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HomeMy WebLinkAboutCity Council Committees - Public Facilities Distict Board - 09/24/2009 (3) • • KENT W-HINOTON Public Facilities District September 24, 2009 Board Members Present: Greg Haffner, Lew Sellers, Cass Prindle, Randall Smith Others Present: Tim Higgins, Beth Sylves, Ron Harmon, Ben Wolters, Patrick McClusky, Paula Barry, Tom Brubaker, Jim Berrios, Sean Reynolds, Julie Pulliam I. Call to Order The meeting was called to order by Vice Chair Haffner at 3:35 p.m. a. Introductions. Introductions were made. b. Approval of Minutes. Sellers moved to approve the minutes of the special meeting of August 27, 2009. Prindle seconded and the motion carried. • C. Update on Board Membership. Haffner noted that Mike Miller's term expires this month, and suggested that this item be tabled until the next meeting since Miller is not present to indicate whether he is interested in being reappointed. There was no objection. U. Resolution a. Sales Tax Distribution. City Attorney Brubaker explained that there is a provision in state law which says that if the sales tax revenue drops precipitously, the percentage of sales tax that the PFD can garner over the course of the year can be increased. He noted that due to the dramatic downturn in the economy, the City's loss could be as high as 16%, and that the request for an increase from .033% to .037% is justifiable. He noted that the Department of Revenue must confirm the decrease in sales tax revenues before the resolution would become effective. Haffner stated that the market economy in 2010 is expected to be the same as it was in 2009, and Brubaker said if that is the case and the resolution is not adopted, projections will fall well below expectations. It was clarified that the portion which would be increased is the state's portion. Sellers moved to adopt Resolution No. 2009-1 authorizing an increase in the distribution of the State of Washington sales tax. Smith seconded and the motion carried. • Public Facilities District September 24, 2009 Page Two III. Finance ReRoort a. Review of State Sales Tax Revenues. Paula Barry reviewed the Event Center Operating Fund, noting that the ending fund balance as of August 31, 2009, was minus $939,293. Barry said there have been very few changes in the Public Facilities District Fund since the last report and that the ending fund balance is $251,351. b. ShoWare Center Income Statement. McClusky noted that net income was off by approximately $86,000 for August, and that $77,000 was saved by cutting back on contract labor, housekeeping, security, salaries, and utilities. He predicted that September figures will be better, and Higgins said they expect to break even by the end of the year. Reynolds agreed to determine how many hockey game attendees are from out of town, and a brief discussion of building maintenance was held. • IV. Operator U date. a. Event Bookings/Attendance. Higgins gave an update on past and upcoming events, and noted that the circus did very well with a 93% capacity rate. He said he expects Disney on Ice to do equally well. Higgins said he will be attending the IEBA (International Entertainers Buyers Association) conference in Nashville and the Washington State Public Facilities District Association meeting in Everett. Board members were invited to attend the PFD meeting and it was noted that funds for registration would be available. Higgins concluded by noting that 238,000 people have come through the building since it opened. b. Marketing Update. Sylves talked about partnership opportunities such as presales and discounts on one event when buying tickets for another. She noted that local business sponsorship opportunities are available and that she is investigating banquet and catering opportunities. V. Seattle Thunderbirds U da ate. a. Thunderbird Attendance, Sales and Marketing Update. Reynolds announced upcoming group sales events including City of Kent Night, Rotary Night, Boy Scout Night, and Latino Night, among other things, • in an effort to heighten awareness of the ShoWare Center and the • Public Facilities District September 24, 2009 Page Three Thunderbirds. He noted that a choir program has been set up and that four groups have been booked so far to sing the National Anthem. b. Suite Sales Update. Reynolds reported that Suite 216 had been sold earlier in the day. VI. Other Business Added Item - Panther Lake Annexation Revenue. At the request of Ron Harmon, it was agreed that sales tax revenue related to the Panther Lake Annexation will be on the November 19 agenda. Added Item - Marquee. Upon a question from Ron Harmon, Wolters said he continues to work with the Thunderbirds and SMG on a marquee and that there are some prospects for sponsorship. He estimated the cost to be $300,000 for the board and $100,000 for installation. Added Item - Flood Preparation. It was noted that flood preparation is a joint function of the City and SMG, and Higgins assured Board members that there is a plan to protect the building by sandbagging and/or bladders. Wolters spoke about the warning system and prevention measures, and Brubaker confirmed that certain streets will be blocked off in the event of a flood. Added Item - Ball Parks. Sellers asked about replacement of the ball parks which were displaced by construction of the ShoWare Center, and it was noted that funds are not available. Meeting Dates. Haffner pointed out that the next meeting will be a special meeting since it will be held on November 19 rather than on the last Thursday of the month. The next regular meeting will be on January 28, 2010. VII. Adjournment a. The meeting adjourned at 4:35 p.m. Brenda Jacober, CIVIC City Clerk