Committee Minutes

Grand Forks Events Center Commission
Regular Monthly Meeting
Wednesday, May 26, 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, May 26, 2010 at approximately 7:30 a.m.

ROLL CALL

Present were Brian Faison, Curt Kreun, Darrell Larson and Dwight Thompson. Randy Newman was present via telephone. A quorum was established.

City: Saroj Jerath
UND Student: Ben Axtman
Alerus Center Staff: Vione Jordheim, Charlene Wifall, Jeremy Linstad, Rod Oas, Wendy Nimens, Roger Swanson

APPROVAL OF MINUTES

The minutes of April 28, 2010, under section Bid Award for Network Switch, the words “perceived to be” should be deleted.
A motion was made by Dwight Thompson to approve the April 28, 2010 minutes as corrected. Seconded by Brian Faison. Motion carried unanimously.

APPROVAL OF APRIL FINANCIALS

The April 2010 financials were presented as included in the packets. April revenue less hospitality tax is $299,949; budgeted revenue less hospitality tax is $343,128 and year-to-date revenue less hospitality tax is $1,189,631 or 28% of budget. April expenses are $365,644; budgeted expenses are $386,327 and year-to-date expenses are $1,422,715 or 32% of budget.

Property insurance renewal came in $23,000 less than last year and dates will need to be set with the Budget Committee to review the 2010 budget forecast and discuss the 2011 budget.

Brady Martz will be contacted by the City Finance Director to present audit findings to the Commission at the June Commission meeting.
Happy Harry’s Beer Fest tickets are on sale in the ticket office. The event is scheduled for August 28.
A motion was made by Darrell Larson to receive and file the April 2010 financials and forward them to the appropriate City officials for distribution. Seconded by Dwight Thompson. Motion carried unanimously.

BID OPENING/AWARD – ESCALATORS

A pre-bid meeting was held last week along with JLG Architects. There was some concern with the timeline of completing the project prior to the first football game. Bid opening will take place tomorrow, May 27, 2010, at 2:00 p.m. in City Hall. Operations Staff along with the architects will review the specs; award will need to be made by Friday, May 28. Recognition was given to Mr. Kreun and Ms. Jerath in working with the City to make dollars available to complete the project this summer. The current budget is $400,000 and the project is allowed up to 15% over in change orders.
A motion was made by Darrell Larson to give the Renovation Committee, Randy Newman and Curt Kreun, the authorization to award the escalator project. Seconded by Dwight Thompson. Motion carried unanimously.

CAPITAL PROJECT UPDATE

The Alerus Center upgrades and improvements master schedule has been updated from last month and distributed. The conference center addition is on schedule with completion anticipated in mid June with the exception of the flooring. Suite windows are complete other than the punch list. Escalator bid opening is scheduled for May 27th as discussed. Exterior painting is complete. Exterior lighting has been pushed back to September dependent on cash flow. Flooring is expected to arrive in June with installation in the pre-function and ballrooms completed by July 1 and meeting rooms by August 1. Interior finish color palette has been completed. The Alerus Center Club demo is complete. The remaining projects will need to be prioritized as most of the projects are contingent upon funding. The Renovation Committee will review the projects and continue to work with City Finance with the goal of completing all planned projects.

TAILGATING

A request was brought forward to provide a designated tailgating area for ND students and to provide for free access for a set number of passes to ND students to park in that area. This would be a service and benefit to the students to encourage them to be a part of tailgating and attend the UND football games. If the area is not completely used it could be used for general parking. UND will work with Staff on the location. Having the student component is critical to the spirit in the building; therefore, student government would like to pursue any possible avenues.
A motion was made by Dwight Thompson to have Management proceed in working with UND to evolve their proposal into a workable process. Seconded by Darrell Larson. Motion carried unanimously.

COMMITTEE REPORTS

Budget Committee – Committee members have not yet met but will work with Staff to set a date within the next week.

Renovation Committee – Committee members have met with regards to the escalators. Status is as reported and funding mechanisms for the escalators are in place.

Celebration Committee – Committee members have discussed several ideas including an All Alerus Football Team with the announcement made as part of the celebration in February 2011. Discussions include using the celebration to speak on the value and impact the building has had; to celebrate the 10th Anniversary in February 2011 but to continue the 10-year celebration throughout the year. The date currently set is Saturday, February 12. They will continue to work on guest lists with the main focus of involving the community and will meet with staff to discuss more ideas.

MANAGEMENT REPORTS

Meetings/Conventions/Ballroom
-Significant events during April included 10 banquets, 5 conventions, 20 meetings, 3 consumer shows, 10 community/civic events and 1 wedding.
-Staff is reviewing sales material and food and beverage guides and is researching other convention centers in larger markets and the surrounding region. Contact was made with several conference centers regarding booking conference and hotel space.
-Sales calls were made May 12-13 in Bismarck along with the CVB and Canad Inns. 40 contracts were sent for the month of May with only 4 days during the month with no events. Staff is currently working on convention proposals through 2016.
-Sioux Boosters have contracted for the 2010-2011 year. Lunches will be $10.
-Alerus Center had booth space at three events in the area.
-Anything Goes is scheduled for June 12th. A $1 admission will be charged this year.

