than the budget. Smiertka indicated he has served in the dual role for the City of Pontiac and there were no conflict issues. At 9:20 a.m. the meeting was adjourned. MOTION: Sinadinos SECOND: McNenly, motion carried. At the Tuesday, April 23 meeting, Scott Breckner will present the final transition committee report. THE NEXT MEETING IS SCHEDULED FOR WEDNESDAY, APRIL 3, 1996 AT 7:30 A.M. AT THE LANSING CENTER IN BANQUET/BALLROOM 2. Respectfully submitted, Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING April 3, 1996 « a MINUTES l '' U*C( CLERK At 7:37 a.m. Chairman Donald J. Ristow called the meeting to order in Banquet Room 2 of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT: James Butler,John Decker, Glenn Friedly, Charles Janssen, Ellen Jeffries, Kate McNeely, Timothy Nichols, Daniel Nickerson, Donald Ristow, Robert Swanson (Ex-officio) and Dennis Sykes (Ex-officio). OTHERS PRESENT: Michael Barber, Lansing Entertainment and Public Facilities Authority; Heidi Brown, Lansing Entertainment and Public Facilities Authority; Marian Bryant, Lansing Entertainment and Public Facilities Authority; John Ezzo, Lansing City Market Cafe/Vendor; Councilmember Harold Leeman; Liza Estlund Olson, City of Lansing; Mayor David C. Hollister;Lenora Jadun, City of Lansing; Robert Johnson, City of Lansing;Jack Jordan, City of Lansing; James Smiertka, City of Lansing; Dirk Spillemaekers, IATSE Local 274; Peter C. Sullivan, Lansing Entertainment and Public Facilities Authority; and David Wiener, City of Lansing. M. ESTABLISHMENT OF THE AGENDA: Vice Chairman Nickerson requested Michael Barber's contract extension be added to the agenda. IV. PUBLIC COMMENT: Mr. Dirk Spillemaekers of Local 274 noted little movement on the expired contracts and the one remaining contract in force. Spillemaeker stated they understand the Board has an Operational. Agreement to reference and they are trying to be patient until it is in place. Spillemaekers reiterated there is a very unhappy labor situation,not only because of the expiration of the contract,but because of what they believe to be "side tracking." Spillemaeker noted they have specific reference/record of events requesting they not be used as employees and they are uncertain whether this is spontaneous or the result of some of past near tragedies, i.e. the Governor's Inauguration. Spillemaekers asked the Board as a body if they would like a better background perspective from IATSE which would state their perspective and they would submit such a document before the next Board meeting. Mr. Spillemaekers emphasized while they have been keeping control of the situation, more and more unhappiness is becoming prevalent. There was no further public comment. At 7:40 a.m. Dirk Spillemaeker exited the meeting. V. APPROVAL OF THE MINUTES OF MARCH 20 1996• The minutes of March 20, 1996 stand approved as published. VI. REPORTS: A. CHAIRMAN'S REPORT: 1. Suite Tickets: Chair Ristow requested Mike Barber report on ticket availability. At 7:40 p.m. Jim Smiertka and Jack Jordan entered the meeting. Mike Barber reviewed today's festivities, noting there is a reception at the Lansing Center beginning at 11:00 a.m. through noon with the "Natural" unveiling and stadium tours as well. The game will begin at 4:00 p.m. today and we have 20 suite tickets available. Barber asked the Board members to see him after the meeting for today's suite tickets. Barber also noted there will be a tailgate party from 11:00 a.m. - 2:30 p.m. on Friday and there will be tours of the stadium; at 1:30 p.m. there will be an unveiling of a second statue "The Hometown Hero" with a 7:00 p.m. start time for the game. Board members are invited to the Mayor's suite for Friday's game. Easter Sunday and Monday, there are 16 tickets for the Mayor's suite available. Barber distributed a sign up sheet. LEPFA Board of Commissioners Meeting Page 2 April3, 1996 Commissioner Butler requested advance notice as to what is available in reference to the suite for scheduling purposes. Butler noted some time ago a list of activities was requested in advance so the Board could be a part of the ceremonies. Peter Sullivan noted while we respect the Board's time constraints, and in light of the newness of the situation, we only received the tickets yesterday afternoon at 5:00 p.m. Butler noted prior to Mr. Sullivan's coming on board, there were some issues that were put on the table in reference to time lines and the Board requested an advance schedule. Mr. Barber noted as recently as last Thursday items were still being finalized, and we tried to forward the information in a timely manner as it is received. 2. LEPFA Special Committee to Formulate Operating Agreement: Chair Ristow noted all members received a copy of the Special Committee members list and asked Tim Nichols, Committee Chair if he had any further comments. Commissioner Nichols noted a meeting will be set up as soon as possible. Nichols requested committee members keep in mind the need for several meetings over the next 60 days. Commissioner Butler questioned if there was a conflict of interest in reference to Mr. Smiertka being a part of the committee? Chair Ristow reported there is no conflict. Smiertka noted that he is a "facilitator." B. CHIEF EXECUTIVE OFFICERS REPORT: Peter Sullivan commented on a meeting held in the Mayor's office relative to the City Market. Sullivan noted there was meaningful discussion regarding time frames for a number of issues and sensitivities relative to the Authority taking over the Market. Initially the discussion centered around an immediate take over and Sullivan noted in light of his April 15 start date, there was consensus that the official take over date would be delayed 30-45 days. At the conclusion of the discussion it was agreed to recommend to the Authority Chairman that the Authority assume duties and responsibilities in mid May. Sullivan noted there is a history of sensitivities and challenges associated with the Market and recommended from the meeting dialog and in discussions with Bob Swanson, we move forward as recommended. Chair Ristow noted this item was under "New Business" however, suggested the Board address the issue at this time. Chair Ristow noted there are two issues: 1. Management: Ristow noted the Market needs to be managed and the City is concerned that they need to hand over that responsibility to the Authority as quickly as possible. Ristow discussed the constraints with Peter just arriving, noting he is already here two weeks early, and there are issues to address internally such as the hiring of assistants to backup management. 2. Long Term Issue: Ristow noted the long term issue is a deep sensitive one. You have a 100 year old market and there is a lot of history and roots there. However, from a business aspect 11 months out of 12 more is generated in revenue from parking than from the Market itself. Regardless of the decision, someone is not going to be happy and it is a sensitive, political issue that the Authority will have to address. Ristow noted a task force will be appointed to review this issue and it will take six months to a year for solutions regarding the long term objectives of the Market to be developed. Ristow noted the issue at hand is the City Council and Mayor's office would like us to assume responsibility of the operation of the facility. The Mayor's staff feel they would be able to assume responsibility for the day-to-day operation of the Market for 30 days. Friedly questioned how this relates to having the Operating Agreement through the City to the Authority and indicated this is something that ought to be handled in the context of the Operating Agreement. Friedly noted that instead of the Board getting into policy, the Director ought to make recommendations. Friedly also noted there has been no review of budgets for the Stadium, Lansing Center and the Market and questioned how anyone could agree to do anything sensible not withstanding the pressures of dealing with this in a broader agreement, as well as not knowing what our budget authority is, and giving our CEO an opportunity to weigh them. At 8:55 a.m. Bob Swanson entered the meeting. LEPFA Board of Commissioners Meeting Page 3 April3, 1996 Smiertka noted resolutions have been prepared, one is for the Authority to accept the City Market on a temporary basis while an operating agreement is being negotiated. The City Council views this as a quasi emergency situation and feels that if the Market will be permanently transferred to the Authority, it may be a good idea to have the resolution also state that the City Council would transfer the unexpended funds that are associated with the City Market. The resolution adopted today would be contingent upon the City Council's adoption of their resolution. Bob Swanson noted previously the Board held an indepth discussion of the budgets of all three entities and since that time the Mayor has presented his budget for next year recommending$550,800 be continued for the Lansing Center, $125,000 for the Market subsidy as well as $180,000 for the stadium. Regarding the Operating Agreement, for both the City and the Authority it would be better to wait until the agreement is completed, meanwhile the Market needs to be managed. Moving it to the Authority is in the best interest of all parties. Smiertka distributed copies of the resolution for City Council and the proposed resolution for the Authority. Commissioner Decker reminded Board members regarding the statement "parking revenue surpassing the vendors 11 out of 12 months," that the vendors have been working with month to month leases for the past year and a one half. Smiertka noted the difference between the two resolutions is the LEPFA resolution accepts the transfer. Commissioner Nichols moved that the resolution presented to the Board be supported; SECOND: Nickerson. Commissioner Jeffries noted she would like more advance documentation with the agenda and preferred not to receive information at the meeting. Mr. Barber noted the resolutions were developed yesterday and faxed to the Lansing Center last evening. Chair Ristow noted during the transition he has been preparing the meeting notice and agenda from his home. However, Mr. Sullivan will assume this chore and items relative to the Board will be included in a board packet. Jeffries questioned if the Authority should be approving the resolution before the City Council approves it? Smiertka noted the bulk of the discussion occurred at the Committee of the Whole meeting this Monday. Smiertka noted this is a quasi-emergency situation and due to the lapse of time it was determined it should be presented to LEPA today. Smiertka noted that the resolution is contingent on the City Council's adoption of the resolution. Commissioner Janssen questioned if we will be ready by May 15 and if there are operations, financial or public relations concerns. Janssen note if we say we're ready then we ought to proceed, but he would like verification. Mr. Sullivan noted this issue was discussed two days ago in the Mayor's office. Sullivan noted he would like a little more time, but ultimately agreed to the May date. ullivan noted he had an opportunity to meet with Robin who has been managing the day-to-day operations and discussed with her staying on for a short period of time. Discussion also ensued regarding Bob Johnson staying involved until May 15 and sharing his knowledge and understanding. Mr. Sullivan noted being afforded the opportunity to have someone stay on in a day-to-day capacity, while the committee investigates various issues. Sullivan expressed his appreciation regarding the Board's concern, but noted he feels the Authority can operate the Market after May 15. Barber noted it is his sense there has been an increased level of interaction with City Council and the City Market vendors and staff. The Authority is now set-up and the Authority needs to convey to City Council that we are taking responsibility and it is counterproductive to have continued interaction between City_ Council, vendors, and staff and for Council to feel the Authority is accountable. Also, it should be noted a great change will not take place immediately,but will happen gradually by next season. Sullivan noted it is also recommended John Decker be involved with the committee in an effort to give the vendors a voice and forum. Sullivan also noted it was suggested that a forum be set to let each of the vendor's discuss their concerns so that we can do what is best for all involved and ultimately to make a business decision. LEPFA Board of Commissioners Meeting Page 4 April3, 1996 Sullivan noted he intends to collect information relative to the market. Sullivan noted his first official start date is not until April 15, but he is here now and that is because he wants to be a part of the stadium and wants to see in advance what is going on and is looking forward to moving forward on this issue. Commissioner Friedly stated he hoped the entities would be separately accounted for either on a departmental basis so we have bench marks, or on a separate financial statement. Sullivan noted there will be a consolidated statement,but each of the entities will be looked at individually. Sullivan noted the City provided certain "public service" responsibilities to the Market i.e. snow removal, exterior services and questioned if the services would continue. Bob Johnson indicated this will be investigated and if the services are going to be provided by the City they will look at the subsidy and what the requirements would be if the Authority had to account for the additional expenditure, however, this will be discussed with the Public Services Director. The question was called and the motion carried. VII. OLD BUSINESS: None. VIE. NEW BUSINESS: A. Extend Casualty and Liability Coverage: Peter Sullivan deferred the report to Marian Bryant who had investigated expanding coverage to include the new entities. Bryant met with Doug Rubley, the City's Risk Management Specialist regarding bids received for the General Liability Insurance for the stadium and the City Market. Two bids were received, one from Independent Insurance Center, which is the Lansing Center's current carrier and the other was from Meadowbrook Insurance - Michigan Municipal League which is the City's current carrier. The bid from Independent Insurance was for $1,000,000 general liability coverage with a $10,000,000 umbrella for $128,012 which includes the current insurance of $88,400 for the Lansing Center. The additional expense is $39,342. Independent Insurance's deductible is $5,000 and they have placed the insurance for the stadium and market with a different carrier. Bryant has discussed consolidating the coverage under one carrier and consolidating the expiration dates to April 1, which is also the expiration date for our liquor liability and they have agreed to do that within 30 days. MML's bid for $1,000,000 per occurrence with no umbrella was $129,204 and offered a bid for $10,000,000 per occurrence which is $142,470. The recommendation from Doug Rubley and Marian Bryant is to go with the bid from Independent Insurance for the additional$39,342 with the $1,000,000 plus $10,000,000 umbrella. Bryant indicated they reviewed liquor liability and received two bids from Independent Insurance. One bid was for $1,000,000 at a premium of$5,811 with a$10,000,000 umbrella. They also submitted a bid for $5,000,000 at a premium of $10,448.50. MML's bid is $15,400 for $5,000,000. Bryant noted her recommendation is to accept Independent Insurance's bid for $1,000,000. Friedly questioned what term for the contract would she recommend? Bryant noted Rubley suggested reviewing the coverage again when the Operating Agreement is in place. Generally, they are one year contracts which can be cancelled at any time. Friedly indicated it seemed that we should not do the policy for more than 6 months. Sullivan noted the term is a concern, however, the history in relation to the Center and slips and falls is excellent, with few claims and little loss. While the stadium is an unknown, the majority of the responsibility will fall on the Lugnuts in conjunction with the operating agreement and on non-event days it will be our responsibility. Sullivan indicated he agreed with the short term policy and indicated we will investigate the shorter term. Friedly noted as a board we ought to know what the liabilities are i.e. food vendors. The liability needs to be analyzed and allocated and he would like LEPFA Board of Commissioners Meeting Page 5 April 3, 1996 to see a risk analysis. Sykes indicated there has been extensive discussions relating to the stadium, insurance and liability and tomorrow Kevin Welch of Meadowbrook Insurance will be going through the stadium. Sykes indicated he will identify liability issues and will provide feedback. At 8:30 a.m. David Wiener and Bob Johnson exited the meeting. Swanson noted he felt it is important that this issue be reviewed further once the Operating Agreement is in place. Whether we have a shorter term or cancel the policy, we need to have a policy in place now, but further review and analysis is needed. Commissioner Butler noted the other recommendation made as well as obtaining a blanket policy versus two different policies and to review consolidation and economy of scale. Swanson noted a part of this is that these remain City owned buildings and the whole issue of who will insure is a issue. Chair Ristow suggested Bryant compile a synopsis of the coverage with background that clearly defines what is covered and what is not. Smiertka noted the Authority may be covered under the City's current policy because the Authority is an agent running City owned buildings. Smiertka will review the issue and report back to the board. Commissioner Janssen moved to approve this coverage and that we hope to attain a six (6) month policy if possible, but give authority to go for a year if necessary and that this matter be fully reviewed after the Operating Agreement is complete and at least within six months. SECOND: Friedly; motion carried. B. Liquor Liability: Chairman Ristow moved that the liquor liability coverage be approved at$1,000,000 with the umbrella as prepared by Independent Insurance. MOTION: Nichols SECOND: Butler; motion carried. C. Transition Director's Contract: Chairman Ristow noted at the March 20 meeting Mr. Barber agreed to extend his contract to April 15. Commissioner Ristow moved Mike Barber's contract be extended 30 days. Commissioner Nickerson questioned if the contract has been drawn and reviewed by the City Attorney? Mike Barber noted the contract was approved by the previous board and two additional 30 day extensions were negotiated. Barber noted given the fact that it was already approved there is no need for further review. Friedly suggested sending a letter of extension to Peter Sullivan and extend the contract by consent. Commissioner Friedly noted the contract should be extended by letter as a courtesy to Mike and the accommodations he has made to the City and the Board through a difficult time while getting a permanent Director on board. Having been on the prior Authority Friedly noted he is comfortable with the extension and would hope that on that basis the Board would approve the extension. Glenn Friedly moved extending the contract subject to the City Attorney's approval. MOTION: Friedly; SECOND: Butler; motion carried. D. CEO Start Date: Commissioner Butler questioned Peter Sullivan's two week early start date. Ristow noted his contract reads April 15, but he is able to be here two weeks earlier, but next week he will not be here. Butler indicated he brought it up only because all indications are that Peter is on the job and should be compensated accordingly and noted it is only fair that he be compensated for his work. E. Miscellaneous: Commissioner James Butler noted he had the opportunity to come out on Sunday for the Hard Hat reception and noted the community's excitement. Although it was raining during the celebration, people came out in the rain around 2:30 p.m. and it was packed. Butler noted in reference to hiring the vacant management positions, he would like to have an idea of LEPFA Board of Commissioners Meeting Page 6 April3, 1996 the positions that we have to fill because he would like to have a focus on the minority, women and diversity content. In reference to Commissioner expectation and orientation, Butler requested ID cards, tours, etc. and noted not all Board members have had the opportunity to view all of entities. In reference to tickets, games and expectations Butler requested advance notice. Commissioner Nichols suggested scheduling Board meetings at the Market and the Stadium in an effort to move the meetings around. Commissioner Nichols commended the Mayor, City Council and staff for the activities that have been put together and having it come off so well. Accolades should go to the City staff for their efforts. At 8:50 a.m. the meeting was adjourned. MOTION: Nichols SECOND: Nickerson; motion carried. THE NEXT MEETING IS SCHEDULED FOR TUESDAY, APRIL 23, 1996 AT 7:30 A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM. Respectfully submitted, Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETINGEll May 28, 1996 n I � If: 25 MINUTES GI{i` C1 ERR At 7:30 a.m. Chairman Donald J. Ristow called the meeting to order in the Governor's Room of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT: James Butler, John Decker, Ellen Jeffries, Kate McNenly, Timothy Nichols, Daniel Nickerson, Donald Ristow,Charlotte Sinadinos,Robert Swanson(Ex-officio)and Dennis Sykes(Ex-officio). COMMISSIONERS EXCUSED: Glenn Friedly, Charles Janssen, and Greg Koessel (Ex-Officio). OTHERS PRESENT: Heidi Brown, Marian Bryant, Lansing Entertainment and Public Facilities Authority; Jack Jordan, City of Lansing; James Smiertka, City of Lansing; Dirk Spillemaekers, IATSE Local 274; and Peter C. Sullivan, Lansing Entertainment and Public Facilities Authority. in. ESTABLISHMENT OF THE AGENDA: There were no additions to the agenda. IV. PUBLIC COMMENT: Dirk Spillemaekers indicated employees are at a point of mistrust and this will not be resolved by sitting at a table within the next three months. Spillemaeker indicated Mr. Sullivan has promised changes will take place within the next two weeks but he was not certain this would make the employees happy. Spillemaekers noted he reached a compromise with Mr. Sullivan and therefore the Union would not demonstrate outside of the building this morning, noting this is the last time he will make this compromise. Spillemaekers indicated there has been perfunctory actions to placate the employees and he hoped that he could approach the Board in a compromising fashion which would build trust for the future, however, the past three months to year do not indicate a change in this direction and noted that these people feel as though they are continually shoved to a back burner. Spillemaekers indicated he was not here to dispute issues, but to make things better and will work in every manner possible to resolve issuess. At 7:35 a.m. Mr. Spillemaekers exited the meeting. At 7:33 a.m. Bob Swanson and Ellen Jeffries entered the meeting. Peter Sullivan noted he learned about the picket on Friday and subsequently he spoke with Dirk on Friday, at which time a list was not referenced. Peter noted he had met with most of the employees represented by the Union and there were no issues of a sensitive nature raised. Sullivan noted prior to his arrival representatives from the Union met with management and developed a procedural manual which would be the item Dirk refers to and that there are only two or three changes requested by the Union and there continues to be progress. Sullivan noted the groups represented by the Union are the Maintenance/HVAC, Facility Workers and AV staff. The Facility Workers contract has been negotiated for a three year period in good faith with the only outstanding issues being non-economic ones. It was agreed that the Facility Workers negotiations will be completed first and then the remaining two groups will be negotiated (5 employees). Sullivan met with the Steward and indicated he would meet within 30 days. Peter noted he is sensitive to their issues and the Authority is working toward resolution. Sullivan noted he also shared information regarding the hiring a Director of Operations with the Union which he feels would go a long way in resolving many issues raised in the past. Chair Ristow noted prior to Peter Sullivan's arrival a letter "to agree to agree" had been signed and steps had been taken with the Union. Sullivan noted that the bulk of contract negotiations is for five (5) people and the Facility Workers' contract has been negotiated in good faith. Sullivan further noted that an interim percentage increase was offered to the five (5) employees which they did not accept. LEPFA Board of Commissioners Page 2 May 28, 1996 Commissioner Nichols indicated he has referred Dirk to the Board Chair numerous times to discuss his concerns. Commissioner Nickerson noted when the Transition Committee was looking for a CEO they also met with Dirk and asked for the Union's interests in a CEO. Tim Nichols noted he hoped that in the future when bargaining issues arise that we don't carry these out for an extended time period as it doesn't make for good employee relations. V. APPROVAL OF THE MWUTES OF APRIL 23 1996: The minutes of April 23, 1996 stand approved as published. MOTIONS: Nichols SECOND: Butler; motion carried. VI. REPORTS: A. CHAIRMAN'S REPORT: 1. Issues of Transition Report: Consultant Scott Breckner's final draft of the "Issues of Transition" report was distributed to all LEPFA Board members. Chair Ristow encouraged all Board members to read the document noting Mr. Breckner presented a verbal report in April. Ristow explained that this document is the Transition Committee's document to the LEPFA Board of Commissioners and will be the basis for the future operation of the Authority. 