HomeMy WebLinkAboutCity Council Committees - Public Facilities District Board - 10/29/2014 KENT
WAS-GIO.
Public Facilities District Board
Special Meeting Minutes
October 29, 2014
ShoWare Center
625 West James Street
Boardmembers present: Mike Miller, Cass Prindle, Lew Sellers, and Jeff
Piecewicz
Others present: ShoWare Center General Manager Tim Higgins, ShoWare
Director of Marketing Ryan Hart, Finance Director (Board Treasurer) Aaron
BeMiller, Economic and Community Development Director Ben Wolters,
City Clerk (Board Secretary) Ronald F. Moore and Reporter for the Kent
Reporter, Steve Hunter
I. Call to Order. The meeting was called to order by Chair Mike Miller at
4:00 p.m.
a. Introductions. Attendees introduced themselves.
b. New Board Treasurer, City of Kent Finance Director Aaron
BeMiller. BeMiller was introduced by Chair Miller.
c. Motion to approve the minutes of April 24 2014. Lew Sellers
moved to approve the minutes of April 24, 2014, seconded by Jeff
Piecewicz. Motion carried 4-0.
d. Position 5 term expiration. Chair Miller highlighted that
Position 5 which was held by Randall Smith expired on September 1,
2014. He stated that he has confirmed with Mr. Smith that he wishes to
continue serving on the board and Secretary Moore added that the
reappointment of Mr. Smith to Position 5 was on the Kent City Council
agenda for November 18.
U. Finance Reports.
a. City of Kent. Aaron BeMiller, Finance Director discussed the
2014 Exit Audit by the State Auditor's Office. He communicated that the
conference has been delayed. He discussed the Public Facilities District
Fund and communicated that the debt service amount is just under $3.8
million and the City is estimating a $745,000 from sales and use tax. He
added that at the end of 2014 the fund is estimated to be at$135,000. He
questioned if there was a minimum amount that the board wanted to keep
in the fund. Miller communicated that there wasn't a limit set and
confirmed that it could be used for debt, but some funds would be kept,
according to BeMiller.
Public Facilities District Special Meeting Minutes October 29, 2014
Piecewicz inquired if the debt rating has changed and BeMiller
communicated that it hasn't. BeMiller communicated that the $10 million
bond is almost paid off and the payments on the $53 million bond will
begin and there may be a way to lengthen the debt service, but reduce
the amount on an annual basis that needs to be paid.
Miller verified that the $10 million gets repaid with sales tax revenue and
confirmed that the sales tax credit lasts for 25 years.
Wolters communicated that there is interest among other public facility
districts to have an extension on their authority and when that happens
we will do the same to extend the term of our bond. He communicated
that the other entities are the facilities in Tri-Cities, Wenatchee, Spokane,
Everett, etc. He stated that the older facilities are leading the charge
because they need some major repairs on their facilities.
Miller confirmed that we have a fixed rate and the rates are still pretty
good. BeMiller confirmed that the rates are fixed, but they do change. He
said they increase to a curve that we agreed to and they are able to be
revised in 2019. At that time an analysis needs to be done to ascertain
what is sensible to do.
BeMiller communicated the Kent Event Center Operating Fund status. He
communicated that the 2014 estimated actuals are a negative $2.45
million and they are estimating $275,000 of admissions tax and $500,000
from the City's General Fund to help pay down that negative balance.
Additionally, he is estimating that the payments that will be made out are
just over $1 million. He noted that depending upon how the facility does
the rest of the year if the trend continues there will be a $230,000
negative change in fund balance and the facility would have an ending
fund balance of negative $2.7 million.
b. ShoWare Center. Arletta Voter, ShoWare Director of Finance
handed out the 3rd Quarter income statement. She announced that
September was slightly better than budget projections. She noted that
July was significantly less than budgeted due to cancellations and low
attendance at events that month. Tim Higgins, ShoWare General Manager
communicated that there are 45 events scheduled in 60 days. He
discussed and presented the facts about the compressor. Wolters
communicated that the City has written a demand letter to Mortensen
Construction and the contract was a maximum allowable construction cost
and a process to seek claims as long as the statute of limitations hadn't
expired. He noted that he has also written a letter to L&M and the demand
letter explains the City's point of view. Now, Mortensen is working with
their subcontractor to see what can be done and if they decide to do
nothing the bonds of Mortensen can be moved upon.
Sellers communicated that he appreciated the fact that this is listed as a
separate item on the income statement.
2
Public Facilities District Special Meeting Minutes October 29, 2014
Higgins replied to Piecewicz that a consultant was hired and a report was
generated for Mortensen and that the expenses listed are for the
replacement of the system on the compressor.
