HomeMy WebLinkAboutCity Council Committees - Public Facilities District Board - 10/29/2015 KENT
WASHINGTON
Public Facilities District Board
Special Meeting Minutes
October 29, 2015
4:00 p.m.
City of Kent
City Hall Campus
Centennial Building, Room 402
Boardmembers present: Lew Sellers, Randall Smith, and Jeff Piecewicz
Others present: ShoWare Center General Manager Tim Higgins, ShoWare
Center Director of Corporate Partnerships Jason Thomsen, ShoWare
Finance Director, Arletta Voter, City of Kent Finance Director (Board
Treasurer) Aaron BeMiller, City of Kent Economic and Community
Development Director Ben Wolters, City of Kent City Clerk (Board
Secretary) Ronald F. Moore, Reporter for the Kent Reporter, Steve Hunter,
and Cass Prindle
I. Call to Order. The meeting was called to order by Acting Chair Lew
Sellers at 4:00 p.m.
a. Motion to approve the special meeting minutes of April 304
2015. Jeff Piecewicz moved to approve the minutes of July 30,
2015, seconded by Randall Smith. Motion carried 3-0.
II. Financial Reports.
a. City of Kent. Aaron BeMiller, Finance Director (Treasurer)
discussed the Public Facilities District (PFD) Fund. He noted that sales tax
is doing well with an $850,000 estimate, $51,000 better than last year.
He added that there will be a debt service payment coming out. He added
that the sales tax to date variance between 2014 and 2015 has been
added to the report to include a year to date field. He stated that the
sales tax received is about 8 percent higher than last year. This, he stated
that the fund is about $33,000 better than compared to last year and
reviewed the Operating Fund, noting that the ending balance is $313,614.
Piecewicz verified that the $500,000 transfer to the Operating Fund
normally takes place between September through November.
Smith confirmed that there is a ten year loan in the contract for the
ShoWare to draw on for capital projects. Piecewicz noted that it is similar
to a line of credit.
Higgins added that there was a non-interest bearing loan that hasn't been
drawn upon which has been forgiven.
Public Facilities District Board Special Meeting Minutes October 29, 2015
Sellers verified the passage of the Eyeman initiative would restrict future
sales tax increases except through a supermajority of the legislation.
Sellers mentioned that he thought it would reduce the sales tax from 6.5
to 5.5 percent and BeMiller stated he was unsure.
b. ShoWare Center. Arletta Voter, ShoWare Director of Finance
communicated that it has been a good year and the adjusted gross
income is over budget by $120,000. She stated that expenses are under
by $23,000 and the overall estimate is that the PFD Fund is $313,000
under budget.
Voter replied to Piecewicz and stated that the more events the facility has
the higher the staffing costs are. Higgins explained that staffing includes
ushers, riggers, security, and vending personnel. He confirmed that
attendance of 6,000 is considered a sold out show and expenses are high
for staffing when there is a sellout. Higgins added that the amount of
staffing depends on the show and the event.
Smith confirmed that the ShoWare isn't self-insured and Voter confirmed
that the insurance claims are lower than in previous years. Smith inquired
about joining a consortium to reduce rates and Voter replied that the
ShoWare is a member of the SMG Group which operates about 70 venues.
BeMiller confirmed that the Eyeman legislation would reduce the sales tax
rate from 6.5 to 5.5 percent if the measure is approved by the voters.
III. Operations Update.
a. General Manager/Marketing Update. Tim Higgins, General
Manager communicated that there have been 70,000 people attending
events in the ShoWare Center this month and there should be over
400,000 this year. He noted that November 6 the Tacoma Stars Indoor
Soccer team will begin their season and the Tacoma Rainiers will be using
the front office to sell baseball tickets this year. Additionally, the Seattle
Thunderbirds are providing assistance to them. He communicated that the
Scorpions was a great show and the building was sold out with 6,300 in
attendance with this being last show in the United States before going to
Europe. Higgins communicated that he attended a conference the next
day and other venue owners were noting how well the show went. He
noted that Godsmack will be at the ShoWare and the Disney on Ice
"Frozen" show will sell over 50,000 tickets. He added that the Seattle Mist
won the Championship and there were four extra games at the facility due
to their success. He stated that the WOLF "Hometown" Holiday show was
expanded to 3,500 tickets and will be a sold out event. He noted that the
Chamber Expo was at the event and that the Frankie Beverly and Maze
show went very well. The Harlem Globetrotters will be at the facility on
February 12 and 15. He mentioned the "Peppa Pig Live" event and
basketball with Seattle University will occur in March. He discussed the
ShoWare Shootout High School Basketball event on December 19 and the
Martin Luther King Showcase High School Basketball event on January 18.