2. Monthly LEPFA Board Meetings: Chair Ristow asked Board members their opinion relating to the GLCEA's Board practice of not holding either a July or August monthly Board meeting due to slowing of season, vacations and the annual audit. It was decided to continue to hold regular monthly meetings throughout the summer months. B. SECRETARY/TREASURER'S REPORT - APRIL FINANCIALS: Marian Bryant reported operating revenue was up 1% over last year or $26,495. Building rental exceeds last year by 13% or $104,623 and year-to-date building rental is at $918,781 and will exceed $1,000,000 this fiscal year for the first time. Total operating expenses increased 5% over last year or $159,00 and net income after application of subsidy as of April 30 is ($23,018). Internal Revenue coverage of expenses is at 90%, last month was at 80% and last year at 94%. Bryant noted food and beverage revenue is down compared to last year by 2% or $30,500 and food and beverage expenses are down compared to last year due to start-up expenses and that revenue is down. Utilities are up compared to last year and this is due to the addition of Hall C (we only had Hall C one half of last year). Account receivables are down by about $32,000 compared to last year; cash is down by about$39,000. Operating revenues are under budget by less than 1% and operating expenses are also down by about 1% or $1,100. Chair Ristow noted financial reports for Oldsmobile Park and the Lansing City Market will begin with the new fiscal year. Commissioner Ristow moved that the financials for the Lansing Center for April, 1996 be received as published and the expenses for the month be approved. MOTION: Nickerson SECOND: Nichols; motion carried. C. CHIEF EXECUTIVE OFFICER'S REPORT: 1. Lansing City Market: Peter Sullivan reported Lisa Wootton, Communications and Information Specialist- Lansing Center is working at the Market on an interim basis between now and July 1 so the transfer of knowledge is complete and less time consuming once a full-time manager is hired. Market funding will start with the new fiscal year (July 1, 1996). Sullivan noted he has had lengthy conversations with Ellen Beal and Howard Jones regarding Lisa's participation at the Market and to-date there has been positive Vendor reaction to Lisa. The Vendors were informed Lisa would not make Market policy and procedure changes. Sullivan referenced a letter which was forwarded to Glen Hills, President of the City Market Vendors Association outlining the aforementioned and copied to the LEPFA Market Task Force, City Council President Howard Jones and Councilmember Ellen Beal. LEPFA Board of Commissioners Page 3 May 28, 1996 2. Oldsmobile Park: Sullivan indicated he continues to meet with Scott Breckner regarding a variety of potential non-baseball events at Oldsmobile Park. Sullivan noted many events are pending and many groups have contacted Dennis Sykes and Scott Breckner regarding events. Sullivan indicated he would present a list of events in the future. Sullivan reviewed with the Board a list of potential events for next year. Sullivan indicated he has completed a walk through review of the stadium punch list items with Dennis Sykes. 3. Lansing Center April Event Information• The Lansing Center hosted 47 different events which equalled 71 event days with attendance estimated at over 30,000 utilizing an estimated 2500 room nights for a total economic impact of$780,000. Sullivan noted April was a strong month and that May and June typically are not as strong. 4. Lansing Center Budget: Sullivan reported the budget was approved for the three facilities last week. Sullivan thanked Tim Nichols, Don Ristow and Bob Swanson for their assistance throughout the budget process. 5. Operating Agreement: Sullivan reported Committee Chair Tim Nichols will provide a detailed report, however, the committee is moving forward and will meet with City staff next week. 6. Vacant Positions: Sullivan noted he continues to interview candidates and has narrowed down the candidates for the Operations Director position, while still interviewing for the Sales/Marketing position. 7. May 9 Riverfront Ribbon Cutting: Sullivan noted the opening was successful and the first event was held on May 9 - a chili cook off in conjunction with the CVB's "Be a Tourist In Your Own Town" event. Fourteen area restaurants participated and overall the event was a success. Sullivan shared a complimentary noted received from Thomas Galyon regarding the Lansing Center and Fine Host staff's positive assistance provided throughout the event. 8. Miscellaneous: a. Stadium Walk Through: Dennis Sykes reported the stadium walk through on Friday was the last look at items in need of repair, and it is hoped these issues will be resolved within the next seven (7) weeks. A meeting will be held with Clark Construction next week regarding concerns. Mr. Sykes indicated he will compile a list of potential fixed stadium events for this summer and will forward it to the LEPFA Board today. Sykes indicated monthly movies will be attempted during this month and a group has been contracted to provide the movie screen. Fourth of July weekend there will be a number of events and this will be outlined in the forthcoming report. Sykes indicated he has forwarded all agreements to Peter Sullivan and will attempt to review the documents with Peter and Bob Swanson within the next month with the ultimate goal to transfer the stadium responsibilities to the Authority in a timely manner. Sykes indicated Scott Breckner continues to work very hard at booking events at the Lansing Center, however, promoters remain skeptical of a brand new venue. b. City Market Transfer: Smiertka reported the Transfer of the Lansing City Market to the Authority is on the City Council agenda and is slated for June 1. c. Oldsmobile Park Punch List Items: Commissioner Nickerson questioned if there is anything on the punch list that they need to be aware of? Sykes reported the following items are of concern.Water pooling in the east and west wing of the concourse level. There is debate as to who will correct the problem. Water is also collecting on the suite level. Sykes explained there is a drain in every third suite and the cuts in the walls to allow the drains to drain were not made and it is draining on the first level. LEPFA Board of Commissioners Page 4 May 28, 1996 In the suites there is a door lip that was not installed to allow suite accessibility for handicappers. However, because there is no lip water enters the suite during hard rain and the carpet is getting wet which will eventually create problems. They are working with dealers to resolve the issue. Sykes indicated there are many small items and the team has issues regarding the stadium. Trey Rogers has done a report regarding what needed to be done to the field. The team also requested batting cage doors. Sykes indicated there are solutions however the question is who will pay. At 8:20 a.m. Jack Jordan exited the meeting. d. Budget Process: Commissioner Nichols commended Bob Swanson, Peter Sullivan and Marian Bryant for moving the budget process forward and for their participation.Nichols noted the budget process went very well and was handled very well. e. Oldsmobile Park Merchandise: Peter Sullivan noted there is a variety of Oldsmobile products (i.e. hats, shirts, etc.) that were sold at the MSU game and are for sale at the Lansing Center. Sullivan noted we will be looking at retailing options for the merchandise. Tim Nichols suggested approaching various business groups regarding the sale of items. f. LEPFA Suite Use: Commissioner James Butler questioned the process for the use of the LEPFA suite. Butler questioned when Board members are at the games are they eligible to utilize or access to the suite? Sullivan indicated he distributed a letter outlining a process that we should adhere to. Sullivan also indicated we have a number of tickets for the suite and the regular stands. A listing of available tickets was previously distributed to Board members, and technically if you have "stands tickets" you should not be allowed access to the suite. Additionally, one of our partners (Pace or the CVB) may be occuping the suite at the time you enter therefore creating an uncomfortable situation or sensitivity. Sullivan noted there are a number of game dates available for use of the suite by Board members and he suggested Board members contact Heidi regarding ticket and/or suite availability. D. SPECIAL COMMITTEE TO FORMULATE AN OPERATING AGREEMENT: Committee Chair Tim Nichols reported the committee has met and he commended the Committee members who have attended several meetings to begin to put the agreement together. Nichols indicated the committee is meeting with representatives from the Mayor's office to begin working on the agreement and the committee will come back to the LEPFA Board with a recommended agreement before forwarding it to City Council and the Mayor's office. E. LANSING CITY MARKET EVALUATION TASK FORCE: Committee Chair Ellen Jeffries reported the members of the Task Force have met twice and the committee has set a target date for completion of December 31 with written recommendations forwarded to LEPFA Board by November 1. Jeffries reported over the summer they will be conducting an educational process for the Task Force by interviewing vendors, former market managers, City Administration,the public as well as conducting various market site visits with interviews to be completed by September 1. They are also hoping to secure a summer intern to help with the logistics of the survey and the evaluation. The next meeting is scheduled for June 3 at 5:30 p.m. at which time the vendor interview schedule will be finalized. Peter Sullivan indicated the year lease process is underway and will be implemented as soon as possible. In coming bills have been forwarded to Bob Johnson as well as record keeping of the revenues. Chair Ristow complimented both sub-committees on their dedication and enthusiasm in moving the tasks of both committees forward. LEPFA Board of Commissioners Page 5 May 28, 1996 VH. OLD BUSINESS: None. VIH. NEW BUSINESS: None. At 8:33 a.m. the meeting was adjourned. MOTION: Nickerson SECOND: Decker; motion carried. THE NEXT MEETING IS SCHEDULED FOR WEDNESDAY, JUNE 26, 1996 AT 7:30 A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM. Respectfully submitted, Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY - ,,,- 1,r ! BOARD OF COMMISSIONERS MEETING April 23, 1996 C' MINUTES At 7:37 a.m. Chairman Donald J. Ristow called the meeting to order in Governor's Room of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT: James Butler III, John Decker, Glenn Friedly, Charles Janssen, Ellen Jeffries, Greg Koessel (Ex-officio), Kate McNenly, Donald Ristow, Charlotte Sinadinos, Robert Swanson (Ex-officio) and Dennis Sykes (Ex-officio). COMMISSIONERS EXCUSED: Timothy Nichols and Daniel Nickerson. OTHERS PRESENT: Scott Breckner, Breslin Student Events Center-MSU; Heidi Brown, Lansing Entertainment and Public Facilities Authority;Marian Bryant, Lansing Entertainment and Public Facilities Authority;Margie Dood and Mark Hooper, ANDREWS HOOPER & PAVLIK P.L.C.; Lenora Jadun, City of Lansing; Robert Johnson, City of Lansing; Jack Jordan, City of Lansing; James Smiertka, City of Lansing; Dirk Spillemaekers, IATSE Local 274; Peter C. Sullivan, Lansing Entertainment and Public Facilities Authority. M. ESTABLISHMENT OF THE AGENDA: There were no additions to the agenda. IV. PUBLIC COMIVIENT: None. V. APPROVAL OF THE MPUJ 'ES OF APRIL 3, 1996: The minutes of April 3, 1996 stand approved as published. VI. REPORTS: A. CHAIRMAN'S REPORT: 1. Extension of Interim Director's Contract: At the April 3, 1994 meeting the extension of Michael Barbers's contract was approved pending review by the City Attorney's office. Chair Ristow indicated a letter had been received noting final approval of the extension by Jim Smiertka. 2. Grand Opening Comment: Chair Ristow extended compliments to Liza Estlund Olson and all members of the Oldsmobile Park Grand Opening celebration. 3. Reception for Michael Barber: Chair Ristow noted there will be a reception for Michael Barber on May 1 in the Governor's Room from 3:00 p.m.- 5:00 p.m. B. SECRETARY/TREASURER'S REPORT: Marian Bryant reviewed the March 31 financials as distributed. Operating revenue exceeded last year by 3% or $79,855; Building rental exceeded last year by 18% or $122,415; Operating expense increased by 4% or$114,782. Net income is ($12,873). Building rental year to date is over $800,000 and$161,000 for the month of March. For the current period, operating income over expenses prior to application of subsidy is $39,544. Our current ratio is 1.35 compared to last month's of 1.26; equity in number of days of operation is 33.51. We are 2% over budgeted revenue and operating expenses are over budget by less than 1% or$1,500. Food and Beverage income is within$3800 of last year; however, food and beverage expense is $100,000 under last year, an increase of 22% or $101,000. LEPFA Board of Commissioners Page 2 April23, 1996 Commissioner Ristow moved that the financials for the Lansing Center for March, 1996 be received as published and the expenses for the month be approved. MOTION: Sinadinos SECOND: McNealy; Motion carried. C. CHIEF EXECUTIVE OFFICER'S REPORT: 1. April 22, 1996 City Council Meeting: Peter Sullivan suggested board members watch a rerun of the April 22 City Council meeting. The Authority's role in conjunction with the City Market as well as a number of issues regarding the operating agreement and our budget were discussed. 2. Riverfront Amphitheater Ribbon Cutting: Sullivan noted a ribbon cutting ceremony is scheduled for May 9 at 2:00 p.m. and all Board members are invited. 3. Lucile Belen Signage: Peter Sullivan reported the Lucile E. Belen sign is up above the bust. 4. Meetings: Sullivan reported he has met with numerous promoters including the Safety Conference and Shipshewanna, both shows went very well and both were very happy. Peter continues to meet with Lansing Center staff. Sullivan met with Pace and Partners regarding a number of CVB issues as well as logo ideas for the new Authority. Sullivan met with the Convention Visitor's Bureau as well as with Scott Breckner regarding programming issues. Sullivan reported meeting with Rick Sneed regarding operational and punch list items as well as the City regarding merchandising of the Oldsmobile Park logo. Sullivan reported attending a Ways and Means Committee meeting regarding the Authority's role in the Market. Chair Ristow indicated a Task Force has been formed to review the Market and the Task Force will complete a report within six months to a year. Chair Ristow noted the vendor's issue at this time is vendor lease terms. At 7:50 a.m. Jim Smiertka and Greg Koessel entered the meeting. Peter Sullivan noted it was requested that the Task Force members return to City Council with a recommendation regarding the lease in two weeks. Sullivan noted he also met with Bob Johnson regarding a list of Market programming ideas. 5. Oldsmobile Park: Sullivan noted a memo was included in the Board information outlining when the LEPFA Oldsmobile Park suite and tickets are available for Board use. Peter encouraged Board members to review the information and to contact Heidi Brown regarding use of tickets and/or the suite. 6. Lansing Center March and Quarterly Event Information: a. March 1996: Peter Sullivan reported there were 29 total event days for conventions/tradeshows; 2 days for exams; 17 event days for gateshows; 14 days for banquet/receptions and 36 days for meetings/conferences for a total of 98 event days in a thirty day period which averages to 3 events per day. Attendance was estimated at 72,000 for March; and 2500 room nights were utilized with an economic impact of $850,000. At 7:55 a.m. Margie Dood and Bob Johnson entered the meeting. LEPFA Board of Commissioners Page 3 April23, 1996 b. Third Quarter: 185 events were held which equaled 200 event days. Attendance was estimated at 154,000 for the quarter; over 6300 room nights with an economic impact estimated at $2,000,000 which was doubled that of the second quarter. Glenn Friedly requested quantification of rental and space inventory, i.e. what is the maximum? Friedly specifically requested explanation of event days and availability versus bookings. Discussion ensued regarding the Lansing Center's mission statement, Peter indicated the mission statement will address the central issue of our mission. Are we here to aid the CVB in booking hotel rooms or events which will push hotel rooms and validate the CVB; or is it to reduce the operating subsidy. D. SPECIAL COMMITTEE TO FORMULATE OPERATING AGREEMENT: Chair Ristow reported on behalf of Committee Chair Tim Nichols that several individual meetings have occurred and the full committee will convene soon. Ristow reported City Council is also reviewing the Operating Agreement draft. E. LANSING CITY MARKET EVALUATION TASK FORCE: Chair Ristow reported the City Market Evaluation Task Force committee has been appointed and Ellen Jeffries has agreed to serve as the Chairman. Jeffries questioned if meeting minutes are required, is the Lansing Center available for meetings and what are budget requirements for the Market? Jeffries questioned the status Lansing City Market vendor leases. P. Sullivan noted he will review the lease information this week and will review the information with Ellen Jeffries. Peter Sullivan also noted the Lansing Center as well as staff resources are available for the Committee's use. Discussion ensued regarding the Authority's role regarding the City Market, and the expectations of Council and the Mayor's office. Peter Sullivan indicated the previous Market study will be considered by the Task Force. At 8:05 a.m. Lenora Jadun entered the meeting. Ellen Jeffries questioned if we are an agency of the City or are we an independent Authority and what are the differences? Smiertka indicated we are a separate corporation but under the Operating Agreement we are acting as an agent for the City. Smiertka explained that he was asked by the Council to provided a draft of an Operating Agreement and this draft document is the starting point. It will be negotiated with the Authority and the Mayor's office and then will be forwarded to Council from the Mayor. F. CRITICAL ISSUES FOR TRANSITION OF MEGA PARTNERS (Final Report): Chair Ristow noted the Transition Committee was charged by the Mayor with the responsibility of (in addition to doing a CEO search) identifying those critical issues which the Authority will be facing in the transition. The Committee commissioned Scott Breckner to assist with the transition process. Scott Breckner presented the history of the Transition Committee and the final report as distributed. Breckner requested the report be left in the room for changes and redistribution following today's meeting. Breckner reported the document brings to light issues regarding the Market and will serve as a resource/working reference book for the Authority (the TMO agreement to be included as a resource). Breckner noted the report contains comments and is intentionally presented in an informal format. Breckner reviewed the report as follows: LEPFA Board of Commissioners Page 4 April23, 1996 1. Booking Policies and Procedures: Breckner indicated comments regarding potential conflict between the Convention/Visitors Bureau and the Lansing Center were discussed as result of the 12 month booking window. A priority of bookings is located in the resource material. Many issues were based on the current status. Breckner noted now that Peter Sullivan is on board he may use his knowledge and resources regarding booking issues and may wish to resolve the issues in his own manner. The Community Use Grant needs to be clarified, there needs to be a point person from the Mayor's office as well as a quick procedure for the application process and how the response gets back to the potential client. The repeated use of the Community Use Grant needs to be addressed. Breckner suggested addressing this issue in the Operating Agreement. 2. Security Report: Scott Breckner reported this group was headed by the Chief Boles and the report as authored by the Chief with Lt. Green included in the report. There has been two post meetings involving Lugnuts games and issues pertaining to the stadium. Breckner indicated he felt these meetings which include Dennis Sykes should continue. A draft document is enclosed involving the Lansing Emergency/Evacuation network and it does need to be reviewed and developed further. 3. Parking and Transportation: Lenora Jandun compiled a report which is included in the final document. Lenora reported the parking system is not being taxed at this point, they are currently average 600-1000 cars per Lugnut game, however, parking is expected to increase as the weather improves. Overall things are going well and they are coordinating with the Lansing Center and the City Market and plan to re-evaluate at the end of the summer. Breckner indicated there are concerns regarding the parking fees in relation to the Family night movie. 4. Grand Opening Activity: It is completed and went very well. 5. General Administration: The committee met twice, however, members were in daily contact due to the cross-referencing of committees. 6. Other Issues: Breckner reviewed a list of current applications received. Breckner indicated there a number of applications that are pending and numerous preliminary scheduling meetings have also been held with various groups. A concern remains that there is a great interest in Oldsmobile Park, however an event coordinator has yet to be identified for scheduling of the park. There is tremendous interest in hosting the Big Ten baseball championships. Michigan High School Athletic Association has also expressed interest in Oldsmobile Park hosting the districts and the regionals. 