Committee Minutes

Grand Forks Events Center Commission
Regular Monthly Meeting
Wednesday, August 25, 2010 7:30 a.m.
Alerus Center Meadowlark Room #12


CALL TO ORDER

Randy Newman, Chair, called the Alerus Center Commission meeting to order on Wednesday, August 25, 2010 at approximately 7:30 a.m.

ROLL CALL

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

City: Howard Swanson, Saroj Jerath

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

APPROVAL OF MINUTES July 28, 2010

A motion was made by Curt Kreun to approve the minutes of July 28, 2010. Seconded by David Evenson. Motion passed unanimously.

As guests were in attendance to report on the Celebration Committee; this item was moved forward at this time.

CELEBRATION COMMITTEE

Linn Hodgson and Scott Telle of Ad Monkeys Graphic Design presented various designs for the 10th Anniversary logo. It was suggested that the Alerus Center use one consistent logo beginning now and for the next 18 months. The Committee will meet following the meeting to make the final decision.

APPROVAL OF JULY 2010 FINANCIALS

The July 2010 financials were presented as distributed in the packets. July revenue less hospitality tax is $210,198; budgeted revenues less hospitality tax is $187,274 and year-to-date revenue less hospitality tax is $1,851,578 or 44% of budget. Revenues should be at 58% at month end. July revenue exceeded budget by nearly $23,000.

Catering had an outstanding month with year-to-date catering revenue at $709,977.

VenuWorks reimbursed $10,000 to the City for professional services which include auditing services requested by the Commission.

July expenses were $257,109; budgeted expenses were $295,339 and year-to-date expenses were $2,251,203 or 49% of budget which is $274,912 below budget. Staff continues to work hard to control expenses.

The July gross economic impact is $228,195.77 with $9,517.57 towards Grand Forks taxes and net economic impact is $37,076.98 with $1,513.52 towards Grand Forks taxes.

Each month staff looks at projections for the year which are based on the same way the budget is done. The forecast distributed shows actual numbers for January through July with projections for August through December. The projection is showing a loss of approximately $19,000 for the year and this does not include any concerts or larger arena events that may occur. The greatest risk to the forecast is snow removal and football attendance.

A motion was made by Dwight Thompson to accept the financial report and list of disbursements for the month. Seconded by David Evenson. Motion passed unanimously.

APPROVAL OF REVISED VENUWORKS AGREEMENT AND AUTHORIZATION FOR COMMISSION OFFICIALS TO SIGN AS AMENDED

Howard Swanson brought forth the revised VenuWorks agreement indicating that there had been a small change to the contract originally reviewed and approved by the Commission. The City Council changed an item that was in the very original contract allowing for transfer of money from an account of pre-sold tickets to operations. This provision had never been used; therefore, VenuWorks was in agreement with the change and is now being brought before the Commission for their approval.

A motion was made by David Evenson to approve the revised VenuWorks agreement. Seconded by Duane Hafner. Motion passed unanimously.

ENDORSEMENT TO THE COMMISSION

As requested by the Commission, a letter was written to President Kelley, University of North Dakota, requesting his endorsement to have Brian Faison continue to serve as an ex officio member of the Commission. Brian is willing to continue his service and President Kelley has given his endorsement.

PARKING FEE PLAN

Roger Swanson reported that there is currently a $5.00 per car parking fee which is taken at the lots. With 23 staff taking money for major events it would be more cost effective to add a $2 per ticket fee and eliminate all but the labor to direct traffic in the lots. This is not possible this year for football as the tickets are already on sale and we cannot do it for family shows as the lower price ticket is their primary sales point. Based on 2.3 people per car at $2 on each ticket it would still equate to approximately $5 which is appropriate for this area.

A motion was made by Duane Hafner to amend the current parking fee policy. Seconded by Curt Kreun. Motion passed unanimously.