Finally, the Washington FIRST Robotics State Championship event is on
January 30. Higgins also noted that the facility will be working with a Kent
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Public Facilities District Board Special Meeting Minutes October 29, 2015
company to convert and install LED lights and digital menu boards in the
concession stands within six weeks.
Sellers confirmed that this is a capital expense and it will utilize the funds
that are available from SMG.
b. City Update - Ben Wolters said the City is working to
communicate the success the ShoWare has had this year. He noted that
the Lodging Tax Advisory Committee has some funds to do a broadened
marketing campaign for the facility and that the ShoWare is one of the
ways the City markets itself. He discussed a claim and the issues with the
hot water heaters and dehumidifier. He explained that the claim was
settled on the dehumidifier and there is a new three year warranty that
has been put in place. He also noted that the hot water heater has also
been settled in the amount of around $29,000. He communicated that the
issues on the zambonis has been addressed for another year and they will
be replaced next year. He added that Law and Risk Management will be
going into mediation tomorrow on another claim. Finally, he
communicated that there may be a solution to the failing lights in the
plaza. He said SMG was asked about installing LED lighting there and they
have been testing them. He stated they have been working out well so
far. Additionally, he communicated that the cost to install all the puck
lights in the plaza would be less than $10,000. Higgins noted that the
work would be done in-house and paid for through the SMG contract.
C. Seattle Thunderbirds Update. Jason Thomsen stated that
this has been a very good hockey season thusfar. He noted that there
were 5,000 at the facility last Tuesday night for the game and ticket sales
have been strong. He added that Heritage Bank has been a great sponsor
and they have established "The Heritage Club" in the upstairs of the
facility. He noted that Heritage Bank is very excited about doing more
with the facility. He stated that the Muckleshoot partnership is continuing
with a possible three year extension. He stated that "Pink the Rink" was a
success with a strong crowd raising over $24,000 for Valley Medical
Center (VMC). He communicated that VMC is opening up negotiations
again to become a stronger partner.
Wolters stated that in the past few years the team has done well in
obtaining more interest from other cities and inquired how the team is
doing with their advertising.
Thomsen replied that the partnership with Oberto is going well and there
has been some success. However, they are still looking for more Kent
businesses to become involved. He added that the building sells itself and
once business owners are here, businesses want to get involved. He
stated that getting the initial call into the business owner is the biggest
challenge, but again, once they come in, they want to be here.
Wolters added that now is the time to build these business opportunities
and broaden the ShoWare Center's reach.
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Public Facilities District Board Special Meeting Minutes October 29, 2015
Sellers confirmed that individual game suite sales are doing very well and
there is limited inventory through the month of November. He noted that
there are still full season suite packages for sale.
Meeting adjourned at 4:52 p.m.