7. Information Systems: This committee reviewed ways to enhance the current Delphi software system with a financial package that would allow for distribution of financial data within the Lansing Center. Mark Hooper and Margie Dood from Andrews Hooper & Pavlik, P.L.C. were commissioned by Mike Barber to reviewed the Lansing Center's current system. Mark Hooper and Margie Dood reviewed their report as presented. The two systems evaluated for Lansing Center use are Ungerboek and Concentrix. Ungerboek is the system recommended at a total cost of$122,000 over a three (3) year period. Dood noted the payroll software decision is independent of the software solution. At 8:50 a.m. Mark Hooper and Margie Dood exited. LEPFA Board of Commissioners Page 5 April23, 1996 8. Analysis and Development of Furniture Finishes and Equipment: Breckner reported an inventory listed had been distributed however, the list is being updated and Peter Sullivan will submit a copy of the updated list to Scott Breckner for inclusion. 9. Operation and Technical Issues• The Lugnut agreement was analyzed and completed. Breckner reviewed page 27 regarding special programming in the stadium. Breckner noted they are in the process of booking concerts in the park. Breckner reviewed the offer sheet in relation to hosting an event at Oldsmobile Park. Breckner noted Breslin Center has received the okay to co-promote concerts at in the stadium during the summer of'96. Sullivan and Breckner will continue to meet regarding promotions in the stadium. At 8:55 a.m. Lenora Jadun and Greg Koessel exited the meeting. Breckner outlined the various expenses involved in promotions in the stadium i.e. protecting the turf, lighting,staging, etc. Sullivan indicated there are capital investments that are needed to successfully book national concerts/acts in the stadium. At 8:57 a.m. Glenn Friedly exited the meeting. Breckner indicated two concerns at the stadium are the ramp and the generator that was eliminated. 10. Finance Report: Bob Swanson distributed and reviewed the committee's final report. Swanson reported the subcommittee reviewed the current and proposed operating budgets for all three entities, the financial impact of the TMO agreement and the recommendations of the various other sub-committees. The committee recommended: 1. To continue the level of subsidy of$550,800 for Lansing Center, and the City Market at $125,000. Swanson noted the Committee agreed that the subsidy level should remain at these same levels for next year, but through efficiencies of a combined entity, the subsidy should be reduced over time. The amount recommended for maintenance costs were estimated by the City; routine maintenance costs will be handled by the team. The first$25,000 of utilitycosts will be handled by the team and after that the costs will be shared by the City and the team. As recommended the Community Use Grant will be increased from $20,000 to $30,000 and will include the stadium. The Booking Policies and Procedures committee recommended a $30,000 budget for marketing. The committee recommended establishing a capital reserve fund for the Lansing Center. 11. Marketing and Promotions: Breckner reported the Convention/Visitor's Bureau has been responsible for the Marketing of the Center based on the priority of use and scheduling. Oldsmobile Park gives that agreement a different perspective. Chair Ristow suggested Board members read the report as time allows. Chair Ristow moved that the Critical Issues for Transition of the MEGA Partner reports be received as published. Chair Ristow extended his thanks to Scott and members of the committees and transition team who gathered the information. Breckner will forward copies of the report to City Council. MOTION: Commissioner Janssen SECOND: Commissioner Jeffries; motion carried. LEPFA Board of Commissioners Page 6 April23, 1996 V1L OLD BUSINESS: None. VIH. NEW BUSINESS: Chair Ristow revisited the Ways and Means Committee issue regarding City Market vendor leases. Chair Ristow requested the Board authorize both Management and the Task Force to act on behalf of the full Board if the issue of leases needs to be addressed. Chair Ristow moved that the Lansing City Market Evaluation Task Force and Management be authorized to act on behalf of the Authority in considering revisions to the present Lansing City Market Vendor lease agreement issue. MOTION: Commissioner Jeffries SECOND: Commissioner Butler; motion carried. Peter Sullivan indicated if the period of the lease is greater than one year the Committee will return to the full Board for approval. At 9:20 a.m. the meeting was adjourned. MOTION: Commissioner Janssen SECOND: Commissioner Decker; motion carried. THE NEXT MEETING IS SCHEDULED FOR TUESDAY, MAY 28, 1996 AT 7:30 A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM. Respectfully submitted, Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING ` JUKE 26, 1996 ? MINUTES At 7:30 a.m. Chairman Donald J. Ristow called the meeting to order in the Governor's Room of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT: John Decker, Glenn Friedly, Charles Janssen, Ellen Jeffries, Greg Koessel(Ex- officio), Kate McNealy, Daniel Nickerson, Donald Ristow, Charlotte Sinadinos, Robert Swanson (Ex-officio)and Dennis Sykes (Ex-officio). CON IISSIONERS EXCUSED: James Butler, Kate McNealy and Timothy Nichols. OTHERS PRESENT: Heidi Brown and Marian Bryant, Lansing Entertainment and Public Facilities Authority; Jack Jordan, City of Lansing; Harold Leeman, City Councilmember; Michael Meyers, Lansing Entertainment and Public Facilities Authority; James Smiertka, City of Lansing; and Peter C. Sullivan, Lansing Entertainment and Public Facilities Authority. III. ESTABLISHMENT OF THE AGENDA: No additions to the agenda. IV. PUBLIC COMMENT: No public comment. V. APPROVAL OF THE MWUTES OF MAY 28, 1996: The minutes of May 28, 1996 stand approved as published. MOTION: Decker SECOND: Sinadinos; motion carried. VI. REPORTS: A. CHAIRMAN'S REPORT: Chairman Ristow extended his thanks to Board members for accommodating the change in June meeting date and noted a listing of the remaining 1996 Board meeting dates was enclosed in each Board member's information packet. 1. Issues of Transition Report: Chair Ristow distributed copies of Michael Barber's cover letter and executive summary as it pertains to the "Performance Audit Report for the Lansing Center." Ristow suggested Board members interested in reviewing the report in its entirety contact Peter Sullivan. At 7:35 a.m. Daniel Nickerson entered the meeting. 2. Negotiations: Chair Ristow noted he attended a session of the labor negotiations and a State Labor Mediation expert also attended the meeting as a resource person; Ristow noted he is very encouraged by the progress reached in the meeting. 3. Task Force Committees' Progress: Chair Ristow complimented the Special Committee to Formulate an Operating Agreement and the Lansing City Market Evaluation Task Force Committee members, noting he is very encouraged with each committees' progress and the accomplishments to-date are exciting and of great value to future of the Authority. B. SECRETARY/TREASURER'S REPORT - MAY 31, 1996 FINANCIALS: Marian Bryant reported building rental exceeds last years by 10% or $89,722 and has topped the $1,000,000 mark for the first time; building rental also exceeds budget projections by $72,189. Operating income decreased over last year's by 2% or $64,824 due to a decrease in food LEPFA Board of Commissioners Page 2 June 26, 1996 and beverage revenues compared to last year (this is due to the Governor's Inauguration in 1995 which grossed $100,000 in food and beverage revenues). Total operating expenses increased by 5% or$178,426; the current ratio decreased by 1.17 from last month 1.31 and last year's 2.49. Equity in number of days of Operation decreased by 7.5 days to 26.88 from last month's 34.31 and 32 days from last years 59.12. Food and beverage expenses declined by $135,225 or 10% in- line with the revenue decline. Total operating revenues are under budget by $174,371 or 5% and total operating expenses are under budget by less than 1% or $10,294. Chairman Ristow moved that the financials for the Lansing Center for May, 1996 be received as published and the expenses for the month be approved. MOTION: Decker SECOND: Janssen. Chair Ristow indicated he had contacted David Dusza, former General Manager - Fine Host Corporation, Lansing Center as well as Michael Barber. Chair Ristow noted after a quick review of the previous months our expenses are in-line and revenues were fairly in-line until last month with a shortfall in food and beverage of$216,000 ($242,000 was projected). Ristow noted as of June 30 the transition process will be nine (9) months old and there has not been 100% supervision/efficiency within the organization for the last nine months. There was $128,000 in furniture, fixtures and equipment(approved prior to the knowledge of the transition costs) which were approved and expended by the previous Authority and in addition to a final settlement with Fine Host for 1994/95 invoices totaling$60,000. Ristow noted the transition was scheduled to be completed by January 31; however, it went until April 15. Fine Host has only been on board for two years and they use a calendar year opposed to fiscal year budget. In 1994-95 $61,000 profit was realized by the Lansing Center. Ristow noted food and beverage revenues for 94/95 $1.8 million projected and came in at$2.1 million. However, Fine Host home office requires it resident managers to reach 10-20% increase in revenues and that was the basis for their budget figures ($2.3 million); obviously, they have not reached the goal due to the lack of a permanent Manager, and no permanent manager for the Lansing Center. Also, Fine Host did nothing to generate additional sales other than our bookings. Home office based its information on one years experience, our bookings and our rental revenues. Fine Host averaged 28-29% profit level with the industry average around 35% profit level, which was brought to their attention. At 7:45 a.m. Councilmember Harold Leeman entered the meeting. Peter Sullivan added that we are reviewing the situation internally and have asked Fine Host to look at their current as well as future budget projections. Sullivan indicated this came to light a week ago and indicated again he will be studying the financial situation closely and will report back to the Authority once the review is complete. Ristow indicated Peter will meet with Fine Host regarding the 96/96 budget and once year end is completed(June 30) alternatives will be reviewed. Cash flow is under careful watch. Friedly questioned where does the budget stand for next year? Chair Ristow noted the budget was acted upon by the old Authority and City Council. Commissioner Friedly requested a review of the 96/96 budget as well as the process and changes for board members. Peter Sullivan indicated a Board review will take place when the study is completed. Motion carried. C. CHIEF EXECUTIVE OFFICER'S REPORT: 1. Introduction of Director of Operations: Peter Sullivan introduced Michael Meyers (as outlined in the announcement enclosed in Board packets) LEPFA's new Director of Operations. Sullivan noted Meyers comes to Lansing from Anaheim, California where he worked extensively with the stadium,the convention center and arena. Sullivan reviewed Meyers' education and work history. Sullivan welcomed Meyers aboard. LEPFA Board of Commissioners Page 3 June 26, 1996 2. Union Issues: Sullivan noted since the last board meeting a 3-4 hour bargaining session was held and progress was made regarding non-economic issues as they relate to the facility workers contract and a meeting is scheduled for this Friday. Personnel policy issues need to be addressed as well as the AV employees contract. Sullivan noted progress has been very positive and Dirk Spillemaekers indicated he too is pleased with the progress. Sullivan will continue to update the Board. 3. Lansing City Market: Peter reported vendor meetings continue; Peter and Lisa Wootton attended a Vendors Association meeting and recently the committee visited the Flint Market all which were informative. The time-line continues to be December, 1996 for completion of the task force evaluation. Sullivan noted occupancy is up at the Market and leases have been extended through December (as approved by the Board). Vendor feedback overall is positive and Sullivan noted he senses a more positive association with the Market. 4. Oldsmobile Park: Sullivan reported he continues to have dialog with Scott Breckner. This weekend the Great Lakes State games will be held at the stadium. Sullivan indicated feedback regarding the Michigan Run has been positive and the event was successful. Sullivan reminded Board members that the Mayor's Fourth of July concert will be held at the stadium on July 4. Peter stated he has met with Dennis Sykes and Bob Swanson on obtaining covering for the turf in the infield. The covering will be used for other non-baseball events; scheduled delivery of the covering is July 2 or 3. Peter indicated he has met with Scott Breckner, Bob Swanson and Dennis Sykes and Lugnut staff regarding activities such as ticketing, event staffing, security, etc. for non-baseball events. Sullivan also indicated there will be a major concert announcement within the next several weeks and they are working on a country concert as well. 5. Lansing Center - May Event Information: Sullivan reported at the Lansing Center during the month of May there were 58 events, 76 event days, 28,000 attendees equalling 1000 room nights, with an economic impact of $500,000. Year-to-date figures for the Lansing Center are: 476 events, 746 event days and 340,000 attendees 15,400 room nights and $5.5 million in economic impact. Sullivan noted the Lansing Center is very busy and indicated we only increase the number of events that come to Lansing with the addition of the stadium and the Market. 6. Parking: Peter Sullivan noted he has met with Pat Engle and Dave Berridge from City Parking to discuss parking issues/logistics. Peter noted staff is extremely receptive to recommendations made and have been helpful in working on new parking activity relating to Oldsmobile Park event employee parking (using the North Grand ramp). 7. Meeting with the Convention/Visitors Bureau: Sullivan noted he and the CVB staff continue to meet to try to solidify dates for the next three to five years for major gate show dates. Peter noted this has been an issue in the past and this remains an industry issue as it relates to the time frame for booking. Authority staff met with the CVB to work out the issues and to-date Tom Galyon has been very receptive to establishing future dates for major gate shows. At 8:07 a.m. Greg Koessel entered the meeting. 8. Operating Agreement: Peter reported the Task Force Committee has met a number of times as well as individual meetings between Peter and Bob Swanson. Peter stated he is confident that there will be a draft document soon. A meeting has taken place with the Mayor to discuss specifics and he hopes a draft document will be forwarded to City Council soon. LEPFA Board of Commissioners Page 4 June 26, 1996 9. National Arena Sales Market Conference - Las Vegas Nevada: Sullivan thanked the Board for moving the Board's monthly meeting date and noted he had just returned from the conference and he had made a number of contacts and received many good leads in response to the Director of Marketing position. Dan Nickerson noted the concert bookings were very encouraging and questioned if there is a formal relationship with Scott Breckner? Sullivan noted there is an agreement between Scott Breckner and the City and for the first year of operation Breslin Center has taken the lead in bookings at Oldsmobile Park. Dennis Sykes noted the Breslin Center will be working for the City through this season and then it will be up to the Authority to decide how they will handle bookings. The original intent was to work in cooperation with the Breslin Center and not to be in competition with them. Sykes noted the newness of the Park as a venue is of concern but the upcoming events will be good initial tests. Sykes noted Breslin Center is taking a risk as a promotor and we will learn a lot this first season and will then have to reflect on the season and look at how we wish to operate for next year. Sullivan clarified that the contract is with the City for this first season, however, it will be reviewed for next year on how to proceed. Sullivan noted we do not want to compete with the Breslin Center, thus he is meeting with Scott Breckner and anticipates developing a relationship with the Breslin Center for next year. At 8:15 a.m. Jack Jordan entered the meeting. Dennis Sykes indicated he will continue to forward the schedule to Board members. D. SPECIAL COMMITTEE TO FORMULATE AN OPERATING AGREEMENT: Chair Ristow indicated it is hoped that within a couple of weeks a final agreement will be compiled and forwarded to Lansing City Council and the Board members as well. Nickerson questioned if the agreement could be forwarded to the Board prior to going to City Council. Chair Ristow indicated this could be accomplished. Glenn Friedly questioned the process, Ristow noted the document will be circulated to all Board members as soon as it is finalized. It will then be forwarded to Council. Smiertka clarified the process by noting the Mayors office and the Authority will negotiate an Operating Agreement which will be submitted to council. Smiertka noted it is then the Board's pleasure if they would like to approve the agreement at this time or wait until City Council has reviewed the document and recommended their changes. Smiertka noted the agreement will be referred to the Ways and Means Committee and Intergovernmental Committee and the Board and the City Council will have to approve the final agreement. Ristow noted a copy will be forward to all board members before going to Council. E. LANSING CITY MARKET EVALUATION TASK FORCE: Committee Chair Ellen Jeffries reported the members of the Task Force: Kate McNenly, James Butler, John Decker and Don Ristow have met several times throughout the month of June. Ellen reported the summer intem Wesley Biles has also joined the Task Force. June 11 and 12 was the first set of Vendor interviews with four to five interviews each day. Ellen noted Peter and Lisa Wootton have been addressing many issues as they arise and the Vendors are confident that this process will have some results. Jeffries noted the task force visited the Flint Market on June 18 and this also was very informative. Vendor interviews resumed on June 20 and interviews are scheduled today. In July a visit is scheduled for the Toledo Market and a meeting with the former managers will be scheduled as well as with the Downtown Neighborhood Association. Ellen invited Board members to contact Lisa Wootton if they are interested attending any of the Market events. LEPFA Board of Commissioners Page 5 June 26, 1996 John Decker noted the feedback from the Vendors has been very positive to-date. Chair Ristow expressed his gratitude to the committees for their work. F. MISCELLANEOUS: Dennis Sykes indicated this week will be the final stadium walk through with Clark, the City, TMO and the ponding issue has been resolved. The punch list has been updated and there may be issues that remain for the team, i.e. doors on the batting cages, however, most of the issues have been resolved. VH. OLD BUSWE,SS: None VIII. NEW BUSINESS: None. At 8:33 a.m. the meeting was adjourned. MOTION: Sinadinos SECOND: Decker; motion carried. THE NEXT MEETING IS SCHEDULED FOR TUESDAY, DULY 23, 1996 AT 7:30 A.M. AT THE LANSING CENTER IN ROOM 201. Respectfully submitted, Heidi K. Brown, Recording Secretary Approved as amended at the July 23, 1996 monthly LEPFA Board of Commissioners meeting. Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING DULY 23, 1996 n MINUTES 1 ;'� C 1'i CLEF ' At 7:33 a.m. Chairman Donald J. Ristow called the meeting to order in Room 201 of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT: James Butler, John Decker, Glenn Friedly, Ellen Jeffries, Greg Koessel (Ex- officio), Kate McNeely, Timothy Nichols, Donald Ristow, and Robert Swanson (Ex-officio). COMMISSIONERS EXCUSED: Charles Janssen, Daniel Nickerson, Charlie Sinadinos, and Dennis Sykes (Ex- officio). OTHERS PRESENT: Wesley Biles (Intern), Heidi Brown, Marian Bryant, Michael Meyers, Peter Sullivan, Lansing Entertainment and Public Facilities Authority; Jack Jordan, City of Lansing. III. ESTABLISHMENT OF THE AGENDA: No additions to the agenda. IV. PUBLIC COMMENT: No public comment. Peter Sullivan requested a change in the August meeting date to MONDAY, AUGUST 26, 1996 to accommodate staff in the preparation for the Crosby, Stills, and Nash concert on August 27 at Oldsmobile Park. Board members present concurred with the change and Chair Ristow requested a notice be forwarded to all Board of Commissioners noting the change. V. APPROVAL OF THE MINUTES OF JUKE 26, 1996: Kate McNeely requested the listing of "Commissioners Present" be amended in the minutes of June 26, 1996 to reflect Kate McNenly as absent. The minutes were approved as amended. VI. REPORTS: A. CHAIRMAN'S REPORT: 1. Lansing City Market Paint Blitz: Chair Ristow invited all Board members to attend a paint blitz on Sunday, August 4 at the City Market. John Decker noted City Council, LEPFA Board members, staff, and vendors will paint the market. Peter Sullivan noted Wesley Biles and Lisa Wootton are collecting in- kind donations for the blitz. 2. August Monthly Board Meeting Date Change: Chair Ristow noted because the Board's monthly Tuesday, August 27 meeting date is the move-in date for Crosby, Stills and Nash the meeting will be moved to Monday, August 26 at 7:30 a.m. B. SECRETARY/TREASURER'S REPORT -JUNE 30, 1996 FINANCIALS: 1. June Finacials: Chair Ristow reported in the absence of Charlotte Sinadinos, he and Marian Bryant will review the June 30 financials. Chair Ristow noted the statements included in the monthly mailing were forwarded in a draft form and represented the first time in the history of the Lansing Center that statements have been published prior to the completion of the annual audit. No action will be taken on the June statements today, and will not take place until the accountants have completed their adjusting entries for the year. The new statements will be acted upon, along with the July financials at the August meeting. Chair Ristow noted any adjusting entries completed will not exceed 10% either way; which means we are facing a $200,000 issue at year end. Marian noted expenses for the year were under budget by $55,128 and advanced rent deposits are ahead LEPFA Board of Commissioners Page 2 July 23, 1996 of last year by $65,000 and receivables have decreased over last year by$36,000. Ristow questioned what does the short fall mean for 95/96 and what can be expected for 96/97? Ristow noted this is a perfect example of the need for reserves, and a short and long range Business Plan. Ristow appointed a special committee comprised of the following Board members: Charlotte Sinadinos, Chair; Bob Swanson, Ellen Jeffries, Tim Nichols, Greg Koessel, and Peter Sullivan with the charge to recommend within 60 days a plan to address the 95/96 deficit and to review the 96/97 budget including cash flow and to come up with an action plan as needed. Marian Bryant will serve as resource person as well as Doug Rubley or Chuck Remenar. Chair Ristow further noted the "Transition Committee" was charged with hiring a Temporary CEO and performing the search for a full-time CEO with a deadline of January 1, 1996; no other aspects of the transition were involved at that point. Mayor Hollister then requested Committee Chair Ristow and the Committee members review the "critical issues" facing the Lansing Entertainment and Public Facilities Authority which involved bringing on Scott Breckner as a consultant which is inclusive in the transition costs and may be attributed to all three entities. Ellen Jeffries questioned if the Board will be receiving separate financials for the Market and Stadium? Peter indicated there will be individual fmacials beginning next month in conjunction with the start of the new fiscal year and correlating subsidies. Bob Swanson noted the Grand Opening item has revenue as well as expense information listed and the numbers represent the transition from one CEO to another, the cost of the search firm, the contract with Michael Barber, the contract with Scott Breckner with the broader aspects of the transition from one CEO to another paid by the City. Swanson noted according to the balance sheet the Authority is still solvent and it is still a positive situation; however Swanson noted the critical issue is identifying the impact this will have on the '97 budget as it pertains to one time issues. The Authority needs to recognize '96 is the first full year of operation of this facility and the committee must deal with necessary budget issues for '97 as well as possible additional revenue streams. 