Wolters discussed the various issues with the facility and that the
consultant, PermaCold, has taken ownership of the issues have become a
partner to the facility. He added that PermaCold is suggesting changes to
the system to extend the life of the equipment at a cost of around
$30,000.
Higgins communicated that the ShoWare is very pleased with the
PermaCold consultants. Piecewicz confirmed that there should be a
reduction in operating costs.
Higgins communicated that the facilty costs about $1,000 for each hockey
game. He noted that the playoffs are not budgeted, so there will be a rise
in utility costs last season. However, the facility was open another 17 days
and brought in more revenue, he explained.
III. Operations Update.
a. General Manager/Marketing Update. Ryan Hart, ShoWare Director of
Marketing communicated that in September the Ringling Bros/Barnum
Bailey Circus was here and 12,000 people attended the four day event.
There were two successful concerts in October, he announced and 4,400
tickets have been sold for the Kray - Anomoly Tour. He communicated
that they are projecting the 2 millionth fan during the Disney on Ice event
and there are close to 1,000 more Facebook fans since the last meeting.
The first Seattle Impact game is on November 8 and Disney on Ice has 10
performances scheduled from November 12 - 17.
Meeting adjourned at 4:33 p.m.
a:- f
Ronald F. Mo'ore, MMC r
Board Secretary '
3
KENT PUBLIC FACILITIES DISTRICT
Sales Tax Collections
Inception to Date thru September 30, 2014
Collected For the
in Month of 2008 2009 2010 2011 2012 2013 2014
March January 68,928.08 43,938.87 43,066.80 47,395.15 46,602.21 51,168.67 54,393.18
April February 64,340.03 40,442.93 44,888.03 45,652.41 49,815.46 49,710.74 51,311.25
May March 77,107.07 47,073.92 55,381.54 54,357.38 54,277.64 59,046.95 63,646.55
June April 72,061.77 44,944.15 47,699.19 50,376.18 49,261.77 55,538.05 61,993.29
July May 73,138.12 45,221.78 47,255.93 54,864.70 56,321.68 60,088.10 64,218.58
August June 82,904.41 50,355.97 54,575.49 57,478.70 61,884.22 62,538.27 71,784.55
September July 61,870.79 47,063.45 52,789.08 52,706.22 57,393.92 62,625.41 67,029.60
October August 57,569.76 46,071.06 51,167.58 54,198.64 59,303.71 60,085.81
November September 63,238.50 60,040.81 59,765.33 59,118.63 61,748.38 62,922.07
December October 55,649.74 46,106.71 52,382.66 59,964.74 57,441.73 61,637.13
January November 48,144.96 41,577.34 49,791.39 50,966.32 54,623.15 55,475.85
February December 61,890.26 63,459.30 63,372.68 68,908.15 69,263.39 73,523.24
Total 786,843.49 576,296.29 622,135.70 655,987.22 677,937.26 714,360.29 434,377.00
KENT SPECIAL EVENTS CENTER
PUBLIC FACILITIES DISTRICT FUND (PFD)
September 30, 2014
2008 2009 2010 2011 2012 2013 2014
Actual Actual Actual Actual Actual Actual Est Actual
Beginning Fund Balance 166,327 105,249 113,261 121,211 123,989 130,696
Revenues
Sales &Use Tax 786,843 576,296 622,136 649,277 677,937 714,360 745,000
Intergovernmental 3,072,614 3,129,437 3,093,077 3,064,025 3,104,475 3;055,000
Interest-Sales Tax 2,312 1,279 860 646 561 300 240
Total Revenues 789,155 3,650,189 3,752,453 3,743,000 3,742,523 3,819,135 3,800,240
Total Resources 2,559,032 3,822,822 3,857,702 3,856,261 3,863,734 3,943,124 3,938,189
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
Total Expenditures 2,392,705 3,717,573 3,744,441 3,735,050 3,739,745 3,812,428 3,796,060
Change in Fund Balance 166,327 (61,078) 8,012 7,950 2,778 6,707 4,180
Ending Fund Balance 166,327 105,249 113,261 121,211 123,989 130,696 134,876
KENT EVENTS CENTER OPERATING FUND
September 30, 2014
2008 2009 2010 2011 2012 2013 2014 2014
Actual Actual Actual Actual Actual Actual Budget Est Actual
Beginning Fund Balance (700,287) (1,025,923) (1,627,111) (1,910,845) (2,735,808) (2,456,087) (2,456,087)