Ronald F. ore, C
Board S reta ry
4
KENT SPECIAL EVENTS CENTER
PUBLIC FACILITIES DISTRICT FUND (PFD)
September 30, 2015
2008 2009 2010 2011 2012 2013 2014 2015
Actual Actual Actual Actual Actual Actual Actual Est Actual
Beginning Fund Balance 166,327 105,249 113,261 121,211 123,989 130,696 164,091
Revenues
Sales & Use Tax 786,843 576,296 622,136 649,277 677,937 714,360 799,323 815,000
Intergovernmental 3,072,614 3,129,437 3,093,077 3,064,025 3,104,475 3,029,824 3,065,000
Interest - Sales Tax 2,312 1,279 880 646 561 300 308 310
Total Revenues 789,155 3,650,189 3,752,453 3,743,000 3,742,523 3,819,135 3,829,456 3,880,310
Total Resources 2,559,032 3,822,822 3,857,702 3,856,261 3,863,734 3,943,124 3,960,152 4,044,401
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 3,796,060 3,881,000
Total Expenditures 2,392,705 3,717,573 3,744,441 3,735,050 3,739,745 3,812,428 3,796,060 3,881,000
Change in Fund Balance 166,327 (61,078) 8,012 7,950 2,778 6,707 33,395 (690)
Ending Fund Balance 166,327 105,249 1131261 121,211 123,989 130,696 164,091 163,401
1 10/29/15
KENT PUBLIC FACILITIES DISTRICT
Sales Tax Collections
Inception to Date thru September 30, 2015
Rec'd From For the 2014-2015 Percent
State Month of 2010 2011 2012 2013 2014 2015 Variance Change
March January 43,066.80 47,395.15 46,602.21 51,168.67 54,393.18 62,093.69 7,700.51 14%
April February 44,888.03 45,652.41 49,815.46 49,710.74 51,311.25 62,665.01 11,353.76 22%
May March 55,381.54 54,357.38 54,277.64 59,046.95 63,646.55 66,367.08 2,720.53 4%
June April 47,699.19 50,376.18 49,261.77 55,538.05 61,993.29 65,371.95 3,378.66 5%
July May 47,255.93 54,864.70 56,321.68 60,088.10 64,218.58 64,346.46 127.88 00/0
August June 54,575.49 57,478.70 61,884.22 62,538.27 71,784.55 74,724.59 2,940.04 40/D
September July 52,789.08 52,706.22 57,393.92 62,625.41 67,029.60 71,400.46 4,370.86 7%
October August 51,167.58 54,198.64 59,303.71 60,085.81 65,322.35
November September 59,765.33 59,118.63 61,748.38 62,922.07 73,134.60
December October 52,382.66 59,964.74 57,441.73 61,637.13 82,496.84
January November 49,791.39 50,966.32 54,623.15 55,475.85 63,529.29
February December 63,372.68 62,197.75 69,263.39 73,523.24 80,463.26
Total 622,135.70 649,276.82 677,937.26 714,360.29 799,323.34 466,969.24
September YTD 345,656.06 362,830.74 375,556.90 400,716.19 434,377.00 466,969.24 32,592.24 8%
2 10/29/15
SHOWARE CENTER OPERATING FUND
Sepember 30, 2015
2010 2011 2012 2013 2014 2015 2015 2015
Actual Actual Actual Actual Actual Budget YTD Est Actual
Beginning Fund Balance (1,025,923) (1,627,111) (1,910,845) (2,735,808) (2,456,087) 19,990 19,990 19,990
Revenues
Admissions Tax 199,199 193,900 2811458 251,405 256,124 259,325 117,944 258,000
SMG Income 200,000 -
Puget Sound Energy Grant 42,376
Transfer In from GF 500,000 3,200,000 500,000 500,000 500,000
Total Revenues 241,575 193,900 281,458 751,405 3,456,124 959,325 617,944 758,000
Expenditures
Salaries & Benefits
Supplies
Services 842,763 477,634 1,092,422 471,684 972,046 528,003 464,376 464,376
Capital Outlay 8,000
Transfers Out 14,000
Total Expenditures 842,763 477,634 1,106,422 471,684 980,046 528,003 464,376 464,376
Change in Fund Balance (601,188) (283,734) (824,964) 279,721 2,476,077 431,322 153,568 293,624
Ending Fund Balance (1,627,111) (1,910,844) (2,735,808) (2,456,087) 19,990 451,312 173,558 313,614
3 10/29/15
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Total Attendance — 2,454,990
• 2011 — 381,159
• 2012 — 352,490
• 2013 — 371,545
• 2014 — 370,015
• 2015 — 305,901 (30k+ ahead of 2014 pace)
SOCIALIZE with ShoWare Center
Total Number of unique session visits to www.ShoWareCenter.com — 2,616,045
0 2011 monthly average — 37,393
0 2012 monthly average — 39,804
0 2013 monthly average — 37,141
0 2014 monthly average — 37,313
0 2015 monthly average — 38,211
Total Number of page views — 27,004,391 (9.8 pages per visit)
AS OF TODAY — Facebook.com/ShoWareCenter:
• 10,429 Total Likes (Increase of 1000+ since last mtg)
• 2,868,093 Friends of Fans
• Includes apps for ticket sales, a-news sign-up
Twitter.com/ShoWareCenter:
• 7,356 Tweets
• 999 Following
• 1,717 Followers
98032Ph 253.856.6999 ShoWareCenter.com
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ShoWare Center Recent News / Highlights:
• 2015 shaping up to be busiest year in ShoWare Center history with more than 180
events and current projections to finish at over 400,000 in attendance for the year
• Professional indoor soccer is back in Kent! Tacoma Stars Home Opener, and MASL debut,
scheduled for next Friday, November 6 versus Sacramento.