2. Liquor License Application: Marian Bryant explained that the old Authority had two liquor licenses, one for the Civic Arena and one for the Lansing Center. The Authority requested that the Liquor Control Commission transfer the licenses to the new Authority; the Commission requested the Authority apply for a new license after a review of the Articles of Incorporation. The license for the Arena will be transferred to the Market and the second license will involve a name transfer in the name of the new Authority. Marian indicated the Liquor Control Commission requires a resolution from the Board delegating Peter Sullivan the executor of the documents. Marian stated Fine Host is a purveyor of food and beverage and serves liquor therefore are listed on the liquor license. Peter indicated should Fine Host's contract not be renewed we would go through a short process to eliminate their name. Motion was made to adopt the resolution as distributed. Motion: Commissioner Nichols; SECOND: Commissioner Butler; motion carried. At 7:50 a.m. Greg Koessel entered the meeting. C. CHIEF EXECUTIVE OFFICER'S REPORT: 1. Union Issues: Peter reported he has met with the Union since the June Board meeting and noted there is progress, however the Union has added some new non-economic issues on the table. Peter noted he met with Dirk Spillemaekers regarding his concerns that the Union is not involved in Oldsmobile Park and his belief that the Union has jurisdiction over Oldsmobile Park, noting he felt the old Authority inherently gave them jurisdiction over Olds Park. Peter reminded Dirk that the old Authority had nothing to do with Oldsmobile Park and Dirk concurred and the operating agreement is not finalized. Peter indicated the Authority would be happy to discuss this with the Union,but currently there is no jurisdiction. Discussions continue and Peter noted he will continue to inform the Board of developments. LEPFA Board of Commissioners Page 3 -- July 23, 1996 2. City Market: Sullivan reported the Authority continues to work with the vendors and occupancy is up from 54% to 68% from May to June and have recently added a roasted nut, floral and Mexican food vendors. The overall Market Vendor tone and attitude of working together has been very good. Peter noted the Committee traveled to Toledo, Ohio which was very informative and presented the opportunity to meet with the President and Vice President of the Toledo Market Association and the Market Manger. The Toledo Market staff/vendors plan to forward a number of useful documents. Peter further commented that the information gathering process continues with meetings with the vendors and outside associations. Peter introduced the Lansing City Market Intern, Wesley Biles who has been working very diligently to set up the interviews and keep the committee and staff on track. 3. Oldsmobile Park: Peter reported discussions are on-going with the Lugnuts regarding their events and (also includes Scott Breckner and Dennis Sykes). Peter reported since the last meeting the following events have been held: the Mayor's July 4th Symphony with an estimated attendance of 4000. Peter noted Scott Breckner should be commended for his efforts. Peter also thanked Bob Swanson for his efforts in purchasing the field covering. In June the Great Lake State Games were held and was a well received community/regional event. Monthly movies "Park in the Dark" were held on Friday with "Jumangi" as the feature with 1000 in attendance. Saturday "Golden Eye" drew an estimated attendance of 200-300. Sunday the National Women's baseball games took place with 200-300 patrons in attending. Another doubleheader is scheduled for the 27. Thursday a press conference was held to announce Crosby, Stills' and Nash concert with tickets on sale Monday, July 22 with 2000 tickets sold the first day. Ticket prices are $30.00 and $24.50. 4. City/Lugnut Issues: Peter noted he continues to meet with the City and the Lugnuts on operational issues including: the punch list, ticketing agreement as well as other issues. 5. Lansing Center - June Event Information: Sullivan reported at the Lansing Center during the month of June there were 42 events, 51 event days, 14,000 attendees equalling 736 room nights,with an economic impact of $315,000. Year-to-date figures for the Lansing Center are: 520 events, 801 event days and 350,000 attendees; 16,100 room nights and$6 million in economic impact. Sullivan noted the figures will only go up in conjunction with the use of Oldsmobile Park. 6. Meeting with the Convention/Visitors Bureau: Sullivan noted he and the CVB staff continue to meet to try to solidify dates for major gate show dates through the year 2000. Peter noted the CVB has agreed to revisit the Booking/Marketing agreement which expires in October. 7. Operating Agreement: Peter reported the Task Force Committee has met a number of times since the last meeting with the City and the agreement has come to closure with the City and it is anticipated the it will be forwarded to City Council this week. 8. Thank You: Peter extended his thanks to Board members for the flowers, cards and personal notes regarding the recent death in his family. D. SPECIAL COMMITTEE TO FORMULATE AN OPERATING AGREEMENT: Committee Chair Tim Nichols noted he hoped Board members have read through the final document and will do so if they have not. Nichols reported the document is fmalized between the Mayor's office and the Committee and they are moving forward. Nichols noted a great effort was given by the Committee members and noted the Committee believes it is a very workable agreement. Nichols reported once City Council has reviewed the document the Committee will come before the full Board if assistance is needed with City Council members to discuss issues. Chair Nichols thanked all involved for their efforts. E. LANSING CITY MARKET EVALUATION TASK FORCE: Committee Chair Ellen Jeffries reported the Task Force held vendor interviews on June 26 and the Toledo visit took place on June 14. Jeffries reported the vendor interviews are scheduled for this evening and the paint day is scheduled for August 4. LEPFA Board of Commissioners Page 4 July 23, 1996 Wesley Biles introduced himself to the Board of Commissioners and explained the purpose of "Paint Day" which will entail painting the Market doors and fence. Wesley is working to obtain donations from vendors and he invited all Board members to attend the "Paint Day". VIL OLD BUSEVESS: None. VIH- NEW BUSINESS: None. Chair Ristow reminded Board members to note the August meeting will take place on Monday, August 26 at 7:30 a.m. due to the Crosby, Stills and Nash concert. Commissioner Glenn Friedly questioned the status of his requested that a budget document which would consolidate the Market, the Stadium and the Center and further questioned his requested that some process be undertaken to accomplish his request. Chair Ristow noted as reported earlier, a Special Task Force has been appointed to develop an action plan that will address the 95/96 budget deficit and will re-do the 96/97 budget and cash flow (with a report due in 60 days). Peter Sullivan noted effective July 1 (the new fiscal year) the other entities will be involved in the budget report process and will be separately accounted for. At 8:22 a.m. the meeting was adjourned. MOTION: Butler SECOND: McNeely; motion carried. THE NEXT MEETING IS SCHEDULED FOR MONDAY, AUGUST 26, 1996 AT 7:30 A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM. Respectfully submitted, Heidi K. Brown, Recording Secretary Approved as amended at the August 26, 1996 monthly LEPFA Board of Commissioners meeting. Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING _ AUGUST 26 1996 CITY CLERA' MINUTES At 7:30 a.m. Chairman Donald J. Ristow called the meeting to order in the Governor's Room of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT: James Butler,John Decker, Glenn Friedly,Ellen Jeffries,Kate McNeely,Daniel Nickerson, Donald Ristow, Charlotte Sinadinos, Robert Swanson (Ex-officio) and Dennis Sykes (Ex-officio). COMMISSIONERS EXCUSED: Charles Janssen, Greg Koessel (Ex-officio) and Timothy Nichols. OTHERS PRESENT: Heidi Brown, Marian Bryant, Peter Sullivan, Lansing Entertainment and Public Facilities Authority; Jack Jordan, City of Lansing; Councilmember Harold Leeman and James Smiertka, City of Lansing. III. ESTABLISHMENT OF THE AGENDA: Commissioner Daniel Nickerson requested the Oldsmobile Park Water Fountain project and the addition of Oldsmobile Park bleachers be added to the agenda. Peter Sullivan noted both items are included in his report. IV. PUBLIC COMMENT: No public comment. V. APPROVAL OF THE NnNUTES OF JULY 23, 1996: Commissioner Daniel Nickerson noted on page two, the second line, the year should be changed from "96/96" to "95/96." The minutes were approved as published with noted correction. VI. REPORTS: A. CHAIRMAN'S REPORT: 1. LEPFA and Fine Host Annual Picnic: Chair Ristow extended his thanks to the LEPFA and Fine Host staff for inviting the Commissioners to the annual picnic held on August 25. Chair Ristov,,noted he was pleased with the organization and cooperation of all in attendance. At 7:35 a.m. Charlotte Sinadinos and Robert Swanson entered the meeting. 2. Lansing City Market Evaluation Task Force: Chair Ristow noted over the past month he spent an entire day touring farm markets in southwest Michigan with the Task Force members and is very pleased with the Committee's progress and is pleased with the level of commitment displayed by the members and the resource people. Chair Ristow noted he has requested Peter invite Tom Dickson to the September monthly Board of Commissioners meeting to discuss the additional seating at Oldsmobile Park. B. SECRETARY/TREASURER'S REPORT: 1. June 30, 1996 - Lansing Center Finacials: Marian Bryant reported the June 30 preliminary copies of the financials were distributed and discussed at the July monthly LEPFA Board meeting. Changes included a change in the bottom line due to the removal of the$1,700 Grand Opening revenue; thus the net income after subsidy as of June 30 is ($314,950)without depreciation it is ($205,918). Marian noted the auditors also recommended that the Transition Expenses from non-operating expenses be moved to operating expenses. Marian noted cash is down by$99,607, accounts receivables are down and advance rent deposits are up by $65,000. Marian reported operating expenses were below budget including transition expenses by $28,000 and operating revenues were at$138,432. LEPFA Board of Commissioners Page 2 August 26, 1996 Commissioner Friedly commented on the 8% change in Food and Beverage revenue. He also questioned the increase in utilities,noting the trade show utilities revenues were not increased. Peter noted the food and beverage issue was due in part because the Governor's Ball was incorporated in the previous year and this significant event only occurs every four years; and secondly, while we were up in rental revenues (first time over $1,000,000) there was not an increase in food and beverage which indicated the events did not all have food and beverage requirements. Sullivan noted an increase is expected with an overall $2,215,000 projected for food and beverage. Regarding utilities,Sullivan noted the facility size increased 100% due to renovations, however, revenue generated by the expansion is not realized in the first and/or second year, but expenses associated with the expansion are realized immediately (i.e. utility costs, cleaning, supplies, etc.). Peter noted the budget predictions for this year were made two years ago and were based on best efforts predictions. Marian noted the "utilities revenues" are fees charged to vendors during trade shows. Motion was made that the June financial statements be received as published and the expenses for the month be approved. MOTION: Sinadinos SECOND: Butler; motion carried. 2. July 31, 1996 Financial Statements: a. Lansing Center: Marian Bryant reviewed the July 31 Lansing Center financial statements. Marian noted total operating revenue exceeds last year by $19,000 (21%); total building rental exceeds last year by 22% or $7,500; total operating expense increased by 59% or $67,343 and net income after subsidy as of July 31 is $2,412 minus depreciation leaves a net income of $12,282. IRS coverage of expenses is 63%. Marian referred to the footnote for salaries and wages noting the actual expense for July was $79,890 (due to accruals that reverse out in July and create a negative number in July). Utilities difference is due to year end accrual. Marian noted there are no budget vs. actual figures because a budget has not been approved by this Board. Peter Sullivan noted financials will be available next month for Oldsmobile Park and the delay is due to the transition currently taking place between Dennis Sykes, Scott Breckner and our office in relation to formalizing the process and flow. b. Lansing City Market: Marian noted there are no prior figures for the City Market. Total operating revenue is$3,012, total building rental which is booked space is$2,949. Miscellaneous items under revenues are for donations received for the painting project. Total operating expenses are $3,144 and net income after subsidy is $15,286. Total IRS coverage of expenses is 98%, current ratio is 1.36 and equity in number of days of operation is $150.74. Commissioner Nickerson questioned "professional services." Marian noted professional services included the security contract, attorney fees, payroll service, consultants, etc. Nickerson questioned if we use the City Attorney's office as much as possible? Peter noted we have used the City Attorney's office from time to time but for Union negotiations have used another attorney more familiar with our specific issues and history. Motion was made that the July financials for the Lansing Center and the City Market be approved. MOTION: Butler SECOND: Decker; motion carried. 3. Chairman's Special Committee on Finances: Charlotte Sinadinos reported the entire committee has met twice and also in smaller groups. Charlie noted the committee meetings involve Marian and Peter and currently they are reviewing financials to determine where we are and what we need to concentrate on as well as reviewing the financial plan and policies for three to four years out. Chair Sinadinos noted primary concerns are reserves for major maintenance and capital improvements while incorporating the Board's philosophy of running the Authority as a business. The committee is also reviewing the real expectations of our potential business in the future, i.e. economic conditions, competition, and will provide a presentation for the Board's review in the future. LEPFA Board of Commissioners Page 3 August 26, 1996 C. CHIEF EXECUTIVE OFFICER'S REPORT: 1. Union Issues: Peter reported he met on August 15 with the Union and reported the Union's attorney, Brad Raymond, and a State mediator attended the meeting, noting he felt this session was productive because their attorney focused on the issues at hand. The meeting lasted two hours and the Union reps, their attorney and the State mediator met for an additional two and a half hours. The following Tuesday the Union came to the Authority, and via their attorney agreed to drop a number of issues. Peter noted there area few Facility Worker issues in need of resolution, with the largest being work at Oldsmobile Park and the City Market. Peter noted the Authority is receptive to the employees working at the stadium, but not under Lansing Center contract terms. Peter noted currently we are able to contract with third party groups to provide a variety of services, i.e. labor. Peter shared a letter received from Dirk on August 23 referencing the Union's cessation of demonstrations until August 27, noting that they would service the August 27 Oldsmobile Park event as contract by a third party, but under protest and considered this a "one time only" occurrence. Currently it is anticipated the Local will be used for technical work at the stadium for all stage related work. Peter indicated he has notified the City of the potential for an informational picket tomorrow and a call has been placed for Union services, however, a Plan B has been developed should they decide not to report. Peter reported a three hour meeting was held on August 13 with all the Union workers. In advance of the meeting a list of their issues was requested, Peter noted he received a three page memo with 18 topics in advance of the meeting. Peter noted there was a very cordial, casual exchange of ideas and overall he felt it was a good exchange and he, along with Michael Meyers, intends to continue to have appropriately scheduled meetings with staff. 2. City Market: Sullivan reported the Authority continues to work with the vendors and visit other Markets in the region. The Committee visited the Benton Harbor Market on an all day tour and several task force members returned to Benton Harbor to visit the wholesale market. Peter reported Lansing City Market vendor occupancy is up, and a dried flower vendor has just contracted with the Market. Peter noted the painting party took place whereby the Vendors and Board members organized to paint the Market. Peter noted stall lines will be painted and the Market sign will have perennials and mums planted nearby. A landscaping plan has been developed by a Parks and Rec intern which will be instituted in part before the season starts next year. Peter noted in discussions with Councilmember Beal she has indicated that she is pleased with the changes at the Market and stated during her recent visits there, that she has observed that the vendors appear to be upbeat and positive about the changes taking place and they are pleased with the increased sales. Commissioner Butler questioned the status of having the Markets overhead windows painted. Peter noted Lisa continues to obtain quotes for the remaining areas in need of painting and hopes to have the painting started before Riverfest. 3. Oldsmobile Park: Peter reported discussions are on-going with the Lugnuts regarding their events(also with Scott Breckner and Dennis Sykes). Peter noted recently he sent a letter to Jim Weigel to clarify a number of issues concerning cleaning, the playground/picnic areas being open during off days, administrative fees, taxes, attitudes at City events, keys, etc. Peter noted since the last monthly Board meeting we have had a number of events including the monthly movies. The movie "Grease" will be shown on Friday in conjunction with the Car Classic this weekend with 1500 in attendance. Peter complimented Scott Breckner and staff in regards to their PR efforts. Peter noted a fourth monthly movie is scheduled for August 31 (Apollo 13). Clark Construction held a company softball game and dinner this past Saturday and reports from our Event Coordinator indicate that the event went well and Molly Clark was pleased with the event. LEPFA Board of Commissioners Page 4 August 26, 1996 Peter noted the Crosby, Stills and Nash concert is tomorrow, move-in begins at midnight and Wednesday evening they will move out. Ticket sales are estimated in the 6000-7000 range. QVC has selected Lansing as one of eight cities to broadcast from live and they will be at the stadium on September 3. Peter noted this is very positive event for Lansing. Peter reported he has been approached by the United Way regarding a charity event and currently there is an issue regarding rent. Peter noted a number of non-profit groups are requesting free rent and our position has been to cordially refer the groups to the Community Use program. Peter noted the most recent example is Riverfest. United Way has expressed a strong desire to use the Park free of charge and we continue to meet with them regarding this issue. 4. Stadium Seating: Peter noted there is a stadium seating upgrade in progress. Tom Dickson has presented his proposal to City Council Committee of the Whole last week. The change would convert the berm seating down the right and left field lines into seats (1800 seats). The City will fund 2/3 and the Lugnuts 1/3 of the overall costs of the$360,000 expense. In return the Lugnuts have agreed to drop their escape clause after seven(7)years as well as some outstanding issues on concessions equipment and seating issues. Peter reported Rick Lilly has suggested it would be beneficial to ask Tom Dickson to give a presentation to the LEPFA Board regarding the changes. Peter noted he will invite Tom Dickson to come to the meeting to discuss seating, and capital improvements (i.e. converting handicap seating in a group zone, message boards near the entrance, tier outfield seating, etc.). Peter indicated he also discussed with Tom Dickson the issue of working together as a team and Dickson indicated he would work with Peter in the future. Commissioner Butler questioned if Tom Dickson is-active in the community, noting he questioned his involvement because he does not see him as active in the community and this issue has been raised several times with Mr. Butler. Peter suggested Commissioner Butler ask Mr. Dickson when he is in attendance at the LEPFA Board meeting. Commissioner Butler also indicated another question that has come up is in regard to the hiring practices of the Lugnuts, because it does not appear that Tom Dickson has as much diversity as he could have, especially in visible/policy type positions. Butler questioned if we have any control or recommendations since it is our building. Peter noted that is a question for Tom, however, Peter noted we do not have any say in his hiring practices per the TMO agreement. James Butler noted just as a corporate citizen, we have certain responsibilities,just as IBM, GM, and if they do not respond favorably within the community, the community has a say. Commissioner Bob Swanson noted the TMO lease agreement addresses a target for the Lugnuts in regard to a percentage of their staff being City of Lansing residents, 75% is the target(they have 67%), but there is no mention of diversity. Jim Smiertka noted in addition to the above mentioned clause there is an EEO clause which addresses the diversity issue even though there is not a targeted number, it is used in good faith. Commissioner Dan Nickerson noted he supports Commissioner Butler and has discussed the make-up of the Lansing Center staff with Peter, so those are issues that Board members need to be aware of and they are not going to go away. 5. Fountain Project: Peter noted at last week's City Council Committee of the Whole meeting a presentation was made by Bob Kolt of Kolt Serkaian regarding the building of a fountain in the front of Oldsmobile Park. The fountain will be funded through private donations and will incorporate lights. Peter noted we support this project and it will only add to the overall experience when one comes to the stadium. Peter indicated he will invite Bob Kolt to the September Board meeting to provide a presentation regarding the project. Mr. Sykes noted this project is funded by the Lansing Foundation and funds will be raised through contributions. LEPFA Board of Commissioners Page 5 August 26, 1996 Sykes noted they would like the project to begin this fall. The fountain will be located in the central entrance, the bricks in this area will be relocated and the main entrance will not be obstructed. Sykes noted Mr. Kolt approached the Mayor on the fountain, noting this is viewed as an attraction. James Butler indicated he is concerned that entrance to the stadium will be obstructed and noted he hoped the bricks will not be permanently removed in the relocation process. Butler suggested when this project is complete perhaps a written plan/map can be implemented to help locate bricks. Chair Ristow noted he understood an overall sprinkler system would be incorporated into the grass areas as a part of the project. Sykes noted this is a part of the expansion of the seats. Commissioner Nickerson indicated he agreed with the aesthetics, but cautioned fountains often cost more to maintain than the cost of purchasing the fountain and noted we need to be clear with the Lansing Foundation on where the maintenance funds will come from and we need to review the construction of the fountain before it goes into place to assure that it will not be troublesome. 