HomeMy WebLinkAboutCity Council Committees - Public Facilities Distict Board - 07/25/2013 KEOT
AGENDA
City of Kent
Special Events Center
Public Facilities District Meeting
Thursday, July 25, 2013 @ 4:00 p.m.
ShoWare Center
625 West James Street
Board members
Mike Miller - Randall Smith - Cass Prindle - Lew Sellers - Jeff Piecewicz
Officers
Mike Miller, Chair - Ronald F. Moore, Secretary - Robert Nachlinger, Treasurer
I. Call to Order
a. Introductions
b. Welcome new board member — Jeff Piecewicz
c. Motion to approve the minutes of January 31, 2013
II. Finance Reports
a. City of Kent — Bob Nachlinger, Finance Director
b. ShoWare Center — Patrick McCluskey, ShoWare Director of Finance
c. Results of supplemental report on the economic & tax revenue impact of
ShoWare Center, Kurt Hanson, City of Kent Economic Development Manager and
Mark Goodman, Community Attributes Inc.
III. Operation Update
a. GM Update — Tim Higgins, ShoWare General Manager
b. Marketing Update — Tim Higgins, ShoWare General Manager
c. City Update — Kurt Hanson, Economic & Community Development Manager
IV. Seattle Thunderbirds Update
a. Thunderbird Sales, Marketing &Attendance Update: Colin Campbell, Vice
President/Assistant General Manager
b. Advertising & Suite Sales
V. Other Business
VI. Adjournment
ICENT Public Facilities District
WIIIX'N ITf X.
Board Minutes
January 31, 2013
ShoWare Center
625 West James Street
Board Members present: Mike Miller, Lew Sellers, and Randal Smith
Others Present: ShoWare General Manager Tim Higgins, ShoWare Director of
Marketing Beth Sylves, ShoWare Director of Finance Patrick McCluskey, Seattle
Thunderbirds Vice President / Assistant General Manager Colin Campbell, Seattle
Thunderbirds Director of Ticket Sales Sean Runnels, Council President Dennis
Higgins, City Finance Director Bob Nachlinger, City Attorney Tom Brubaker , City
Director of Economic Development Ben Wolters, Administrative Assistant III, Julie
Pulliam, and Reporter for the Kent Reporter, Steve Hunter
I. Call to Order. The meeting was called to order by Board Member Mike Miller
at 4:00 p.m.
a. Introductions. Tom Brubaker introduced City Clerk Ronald F. Moore.
b. Election of 2013 Officers. Mr. Brubaker suggested nominating Ronald
F. Moore, City Clerk as the Secretary of the Board.
Lew Sellers nominated Ronald F. Moore as the Secretary, seconded by
Randal Smith. Motion carried 3-0.
Lew Sellers nominated Mike Miller as Chair of the Board, seconded by
Randal Smith. Motion carried 3-0.
Mike Miller nominated Lew Sellers as Vice Chair of the Board, seconded by
Randal Smith. Motion carried 3-0.
Mr. Brubaker verified that Mr. Nachlinger is the permanent Treasurer of the Board
as noted in the bylaws.
C. Motion to approve the minutes of October 25, 2012
Lew Sellers moved to approve the minutes of October 25, 2012, seconded
by Randal Smith. Motion carried 3-0.
d. Setting of the 2013 Public Facilities District meeting schedule
The board members confirmed that the meetings for the year 2013 would be held
on April 25, July 25, and October 31.
e. Discussion of the Public Facilities District board vacancy — Ben Wolters
updated the board on the vacancy and qualifications. Mike Miller discussed a
specific person as a possible fit.
II. Finance Reports
a. City of Kent. Bob Nachlinger, Finance Director — Mr. Nachlinger
presented the City of Kent finance report and noted that the sales tax collections to
date from 2012 were $608,700. He added that he is expecting an additional
$70,000 to close out 2012 at around $680,000 which would represent a 4 percent
increase.
b. ShoWare Center. Patrick McCluskey, ShoWare Director of Finance
discussed the year to date loss of $706,000 and noted the variances. He noted that the
loss on paid attendance was $174,000 and that the B&O tax wasn't budgeted for. He
communicated that there were compressor repairs that were also done which weren't
budgeted to include having to repair broken plexiglass. Mr. Sellers inquired if the
plexiglass was under warranty and Mr. Wolters replied that the City would discuss it in
the future with the general contractor because the City feels that the subcontractor is
responsible for the problem. Mr. McCluskey continued and presented several graphs he
distributed to the attendees which included the ShoWare usage and income reports, to
include the budget. Mr. Nachlinger stated that the City includes admissions tax to the
final loss amount which would make the final loss amount on the City's budget about
$430,000. Mr. Randall communicated that the ShoWare is contributing to the amount
of consumers in the immediate area and that the restaurants are always full. Mr. Miller
inquired about the admissions tax and Mr. McCluskey confirmed that they are included
in the City's budget.