■ 3 home games on the calendar at ShoWare Center before the end of 2015,
and 6 more in the 1s' Qtr of 2016
• Seattle Thunderbirds annual GLOW Pink The Rink game held on November 21
■ Team wore special pink trimmed jerseys that were auctioned off after the game
■ Event raised $24,000 for Valley Medical Center's uncompensated care program
• Scorpions close out final U.S. stop on their 50t" Anniversary Tour in Kent with a
completely sold-out crowd — approximately 6300 fans in attendance
• Over 35,000 tickets already sold for Disney On Ice presents Frozen in November
■ All 12 performances anticipated to be sold-out in advance
• Seattle Mist celebrate first Legends Cup trophy in team history in front of home crowd
at ShoWare Center on August 23
• 100.7 The Wolf— Hometown Holiday sells out after only a few weeks, show recently
added additional seats to the side of the stage to meet demand
• 7 concerts held at ShoWare Center just since last PFD board meeting, plus an 8t" when
Godsmack comes to Kent next week
• Kent Chamber of Commerce host annual Business Expo on October 20 with more than 80
vendors and several thousand guests in attendance to check out what each was offering
• Fans of R&B legend Frankie Beverly to see him on September 19, along with his band
(Maze) and special guests KeKe Wyatt, Kelly Price and Seattle's own Mycle Wastman
■ All 20 ShoWare Center suites in use for event
• Providence Health & Services hosts Caregivers Community Day on October 5 with the
goal to inform, inspire and engage caregivers in the area — over 2,500 guests in attendance
ShoWare Center - 625 W James St - Kent, WA 98032
Upcoming Ticketed Events
• Seattle Thunderbirds Hockey:
■ Tbirds vs Swift Current— November 17
■ Tbirds vs Portland — November 21
■ Tbirds vs Vancouver— November 27
■ Tbirds vs Moose Jaw— November 28
■ Tbirds vs Tri-City— December 5
■ Tbirds vs Spokane — December 11
■ Tbirds vs Everett— December 12
■ Tbirds vs Prince George — December 15
■ Tbirds vs Tri-City— December 18
■ Tbirds vs Spokane — December 29
■ Tbirds vs Tri-City—January 2
• Tacoma Stars Soccer:
■ Stars vs Sacramento — November 6
■ Stars vs Soles De Sonora — November 20
■ Stars vs Dallas — December 4
■ Stars vs Dallas — December 6
■ Stars vs San Diego —January 3
• Godsmack w/ Red Sun Rising — November 3
• Disney On Ice presents Frozen — November 11-16 (12 performances)
• 100.7 The Wolf - Hometown Holiday— December 9
• Disney Live! —January 16
• Harlem Globetrotters — February 12 & 15
• Peppa Pig Live: Peppa Pig's Big Splash — March 3
Upcoming Community & Catering Events
• ShoWalk, Monday & Wednesday mornings, 9a-11a — starting in November
• Greater Seattle Hockey League (GSHL):
■ November 1, 2, 8, 18, 19, 22, 23, 29 & 30
■ December 7, 8, 14, 16 & 20
• ShoWare College Classic: Seattle University Basketball
■ Seattle U. (Men's) vs. University of Great Falls — November 25
■ Seattle U. (Women's) vs Denver University— December 3
■ Seattle U. (Men's) vs. Northwest Indian College — December 17
• Kent Chamber Membership Luncheon — December 2
• Thunderbirds Season Ticket Holder Skate — December 13
• ShoWare Shootout HS BBall — December 19
• Martin Luther King Showcase HS BBall —January 18
• Washington FIRST Robotics State Championships —January 30
ShoWare
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GODSMACK TACOMA STARS
w/ RED SUN RISING HOME OPENER
vs. SACRAMENTO
NOV 3 1 8PM
�� NOV 6 1 7:35PM
$27.50 - $55
$9 - $22.50
ON SALE NOW! ON SALE NOW!