6. Lansing Center- July Event Information: Peter reported that the Lansing Center during the month of July there were 21 events, 26 event days, 9,500 attendees equalling 336 room nights, with an economic impact of$85,000 to $90,000. Peter noted while July tends to be a slow month, this July was better than last year. Peter reported the Financial Task Force met twice and will meet again on Wednesday. A revised budget has been compiled and the Task Force will make recommendations regarding capital and cash reserve funds, how these will be funded, and financial forecasts/plans in the form of a presentation to outline our needs as well as the reasoning to City Council. Peter noted the Operating Agreement has not been forwarded to City Council and will go to City Council this week. Mr. Swanson noted it will be on tonight's agenda and Mayor Hollister has referred it to various Department Heads for review. Jim Smiertka noted also on the agenda today is the Ethics Ordinance, the current draft does not involve any member of this board and does not apply to Boards and Authorities in regard to financial information. D. SPECIAL COMMITTEE TO FORMULATE AN OPERATING AGREEMENT: In Committee Chair Tim Nichols' absence Peter Sullivan previously reported on this issue in his report. E. LANSING CITY MARKET EVALUATION TASK FORCE: Committee Chair Ellen Jeffries reported the Task Force has completed vendor interviews and the Paint Day took place on August 4 and was big success. On August 6 the Task Force visited five to six different Markets and obtained Market improvement information. The committee plans to meet with the Downtown Neighborhood groups and on August 15 John Decker visited the Benton Harbor Market. Commissioner Decker reported the Benton Harbor Market is open six days a week and is on 45 acres of land, and is open from May through October. Chair Jeffries indicated the Committee hopes to have a final report by the years end and indicated she appreciated all Task Force members work as well as Peter's input. Commissioner Butler noted that the Committee is working very well together and is a very committed group. Butler stated the Market vendors seem to truly appreciate the interaction and our willingness to listen and understand what they feel the issues are. Butler noted the vendors have been quite proactive and talkative and they understand our primary objective is to make them successful, as well as the City, and to reduce the subsidy. VII. OLD BUSINESS: None. VHL NEW BUSINESS: Chair Ristow noted the next meeting is scheduled on Tuesday, September 24 at 7:30 a.m. and Peter will extend invitations to Bob Kolt and Tom Dickson. LEPFA Board of Commissioners Page 6 August 26, 1996 James Butler extended his thanks to Dennis Sykes for forwarding to the LEPFA Commissioners the copies of the "Oldsmobile Park Applications for Use." Mr. Butler also noted as he was perusing the minutes that it appears people are not listed as present who were actually in attendance at various meetings, he will review his concerns with staff following the meeting. Dennis Sykes discussed the ramifications of President Clinton's arrival on the same evening as the Crobsy Stills, and Nash concert. Sykes noted this will.present additional challenges and will hopefully have very little impact on the concert. Sykes noted in regard to timing,the concert should be over once the President has arrived and the north Grand Avenue ramp will not be accessible. Sykes noted there will be a post event meeting Thursday morning to review the event. At 8:22 a.m. the meeting was adjourned. MOTION: Butler SECOND: McNenly; motion carried. THE NEXT MEETING IS SCHEDULED FOR TUESDAY, SEPTEMBER 24, 1996 AT 7:30 A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM. Respectfully submitted, Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING SEPTEMBER 24, 1996 MINUTES At 7:36 a.m. Chairman Donald J. Ristow called the meeting to order in the Governor's Room of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT: James Butler, John Decker, Ellen Jeffries, Tim Nichols, Daniel Nickerson, Donald Ristow, Charlotte Sinadinos, and Dennis Sykes (Ex-officio). COMMISSIONERS EXCUSED: Glenn Friedly, Charles Janssen, Greg Koessel (Ex-officio)Kate McNenly, and Robert Swanson (Ex-officio). OTHERS PRESENT: Heidi Brown, Marian Bryant, Michael Meyers and Peter Sullivan, Lansing Entertainment and Public Facilities Authority; Jack Jordan and James Smiertka,City of Lansing; Tom Dickson,Lansing Lugnuts; and Robert Kolt, Kolt& Serkaian. in. ESTABLISHMENT OF THE AGENDA: f' No additional agenda items were noted. - - IV. PUBLIC COMMENT: - No public comment. r' 1 V. APPROVAL OF THE MINUTES OF AUGUST 26, 1996: 3 The August 26, 1996 minutes were approved as published. R, `- 7c �_O VI. REPORTS: A. CHAIRMAN'S REPORT: 1. Light the City Campaign- "Pig Out at the plaza": Chair Ristow noted in conjunction with the "Light the City" campaign a "Pig Out at the Plaza" was held last week to fund Christmas lights for Washington Square. Chair Ristow reported $9000 was raised ($7,000 was the goal) and extended thanks to the Commissioners who were able to attend the event, with a special thanks to the Lansing Center staff and Fine Host for a great job. Appreciation was also extended to Commissioner Butler's wife, Tom Dickson and Peter Sullivan for serving as celebrity waiters; as well as to Charlie Sinadinos for providing a dinner gift certificate. Congratulations were extended to Commissioner Decker and his fiancee regarding their winnings. 2. Lansing Lugnuts Presentation - Mr. Tom Dickson: Chair Ristow welcomed Mr. Tom Dickson, President and Co-owner of the Lansing Lugnuts. Mr. Dickson presented the following information: a. 1996 Season Recap: Mr. Dickson noted of the 175 minor league baseball teams, Lansing was fifth in attendance(538,000 people) and all teams ahead of Lansing (with the exception of Grand Rapids) are AAA teams. Dickson noted their goal at the beginning of the season was to provide low cost, family entertainment and Dickson noted he felt this was delivered. Mr. Dickson indicated the Lugnuts are very proud of their customer service and attributed their success to a large game day staff and a full-time customer service staff member. Dickson noted additional reasons for the Lugnuts success were low cost tickets($3.50 to $5.50) and that the stadium was secure. The team has been financially successful and to-date has paid $717,000 per the TMO agreement to the City. b. 1997 Plans: Dickson noted the attendance goal for next season is 580,000, with no ticket price increase anticipated. Next season the entertainment will be kept fresh and stadium improvements for next year include: LEPFA Board of Commissioners Meeting Page 2 September 24, 1996 1) Addition of approximately 1,800 new seats to the stadium, which will replace the first and third base grass berms with benches with backs (outfield grass seating will remain as is). 2) On the third base line seats will be removed from the handicap area and will be replaced with the "Bullpen Bar and Grill" which will include an area to be rented out. 3) Prior to the 1998 season the picnic deck area (left center field) will be replaced with a tiered structure and in the rear a bar and grill area with a canopy ("Gasoline Alley") will be added. 4) The Lugnuts are considering the addition of two score boards in the stadium entrances which will display information regarding the team, the league, etc. 5) The Lugnuts are considering hanging banners from the rafters in the concourse area, anchored with baseball bats, denoting each team in the league. C. Miscellaneous Issues: Dickson noted season ticket renewals are at 98.5%. 1) Giving Back to the Community: Dickson noted in an effort to express their gratitude to the community for its support, the Lugnuts are considering the creation of a foundation to be run by Sherrie Myers. The association, through fund raising and monies donated by the Lugnuts will consider ways to give back to the Community. 2) Minority Involvement: Dickson state the Lugnuts organization has tried to have a fair representation of Lansing citizens (per the TMO lease 75%) and have strived to have minority involvement in all areas of the organization. Dickson noted they have struggled to obtain full-time minority staff representation. In an effort to remedy this, and with the help of Michigan State University President Peter McPherson they have started a minority internship program. Dickson noted minorities are involved in food service, however, they will continue to encourage minority representation at the ball park. Commissioner James Butler commented that it is has been noted that there has not been much success in the recruitment of minorities in the Lugnuts policy and decision making positions and questioned what strategies Mr. Dickson is considering in order to remedy this? Dickson responded that the top staff must have baseball background and it has been very difficult to recruit minorities that have experience in the baseball business. Dickson noted no minorities applied for any of the available positions and therefore.it is difficult to hire minorities. Dickson noted he was open to suggestions and would work with business people, and further noted that the Lugnuts have worked very hard to ensure minority representation. Mr. Butler indicated he would be willing to discuss this issue further with Mr. Dickson. Peter Sullivan questioned if there would be sign boards available with the scoreboards; Dickson noted there would be signage opportunities available on both sides of the sign. Chair Ristow questioned if the same players would return. Mr. Dickson noted of the 25 players on the roster 6-7 players may return, the rest will move up, down or out. Probably less than 10 will be back. Charlie Sinadinos questioned the status of the suites? Dickson noted the suites are three year contracts and five (5) suites will be available to lease on a game by game basis. Ellen Jeffries questioned Mr. Dickson's opinion of the field. Dickson noted the field has been a good for the Lugnuts and the Turf Manager has done an outstanding job. The field drainage system works well and from a field stand point, it has worked great. LEPFA Board of Commissioners Meeting Page 3 September 24, 1996 Commissioner Butler questioned if businesses would be able to sponsor banners? Mr. Dickson indicated this is a good idea and it will be considered. 3. Oldsmobile Park Fountain Presentation- Mr. Robert Kolt: Chair Ristow introduced Mr. Robert Kolt of Kolt and Serkaian and the Lansing Foundation (Buy a Brick Program). Mr. Kolt presented a history of the Lansing Fund ("Buy a Brick" campaign) which supports the fountain project. Initially the idea of the Foundation was to offer financial support for the stadium, in anticipation that funding for items would be needed such as the playground equipment, the natural statue, the home town hero, etc. The fountains will be placed to the left and a garden area to the right of the,center of the entrance. The fountain will be named for $50,000 and October 9 the donor will be named. Mr. Kolt noted they have worked with the Lugnuts to develop sponsorship (18xl8 name plates and the base bricks) and he shared a video of the fountains. Mr. Kolt noted benches will be placed outside the fountain and the garden. The Board of Water and Light has committed to doing long-term maintenance, setting the pipes and the hookups. Sam.Bono has organized the plumbers to assist with the hook-up and additional assistance will be required to assist with the installation of the projection. Kolt indicated the fountain project will be-another attraction to encourage people to come to the ballpark and will require many partners to make it happen. The project is scheduled to be completed by the end of November/December 1. Commissioner Butler requested information regarding corporate sponsorship of bricks. Commissioner Nickerson questioned the Board of Water and Light's commitment to maintenance of the fountain, and what have they committed to doing and if they have the expertise regarding the fountain? Mr. Kolt noted he believed the Board of Water and Light was capable and willing to maintain the fountain. Kolt noted the reservoir is prefabricated and the only other aspect is the maintenance of the sprinkler heads which are maintained by a computer chip and the rest is concrete. The water arch material will cost $75,000 and the remaining costs will be in construction. Kolt noted there is no fountain like this in Michigan and thus they do not know exactly what will be entailed in maintenance and installation. Tim Nichols questioned the estimated labor cost. Mr. Kolt stated Clark Construction are the project managers and they are waiting for the actual design. At 8:20 a.m. Jim Smiertka entered the meeting. Dennis Sykes noted the electrical plumbing is estimated between$30,000-$50,000. Sykes noted this project will be coordinated with the seat project in October, to realize economies and control costs. Commissioner Ellen Jeffries questioned how long the Board of Water of Light committed to the maintenance of the fountain. Kolt indicated he didn't know who else could do it, but they are slated to have a plaque at the fountain area acknowledging their contribution. Kolt noted the fountain will only operate in the warm weather months (May through September). Chair Ristow questioned if the stadium sod will receive irrigation in conjunction with the project? Peter Sullivan noted irrigation will be added to the front and the berm area in the outfield through the capital project funds. Sykes noted when Council approved the expansion of the seating they also approved the irrigation improvement. Chair Ristow extended his thanks to Mr. Kolt. At 8:25 Robert Kolt and Tom Dickson exited the meeting. B. SECRETARY/TREASURER'S REPORT: Marian Bryant noted the financial reports include a summary page (because the operating agreement is not approved yet) which indicates the revenues and expenses processed through the City, LEPFA or the Breslin Center. Marian review the financials for the three entities as follows: LEPFA Board of Commissioners Meeting Page 4 September 24, 1996 1. Oldsmobile Park: M. Bryant reported a total of 18 events were held at the Park through the period of April 3 through August 31, with ticket sales totaling$177,576 and total revenues are $216,453. Total expenses are $172,301, with a net income of$44,152 for all City sponsored events at Oldsmobile Park. Marian reviewed the monthly figures for Oldsmobile Park, which include Crosby, Stills and Nash, the Mayor's Roast and QVC. Total operating revenue is $154,000, building rental is $2,000, total operating revenue is $139,000 with a total net income as of August 31 of $15,000. Marian noted the statements detail the income and expenses which are primarily related to Crosby, Stills and Nash. Bryant reported ticket sales for Crosby, Stills and Nash were$137,000. Marian reviewed the balance sheet for Oldsmobile Park and noted as of August 31 there is a$69,000 balance. 2. Lansing City Market: Marian reported total operating revenue is $7,000; total building rental(which includes stall rentals) is $7,000 with a total operating expense of$6,500 with net income as of August 31 of$31,000. 3. Lansing Center Finacials: Marian Bryant reported the total operating revenue is less than last year by 1% or $1,300; total building rental exceeds last year's by 20% or $13,000 and total operating expense increased by 14% or $54,000. Net income as of August 31 is ($95,000); IRS coverage of expenses is 49%; current ratio is .56 and equity in number of days of operation is .67. Bryant noted the balance sheet shows a decline in cash compared to last year and an increase in accounts receivable compared to last year, with a decline in assets compared to last year. Advance rent deposits increased over last year, which is a positive indicator of future business. Marian reviewed the budget versus actual (the budget as approved by the previous Board). Commissioner Ellen Jeffries questioned if there will be an annual column for the City Market? Marian noted we will incorporate an annual column in the future. Chair Ristow entertained a motion that the finacial statements for the City Market, Oldsmobile Park and the Lansing Center be received as published and the expenses for the month of August be approved. MOTION: Commissioner Nichols SECOND: Commissioner Sinadinos; motion carried. 4. Annual Audit: Marian reviewed the annual audit report as distributed to the Board of Commissioners noting the audit was held the third week in July by Rehman Robson. They determined that the financial statements did fairly represent the financial position of LEPFA and indicate in their memo the need to work on a cash reserve plan for operation emergencies. The auditors did investigate the internal control and made comments regarding the size of our staff and our ability to segregate duties. Commissioner Nickerson questioned if in 1995 there was anything unusual that would make it unfavorable compared to 1996 or any other year. Marian noted there was an increase in revenues and expenses due to the fact that 1995 was the first year that Fine Host was included in the financial statement. Peter Sullivan noted there was a inconsistent comparison of utilities in Hall C, since 1996 was the first full year of operation-as an expanded Center and the operation was more fully staffed. Chair Ristow entertained a motion that the annual audit for the Lansing Entertainment and Public Facilities for the period ending June 30, 1996 be received as published. MOTION: Commissioner Nickerson SECOND: Commissioner Butler; motion carried. 5. Chairman's Special Committee on Finances: Committee Chair Charlotte Sinadinos reported the Committee continues to meet on a regular basis and Marian Bryant and Peter Sullivan have researched past budgets and expenses and revenues to help compile the report. Charlie noted the Committee has developed the following issues with the assistance of Bob Swanson, Doug Rubley and Greg Koessel: a) Identification of the major reasons for the 95/96 actual deficit of$205,000; including the higher than expected transition costs of$175,000 and the shortage of revenue from food and beverage. b) Review of the revised 96/97 budget projections and the need to re-analyze what is needed and why in order to facilitate a presentation to the City and City Council regarding the subsidy including the following: LEPFA Board of Commissioners Meeting Page 5 September 24, 1996 - Reduction of the food and beverage revenues - Increase in utilities in relation to the addition of Hall C - Increase in employee salaries and fringe benefits due to a more fully staffed operation - Building rental has increased c) A Capital Funding program to be instituted as suggested by the audit. d) Future allocation of salaries to the stadium needs to be discussed as an increasing amount of staff time is spent at the stadium and should be allocated appropriately. Chair Sinadinos noted the committee intends to have specific recommendations for a presentation to City Council and the City in the near future. Jim Smiertka questioned if any thought had been given to operating the food and beverage program internally in the future? Peter noted as compared to the past, it is currently much more profitable to operate as it is now. However, we will analyze over the next year what we could do in-house. Peter noted we have to balance the pros and cons, i.e. hiring our own staff vs. management fee. Smiertka indicated the cost of food is an on-going issue and wondered if doing the food in-house would reduce the cost of doing business at the Lansing Center. Peter indicated we are currently competitive and has requested Fine Host provide us with a more indepth analysis of their budgets. C. CHIEF EXECUTIVE OFFICER'S REPORT: 1. Union Issues: Peter reported memos have been exchanged regarding 11 issues since the August 15 meeting with the Union. The Union has withdrawn three (3) issues and the Authority has counter proposed language on eight (8) issues. A memo was sent on September 12 and we are waiting for a response regarding the remaining eight (8) issues. Peter noted the only issue of great concern is that of the employees working at Oldsmobile Park and this issue will require further analysis. Peter noted it is his objective to have the full-time staff work at the Stadium, Market, and Center, while maintaining the ability to hire third parties to work at the Park. Peter noted in relation to the Crosby, Stills and Nash concert, issues were agreed to the day before the concert and the set up and tear down went well. 2. City Market: Sullivan reported the Task Force continues to meet, and currently the Market is approaching its "off season." Several vendors have closed for the season while others will remain in the building. An almond vendor has contracted space at the Market. A promotional committee has been developed with Lisa Wootton and five vendors to discuss promotional ideas. Ideas discussed include a "Harvestfest"in October and vendor involvement with Silver Bells. Peter noted John and Mary Ezzo (west side concessionaires)have expanded their operation to include a deli. Events that have occurred since the August board meeting include involvement in Riverfest, a compost and recycling seminar, and a neighborhood garage sale which was held this past weekend. 3. Oldsmobile Park: Peter reported discussions are on-going with Scott Breckner and Dennis Sykes regarding potential events at the Park. Ideas include skating at the Park (December through February) which is currently being reviewed regarding its financial feasibility. Peter noted he has discussed this issue with the Mayor and City Councilmembers, as well as contacting Trey Rogers, the turf consultant. A "Fright Night" is being considered at the Park in conjunction with Scott Breckner. "Bye Bye Baseball" is also being considered, this would involve the public and will involve taking a few swings of the bat against a celebrity pitcher. Peter reported he continues to meet with Scott to discuss ideas and will report the status of these events at the next board meeting. Regarding Crosby, Stills and Nash, Peter reported the event went extremely well and the partners were happy as well. It is a very good first event and Peter noted there were no operational concerns (there was a game the evening before the concert). QVC went well, the Mayor's Roast, the Chamber Kickoff, and LEPFA Board of Commissioners Meeting Page 6 September 24, 1996 the monthly movie which was "Apollo 13" all went well. The MSU vs. Louisville game had better attendance than the previous two games and many things came together, i.e. the weather. Peter reported concessions lines were long but this was a learning experience. Peter noted they continue to meet with the Lugnuts regarding operational issues and capital needs; as well as to discuss punch list items. 