Committee Minutes
Grand Forks Events Center Commission
Regular Monthly Meeting
Wednesday, March 17, 2010 7:30 am
Alerus Center Meadowlark Room #12
CALL TO ORDER
Randy Newman, Chair, called the Alerus Center Commission meeting to order on Wednesday, March 17, 2010 at approximately 7:33 am.
ROLL CALL
Present were David Evenson, Curt Kreun, Darrell Larson, Randy Newman and Dwight Thompson establishing a quorum.
City: Rick Duquette, Saroj Jerath
VenuWorks, Inc: Steve Peters
UND Student Rep: Ben Axtman UND Student Body President: Tyrone Grandstrand
Alerus Center Staff: Vione Jordheim, Steve Hyman, Tami Pearson, Wendy Nimens, Jeremy Linstad, Rod Oas, Charlene Wifall, Stephanie Bernstrom
Welcome was extended to new commission member, Dwight Thompson and Ben Axtman, UND Student Representative.
Request was made to move items #5, Bid Award for Furniture and Fixtures, and #6, Bid Award for Flooring Renovation, up on the agenda to follow the approval of the minutes.
A motion was made by Curt Kreun to allow requested change to the agenda. Seconded by David Evenson. Motion carried unanimously.
APPROVAL OF MINUTES
A motion was made by David Evenson to approve the February 17, 2010 minutes along with the minutes from March 16, 2010. Seconded by Dwight Thompson. Motion carried unanimously.
BID AWARD for FURNITURE & FIXTURES
The bid tab for furniture and fixtures was included in the packets. Bids were received from three suppliers; Sterling Carpet One, SunPan Imports, and Fox Valley Furniture. Successful bidders and items bid included: Fox Valley Furniture – large ring wall sconce, large ring table lamp, modern globe pendant. SunPan Imports - San Fernando chair, Madero end table, Madero bar table, Madero console, Bellaire ottoman, Madero Square Coffee table, Laguna barstool in cream, Laguna barstool in black. Sterling Carpet One – Milano accent table, Uptown side table, Karnak table, St. Timothy barstool, St. Timothy classic leather chair. All items are within budget.
No bids were received for the tub chair. It will be put back out for bid. City Finance Director confirmed compliance with the City process and bid award will be per supplier rather than individual items.
A motion was made by David Evenson to award bids as stands. Seconded by Darrell Larson. Motion carried unanimously.
BID AWARD for FLOORING RENOVATION
Randy Lieberg of JLG Architects presented the bid tab for Alerus Center Flooring Renovation. It was also included in the packets. Eight total bid envelopes were received. Of those, five met the specifications. The three lowest bids were received from Flament-Ulman, Inc, Multiple Concepts Interiors and Hannaher’s. Alternates G-1, G2 and G-4 were not taken and deductions for alternate G3 (delete tile material) were taken as the escalator would need to be installed prior to doing anything in entry #1. The escalator has not been accomplished; therefore the purchase for tile would be done at another time. Taking this into consideration the low bidder was Hannaher’s at $495,300. It was confirmed that the City bid process was followed and that an attempt is made to go with local suppliers; however, it could not be verified where the bidders got the information for supply. Alternate G-1-Admin Flooring was not taken as the administrative offices would need to be disassembled to install carpet. Alternate G-2 – Trade Show Flooring was not taken at this time as we are at the end of our trade show season and rolled carpet may be able to be purchased for this purpose. Alternate G-4 – Deduct Carpet was not taken as the owner will not be providing the carpet.
A motion was made by Curt Kreun to accept the recommendation and award the Alerus Center Flooring Renovation to Hannaher’s for $495,300. Seconded by Dwight Thompson. Motion carried unanimously.
NOTE: Due to mathematical error the correct dollar amount for the award is $495,110. (Base bid $628,131 less voluntary alternate using Shaw Carpet $58,321 less Alternate G-3 $74,700 = $495,110.)
APPROVAL OF FEBRUARY 2010 FINANCIALS
The February 2010 financials were presented as included in the packets. February revenue less hospitality tax is at $300,777; budgeted revenue less hospitality tax is at $463,224 and year-to-date revenue less hospitality tax is at 13% of the budget or $543,018. February expenses are at $362,186; budgeted expenses are at $452,340 and year-to-date expenses are at 16% of the budget or $687,818. We should be at 17% for this timeframe.
Items of note: In answer to last month’s question of fuel inventory; the auditors indicated that since there was no outside pump there was no need to inventory. Raising the Roof concert in Plan B is scheduled for April 28 and tickets are now on sale. A cash flow statement will be included in the future based upon the Task Force final report and any comments on the cash flow statement and balance sheet will be included in the narrative. There was no report on the economic impact as Dr. Flynn is working on the formula as requested.
At this time revenues are down $163,000 for the first two months. A contingency plan needs to be put into place for expenses if this trend continues. Staff was asked that going forward they report on events including concerts, meetings and banquets that were budgeted but did not materialize. Staff will reforecast the 2010 year based upon current and forecast activity. Sponsorships and Suites are down $22,000 and $11,000; although with the new digital billboard advertisers some ground has been gained.
Staff will provide the annual maintenance schedule for the Commission’s review. These items need to get back on track after reducing some of the items from the previous year. Staff will also provide the capital budget to be reviewed and updated for any future projects planned.
The VenuWorks management fee has not been paid and will wait until final audit is complete. Staff is currently expensing it but not paying it. This should be carried on balance sheet and staff, along with City Finance Director, will go back to September and re-do the balance sheets. It will be shown as a payable to VenuWorks and then reversed as a receivable from VenuWorks.