III. Operations Update
a. Operator Update. Tim Higgins, ShoWare General Manager — Mr.
Higgins stated that promoters are being cautious and won't book unless the risk is
shared. He noted that Comcast and other venues use the same philosophy. He
communicated that ShoWare has contacted promoters and stated that things have
picked up. He communicated that ShoWare is serious about booking quality
entertainment.
b. Marketing Update. Beth Sylves, ShoWare Director of Marketing — Ms.
Sylves displayed the City of Kent promotional video. She discussed the Pandora
Love on Ice video and communicated that the spot generated an increased amount
of traffic to the ShoWare website. She noted that the ShoWare has gotten more
into social media and highlighted the Constant Contact survey she passed out. She
discussed upcoming events to include high school playoffs and the Harlem
Globetrotters on Saturday, February 16 at 2:00 p.m. and 7:00 p.m. Other
upcoming events are college basketball featuring Seattle University. She added that
there is a faith-based culture event coming up. The Seattle Mist which has been
renamed the Legends Football League will be playing beginning in April. Community
events include the Chamber, U Me We, and other auction events to generate the
catering revenue. She discussed the $30K advertising budget and the 92.7 approval
rating for the venue. She highlighted the TV ratings survey.
C. City Update. Ben Wolters, Economic & Community Development
Director — Discussed the presentation to the City Council concerning economic
impact study and the recommendations from the Seattle Thunderbirds and the
ShoWare General Manager. He noted the meeting with the Operations Committee
and the discussion with the Council concerning SMG and that they will be sharing in
the risk with the promoters for upcoming shows at ShoWare. He stated that the
bottom line is in order to grow the concerts and have quality shows, the risk must
be shared between SMG and the promoters. This, he stated, should improve the
bottom line and grow the success of the ShoWare Center.
Randall Smith departed at 4:43 p.m.
IV. Seattle Thunderbirds Update
a. Sales, Marketing &Attendance Update. Colin Campbell, Vice President
/Assistant General Manager discussed the team and sponsorship. He noted that the
Muckleshoot Casino is still a sponsor and sponsorship is going well. He discussed
attendance and selling 4,100 tickets to last Tuesday's game. He highlighted
upcoming promotions and group nights. He discussed press releases and suite sales.
He noted that the team has donated over $150,000 back into the community and
over $120,000 has gone directly to Kent youth sports. Mike Miller inquired about
ticket sales and Mr. Campbell replied that they have been doing well. Comments
continued about how well attendance has been.
V. Other Business
Council President Higgins thanked the board members for their service and stated
that the Council is interested in making ShoWare a success. He communicated that
he will be at future meetings and is willing to work with anyone who wants to help
in the success.
VI. Adiournment
Meeting adjourned at 4:47 p.m.
Ronald F. Moore, MMC
Board Secretary
(CENT SPECIAL EVENTS CENTER
PUBLIC FACILITIES DISTRICT FUND (PFD)
June 30, 2013
Revenue & Debt Svc Fund
2008 2009 2010 2011 2012 2013
Actual Actual Actual Actual Actual Est Actual
Beginning Fund Balance 166,327 105,249 113,261 121,211 123,989
Revenues
Sales & Use Tax 786,843 576,296 622,136 649,277 677,937 681,870
Intergovernmental 3,072,614 3,129,437 3,093,077 3,064,025 3,133,750
Interest - Sales Tax 2,312 1,279 880 646 561 640
Total Revenues 789,155 3,65D,189 3,752,453 3,743,000 3,742523 3,816,260
Total Resouces 2,559,032 3,822,622 3,857,702 3,856,261 3,863,734 3,940,249
Expenditures
Services and Charges 758 1,505
Debt Service 2,392,705 3,716,815 3,744,441 3,735,050 3,738,240 3,812,428
Total Expenditures 2,392,705 3,717,573 3,744,441 3,735,050 3,739,745 3,812,428
Change in Fund Balance 166,327 (61,078) 8,012 7,950 2,778 3,832
Ending Fund Balance 166,327 105,249 113,261 121,211 123,989 127,821
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KENT EVENTS CENTER OPERATING FUND
Anne 30, 201.3
2009 2010 2011 2012 2013 2013