DISNEY ON ICE SEATTLE T-BIRDS TACOMA STARS
presents FROZEN vs. SWIFT CURRENT vs. SOLES DE
SONORA
Nov 11-161 Vary Nov 171 7:05PM
/SEATTLE�` �,� Nov 20 1 7:35PM
LIMITED TICKETS - ON SALE NOW!
AVAILABLE! ON SALE NOW!
SEATTLE T-BIRDS SEATTLE T-BIRDS r SEATTLE T-BIRDS
vs. PORTLAND &1 vs. VANCOUVER vs. MOOSE JAW
ISEATTLEl Nov 21 1 7:05PM AEATTLE/ Nov 271 7:35PM /SEATTLEj` Nov 281 7:05PM
�4 d, ON SALE NOW! ON SALE NOW! ON SALE NOW!
TACOMA STARS =!�a„� , 100.7 The Wolf— DISNEY LIVE!
-A , vs. DALLAS � Hometown Holiday r� h �;t ,��� Mickey&Minnie's
Doorway to Magic
Dec 9 1 8PM
Dec 4 1 7:35PM r Jan 16 1 1,4 & 7PM
/•7 ON SALE NOW! ��' "' ' "�'` ON SALE NOW!
�,;:...; -tee ON SALE NOW!
HARLEM PEPPA PIG LIVE! Follow us
aARLEMs GLOBETROTTERS ; t _? PEPPA PIG'S B►G
Feb 121 7PM & SPLASH! on Instagram
Feb 151 2PM
Mar 3 1 6PM @ShoWareCenter
--YEARS-
ON SALE NOW! ON SALE NOW!
Tickets can be purchased at the ShoWare Center Box Office,ShoWareCenter.com,or by calling 866.973.9613.
Box Office Hours: •. • . 1. • Box Office opensbefore events
Ticket prices subject to convenience fees.For Group Sales&Suites Rentals,call 253.856.6705.
