Committee Minutes

Grand Forks Events Center Commission
Regular Monthly Meeting
Wednesday, July 28, 2010 7:30 a.m.
Alerus Center Meadowlark Room #12


CALL TO ORDER

Curt Kreun, Vice Chair, called the Alerus Center Commission meeting to order on Wednesday, July 28, 2010 at approximately 7:30 a.m.

ROLL CALL

Present were David Evenson, Brian Faison, Curt Kreun, Darrell Larson, Dwight Thompson and Duane Hafner establishing a quorum.

City: Saroj Jerath

Alerus Center: Rod Oas, Jeremy Linstad, Vione Jordheim, Wendy Nimens, Roger Swanson, Charlene Wifall, Tami Pearson

CHANGES TO AGENDA

Mr. Kreun requested the following changes to the agenda:
Add to Other: Executive Session Explanation

APPROVAL OF MINUTES June 23 and July 7, 2010

A motion was made by Dwight Thompson to approve the minutes of June 23 and July 7, 2010. Seconded by Duane Hafner. Motion passed unanimously.

APPROVAL OF JUNE 2010 FINANCIALS

The June 2010 financials were presented as included in the packets. June revenue less hospitality tax is $161,871; budgeted revenues less hospitality tax is $153,651 and year-to-date revenue less hospitality tax is $1,641,380 or 39% of budget. June revenues exceeded the budget by $8,219. June expenses were $260,097; budgeted expenses are $278,918 and year-to-date expenses are $1,994,094 or 44% of budget.

The property and liability insurance renewal premiums have been received. These were favorable with an annual savings of approximately $37,000.

The June net economic impact was $329,235 with $11,865 going towards Grand Forks taxes giving a year-to-date net economic impact of $1,660,557 with $63,485 going towards Grand Forks taxes.

The Box Office currently has two events on sale: Happy Harry’s Beer Fest on August 28 and Rodney Carrington on October 14 which will now go on-sale August 6 which was a change in date due to a conflict with other events in the area going on-sale.

An email was received from Joe Martin, Brady Martz, suggesting an update to the year-end financial statement. When the information is presented to the City Council he wanted it to mirror the CAFER; this will affect how the repayment of management fee appears. An explanation of this will be given to the City Council indicating that the bottom line did not change just that it now matches the CAFER.

A motion was made by David Evenson to approve, receive and file the June 2010 financials and forward to the proper City officials for distribution. Dwight Thompson seconded. Motion passed unanimously.

QUARTERLY REPORT

The 2nd quarter report was included in the packets. The un-audited revenue number, less hospitality tax, is $1,641,380 compared to $1,653,983 in 2009. This is a 1% decrease from the same reporting period last year. Second quarter year-to-date expenses are $1,994,094 which is a 5% decrease over the same period in 2009.

Gross economic impact for the second quarter was $2,015,586.90 with $73,155.88 going towards Grand Forks taxes; net economic impact for the second quarter was $953,377.89 with $34,735.06 going towards Grand Forks taxes. Economic impact studies are on-going and will continue in order to include UND football. The gross impact is figured using the same formula as in the past; the net is the new formula.

Mr. Kreun requested that former task force members, Duane Hafner, Laura Block and Dwight Thompson work with staff and make a recommendation as to using the gross economic impact formula vs the net in order that the numbers are consistent each month.

Second quarter attendance for 2010 was 53,154 compared to 57,440 for the same period in 2009. This is a decrease of 7.5%.

The second quarter report will be forwarded to the City for distribution to the City Council.

SUITE CLUB BID AWARD

The bid tabulation and letter of recommendation from JLG Architects was distributed. Bids were reviewed and the recommendation is to award the bid to ICS, Inc.

A motion was made by Duane Hafner to award the Suite Club bid to ICS, Inc. along with the alternate. Seconded by David Evenson. Motion passed unanimously.



COMMITTEE REPORTS

Renovation Committee – Mr. Hafner has been added as a member of the Renovation Committee. No updates to report at this time.

Celebration Committee – Darrell Larson and Brian Faison met along with staff. A single day event is being planned but the celebration will be extended by tying in the football season. Fans will be voting at each home game on the greatest moment of UND football. Staff have been working with Ad Monkeys on the development of a 10th Anniversary logo.

COMMISSION MEMBERSHIP TERMS

Staff received an email from the Mayor’s office indicating the term expiration dates for the Commission members. These were distributed in the packet.