Marketing
-Events held during April are as noted in the Event Summary which was distributed in the packets with only 2 Sundays during the month where events were not held.
-Work continues on the Anything Goes ad campaign and planning for Happy Harry’s Beer Fest. Anything Goes is scheduled for June 12 and Beer Fest is scheduled for August 28 from 3-6pm.
-Staff is currently meeting with suite holders and advertisers. A number of suite contracts will be coming due as well as several advertisers.
-Tami Pearson, Director of Marketing, is attending Dale Carnegie training and will be attending the Event and Arena Marketing Conference in Chicago June 9-12.
-April attendance was 23,354.

David Evenson joined the meeting.

Operations
-Staff worked with Secret Service to provide security for several events held recently.
-The renovations manager position was terminated as of yesterday due to budget constraints.
-Renovation updates are as discussed previously.



Food & Beverage
-Catering revenue is down about $19,000 for the month but still ahead of last year’s budget; concession revenue is down slightly; with miscellaneous food and beverage up slightly.
-A slight increase was made to conference center pricing and the existing concession menu pricing is under review.
-Applications were accepted during the month of May for banquet and catering manager and the position was filled.

Executive Director
-Concentrated efforts on processes utilized internally, going through revenue projections and expenses; forecasting short and long term bookings. Currently reviewing the remaining 2010 budget. The most current will be shared with the Budget Committee at their upcoming meeting.
-Along with Tami Pearson has gone out and met suiteholders, major advertisers and sponsors throughout the building. Tami has been assigned duties as key contact for suite services and advertising.
-Changes were made in the way sales business is done as there needed to be more face to face time with regular clients as well as potential clients. All sales teams are going out and meeting with their clients locally, regionally and throughout the state to establish a personal relationship with the client.
-Moratorium has been put on the commission structure in place for the 2010 year and will only begin again when proper measurement standards are implemented. The practice of taking commission on trade accounts has also been stopped.
-VenuWorks has added a new national director of food & beverage. He came in and make an operational review of catering. We have accomplished a prime vendor agreement ending up with $20,000 decrease in our overall food costs. The agreement term is one year and will be reviewed at that time but will continue to review competitors pricing quarterly.
-Working on sales and collateral material.
-We have had to lose some full time personnel due to budgetary constraints. Working with Department Heads the reductions were made.
-Reviewed practices and call times for part time staff and discontinued the practice of having a mandatory 4 hour call time.
-Travel budgets have been cut and everything that could be found was done to accomplish the mission to the best of our ability.
-Networking with promoters regionally and VenuWorks National Director of Programming to bring opportunities to the ballroom and arena. Concerts are in our budget for 2010 but nothing contracted at this time. Until we have the ability to help mitigate losses on the down side or to do things to help bring shows into the venue we are at risk with our 2011 revenues with suiteholders and major advertisers. There is a need to do some things on our own to show it is a bona fide market that can perform. If promoters recognize they can make a profit they will do shows. They are looking at being guaranteed a certain amount of money.
-Requested to attend the June 21 meeting with the City Council to present a business plan for concerts as well as a discussion of they would be involved for co-sponsored events. We would provide information on how concert business works and if we had an event fund we would be able to go out and do things on our own. We would provide research, outline the process, and then seek the approval of City Council/Finance Committee.
-A motion was made by Darrell Larson that the Chair have the power to appointment the members of a task force to go forward with working with the City Council and Administration, keeping the Commission informed and involving them in a final determination. Seconded by David Evenson. Motion carried unanimously.
-Darrell Larson and Dwight Thompson volunteered to work with Randy Newman and Roger Swanson on this project. Roger will contact the City to begin discussions.

OTHER

Changes to Ordinance No. 4289
-As of March 25, 2010 the membership of the Grand Forks Events Center Commission changed. The change to the ordinance states: “Membership and officers. The Events Center Commission shall consist of seven (7) voting members and one (1) non-voting member. Six (6) of the voting members shall be nominated from the public at large by the mayor and ratified by the city council. One (1) voting member shall be a member of the city council nominated by the mayor and ratified by the city council. The one (1) non-voting member shall be a representative of the University of North Dakota, appointed by the President of the University of North Dakota. The members of the commission shall chose from the voting members appointed from the public at large to act as a chairperson and vice chairperson.”
-The Mayor has appointed two people as voting members which will be ratified at the next council meeting. The last sentence indicates that the member who is a member of the City Council does not have the opportunity to be an officer of the Commission. Mr. Kreun will continue through this term as vice chair.
-The UND representative will become an ex officio member relieving them of the predicament of having to take a stand on both sides.

ADJOURNMENT

A motion was made by Dwight Thompson to adjourn. Seconded by David Evenson. Motion carried unanimously.

Meeting adjourned at 8:55 a.m.


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