Hostyour next Corporateor • • 1 . •
ShoWare Center
Income Statement
For the Quarter Ending September 30,2015
August August September September Total YTD Total YTD
July Actual July Budget Actual Budget Actual Budget Q3 Actual Q3 Budget Variance Actual Budget Variance
Direct Event Income
Rental Income $ 44,923 $ 35,000 $ 27,586 $ 4,200 $ 81,283 $ 70,286 $ 153,792 $109,486 $ 44,306 $ 658,705 $ 536,129 $ 122,576
Service Revenue 3,404 2,440 1,495 - 43,843 (831) $ 48,742 $ 1,609 $ 47,133 116,958 45,683 71,275
Service Expenses (18,610) (27,689) (38,067) (3,100) (127,390) (61,400) $(184 067) $ (92,189) $ (91,878) (593,531) (471,891) (121,640)
Total Direct Event Income 29,717 9,751 (8,986) 1100 (2,264) 8,055 18,467 18,906 (439) 182,132 109,921 72,211
Ancillary Income
F&B Concessions 12,693 19,889 44,613 34,960 33,870 $ 92,266 $ 53,759 $ 38,507 419,472 402,218 17,254
F&B Catering (3,712) 1,379 3,913 1,297 881 4,361 $ 1,082 $ 7,037 $ (5,955) 88,068 92,153 (4,085)
Novelty Sales 91 - 1,604 - 1,332 - $ 3,027 $ - $ 3,027 12,882 6,220 6,662
Total Ancillary Income 9,072 21,268 50,130 1,297 37,173 38,231 96,375 60,796 35,579 520,422 500,591 19,831
Other Event Income
Luxury Box Ticket Sales 418 2,750 5,447 - 8,365 3,539 $ 14,230 $ 6,289 $ 7,941 19,757 9,539 10,218
Ticket Rebates 7,586 11,455 18,157 17,961 5,449 $ 43,704 $ 16,904 $ 26,800 90,928 68,354 22,574
Facility Fees 11,106 13,775 16,350 21,929 19,578 $ 49,385 $ 33,353 $ 16,032 160,274 149,051 11,223
Total Other Event Income 19,110 27,980 39,954 48,255 28,566 107,319 56,546 50,773 270,959 226,944 44,015
Total Event Income 57,899 58,999 81,098 2,397 83,164 74,852 222,161 136,248 85,913 973,513 837,456 136,057
Other Operating Income 46,357 46,817 49,130 46,817 45,782 49,430 $ 141,269 $143,064 $ (1,795) 465,286 481,121 (15,835)
Adjusted Gross Income 104,256 105,816 130,228 49,214 128,946 124,282 363,430 279,312 84,118 1,438,799 1,318,577 120,222
INDIRECT EXPENSES
Salaries&Wages 82,535 84,882 78,324 78,404 104,995 99,619 $ 265,854 $262,905 $ 2,949 965,71 I 937,792 27,919
Payroll Taxes&Benefits 20,095 26,985 24,053 26,985 21,040 26,985 $ 65,188 $ 80,955 $ (15,767) 201,115 242,865 (41,750)
Labor Allocations to Events (22,016) (14,195) (25,184) (3,703) (33,850) (27,100) $ (81,050) $ (44,998) $ (36,052) (315,053) (290,456) (24,597)
Net Salaries and Benefits 80,614 97,672 77,193 101,686 92,185 99,504 249,992 298,862 (48,870) 851,773 890,201 (38,428)
Contracted Services 9,298 8,323 10,292 8,323 8,983 8,323 $ 28,573 $ 24,969 $ 3,604 87,200 76,907 10,293
General and Administrative 4,884 19,786 22,999 18,036 32,248 19,271 $ 60,131 $ 57,093 $ 3,038 188,039 202,555 (14,516)
Operating 2,427 6,317 3,279 4,225 4,709 6,617 $ 10,415 $ 17,159 $ (6,744) 47,626 52,668 (5,042)
Repairs&Maintenance 10,920 12,267 12,516 20,667 10,600 4,267 $ 34,036 $ 37,201 $ (3,165) 85,826 64,103 21,723
Operational Supplies 5,361 6,358 6,960 6,758 9,199 3,608 $ 21,520 $ 16,724 $ 4,796 49,032 47,168 1,864
Insurance 12,381 8,166 8,350 8,166 7,840 8,166 $ 28,571 $ 24,498 $ 4,073 81,576 81,494 82
Utilities 29,946 27,733 43,256 46,733 40,997 50,733 $ 114,199 $125,199 $ (11,000) 337,671 337,597 74
Other - - - - - $ $ $
SMG Management Fees 11,271 11,271 11,271 11,271 11,271 11,271 $ 33,813 $ 33,813 $ 101,439 101,439
Total Indirect Expenses 167,102 197,893 196,116 225,865 218,032 211,760 581,250 635,518 (54,268) $ 1,830,182 S 1,854,132 $ (23,950)
Net Income(Loss)from Operations $(62 846) $(92 077) $(65,888) $(176,651) $(89,086) $(87,478) $(217,820) $(356,206) $ 138,386 $ (391,383) $ (535,555) S 144,172
Admission Tax 169,767 169,767
Net Income(Loss) S (221,616) $ 313,939