COMMITTEE REPORTS

Renovation Committee – Members: Randy Newman, Curt Kreun & Duane Hafner
Project Updates – The conference center addition is complete and punch list items are being worked on however they are taking longer than usual. Suite club and radio rooms are on track for a September 10 completion.
Capital Cash Flow Projection – The current capital cash flow available to us is a balance of $600,000.
Energy Services Group Report – A presentation from Mark Bucholz was given at the last meeting. The Committee has directed staff to work with ESG to come up with the final scope of work and with a draft agreement being submitted to the City Attorney for review. This would then come before the Commission for approval and put out for RFP.
Approval of Minutes of August 24, 2010 meeting – A motion was made by Duane Hafner to approve the minutes of the Renovation Committee meeting of August 24, 2010. Seconded by Curt Kreun. Motion passed unanimously.

Celebration Committee – Members: Brian Faison and Darrell Larson
See report above.

MANAGEMENT REPORTS

Meetings/Convention/Ballroom – Staff has been working with UND regarding breast cancer awareness/ Pink Ribbon Bowl on October 30th. The Alerus Center will be selling t-shirts Monday through Friday in the Box Office and at Sioux Boosters Luncheons beginning in September.
Staff is currently working on proposals for the ND Petroleum Marketers in 2011 and Project Northstar in December 2010. Also in the planning is a local church holding their services here for 21 Sundays.
Upcoming events in the Convention Center include Sioux Boosters, AIA Conference, Military Appreciation, ND Library Association Annual Conference and wedding receptions.
Staff along with Canad Inns did sales calls in Crookston and Thief River Falls. Canad Inns, CVB and Sales Staff will be traveling to Bismarck next week for sales calls with a trip to Fargo after the holiday. Staff also had the opportunity to tour the BREC in Bemidji which is also managed by VenuWorks.

Marketing – 2nd Annual Happy Harry’s Beerfest will be held this weekend. In case of inclement weather it will be moved inside the arena.
Finishing up with tailgating reservations. Most all from last year have renewed
Roger and Tami have been meeting with potential suiteholders and advertisers.
Will be attending the UND Involvement Expo today.
Working with Celebration Committee on the 10th Anniversary Celebration.
Looking at updating the website and what type of information is needed for an RFQ.
July attendance was 3,783; with 1,000 in the arena/outside and 2,783 in the convention center.

Operations – Will be sending out an RFP to change over the cleaning supplies to green seal certified.
Working with UND Athletics to enhance the game experience. There will be a test run tonight.

Food and Beverage – Mike Coulter was hired as the Concessions Manager. He previously was employed as the Sous Chef in the kitchen the past 18 months.
The Alerus Center scored a 93 on a recent health inspection.
Staff is preparing for the football season with different promotions, non-profit groups and staffing.

Executive Director – With the resignation of the Concessions manager we were given the opportunity to look in house and balance the needs of two positions. Mr. Coulter will also help in the kitchen for catering production when the concessions area is slow.
Other activity in the building for which we may not get revenue but has an expense is allowing the ROTC to do their PT runs here. The Hyslop is available to them, although they sometimes compete for space. Roger met with ROTC representatives to discuss issues both entities would have. The Air Force ROTC has requested to be here between 7-8am beginning in September through May and the Army ROTC beginning in November until early spring between 6-7am. Staff would need to be in the building during those times which could impact us later in the day if those staff would be needed to cover the events. Two full time staff have volunteered to open the building for the ROTC therefore reducing the expense of labor to cover this event. This is a Community activity that we support along with our partnership with UND with minimal impact to us and that the public is not always aware of.

VenuWorks currently has 3 people working with booking events for the Alerus Center including Roger. They will be meeting in the next week to 10 days and are all actively involved in looking for bookings.

Roger briefly explained the Executive Producer Program which would look to businesses in the Community for support and include them in possible benefits. They would pay nothing and we would ask for no money up front. All parties would participate together and we would ask for a $5,000 to $10,000 commitment only if needed at the end of the event. The businesses wouldn’t participate in any upside but would have the advantage of free advertising.
Utility reimbursement with Canad Inns has come to a resolution and Roger will share this at the next meeting.


OTHER

Howard Swanson, City Attorney, reported that Mr. Rob Port of Minot filed a complaint with the Attorney General’s Office due to the Executive Session that was held. Mr. Swanson did respond that the tape of the session is available. He has not heard back at this time.

ADJOURNMENT

Meeting adjourned at 9:14 a.m.




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