4. Lansing Center - July Event Information: Peter reported in August the Lansing Center hosted 24 events, with 33 event days, 6,500 attendees equalling 2700 room nights, with an economic impact of approximately$500,000. Peter noted month of August tends to be the slowest month. Peter reported the Lansing Center in conjunction with the CVB booked the Pentecostal Keralites on July 4-6, 1997 with several thousand people expected to attend. Peter noted the Michigan Math Convention is slated to come to Lansing in 1997, 1998 and 1999 (this group has never signed a contract for three consecutive years). Peter noted both are excellent pieces of business. Peter noted other events we are working on at the Center include a winter carnival and a toughman competition,which are revenue generating,non-traditional events. We are also considering doing a Christmas day meal for the needy. 5. Operating Agreement: Peter noted the Committee has been working diligently on this item and they have gone before City Council Committee of the Whole. Peter deferred further comment to Committee Chair Tim Nichols' report. Commissioner Butler indicated he would appreciate a flyer or fax on events at the Stadium and the Center and requested a comparative analysis of monthly event information from year to year, i.e. 1995 versus 1996. Peter indicated both requests have been noted. Commissioner Butler also referenced the Christmas day meal for the needy, indicating he would be interested in participating and suggested we consider corporate sponsorships. Peter noted there is a group that we are dealing with and they will solicit funds, but Peter noted he will share the information with them. Commissioner Nickerson noted he would like to encourage Peter to continue his booking efforts at the Lansing Center and Oldsmobile Park. Nickerson questioned the possibility of installing lockers at Oldsmobile Park. Peter indicated this issue can be reviewed with the Lugnuts and the City and he will report his findings. D. SPECIAL COMMITTEE TO FORMULATE AN OPERATING AGREEMENT: Committee Chairman Tim Nichols reported the sub-committee has developed draft eight (8) and the sub- committee members met with City Council Committee of the Whole.Bob Swanson, Jim Smiertka and Peter Sullivan fielded questions from Council and there were no major structural changes recommended in the proposed operating agreement. Chair Nichols noted overall the meeting went well and the sub-committee met last week to approve and incorporate the changes. Draft eight has been forwarded to the Committee of the Whole and it is hoped that it will be moved to full Council for approval. Nichols indicated Don Ristow and Peter Sullivan met with councilmembers prior to the meeting to answer any questions. Chair Nichols indicated overall it is hoped by next week there may be an approved agreement. Chair Nichols noted Peter Sullivan, Jim Smiertka and Bob Swanson did an extraordinary job answering questions and it was a team work effort which made Council comfortable with the agreement. At 9:20 a.m. James Smiertka exited the meeting. E. LANSING CITY MARKET EVALUATION TASK FORCE: Committee Chair Ellen Jeffries reported the City Market Task Force met,on September 17 with three (3) members of the downtown businesses groups and in October the Committee hopes to tour the Ann Arbor Market as well as meet with City Council members. The Committee is still on track to complete their project by year end. LEPFA Board of Commissioners Meeting Page 7 September 24, 1996 Chair Ristow commented on his visit to the Birmingham, Alabama Market. Commissioner Butler commented that he visited the City Market recently and noted it was a very pleasant environment and the deli is well received. Butler noted the vendors were pleased to see a Board member at the Market and further noted a vendor (Marjorie Johns) is on the front page of the Lansing City Magazine. Mr. Butler encouraged Board members to support the Market and the vendors. VH. OLD BUSINESS: None. VIII. NEW BUSMSS: None. At 9:25 a.m. the meeting was adjourned. MOTION: Sinadinos SECOND: Bulter; motion carried. THE NEXT MEETING IS SCHEDULED FOR TUESDAY, OCTOBER 22, 1996 AT 7:30 A.M. AT'THE LANSING CENTER IN BELEN BALLROOM ROOM 7. Respectfully submitted, IV& K---LJ Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING OCTOBER 22, 1996 . .. i i i J• J J MINUTES At 7:30 a.m. Chairman Donald J. Ristow called the meeting to order in Belen Ballroom 7 of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT: James Butler,John Decker, Glenn Friedly,Charles Janssen, Ellen Jeffries, Greg Koessel (Ex-officio), Kate McNeely, Tim Nichols, Daniel Nickerson, Donald Ristow, Charlotte Sinadinos, Robert Swanson and Dennis Sykes (Ex-officio). OTHERS PRESENT: Heidi Brown, Marian Bryant, Michael Meyers and Peter Sullivan, Lansing Entertainment and Public Facilities Authority; and Jack Jordan, City of Lansing. in. ESTABLISHMENT OF THE AGENDA: No additional agenda items were noted. IV. PUBLIC COMMENT: No public comment. V. APPROVAL OF THE NIINUTES OF SEPTEMBER 24, 1996: The September 24, 1996 minutes were approved as published. MOTION: Commissioner Nickerson SECOND: Commissioner Butler, motion carried. VI. REPORTS: A. CHAIRMAN'S REPORT: Chairman Donald Ristow reported the following: 1. Operating Agreement Status: Chair Ristow noted the operating agreement between the City of Lansing and LEPFA was forwarded to the City for signature two (2) weeks ago and to-date there has been no further correspondence regarding this issue. At 7:33 a.m. Ellen Jeffries and Jack Jordan entered the meeting. Chair Ristow extended his thanks to Committee Chair Tim Nichols, the committee members, and the city officials for their assistance and support. 2. Bylaws Committee: Chair Ristow indicated a "Bylaws Committee" will be appointed to review LEPFA's bylaws. B. SECRETARY/TREASURER'S REPORT: At 7:35 a.m. Glenn Friedly and Tim Nichols entered the meeting. 1. Chairman's Special Committee on Finance Task Force Report: Committee Chair Charlotte Sinadinos thanked the committee members who served on the Task Force for their time commitment and invaluable insight. Chair Sinadinos indicated the committee had reached its charge which was to "recommend a plan of action to address the Lansing Center's fiscal year end status and cash flow projections." Sinadinos noted the committee reviewed in depth the Lansing Center's past five (5) year history of revenues and expenses. The committee established the primary reason for the deficit as being attributed to the food and beverage revenue shortage and the one time transitions costs. The focus was on the need for a cash reserves fund and the need for capital replacement funding. Sinadinos noted with guidance of Bob Swanson, Doug Rubley and Greg Koessel the task force was able to lay the ground work for a presentation to City Council for their consideration. LEPFA Board of Commissioners Meeting Page 2 October 22, 1996 Sinadinos noted the committee felt an important part of this report was to remind people of the economic impact of the Lansing Center, which has had a very positive impact on downtown Lansing, the region, and the revitalization of downtown. Peter Sullivan reviewed a summation of the report as it was to be presented to City Council at the Ways and Means Committee meeting. Peter reviewed the report indicating the report was intended to be broken down into component parts, setting up a history and providing actual costs and making recommendations. Page one reflected a scope and perspectives regarding operating revenues and expenses and actual costs to the City. Page two is an outline of the 95/96 budget with the actual expenses and a column indicating expenses exclusive of the transition costs, with bullet points noting assumptions and issues related to the budget, evidencing a shortfall of$205,000 attributed to food and beverage revenues; operating expenses for 95/96 were under budget by $31,000 and utilities increased following the expansion of Hall C during its first full fiscal year of operation. Peter noted prior to the end of the year the cash reserve was $200,000 and $127,000 was used for capital and $56,000 for the previous Executive Director's severance. Page three (3) outlined the current fiscal year (96/97) including the existing budget, the proposed revised budget, noting the additional request of $164,000. The budget is revised to include a decrease in food and beverage revenues and expenses. Building rental was increased and equipment rental was reduced by $13,700. Peter noted in salaries, wages and fringes there is an adjustment of $91,700 based on the settling of three union contracts and being fully staffed. Professional services will increase based on increased events, security, etc. Peter noted utilities are slated to increase by $45,000. Peter noted page four provides good historical perspective and _ gives a projection which shows a steady progression. Page five presents and highlights different economic impact narrative and analysis projections from the previous page. Bullet points include: 1,354 total events from 1994-96 with 1,629 projected from 1997-99. Economic impact per year from 1994 through 1996 was $4,000,000 per year and is projected to exceed $18,000,000 for 1997-1999. More than 1,000,000 have attended events from 1994-96, with 1,000,000 from 1997- 99. Page six notes projected expenses and revenues through 97-99, along with some analysis and assumptions. The first bullet point projects revenues to increase by 16% from 96-99 and expenses to increase by 10% with a net of 6%. Actual costs to the City for the same period are expected to decrease by 15% and it was noted that parking, bed tax and restaurant tax revenues are not included in the revenue. The fifth bullet point denotes that these projections take into consideration the MSU Ag Center and the loss of events to it. Peter noted pages seven and eight are the result of spending time with the CVB regarding event projections. Items include: enhancing the relationship between the Center and the CVB; enhanced relationships with the Community as outlined in the report, i.e. the Community Use Program; enhanced sales and marketing efforts and enhancing our revenues. Page eight, part four, denotes the "Analysis of Event Mix to Enhance Long Term Revenue Generation"which will be accomplished by working with the CVB on our booking policy; contracting new business and review existing and potential revenue producing programs i.e. signage program; revenue producing area for convention centers; review existing services and programs. Page nine addresses the conclusions and recommendations as follows: i.e. request Council and City Administration review transition expenses for FY 95/96 to see if any part can be allocated to the stadium account (as recommended by Greg Koessel). The second bullet requests the 96 budget shortfall be funded due to the one time transitional nature of the overall operational experience of the fiscal year; 1997 requests that the City investment be funded more by the detailed analysis that the report notes; for FY 1998 we feel that we should review the potential of allocating an agreed amount of management salaries to the stadium account and the recommendation that the allocation of 11 of the 36 positions salaries be allocated to the stadium. Page ten outlines the cash reserve fund plan and capital replacement plan. LEPFA Board of Commissioners Meeting Page 3 October 22, 1996 At 7:58 a.m. Greg Koessel entered the meeting. Peter thanked Marian and the Task Force members for their assistance with the report. Motion was made to receive the report as published, and that the report be forwarded to City Council for their consideration. MOTION: Commissioner Nickerson SECOND: Commissioner Decker. Chair Ristow extended his thanks to the Task Force for their time and effort. At 8:03 a.m. Charlie Janssen entered the meeting. Dan Nickerson questioned the formula for the computation of the figures on page four item five? Peter explained through meetings with the CVB and the numbers from 93-94 through 95-96 are based upon hotel room pickups with the Radisson. The fiscal years after this period were based on the CVB's Hotel Bureau figures. Our economic impact was based upon rental, extra charges and the different revenue numbers associated with the event, using numbers provided by the CVB times by the attendance. Commissioner Butler questioned item C on page seven, regarding competitive prices as it pertains the Holiday Commission/Dr. Martin Luther King, Jr. event. Peter indicated he would contact Judith Caldwell regarding their event. Commissioner Butler also questioned if all the positions on page nine are filled? Peter noted the Event Coordinator and Marketing Director are not filled. Commissioner Friedly noted that the information is well presented and asked if the City and Council grants . our allocation, would we break even or would the subsidy start in the budget year be increased? Peter indicated if they grant the increase for 96/97 ($164,000), the City's contribution would go up, however for the succeeding fiscal year we are asking that the allocation method be implemented and the contribution to the facility would go down in comparison to the prior year, but will be shifted to stadium due to the allocation process. Friedly questioned if there is an allocation for the stadium? Bob Swanson noted the report indicates that there needs to be $160,000 in additional City subsidy to the Authority on an ongoing basis and there needs to be a one time (cummulative, all recommendations) contribution of about $1,000,000. Mr. Swanson noted this is a comprehensive analysis and the cash reserves and capital replacement funds need to be established. Swanson indicated how this will happen and the time frame is not certain. Swanson noted there is a stadium fund and it will be developed in the Fiscal Year 97/98 budget. Greg Koessel noted a baseball stadium fund was considered initially at$150,000 and he has asked Doug Rubley for an analysis/comparison of where the City thought we would be at the end of the fiscal year in regard to the stadium versus the actual results of operations for the current year and future years. Also, if the request is implemented how will the stadium plan accommodate this based on the other policies already adopted. Bob Swanson noted there are a series of recommendations that will be phased in and an immediate recommendation to Council dealing with the 96/97 recommendations and the shortfall from the 95/96 year. The biggest concern of the administration and council will be the transition costs for 1996. Greg Koessel noted the critical issue he is trying to convey to Council is the need for the Authority to set up a reserve for cash. Commissioner Nickerson indicated he felt that it should be made very clear when discussing transition costs that the costs were approved by the former board and this Authority had little to do with approval of the costs of the transition and when they were appointed, the budget for the transition costs had already been approved. Chair Ristow noted that under the old Authority the transition costs that were approved were only to bring on the CEO and the amount approved was based on the entire transition being completed by January 1. Commissioner Nickerson indicated he felt this should be addressed. Commissioner Nichols commented that regardless of how we got to his point, we have to figure out how to fix it and it is laid out in the report and the Chair and staff have done a good job putting it together and we have to follow it through. LEPFA Board of Commissioners Meeting Page 4 October 22, 1996 The motion was unanimously carried. 2. REVIEW OF THE SEPTEMBER 30, 1996 FINANCIALS: Marian Bryant reviewed the following financial information: a. Oldsmobile Park: M. Bryant reported a total of four (4) LEPFA events (two baseball games, Ele's Place Reception, and a Governor's Educational Summit) were held at the stadium last month for a net income of$45,286; total operating revenue was $156,000; total building rental is $3,000; total operating expenses are $141,00 with a net income of$15,207. IRS coverage of expenses is at 111%; current ratio is 3.24 (last month it was 1.26) and equity in number of days is 9.94. b. Lansing City Market: Marian reported the total operating revenue is $10,000; total building rental (which includes stall rentals) is $10,083 with a total operating expense of$9,000 for a net income after subsidy of$47,000 as of September 30. IRS coverage of expenses is at 110%, the current ratio is 2.24 and the number of days of operation are 470.2 c. Lansing Center Finacials: Marian Bryant reported the total operating revenue exceeds last year by 10% or $45,000 and total building rental exceeds last year's by 6% or $8,000. Food and beverage revenue exceeds last year by$13,000 or 5%; total operating expense increased by 6% or$42,000 and Marian noted on page three most other ancillary income increased over last year. The current ratio is .79 compared to last month's .56 and as noted on page two, advanced rent deposits increased by $61,000 over last year or a 33% increase, which also forecasts an increase of business for the coming months. Operating revenues are over budget by 10% or $48,000 and actual operating expenses are under budget by 14% or . $122,000. Chair Ristow entertained a motion that the financial statements for the City Market, Oldsmobile Park and the Lansing Center be received as published and the expenses for each entity for the month ending September 30, 1996 be approved. MOTION: Commissioner Decker SECOND: Commissioner Nichols; motion carried. d. CEO/DIRECTOR OF FINANCE REPORT #97-1: Marian reviewed the three insurance bids as presented in the report as follows: 1. The Independent Insurance Centre of Okemos K&K Insurance $75,379 CNA Insurance (current coverage) $98,596 2. Voss Insurance Services Travelers Insurance $79,856.50 Hartford Insurance $79,937.50 3. C.M. Althoff Company Michigan Municipal Risk Management Authority $85,580.00 General liability bids were received from Independent Insurance Center, Voss Insurance, and C.M. Altoff Company. Peter noted the general liability policy expired in October. We have also been endeavoring to establish a "Facility Users" insurance program which would allow groups without access to insurance to obtain coverage through our insurance company. Marian noted all bids provide property coverage of $54,000,000. However, K&K's general liability is $1,000,000 with no aggregate and their umbrella is $10,000,000 with no aggregate. Marian noted their umbrella sits on top of all of our underlying coverages which is the general liability,the property, the auto, workers comp, liquor liability, Oldsmobile Park and the City Market and no other bidders were able to cover all the aforementioned. The K&K quote is a 15% LEPFA Board of Commissioners Meeting Page 5 October 22, 1996 reduction over our current rate and they also offered the "Facility Users" program which is not included in the quote. K&K also quoted the liquor liability coverage at$22,041 (our current coverage is$58,011). The K&K quote is through June 30 which coincides with our fiscal year and they offered the quote to cover through June 30, 1998. Marian noted a $2 million errors and omissions insurance is also provided. It was moved to approved management's recommendation for general liability insurance be approved and supported insurance. MOTION: Commissioner Sinadinos SECOND: Commissioner Nickerson Commissioner Janssen asked that City Attorney's office review the coverage. Peter indicated that the Finance Department has reviewed the policy. Commissioner Janssen requested that the policies be reviewed to insure that the coverage is as quoted. Motion carried. C. CHIEF EXECUTIVE OFFICER'S REPORT: 1. Union Issues: Peter reported management has received a response to the last proposal concerning the final eight (8) open issues in regard to the Facility Workers contract and they have been resolved (we are awaiting their formal response). The remaining contracts are the Forepersons and Tech Services. Discussions have begun and are ongoing. 2. City Market: Peter reported the Task Force continues to meet and they visited two markets. The Promotional Committee at the Market comprised of Lisa Wootton and several vendors has been very busy, i.e. the HarvestFest was held last weekend, and sponsored by IBM. Peter thanked Commissioner Butler and IBM for their support of the Market and their efforts. Peter noted the HarvestFest was an overall _ success with many local, city and state officials in attendance. There were hay rides, pumpkin carving contests, pancake breakfast, etc. and the event drew about 150 people, and raised$1000 for "Citizens for a Better Lansing." Overall the vendors were pleased and Peter noted he was pleased that the first event put together by the Vendors and LEPFA was a success. Upcoming events at the Market include participation in Silver Bells in November and October occupancy was at 66%. 3. Oldsmobile Park: Peter reported discussions are on-going with Scott Breckner and Dennis Sykes regarding potential events at the Park. Peter noted he and Dennis have finalized the transfer of the management of the Park and Peter extended his thanks to Dennis for his help and guidance during the past several months. Fright Night at the Park will take place October 26-31 and admission will be $3 for adults and $1 for children. Public skating at the Park is being analyzed and it looks as though it will begin on Christmas day through February 15 weather permitting. Peter noted he has discussed this issue with the Lugnuts and the discussions are ongoing and the Lugnuts are comfortable with the process. Peter noted we continue to hold operational meetings with the Lugnuts in preparation for next year. We are re-sodding the berms in the outfield and the seating expansion continues and is on schedule. The fountain project has been put on hold until September, 1997 to allow more planning time and fund raising. Peter noted this was a collective decision and it will be the same project as presented to the Board, but will allow for a more realistic time line. Eight dates are being considered for MSU baseball games, two of which will be played against Michigan. 