Revenues
Admissions Tax 259,156 199,199 193,900 281,458 251,405 400,000 275,000
SMG Income 200,000
Puget Sound Energy Grant 42,376
Transfer In from Lodging Tax 31,000
Transfer In from GF 500,000 500,000 500,000
Total Revenues - 290,156 241,575 193,900 281,458 751,405 1,100,000 775,000
Expenditures
Salaries & Benefits 69,783
Supplies 16,089 236
Services* 684,198 545,773 842,763 477,634 1,092,422 471,684 520,200 1,005,000
Transfers Out 14,000
Total Expenditures 700,287 615,792 842,763 477,634 1,106,422 471,684 520,200 1,005,000
Change in Fund Balance (700,287) (325,636) (601,188) (283,734) (824,964) 279,721 579,800 (230,000)
Ending Fund Balance (700,287) (1,025,923) (1,627,111) (1,910,844) (2,735,808) (2,456,087) (1,876,287) (2,686,087)
*2014 YTD Expenditures - thru 9/30/14 - $942,055
ShoWare Center
Income Statement
For the Quarter Ending September 30,2014
August August September September Total YTD Total YTD
July Actual July Budget Actual Budget Actual Budget Actual Budget Variance
Direct Event Income
Rental Income $ 12,000 $ 21,500 $ 35,737 $ 23,000 $ 58,430 $ 40,109 $ 541,368 $ 466,855 $ 74,513
Service Revenue 2,154 1,096 (443) - 9,762 3,919 83,651 41,739 41,912
Service Expenses (13,785) (21,206) (498) (17,027) (62,655) (32,939) (493,131) (390,932) (102,199)
Total Direct Event Income 369 1,390 34,796 5,973 5,537 11,089 131,888 117,662 14,226
Ancillary Income
F&B Concessions 10,579 29,957 0 17,972 29,411 20,735 376,271 377,600 (1,329)
F&B Catering 3,308 4,872 64 3,720 3,501 3,795 96,206 130,626 (34,420)
Novelty Sales - 1,350 - 0 900 3,893 7,750 (3,857)
Total Ancillary Income 13,887 36,179 64 21,692 32,912 25,430 476,370 515,976 (39,606)
Other Event Income
Luxury Box Ticket Sales 810 7,700 2,000 333 3,200 14,235 38,000 (23,765)
Ticket Rebates 1,679 14,750 (155) 3,250 6,274 4,500 38,397 71,950 (33,553)
Facility Fees 4,088 11,800 - 2,800 26,908 6,992 166,043 119,169 46,874
Total Other Event Income 6,577 34,250 (155) 8,050 33,515 14,692 218,675 229,119 (10,444)
Total Event Income 20,833 71,819 34,705 35,715 71,964 51,211 826,933 862,757 (35,824)
Other Operating Income 45,508 46,817 32,652 46,817 48,041 49,430 458,843 481,122 (22,279)
Adjusted Gross Income 66,341 118,636 67,357 82,532 120,005 100,641 1,285,776 1,343,879 (58,103)
INDIRECT EXPENSES
Salaries&Wages 93,327 83,238 94,369 88,917 126,987 90,700 974,943 918,442 56,501
Payroll Taxes&Benefits 19,745 28,654 17,482 28,654 25,626 28,654 205,314 257,886 (52,572)
Labor Allocations to Events (7,016) (11,409) (5,898) (14,822) (31,783) (16,878) (269,611) (262,321) (7,290)
Net Salaries and Benefits 106,056 100,483 105,953 102,749 120,830 102,476 910,646 914,007 (3,361)
Contracted Services 11,334 10,516 10,686 10,516 8,964 10,516 95,395 96,644 (1,249)
General and Administrative 12,541 19,436 9,439 17,936 13,801 18,696 188,732 191,655 (2,923)
Operating 6,484 6,067 3,144 3,975 12,746 6,367 60,193 50,418 9,775
Repairs&Maintenance 76,010 12,267 19,950 20,667 10,136 4,267 239,899 64,354 175,545
Operational Supplies 5,813 6,608 1,392 7,008 7,642 3,858 66,065 44,920 21,145
Insurance 7,333 6,134 7,332 6,134 7,513 6,134 72,136 63,206 8,930
Utilities 21,035 23,225 42,775 47,125 39,556 51,125 316,538 327,525 (10,987)
SMG Management Fees 11,183 11,271 11,183 11,271 11,183 11,271 100,645 101,439 (794)
Total Indirect Expenses 257,789 196,007 211,854 227,381 232,371 214,710 2,050,249 1,854,168 196,081
Net Income(Loss)from Operations $ (191,448) $ (77,371) $ (144,497) $ (144,849) $ (112,366) $ (114,069) $ (764,473) $ (510,289) $ (254,184)
Unanticipated Capital Expenses 182,373
Net Income(Loss)from Operations $ (191,448) $ (77,371) $ (144,497) $ (144,849) $ (112,366) $ (114,069) $ (582,100) $ (510,289) $ (71,811)
!