The arena/convention breakout allocations for expenses should be reviewed annually and staff was asked to review those for the 2010 year and come back with recommendations to the Commission. Future show/event deposits are currently being held in the trust money account. It was suggested to change the name of the account to be understandable. Staff was asked to provide more disclosure on the aging suites and advertising trade accounts and how they are broken out and expensed to ensure that we are paying fair value and getting fair value back. Currently an actual invoice is received, the director for that area approves the invoice and marks it either to be paid or used as trade. It was requested that the aging report be reported on a monthly basis for the trade and brought to the Commission at their next meeting for review.
Due from City was reviewed. The dollar amount was larger than in the past pending resolution of capital reimbursements. A meeting with City, Brady Martz, and staff will be held to review and discuss in more detail. Staff will provide details on the due to city each month as part of the packet.
It was requested that the balance sheet include comparison columns with year-to-date and also for the same time period for the previous year.
A motion was made by David Evenson to approve, receive and file the February 2010 financials and to forward them to the proper City Officials for distribution. Seconded by Curt Kreun. Motion carried unanimously.
EVENTS CENTER COMMISSION MINUTES
At the request of the Commission, guidance from the City Attorney was requested as to the content of the minutes. A memo was received and included in the packets for review. Following review, the Commission requested the minutes be detailed but with only a summary; motions continue to include who made and seconded the motion and points made be from the Commission as a whole; individual comments will not be shown unless asked to go on record as such.
Annually the Commission will review the open meeting requirements, governance items, bylaws, and committees.
MANAGEMENT REPORTS
Meetings/Convention/Ballroom
The International Sugarbeet Trade Show begins today, the North Dakota Republican Convention begins on Friday; they are currently planning for 1,550 people. Next week’s schedule includes the All City Band concert, Artwise, Rocky Mountain Elk banquet and the Home Design and Garden Show. On March 31 there will be an auction in the parking lot; this is something new and the client is working out a contract to bring in more. Upcoming events include the Red River Valley Motorcyclists, Grand Forks Central Prom, wedding receptions and Dale Carnegie training which Tami Pearson will attend this year. The MPI meeting last week was well attended with 38 members and are working on bringing it back. Most of the attendees had visited Grand Forks but not the Alerus Center.
Staff was asked to compile information from the booking calendar showing arena and meeting room usage as well as events booked as public service events that do not have a bottom number impact. These will be included on the power point presentation.
Marketing
Working with Visiconn on the digital billboards update.
The Raise the Roof concert featuring Carmen the Cactus and 24/7, both regional bands, was announced and the ad campaign has begun. Tickets are $5 with a student ID and $10 without. Staff worked with UND Student Government to notify students of the concert.
Continued dialogue with Dr. Flynn regarding economic impact. The economic impact number was withheld this month as he is working on more detail.
April 3 is the 7
th
Annual Easter Egg Hunt and staff continues solicitation for donations and advertising. Volunteers are needed from 8am-12 noon that day. This is a community event produced by full time staff and relies on cash donations from businesses. The City gives $2,500 to help in hosting this event. Child ID will not be at the event this year as the City Police Department is not able to attend due to overtime.
The second annual Anything Goes Sale is planned for June 11. It was very successful last year and Leighton Broadcasting is working with staff on ways to advertise.
The 2
nd
Annual Happy Harry’s Beerfest date has been set for the last Saturday in August.
Staff is currently reviewing goals and objectives for the marketing department, including updating the website making it more user friendly for clients. VenuWorks will be asked for their assistance in re-tooling it.
Tami will be attending Dale Carnegie training beginning April 20
th
for 9 weeks. This will be held at the Alerus Center; the registration for one attendee is traded for the cost of the event.
February 2010 attendance was 16,429; 10,963 arena and 5,466 convention center.
Suites & Advertising
There are a few new advertisers the bulk of which is electronic advertising on the digital billboards inside and outside as small advertising packages are available. ICS and Wireless Concepts are two new suiteholders and we are at 100% right now. There are still a couple of renewals to go for the remainder of the year. The Commission would like to review the annual depreciation on the signs as it is important that we show how revenue offsets the annual depreciation.
City Ordinance indicates that only a sponsor of the building can advertise on the outdoor digital billboards. Staff indicated that anyone advertising on signs outside are also advertisers inside, keeping in compliance with the ordinance. The Commission indicated there should be guidelines for advertising and asked that the staff create standards and bring them back to the Commission for their review.
Dwight Thompson left the meeting at 8:59 am.
Operations
Construction: Suite windows are at 95% completion and should be done by Friday. During roofing there was some water damage inside which has been repaired. Projected conference center window completion is the end of April. Demolition is underway for the suite club with final drawings to be approved. Staff was asked to provide the construction and financial schedule next month.
Energy Services Group continues to go through details and we should have their recommendations the first part of April. The process has been two years but due to event schedules and heating and cooling they needed a full year of data. Once a final report is received it will be brought to the Commission. If approved to go forward it would follow the same structure as the City is currently using.
Food & Beverage
The Feast of Nations dinner was held for 1200 people. Although the catering staff served on our timeline, they client felt they were served too fast. The catering menu has been revised and simplified making it easier for the client to read.
OTHER
UND Student representatives were acknowledged. Mr. Axtman indicated that this may be his last meeting with the Commission. Staff have discussed with representatives the opportunities for Plan B including the upcoming concert.
The Presentation to the Task Force and City Council will be held tonight with dinner beginning at 6:15 p.m. and plans to finish by 8pm.
ADJOURNMENT
A motion was made by David Evenson to adjourn. Seconded by Curt Kreun. Motion carried unanimously.
Meeting adjourned at 9:12 a.m.
____________________________
Respectfully submitted,
Vione Jordheim
Director of Administrative Services
Alerus Center
____________________________
Darrell Larson
GFECC Secretary