A motion was made by David Evenson that the Commission enter nominations for a new Vice Chair and that that Vice Chair take over as Chair on January 1, 2011. Duane Hafner seconded. Motion passed unanimously.

A motion was made by David Evenson to nominate Dwight Thompson for the position of Vice Chair. Seconded by Duane Hafner. Motion passed unanimously.

Hearing no further nominations, a motion was made by David Evenson to cast a unanimous ballot for Mr. Thompson. Seconded by Duane Hafner. Motion passed unanimously.

Mr. Kreun will continue with the current meeting and consultation with Mr. Swanson will take place on the election of officers.

COMMISSION APPOINTMENT TO THE CVB BOARD

Since the resignation of Sheila Gerszewski, the Alerus Center has not had a representative on the Convention & Visitors Bureau Board. Mr. Hafner volunteered and was appointed to the CVB Board as representative of the Alerus Center Commission.

COMMISSION AND CVB BOARD GATHERING

The CVB Board has requested to meet with the Alerus Center Commission. Mr. Newman will set up a time and email notification will be given.

MANAGEMENT REPORTS

Meetings/Convention/Ballroom – 13 contracts were sent out in July. Currently staff is working with representatives on booking the 2012 Democratic Convention; UND Football Media Banquet and proposals for conventions in 2011, 2012, 2013, 2014, and 2015.

Staff along with Canad Inns have sales calls planned to Devils Lake, Crookston and Thief River Falls and are looking at the possibility of a trip to Bismarck.

Marketing – Happy Harry’s Beer Fest will not be giving away t-shirts this year. A booklet will be produced showing a map of beer vendors and advertising space will be sold in the booklet.

Tami Pearson, Director of Marketing, attended and graduated from Dale Carnegie training, and attended the EAMC Conference in Chicago.

Meetings have been held with suiteholders and advertisers to renew suites for the football season, annual suites and advertising contracts.

Event updates included the 2nd annual Anything Goes Sale; Happy Harry’s Beerfest and Rodney Carrington.

Tailgating sales are underway. New this year is a UND student free parking tailgate area. UND will issue passes by game and coordinate and run the activities in that area. If spaces are still available when UND ends their functions; the spaces will be filled with general parking. The area designated for UND student tailgating will be the center south lot. Students will be required to have game tickets to enter the area along with their pass.

June attendance was 8,752.

Operations – Carpet on the event level is complete with only the punch list left to do; all meeting rooms are again in use. Currently work is being done on the suite level. There have been a couple of delays with electrical but that should be back on track in August. The convention center and suite windows are complete.

Have begun meeting with turf manufacturers for replacement of the football turf as it is coming up to its 10-year life expectancy.

Food and Beverage – July was a good month for catering as revenues were exceeded. Staff have met with various vendors on the going green initiative; some of the products are on site at this time.

In August the catering menu will be reviewed for different menus and pricing structure.

The concessions manager has resigned effective August 6, 2010.

Staff will be researching different concessions offerings during the football games.

Executive Director – The event fund process was distributed in the packets. This was re-worked to incorporate City Councils requests. The highlighted areas are the result of discussions with the City Attorney and City Council.

The new structure is that an application for amounts under $250,000 be submitted to VenuWorks Corporate office and the Alerus Center Commission Chair. For amounts over $250,000 requests will be brought to the City Council Finance Committee and City Council. The City Finance Chair has asked that we fund back the event fund first from revenues on concerts. Staff will request the dollars as the need arises.

A motion was made by Dwight Thompson to utilize the event fund process as recommended by the City Council. Darrell Larson seconded. Motion passed unanimously.

Phil Potter, VenuWorks National Director of Programming, will be here on August 2.

OTHER

Executive Session Explanation: Commission members received notification from Randy Newman, Chair following the June 23, 2010 Executive Session that the session should not have taken place. Mr. Newman declared the tapes be made open to the public and they are available at the Alerus Center and the City Public Information Office. Since that time, GF City Attorney has provided all Commission Members with written information and explanation regarding open meeting laws and open records laws. The Commission members acknowledge receiving that information.

Mr. Kreun made a request to have representation at the Commission meetings by the City Attorney or Assistant Attorney or to at least ask what kind of representation was available for the Commission meetings.

ADJOURNMENT

A motion was made by David Evenson to adjourn. Seconded by Darrell Larson. Motion passed unanimously.

Meeting adjourned at 8:50 a.m.



____________________________ ____________________________
Respectfully submitted,
Vione Jordheim Darrell Larson
Director of Administrative Services, Alerus Center GFECC Secretary