4. County Music Association Annual Convention: Peter noted he attended the CMA annual conference and discussed the booking of various County Music acts. Peter stated he continues to meet with Scott Breckner regarding event programming and will keep the Board abreast of any developments. LEPFA Board of Commissioners Meeting Page 6 October 22, 1996 5. Lansing Center - September Information: Peter reported in September the Lansing Center hosted 58 events, with 71 event days, 14,500 attendees equalling 1300 room nights, with an economic impact of approximately$472,000. Peter compared the first quarter of the this year to first quarter of last year: 25 additional events this year, 9 more event days, increase in $11,000 in rental, $1,000 in extra charges, $8,000 more in banquet income, we were down in concessions sales, attendance up and economic impact increased by $46,000. Events this past month include the J. Crew sale with 12,000 in attendance for seven days in Hall C. The Women's Show was in this past weekend and was sponsored by Donnell of California and was well received by the public, with high profile sponsors, i.e. TV 6, Taco Bell, etc. and are considering re- booking for next year. October 5 the Michigan Communities in Action for Drug Free Youth summit was at the Lansing Center with Calvin Hill as the guest speaker and was well attended. J. Mollema was in- house (a buyers show out of Grand Rapids) and several weddings were held at the Center. Peter indicated the booking events at the Center are in progress i.e. a Toughman competition. A winter carnival is also being considered. Art Van will host their Christmas Day meal for the needy and are considering making this annual event. Santa will attend and will take place from 11:00 a.in. to 4:00 p.m. D. SPECIAL COMMITTEE TO FORMULATE AN OPERATING AGREEMENT: Committee Chairman Tim Nichols reported the operating agreement is completed and expressed his thanks to the subcommittee members for all of their assistance in getting the finalized document and noted further that the Board of Commissioners is moving ahead. Commissioner Nichols invited Board members to visit Hall A and B the Michigan Apprenticeship Steering Committee has a building trades apprentice conference which is open to the public; Board members were all welcomed to a reception at 7:00 p.m. this evening. Commissioner Nichols also complimented staff on a dinner that he attended Sunday at the Lansing Center. Staff were great, and the food and service were good, with many positive comments noted. At 9:05 a.m. Commissioner Nichols exited the meeting. E. LANSING CITY MARKET EVALUATION TASK FORCE: Committee Chair Ellen Jeffries reported the City Market Task Force met three (3) times since the last meeting. Market tours included the Eastern Market in Detroit and the Ann Arbor market. Chair Jeffries reported the Task Force also met with members of City Council and they indicated that they are pleased with the Market changes. The Committee is working on a Lansing City Market customer survey in conjunction with the Lansing State Journal. Chair Jeffries indicated they are looking at presenting their report by the end of the year. VU. OLD BUSINESS: None. VIII. NEW BUSINESS: Commissioner Butler requested an "Around the Table" agenda item for Board member comments be implemented into the agenda. Commissioner Butler also noted Tom Dickson met with the Mayor, Daniel Nickerson and Commissioner Butler and came to the table with many good ideas and a positive attitude. Commissioner Butler noted he felt it was a good meeting and they plan to meet again. Mr. Butler also commented on the very strong and well-written letter he received from Dennis Sykes regard the turning over of responsibility to LEPFA. Mr. Butler extended his thanks to Mr. Sykes and his congratulations. Commissioner Butler thanked Peter for the event comparison LEPFA Board of Commissioners Meeting Page 7 October 22, 1996 information and requested a list of events and the names of LEPFA managers and their positions. Commissioner Butler questioned why there is no marquee in front of the Lansing Center? Peter noted that the marquee that is on Cedar used to be in front of the Lansing Center and it was moved due to the renovation. Commissioner Butler suggested this may be an issue that we want to consider. Commissioner Nickerson commented that the meeting with Tom Dickson was very favorable and suggested Board members who have the same concerns regarding diversity, that he and James Butler have expressed numerous times to express them to Tom Dickson and the Mayor. Commissioner Janssen indicated his support of the "Around the Table" agenda item. Mr. Janssen also questioned the City Market allocation of costs and requested that this be listed in the future. Peter indicated that this will be done. At 9:15 a.m. it was moved that the meeting be adjourned. MOTION: Commissioner Decker SECOND: Commissioner Sinadinos; motion carried. THE NEXT MEETING IS SCHEDULED FOR TUESDAY, November 26, 1996 AT 7:30 A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM. Respectfully submitted, Heidi K. Brown, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING NOVEMBER 26, 1996 i 0• 'Dv MINUTES At 7:30 a.m. Chairman Donald J. Ristow called the meeting to order in the Governor's Room of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT: James Butler,John Decker, Glenn Friedly, Charles Janssen, Ellen Jeffries, Kate McNealy, Tim Nichols, Daniel Nickerson, Donald Ristow, Charlotte Sinadinos, and Dennis Sykes (Ex-officio). COMMISSIONERS EXCUSED: Greg Koessel and Bob Swanson. OTHERS PRESENT: Heidi Brown, Marian Bryant, Michael Meyers and Peter Sullivan, Lansing Entertainment and Public Facilities Authority;Jack Jordan and Wendall Hall; City of Lansing. III. ESTABLISHMENT OF THE AGENDA: No additional agenda items were noted. IV. PUBLIC COMMENT: Jack Jordan introduced Wendall Hall,the recently hired Deputy City Attorney in the City Attorney's office. V. APPROVAL OF THE M_ NUTES OF OCTOBER 22 1996: The October 22, 1996 minutes were approved as published. MOTION: Commissioner Nichols SECOND: Commissioner McNeely, motion carried. VI. REPORTS: A. CHAIRMAN'S REPORT: 1. Special Committee on Finance: Chairman Donald Ristow reported the Secretary/Treasurer has some encouraging news, thanks to the great job by her and the Special Committee members and the joint efforts of our City Administration and City Council members. 2. October, 1997 Financials for the Lansing Center: Chair Ristow indicated that these are the best fmacials that this organization has had since its inception and noted that this is very encouraging. 3. City Market Survey: Chair Ristow noted that he was pleased to see the City Market survey noted in the bi-monthly calendar of events and extended his thanks to the committee for proceeding with the idea. 4. Commissioner Nichols Resignation: Chair Ristow noted per the letter (enclosed with Board information) received from Commissioner Nichols, Commissioner Nichols will be resigning from the LEPFA Board because he has accepted a position in Washington, DC. Chair Ristow extend best wishes to Commissioner Nichols on behalf of the LEPFA Board of Commissioners. 5. December Board of Commissioners Meeting: Chair Ristow requested the monthly Board meeting be changed from December 24 to December 17 at 4:00 p.m. with a reception immediately following the Board of Commissioners meeting. The reception will be held to bid farewell to Tim Nichols and to introduce various members of the LEPFA staff. At 7:37 a.m. Charles Janssen, Ellen Jeffries and Dennis Sykes entered the meeting. LEPFA Board of Commissioners Meeting Page 2 November 26, 1996 B. SECRETARY/TREASURER'S REPORT: 1. LEPFA PRESENTATION: LEPFA Financial Task Force Chair Charlotte Sinadinos reported that the committee via Peter Sullivan made its presentation to the Ways and Means Committee on Wednesday, November 20 and with the exception of a few questions the $206,000 was approved as well as the consideration of the Capital Reserve/Capital Improvement plan. City Council indicated they wanted to look further into where the funds will come from and how to process them. The issue of allocation of salaries to the stadium account was accepted, but they wanted to review the entire package. Committee Chair Sinadinos indicated that the change needs to be formally approved by the LEPFA Board of Commissioners. Commissioner Ristow moved that the 1996/97 budget be amended as presented in the Chairman's Special Committee on Finances report dated October 22, 1996. Support: Commissioner Nichols Commissioner Butler questioned what the issue was regarding the movement of funds to the stadium account? Chair Sinadinos noted the question was in regard to how much there is and their desire to review the entire financials. Peter noted Greg Koessel, Doug Rubley and Bob Swanson will discuss the allocation process and they realized that it didn't need to be addressed immediately,but they wanted to know exactly what the allocation will be. Swanson indicated there is an allocation process in place within the City and they will review the process in the new year for 97/98. Motion carried. 2. REVIEW OF THE OCTOBER 31, 1996 FINANCIALS: Marian Bryant reviewed the following financial information: a. Oldsmobile Park: M. Bryant reported a total of one (1) LEPFA event (Fright Night) was held at the- stadium last month, for six event days. Total operating revenue is $235,000; total expenses were$187,000 for a total net income of$47,975. Marian reported the total operating revenue for LEPFA handled events is $167,000; total building rental is $3,000 and total operating revenue is $107,000. Net income after application of subsidy is $27,203. Current ratio is 1.16 (last month it was 3.24) b. Lansing City Market: Marian reported that the total operating revenue is$16,500; total building rental (which includes stall rentals) is $14,405 with a total operating expense of$24,000 which includes salaries and wages. The current ratio is 2.47 and equity in the number of days of operation is 253.9%. c. Lansing Center Finacials: Marian Bryant reported that the total operating revenues exceeds last year by 23% or $194,000; total building rental exceeds last year's by 25% or $62,320 and net income as of October 31 is $197,594. Marian noted the total operating income for the month of October is $516,093 and it has never exceeded $500,000 in the history of the Lansing Center. Operating income prior to the application of subsidy is $162,854 for October (highest previous to this was April, 1995 at $103,500). Marian further noted IRS coverage of expenses is up by 26 percentage points over last month and 14 percentage points over last year. Current ratio is up by 37 points from last month and for the first time is over 1.0. Accounts receivable are up by 10% and advanced rent deposits are up by 33% or $57,000. Actual operating revenues are over budget by 18% or $157,000 and operating expenses are up by 13% compared to budget. Chair Ristow entertained a motion that the financial statements for the Lansing City Market, Oldsmobile Park and the Lansing Center be received as published and the expenses for each entity for the month ending October 31, 1996 be approved. SECOND: Commissioner Nichols; motion carried. C. SPECIAL COMMITTEE TO FORMULATE AUTHORITY BYLAWS: Committee Chairman Tim Nichols reported the committee met and compiled the proposed bylaws draft as presented to the Board. Chair Nichols reviewed the bylaws as follows: Article I: The Scope and Purpose; Article II: Board of Commissioners, addresses the general powers, the number of terms LEPFA Board of Commissioners Meeting Page 3 November 26, 1996 and the qualifications. This lists the number of Board of Commissioners at ten for the first year until June 20, 1997 and thereafter will be nine. Mr. Nichols noted he and Peter, after meeting with the committee met with the Mayor to ask if the Articles of Incorporation could be amended so that the terms of all the officers end on June 30 (instead of December) to coincide with the fiscal year. Nichols indicated that the Mayor has given his blessing on making the changes in the Articles of Incorporation and moving the process through. Chair Nichols noted Peter has met with Council President Howard Jones and Mr. Jones sees no problems with the proposed changes. Committee Chair Nichols noted the change in terms would give the Board more time to become acclimated with the operations of the Authority, and the term of the current Chair would be extended. Page two addresses commissioners attendance, quorum, required votes, the compensation of commissioners, etc. Page three address committees, Chair of the Board and the committees that can be put in place by the Chairman. Article III. addresses the officers. Page four discusses the powers and duties of the officers. Page five addresses the powers and duties of the President, the Assistant Secretary and the Assistant Treasurer. Article IV. addresses the bank accounts and loans. Page six continues to discuss the loans in terms of obligation. Page seven Article V. discusses reimbursements for expenses incurred on Authority business. Article VI. discuss miscellaneous provisions, i.e. meeting notices, keeping of the books and records. Page eight Article VII is address and Article VIII discusses amending the bylaws. Chair Nichols indicated the document has gone through legal counsel and he made a motion to adopt the bylaws that have been set in place for the Board. Commissioner Nickerson indicated that he was on the committee, however, he missed the meeting but conveyed his comments to Tim Nichols. Commissioner Nickerson indicated he was under the impression that the committee's charge was to review the bylaws and come back with a recommendation. Commissioner Nickerson noted it appears that the committee has gone beyond that in that they have taken it upon themselves to go to Council and the Mayor regarding the officers and the service terms. Commissioner Nickerson noted that he is opposed to this sort of action of a committee when it was his understanding that the committee should come back to the Board to seek approval of any recommendations. Commissioner Nickerson noted he is an officer, but he was not asked if he would be willing to serve beyond this year. Commissioner Nickerson noted therefore he is opposed to the methods of proceeding, and that he recognized the time frame and that there are existing bylaws in place. Chair Ristow noted items discussed can be rescinded by the Board. Commissioner Nickerson indicated his objection was that this Board is a governing body, however, things are being done that the Board is not a part of and this is the basis for his objection. Committee Chair Nichols indicated the discussions with the Mayor were to expedite the process, not to take away the authority of the committee and noted if the changes are not the wish of the full Board, items can be changed. Chair Nichols noted the process was moved forward because terms end in December and if the Board is to move this forward, they would have to do it and make amendments to the Articles of Incorporation in a timely fashion before the end of the year. Commissioner Jeffries indicated the process is the concern and more communication is needed with all of the commissioners. Jeffries suggested establishing a mechanism for presenting material (i.e. writing, faxing, etc). LEPFA Board of Commissioners Meeting Page 4 November 26, 1996 Commissioner Janssen noted procedurally when the Board makes motions, we must be very clear of the charges and the expectations in the motion. Janssen noted as a bylaws committee member, he assumed that they were preparing the bylaws and making recommendations, and as a part of that process they looked at the officers terms and it made sense. Commissioner Janssen indicated that he concurred with Commissioner Nickerson but he did feel that it was all done in good faith. However he did note that the Board needs to be more specific as to what the group's charge is. Chair Ristow indicated the Board had two options available to them and they were to adopt the committee's report today or they can take the document and review the bylaws and act on them at the December Board meeting. Chair Ristow clarified that the original intent of the changes by the committee was to tie into the fiscal year and he suggested to the Committee Chair that they see if it is feasible to do this prior to presenting the information. Chair Ristow commended the committee for the work done in a very short time and indicated if anything is to be done it must be accomplished before December 31. Chair Ristow indicated the committee had approached him with the terms change and he indicated he was honored to serve for an additional six months, however, amending the bylaws to reflect the changes in terms of office is up to the full Board. Commissioner Glenn Friedly indicated he felt this was a legal issue in need of review by the City Attorney's office because he was not certain that this Board and/or the Mayor can extend or effect the terms of an appointed Authority and suggested someone review this. Committee Chair Tim Nichols indicated the change would affect the terms of the entire Board and not only the officers. Commissioner Friedly indicated he was under the assumption that his term would end in December and understood that this was a transition term. Commissioner Friedly noted while he felt the recommendation made sense, he questioned if it made sense in the context as to how the Board is presently constituted in respect to himself and Chair Ristow. Peter indicated that this can be relayed to the Mayor and he can act accordingly as it is the Mayor's authority to make appointments. Commissioner Janssen indicated it was his sense, as a committee member, that there would be a distinct advantage to having the board members on for another six months now that we are moving forward, but reiterated that it is up to the Board. Initially,the thought was that if the commissioners went to the Mayor to see if the changes were feasible, and if yes we could change the bylaws, at least the committee pursued the background information to support their recommendation to change the bylaws. Now it needs to be discussed as to whether the majority feels it is a good idea. Commissioner Butler questioned if the commission was to be composed of nine versus eight, and were two members to leave? Chair Ristow indicated he and Glenn were to come off the Board and there were two other commissioners terms that also expired. Commissioner Butler indicated thus we have added one more commissioner and asked for clarification. Chair Nichols indicated the committee also discussed this issue and raised the members to nine so that there would be an uneven amount of votes and would allow for additional members on subcommittees. Commissioner Nickerson question if this had also been discussed with the Mayor and Nichols indicated it had. Committee Chair Tim Nichols moved that the bylaws be left to sit until December and the Board will act formally on them at the December Board meeting. This was agreed upon by the Board members. Discussion ensued regarding how this may be avoided in the future and Commissioner Butler suggested that anything of a draft nature be discussed by the full Board and then taken to the Mayor because when it is taken first to the Mayor it indicates that the Board is not a part of the process. Commissioner Nickerson questioned if we need a formal process to insure that committees understand their charge to insure that this doesn't happen again, and that Commissioners should be included and be allowed input before it is forwarded to the Mayor. Chair Ristow indicated that there are checks and balances in the bylaws and the Articles of Incorporation; Chair Ristow also indicated the committee's intent was not to circumvent the Board under any circumstance and that the bylaws are the ground rules for the Authority to operate from. LEPFA Board of Commissioners Meeting Page 5 November 26, 1996 Peter compared this process to the Operating Agreement, and noted all the Commissioners were given an opportunity to review the Operating Agreement prior to that Board meeting and while that did not happen relative to the bylaws, moving forward this needs to be the process relative to each task force. Jack Jordan noted there were eight drafts of the Operating Agreement and this is the first draft and the ability to give the Commissioners a first draft is a good point and should be considered by all Commissioners. Jordan further noted that this body is the one that gives the power to each committee and it cannot exceed the charge. Commissioner Janssen indicated the individual making the motion must clearly define what their expectations of the committee will be and this will resolve the issue further. Commissioner Butler indicated he would like to see two things happen, one is to discuss this topic further at a Board meeting and two, to develop a single page detailing major changes to the agreement so that the Commissioners look at the major focus points of change and zero in on them. Dennis Sykes cautioned if we go to the Mayor and Council first and they think the process is going one way, but haven't had the opportunity to make a decision, what we end up possibly doing is creating a conflict, because if the Board votes against it we have lead them in the wrong direction. Sykes noted this is part of the learning process and is a procedural concern. If we go to the Mayor first and come here second we are pinning people in the comer and could possible run into a wall. Tim Nichols noted as stated by Commissioner Janssen we need to know what the committee's charge is clearly and this addresses concerns for the full Board. Chair Ristow thanked Committee Chair Tim Nichols and the committee members for their work and the issue will be tabled until the December 17 Board meeting. At 8:25 a.m. Tim Nichols exited the meeting. D. CHIEF EXECUTIVE OFFICER'S REPORT: 1. Union Issues: Peter reported the Facility Workers agreement was formalized and it had been sent to the Union's attorney for review; however, everything appears to be in agreement. The formal agreement was to be given to the members for their review and they have not voted to-date. Peter reported he will continue to update the Board. Bargaining has begun with the Forepeople and there are 12 issues on the table. 2. City Market: Peter reported the Market Task Force continues due diligence. The Promotional Committee continues to meet and brainstorm ideas, an example is Silver Bells. Silver Bells traffic was estimated at 2000 people on Friday and highlights included a life sized ginger bread house; Saturday traffic was also heavy, estimated over 3000 people; Peter attributed the attendance in part to the pancake breakfast which continues to be a successful promotion as well as the WITL remote on Saturday. The Market appears to be moving along nicely. 3. Oldsmobile Park: Peter reported the focus at Oldsmobile Park continues to be "Fright Night" and planning for public skating. Peter noted "Fright Night" attracted over 3000 people and we received many positive comments and plan to make it annual event. Skating continues to be planned and will run Christmas Day through mid-February. Peter noted meetings continue with the Breslin Center and we continue to work on promotional strategies and advertising. Feedback on skating continues to be positive and Peter noted he will be on the Chris Holman Show the day after Thanksgiving hosted by the Mayor and Dennis Sykes to discuss skating at Oldsmobile Park. 4. Lugnut Meetings: Peter noted that staff continues to meet with the Lugnuts to solidify issues with them. The outfield berm areas are resoded and the irrigation is in place as well. LEPFA Board of Commissioners Meeting Page 6 November 26, 1996 5. Fountain Project Press Conference: Peter noted the Fountain Project press conference was held two weeks ago and went very well. The Lugnuts were named as the major donor of the project and IBM is also sponsoring the project. 6. Co-Promotions with the Breslin Center: Peter reported he and Scott Breckner continue to meet on potential concerts and other special events for next year and will continue to keep the Board abreast of any new developments 7. Thank you John Decker: Peter extended his thanks to Commissioner John Decker for all of his assistance with decorations at the stadium as he put in many hours and that the decorations are result of his hard work. 8. Lansing Center- October Information: Peter reported in October the Lansing Center hosted 66 events, with 105 event days, 44,000 attendees, accounting for approximately 2400 room nights, with an economic impact of approximately $850,000. Peter highlighted events held in the building during the past month including the Star Trek Convention, Lansing School District Day, American Guild of Handbell Ringers, the Native American Pow Wow, with the Festival of Trees currently taking place. 