Actual Actual Actual Actual Budget Est Actual
Beginning Fund Balance (700,287) (1,025,923) (1,627,111) (1,910,845) (2,735,809) (2,735,809)
Revenues
Admissions Tax 259,156 199,199 193,900 281,458 350,000 288,000
SMG Income 200,000
Transfer In from GF 500,000 500,000
Total Revenues 259,156 199,1.99 193,900 281,458 1,050,000 788,000
Total Resources (441,131) (826,724) (1,433,211) (1,629,387) (1,685,809) (1,947,809)
Expenditures
Salaries & Benefits 69,783
Supplies 236
Services 545,773 842,763 477,634 1,092,422 510,000 505,094
Transfers Out 14,000
Total Expenditures 615,792 842,763 477,634 1,106,422 510,000 505,094
Change in Fund Balance (356,636) (643,564) (283,734) (824,964) 540,000 282,906
Ending Fund Balance (1,056,923) (1,669,487) (1,910,844) (2,735,809) (2,195,809) (2,452,903)
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ShoWare Center
Income Statement
For the Quarter Ending June 30,2013
April April May June Total YTD Total YTD
Actual Budget May Actual Budget June Actual Budget Actual Budget Variance
Direct Event Income
Rental Income $ 19,550 $ 24,000 $ 14,000 $ 37,500 $ 115,013 $ 101,500 $ 620,305 $ 559,103 $ 61,202
Service Revenue 4,505 2,409 65.67 600 1,773 3,800.00 49,607 48,888 720
Service Expenses (22,832) (25,775) (8,965) (32,355) (69,686) (72,140) (557,256) (533,682) (23,574)
Total Direct Event Income 1,223 634 5,101 5,745 47,100 33,160 112,656 74,308 38,348
Ancillary Income
F&B Concessions 25,104 36,873 (1,310) 15,604 41,545 41,050 290,089 296,062 (5,973)
F&B Catering 18,172 21,048 11,245 11,130 34,518 14,153 110,670 90,831 19,839
Novelty Sales 1,500 4,500 3,209 100 17,466 11,700 5,766
Total Ancillary Income 43,276 59,422 9,935 31,234 79,272 55,303 418,225 398,593 19,632
Other Event Income
Luxury Box Ticket Sales 3,180 7,700 2,000 9,276 6,400 17,090 26,600 (9,510)
Ticket Rebates 7,991 10,500 (48) 11,300 32,211 13,250 74,536 62,600 11,936
Facility Fees 9,223 14,400 831 9,400 19,721 10,600 121,619 110,427 11,192
Total Other Event Income 20,394 32,600 783 22,700 61,208 30,250.00 213,245 199,627 13,618
Total Event Income 64,892 92,655 15,819 59,678 187,580 118,713 744,127 672,528 71,598
Other Operating Income 51,620 46,817 48,995 46,817 41,495 46,817 342,064 338,058 4,006
Adjusted Gross Income 116,512 139,472 64,814 106,495 229,075 165,530 1,086,190 1,010,586 75,604
INDIRECT EXPENSES
Salaries&Wages 107,597 99,740 76,183 92,774 109,175 105,491 685,225 686,164 (939)
Payroll Taxes&Benefits 21,768 25,262 19,528 25,262 22,574 25,262 147,483 151,572 (4,089)
Labor Allocations to Events (17,027) (22,200) (8,419) (15,719) (35,587) (29,896) (234,797) (225,412) (9,385)
Net Salaries and Benefits 112,338 102,802 87,292 102,317 96,162 100,857 597,912 612,324 (14,412)
Contracted Services 10,089 10,464 12,070 12,464 9,220 10,464 60,580 64,784 (4,204)
General and Administrative 24,095 17,093 14,776 22,908 15,411 18,168 145,944 137,055 8,889
Operating 3,294 3,259 2,313 2,725 3,351 3,168 33,540 27,715 5,825
Repairs&Maintenance 4,411 3,667 3,808 6,167 2,396 3,467 25,042 26,902 (1,860)
Operational Supplies 3,590 3,750 2,368 3,650 6,796 3,450 27,954 23,798 4,156
Insurance 6,134 6,134 6,134 6,134 6,134 6,134 44,804 44,804 0
Utilities 38,614 21,000 19,477 19,700 25,592 21,200 216,180 197,900 18,280
SMG Management Fees 11,018 11,050 11,018 11,050 11,018 11,050 66,105 66,300 (195)
Total Indirect Expenses 213,583 179,219 159,256 187,115 176,080 177,958 1,218,060 1,201,582 16,478
Net Income(Loss) $ (97,071) $ (39,747) $ (94,442) $ (80,619) $ 52,995 $ (12,428) $ (131,870) S (190,996) $ 59,126
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ShoWare Center
Income Statement
For the Years Ended December 31, 2009 - 2012
2009 2010 2011 2012
Attendance 307,249 294,187 331,355 314,853
Total Event Income $ 1,191,563 $ 1,215,735 $ 1,295,904 $ 1,164,837
Other Operating Income 958,929 816,409 779,583 659,657
Adjusted Gross Income $ 2,150,492 $ 2,032,144 $ 2,075,487 $ 1,824,494
Total Operating Expenses $ 2,631,343 $ 2,459,263 $ 2,563,342 $ 2,532,035
Net Income(Loss) From Operations $ (480,851) $ (427,119) $ (487,855) $ (707,541)
Kent Fiscal Impact Revenue(Tax) $ 631,000 $ 513,000 $ 610,000 $ 573,000
Total Net Income(Loss) $ 150,149 $ 85,881 $ 122,145 $ (134,541)