9. Chairman's Special Committee on Finances: Peter noted that the City did approve the recommendation of the Committee as presented and he thanked the Committee members for their efforts and commended Marian Bryant for her input, help and assistance. At 8:40 a.m. Commissioner Daniel Nickerson was excused from the meeting. E. LANSING CITY MARKET EVALUATION TASK FORCE: Committee Chair Ellen Jeffries reported the City Market Task Force met three(3) times since the October meeting. October 29 the Task Force met to organize the results for the final report. On November 8 they met with a new vendor and November 18 they met with "Friends of the Market." Chair Jeffries indicated the committee has drafted an outline and needs to present their recommendations to the Board. Committee Chair Jeffries indicated it is the intent of the committee to share a draft of the report with the Board and the committee still hopes to present their report by the first part of next year. Peter noted that the outline is quite lengthy and extensive and needs to be compiled into a report. Commissioner Butler noted that the time was extended as well as the length of the report in part due to the site visits. Chair Ristow indicated he felt the survey on the LEPFA calendar of events was a good idea and asked if there was any more thought on reaching the consumers? Peter indicated he has discussed the survey with Mark Nixon and will meet with him to discuss the survey further and utilization of his space in the newspaper. VH. OLD BUSINESS: None. VIH. NEW BUSINESS: None. IX. ROUNDTABLE: Commissioner Janssen questioned if a budget/goals has ever been presented projecting monthly expectations of business month by month and indicated this perspective would be helpful. Peter noted the financials show the monthly figures based on actual vs. budget for the month and the prior year's figures. Commissioner Butler noted comparing industry standards to the Lansing Center figures would be helpful as well and knowing the industry standard would be helpful in comparison. LEPFA Board of Commissioners Meeting Page 7 November 26, 1996 Peter noted monthly figures are compared to budget as approved by the Board and that this is probably the best way to accomplish the task. Peter noted comparing to the industry is hard to do as we would have to find comparable sized markets and facilities with comparable economic conditions. Measuring by months, years and budget are the standard;however,he indicated he would be willing to consider any other requests for budget information. At 8:52 a.m. it was moved that the meeting be adjourned. MOTION: Commissioner Butler SECOND: Commissioner McNeely motion carried. THE NEXT MEETING IS SCHEDULED FOR TUESDAY, December 17, 1996 AT 4:00 p.m. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM. Respectfully submitted, Heidi K. Brown, Recording Secretary .. .. c+ . , ."�; �y n • .. � � .� �. T �. • .. � fl .� LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY . - BOARD OF COMMISSIONERS MEETING DECEMBER 17, 1996 CITY CLER'[i MINUTES At 4:02 p.m. Chairman Donald J. Ristow called the meeting to order in the Governor's Room of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan. COMMISSIONERS PRESENT: James Butler, John Decker, Charles Janssen, Ellen Jeffries, Greg Koessel (Ex- officio), Kate McNenly, Daniel Nickerson, Donald Ristow, Charlotte Sinadinos, Robert Swanson (Ex-officio) and Dennis Sykes (Ex-officio). COMMISSIONERS EXCUSED: Glenn Friedly and Tim Nichols. OTHERS PRESENT: Heidi Brown, Marian Bryant, Michael Meyers and Peter Sullivan, Lansing Entertainment and Public Facilities Authority; and Jack Jordan, City of Lansing. III. ESTABLISHMENT OF THE AGENDA: No additional agenda items were noted. IV. PUBLIC COMMENT: None. V. APPROVAL_OF THE MPNUTES OF NOVEMBER 26 1996: The November 26, 1996 minutes were approved as published. MOTION: Commissioner Nickerson SECOND: Commissioner Sinadinos, motion carried. VI. REPORTS: A. CHAIRMAN'S REPORT: 1. Informal Reception: Chair Ristow reminded Board members that there will be an informal reception following today's meeting in Ball Room 8. 2. City Market Evaluation Task Force Meeting: Chair Ristow reminded the Board members that the City Market Evaluation Task Force will meet tomorrow at 4:00 p.m. in Board Room 1. 3. Chairman's Comments: Chair Ristow extended his thanks to the Board of Cormnissioners for their support and confidence over the past year, for the hard work, for the progress made and all that the Board has accomplished. Chair Ristow extended holiday best wishes to Board members and their families. B. SECRETARY/TREASURER'S REPORT: 1. REVIEW OF THE NOVEMBER 30, 1996 FINANCIALS: Marian Bryant reviewed the following financial information: a. Oldsmobile Park: M. Bryant reported there were no activities at Oldsmobile Park for the month, thus there are no revenues reflected. Total operating revenue for the year is $167,299; total building rental is $3,000; total operating expense is $163,101; and the net income after subsidy for November 30 is $44,198. Marian reported IRS coverage of expenses is 103% with current the ratio being 131 (last month it was 116). Equity in number of days of operation is 41.51 and last month was at 20.94. Expenses noted are related to preparing for ice skating, Christmas decorating and Peter Sullivan's attendance at a conference. Commissioner Ellen Jeffries questioned if the conference charges are a part of our allocation I LEPFA Board of Commissioners Meeting Page 2 December 17, 1996 process. Peter noted payroll allocation is still being studied,however, conferences, etc. are being allocated to the stadium. Greg Koessel indicated they are awaiting a report from the City Finance Department regarding operations at the Park for last year. Koessel noted there are internal policies that the City follows,however, they are awaiting projections for this and next year and will consider what will be paid out of the baseball budget. Koessel noted it is hoped over time the Board and Peter will be able to more precisely define who spends what time on the stadium and eventually budget based on the actual allocation of the various staff members' time. For the first several years they have no idea how much to estimate, but are looking at$150,000 out of the baseball funds and intend to make up the balance of the shortfall for this year. Koessel noted the earlier projections estimated $200,000 of staff time including some reserve for capital maintenance to run the stadium. Koessel noted this is where the process stands with City Council. Peter asked if Koessel felt this was consistent with the LEPFA presentation to City Council and Koessel noted he believed the amounts were very close. Commissioner Nickerson questioned where the lease of the administrative offices for the Lugnuts appeared in the budget? Marian Bryant indicated the Lugnuts currently forward the lease payment to the City(Peter noted we are working through this issue with the City). Commissioner Kate McNeely questioned the expenses for the Ice Rink? Peter indicated he and Marian have discussed various capital issues with Bob Swanson and have estimated between$30,000 and$40,000 in capital costs; initial projections on revenue were$160,000 not including capital costs. In addition, there are one time event capital costs ($30-40,000) which Bob Swanson suggested be submitted to the City. Peter indicated the request was submitted last week and included in the Mayor's information to City Council and will be discussed on Monday at the Ways and Means Committee meeting. b. Lansing City Market: Marian reported total operating revenue is $23,089; total building rental is $16,016 with a total operating expense of$33,770, which includes salaries and wages. Net income as of November 30 is$57,345 and IRS coverage of expenses is 68%. Marian noted we have received revenues from the parking lot and we continue to work with the City on how to transfer those funds monthly.Marian reviewed the balance sheet, including the prepaid expenses for insurance, accounts payable and subsidy for total assets and liabilities of$76,880. c. Lansing Center: Marian Bryant reported that the total operating revenues exceed last year by 17% or $194,000; total building rental exceeds last year's by 17% or$57,618; total operating expenses increased by 1% or $12,696 from last year. Net income as of November 30 (after subsidy) is $412,714. Marian noted that this does include the $206,000 payment from the City for the deficit. Marian noted the net income without the prior subsidy payment would have been$206,714, which is an increase of$9,100 over last month. Marian noted net income without depreciation is$460,859; IRS coverage of expenses is 93% for November 30, compared to 95% for October 31 and 84% for last year. Food and Beverage for November 95 to November 96 food and-beverage revenue is down by 10%, but is up over last year by 10%, year to date is up by 10%. Equipment rental is up $47,000 or 103% compared to last year. Labor service is up by $9,300 or 55% compared to last year which increases our overall operating income. Salaries and wages are up by $47,000 or 15% due to a more fully staffed building and the need for part- time labor to service events. Marian noted utilities are up compared to last year due to the way it was booked and at year-end the numbers should be comparable. Marian noted Marketing numbers are down and food and beverage expense is up by $9,300 or 2% even though the revenues are up by 10%. Our current ratio is 1.65 (last month it was 1.16 up almost 50%); equity in number of days of operation is at 54.62 up compared to 33.47 last month(increase of 21 days) and actual operating revenues are over by 8% and operating expenses are under budget by$251,000. Cash is up compared to last year due to the $206,000 and is up by $164,000 or 86%; accounts receivables are up; advance rent deposits are at $204,000 compared to$164,000 last year which is an increase of$50,00 or 30%, which is a positive sign for future business. LEPFA Board of Commissioners Meeting Page 3 December 17, 1996 Marian noted the new budget has been put in the system, thus there are new figures on page three. There is an asterisk on the bottom of the page addressing the deficit. Actual compared to budget denotes $100,000 in revenues; and we are $250,000 under budget for expenses. Commissioner Janssen questioned what the decrease in expenses can be attributed to. Marian noted items such as salaries and wages (due to vacant positions), fringes and related costs are under budget by$28,000 (due to vacant positions), and utilities are under cost due to good management. Maintenance of facilities are under budget by $18,000. Marian clarified the asterisk denoting the City's contribution in the new budget, which was included under the direction of the City. At 4:25 p.m. Dennis Sykes entered the meeting. Chair Ristow entertained a motion that the financial statements for the Lansing City Market, Oldsmobile Park and the Lansing Center be received for the period ending November 30, 1996 and the expenses for each entity for the month be approved. MOTION: Commissioner Janssen SECOND: Commissioner Decker; motion carried. C. CHIEF EXECUTIVE OFFICER'S REPORT: 1. Union Issues: Peter reported the Facility Workers agreement was forwarded by the Union for vote and ratification; however, there were minor wording changes requested and the changes will be made and returned. Peter noted they have begun negotiations with the AV Techs, and the AV Techs put 12 issues on the table and we have responded. Peter noted they met last week with the AV staff and shared their position on the issues, they now need to respond and will continue to move forward. Forepeople will be the final group in need of negotiations. 2. City Market: Peter reported the City Market Promotional Committee continues to meet regarding promotional ideas for 1997. December occupancy at the Market was at 63%, however it is anticipated occupancy will drop between 40-50% during the off season. Peter noted the City Market Evaluation Task Force has begun to formulate their recommendations relative to the critical issues. 3. Oldsmobile Park: Peter reported the focus at Oldsmobile Park is ice skating and we will begin skating on Christmas Day through March 2 (weather permitting). Daily times are Sunday through Thursday, 10:00 a.m. until 9:00 p.m. and Friday and Saturday from 10:00 a.m. until 11:00 p.m.. Peter noted there was a press conference last Thursday at the Park and overall it was a very positive press conference. Peter noted a number of sponsors were recognized at the press conference including the Lansing Fund, Country Stitches and the Lansing State Journal. Peter also noted due to contributions by the Lansing Fund and Country Stitches we will be able to purchase 150 pairs of rental skates. Peter congratulated Bob Kolt from Kolt & Serkaian for securing the funds for the skates ($10,000). Peter noted the rink is 150 x 150 and could be the largest outdoor rink in the region, it is 22,000 square feet and is larger than Munn, Joe Louis and the Palace. Peter noted our Market Vendors have created a mound cover/bench which will also be used for promotional purposes. Peter encouraged all Board members to visit the rink. Skate rental is $1.50 and admission is $2.00 for adults and $1.50 for children. Peter noted Tara Cheney and Scott Breckner are working on promotions and the Lansing State Journal has agreed to a $5,000 sponsorship. Peter noted we are working on a warming area on the west side which will encompass a mens and ladies restroom, concessions, picnic tables, and a TV; Peter indicated the response has been very favorable. 4. Lansing Center: Peter noted the Lansing Center hosted 55 events for 77 event days with 26,000 in attendance utilizing 1100 room nights,with an economic impact of$500,000. Comparing November, 1995 to 1996, we were about $4,000 ahead of last November. Peter noted event days and number of events were up but room nights and attendance is lower, while the net dollars are up. LEPFA Board of Commissioners Meeting Page 4 December 17, 1996 New business includes: June 1997 "The Information Network for Christian Homes" which will have 3300 attendees using the entire building which has been held in the past in the Grand Rapids area and is a first time event. "Mid-Michigan Cat Fanciers" will return in August, 1997 and was last in Lansing at the arena three years ago. From 11:00 a.m. - 4:00 p.m. on Christmas day Art Van will sponsor their meal and anyone wishing to help out on that day should contact Heidi. Peter extended his wishes to all Board members for a Happy Holiday and encouraged board members in need of ice rink tickets to contact us. Commissioner Kate McNenly indicated she has heard many positive things within the community regarding the ice rink. McNenly stated she visited one of the vendors working on the ice rink bench and indicated that she thought it was fantastic that all entities are involved in the rink and reported the vendors are excited to be included in the process. Peter noted the vendor working on the bench is Wes Clark. D. SPECIAL COMMITTEE TO FORMULATE AUTHORITY BYLAWS: In the absence of Committee Chair Tim Nichols, Commissioner Charles Janssen noted all Commissioners should have received the red line draft of the bylaws as discussed at the last Board meeting. Commissioner Janssen highlighted the following items on the draft: 1. Page One Section 2.2: Commissioner Janssen indicated changes in the terms of the members requires approval of City Council and this is very significant as it would be contingent upon approval by City Council, even if the rest of the changes are approved by the Board. 2. Page Two - Majority Vote: Janssen noted although it takes a majority vote to pass a resolution, it takes a majority of the voting Commissioners to amend bylaws, which could be important because for a resolution, as long as you have a quorum present and you may have a majority of the quorum voting to approve a resolution, but to amend the bylaws you need a majority vote of the Commissioners. 3. Page Three - Committees: This allows the Chair of the Board, or the Commissioners by resolution, to designate one or more committees. Janssen noted realistically,the Chair will have some concept as to what committees we will need and it is workable to include that the Chair be able to appoint committees to work on various projects. 4. Section 3.1 - Change to Fiscal Year: This would require approval of City Council. 5. Page Six: Allows the Authority to work by facsimile. Commissioner Janssen elaborated on how he felt in regard to the changes and how he felt they should be addressed as follows: 1. Commissioner Janssen indicated he believed we should have bylaws and that the proposed bylaws are an improvement over what we had and that the Bylaws Committee felt the changes would be more consistent with how the Authority operates. Janssen noted it is the feeling of the committee members and Chair Nichols that these changes reflect some good and important changes to the prior bylaws. Janssen noted there are a couple of items such as the terms of the Commissioners and the fiscal year change that would not be in effect until City Council approves them. 2. Commissioner Janssen noted the second issue involved the election of officers and the timing of the election of officers. Janssen noted that it is his feeling that until we know whether or not City Council will approve the changes (even though we have been lead to believe that they will)there are significant changes i.e. changes to the fiscal year and in the number of commissioners and the length of their appointment,that we should hold off on the election of officers and instead have our current officers in place until that time. Janssen noted that if the Board feels that time is lagging(i.e. January or February meeting)they could have a motion regarding the election of officers and move along on new officers. LEPFA Board of Commissioners Meeting Page 5 December 17, 1996 3. Janssen requested that the Chair appoint (and he suggested that he allow people to volunteer) a nominating committee so that when we do find out that the provisions have been approved by City Council, we have an orderly and thoughtful manner of selecting the next set of elected officers. Ellen Jeffries indicated item number 2.2 regarding the number of commissioners had been very pretentious previously with the City Council, and asked if anyone had discussed this with City Council. Peter noted this has been discussed with City Council President Howard Jones. Bob Swanson recalled that the number of commissioners was not the issue, rather, the source of contention was the residency versus non residency requirement and they were very flexible. Commissioner Butler questioned if the number of members, nine versus eight, had been discussed with Howard Jones as well? Peter noted it had been. Commissioner Butler questioned the rationale at that time. Peter noted one rationale was to have an uneven number of Commissioners as it pertains to the voting process as well as to have a larger number of members to serve on different committees. Commissioner Butler requested clarification regarding the nine versus eight Commissioners. Peter referenced the October minutes. Commissioner Janssen recalled that the previous rational/discussion was that there are three separate tasks/entities now and committee members are appointed to serve each committee and this generally involves two or more people assigned to each committee and they may be appointed to more than one Committee. Commissioner Butler indicated he thought there was concern regarding labor representation due to Tim Nichols departure and they wanted labor representation. Commissioner Daniel Nickerson noted since the last board meeting the Bylaws Committee has not met formally (he is a member of the Bylaws Committee)however, he did receive a call from Charlie Janssen regarding the bylaws and what would be the Committee's recommendation, and it was his understanding after the discussion that the Committee's recommendation would be that there would be an election in January or February and he did not hear that as a part of Mr. Janssen's recommendation, thus questioned if there was another meeting he missed or what happened? Commissioner Janssen indicated the recommendations were his recommendations and he believes that we should approve the bylaws contingent on the fact that the City Council has to approve the changes. Janssen indicated that it is his feeling, personally that we should not elect new officers until we know where this issue is going, however, it may not necessarily be good for the group to wait until June. Commissioner Janssen noted it is his feeling that if the Board made a motion, they could revisit this in January or February as we establish where City Council stands on the approval of the bylaws. Commissioner Kate McNenly commented that she is also is a member of the Bylaws Committee, and her personal opinion as a member of the Market Task Force (which isn't finished, but that had intended to be finished by December 31) is that this Task Force is getting to be a monumental job and she expressed her concerned about working on the Bylaw Committee and the Market Task Force, and she needs more consistency until the task force is completed. Commissioner Nickerson indicated it was his concern that the report appears that it is reported as a part of the Committee recommendation. Commissioner Janssen made the following motion: That we approve the proposed bylaws as submitted to become effective now, with the exception that sections 2.2 and 3.1 will not be effective until approved by City Council. SUPPORT: Commission Butler; Motion unanimously carried. After discussion regarding the election of officers, and Bob Swanson's recommendation that the Board of Commissioners recommend to the Mayor formally that the amendments to the Articles of Incorporation be recommended to the Mayor for recommendation to City Council, Commissioner Janssen moved the following: Recommendation to the Mayor and City Council that the Articles of Incorporation be amended to comply with these two sections in the bylaws (being 2.2 and 3.1) and any other provisions of the Articles that need to be amended to accommodate these bylaws. SUPPORT: Commissioner Decker; motion unanimously approved. LEPFA Board of Commissioners Meeting Page 6 December 17, 1996 Mr. Janssen then requested that the Chair, under the new bylaws, appoint a Nominating Committee to put forth recommendations for officers and further requested that people be allowed to volunteer, if they're interested. Chair Ristow indicated this will be done automatically. Commissioner Sinadinos noted in regard to the residency issue she was told the LEPFA Board of Commissioners was a regional Board, however, when she went before City Council it was an issue. Commissioner Sinadinos questioned if there is a need for the Board to make a recommendation or discuss the issue, or if this is the Mayor's prerogative. Mr. Swanson indicated this issue is the prerogative of the Mayor and City Council and they recognize it is a regional Board and it will continue to have non-resident representation. Swanson further noted it is the interest of both parties to have a majority of Board members be City of Lansing residents and they will continue to be cognizant of that and residency will be a factor, but is not the intent of the Mayor or Council to have this be entirely residence and exclude people who have businesses within the City. E. LANSING CITY MARKET EVALUATION TASK FORCE: Committee Chair Ellen Jeffries reported the City Market Task Force is working on a long outline and are trying to finalize their recommendations. The committee met on December 9 and are determining short and long term goals for the Market and will meet again on December 18 at 4:00 p.m. at which time they will look at leases, hours, days and months of operation and marketing and promotions. Chair Jeffries noted the committee will continue to work various aspects and hopes to be finished in January. VII. OLD BUSINESS: None. VIII. NEW BUSINESS: Commissioner Ristow reminded Board members of the reception scheduled to take place following the Board meeting today and of the City Market Evaluation Task Force meeting scheduled for tomorrow. Chairman Ristow thanked the Board members for all of their hard work throughout the year and extended his holiday wishes to all Board members. Commissioner Janssen requested an orientation process for the new Board members with Marian Bryant in an effort to understand the financials and get a better sense of the financials. Commissioner Janssen suggested a half day orientation session for those Board members interested. IX. ROUNDTABLE: No report. At 5:12 p.m. it was moved that the meeting be adjourned. MOTION: Commissioner Decker SECOND: Commissioner Sinadinos; motion carried. THE NEXT MEETING IS SCHEDULED FOR WEDNESDAY, JANUARY 29, 1997 AT 7:30 a.m. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM. Respectfully submitted, Heidi K. Brown, Recording Secretary