Operating Expenses
2,750,000
2,700,000 -- - --- - --- - - ---_ --- -------- ----..—_ —
i
2,650,000 - ----- ----- - -- --- ------- —,-----_
2,600,000
I
2,550,000 --- - -----.—_._---- _ _ — -- _ — _
- i
2,500,000
2,450,000 —_—. ---- - -- --
2,400,000
i
i
2,350,000
I
I
2,300,000 ______ __- -.--___-_ ---- ---_ —
FY2009 FY2010 FY2011 FY2012 FY2013 Forecast2014
Operating Expenses without Capital Expenses
2,650,000
i
' I
2,600,000 -_..— ---------- _---_ -- -------- - -- ----_ ._ _-- -._-__-
i
i
i
i
4,550,000 -- - -- -- --- -_ _ -- —_
-- —
I
2,500,000
;
I
2,450,000 : ::---- ---
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i
2,400,000 --- - —--.._. ----- — ---
i
f
2,350,000
FY2009 FY2010 FY2011 FY2012 FY2013 Forecast2014
Direct Event Income
160,000
140,000
120,000
100,000
80,000
60,000
40,000
2.0,000 ------
FY2009 FY2010 FY2011 FY2013 Forecast 2014
(20,000)
s
Utilities
500,000 _—_--
i
i
480,000 - _-.— -- ---------- _-----
1
460,000 ---- --- -- —._ —
i -
i
i
440,000 — --- ---- — ------- - g -- {
420,000 - - ------ -- -- - -- '
i
d
400,000 ----
i i
i
I
380,000 -- -- ---- —- -— I`
i
360,000
FY2009 FY2010 FY2011 FY2012 FY2013 Forecast2014
, ShoWare
KENT
Marketing Update through October 29, 2014
Attendance— Update
• 2011—381,159
• 2012—352,490
• 2013—371,545
• 2014—258,061 (7500 ahead of 2013 pace)
SOCIALIZE with ShoWare Center
Total Number of unique session visits to www.ShoWareCenter.com —2,210,735
o 2011 monthly average—37,393
o 2012 monthly average—39,804
o 2013 monthly average—37,141
o 2014 monthly average—37,313
Total Number of page views—25,827,413 (10.2 pages per visit)
AS OF TODAY- Facebook.com/ShoWareCenter:
• 7,815 Total Likes (up close to 1000 since last mtg)
• 2,013,590 Friends of Fans
• Includes apps for ticket sales, a-news sign-up
Twitter.com/ShoWareCenter:
• 6,816 Tweets
• 988 Following
• 1,557 Followers
Upcoming Ticketed Events
• Seattle Thunderbirds Hockey:
o Tbirds vs Edmonton —October 30
o Tbirds vs Vancouver—November 1
o Tbirds vs Red Deer—November 4
o Tbirds vs Spokane—November 21
• ShoWare Center in Kent -Washington's Premier Sports and Entertainment Venue •
1
o Tbirds vs Everett—November 22
o Tbirds vs Kootenay—November 29
o Tbirds vs Spokane—November 30
o Tbirds vs Tri-City—December 5
o Tbirds vs Medicine Hat—December 6
o Tbirds vs Portland — December 13
o Tbirds vs Victoria —December 16
o Tbirds vs Portland— December 27
o Tbirds vs Everett—December 30
• Seattle Impact FC Soccer:
o Impact FC vs San Diego— November 8 (Home Opener)
o Impact FC vs Turlock—November 28
o Impact FC vs Sacramento— December 7
o Impact FC vs Ontario —December 18
o Impact FC vs Sacramento— December 26
• Disney On Ice presents Let's Celebrate—November 12-17
• ShoWare College Classic: Seattle University vs. PLU Men's BBall —December 1
• 100.7 The Wolf—Hometown Holiday (ft. Lee Brice, Craig Morgan and more) — December 10
• 1964 The Tribute—December 11
• HOT 103.7— HOT House Party (ft. Bobby Brown, Ginuwine and more) — December 12
• Disney Live! Pirate & Princess Adventure—January 17
• Harlem Globetrotters— February 14
• Sesame Street Live—May 27-28
• Promise Keepers (Men's Faith Conference)—July 17-18
• Hello Kitty Supercute Friendship Festival—July 24-26
Upcoming Community & Catering Events
• ShoWalk, Monday & Wednesday mornings, 9a-11a —starting in November
• Greater Seattle Hockey League (GSHL) - Oct 29/ Nov 5, 20 & 25 / Dec 8 & 15 /Jan 8, 15, 22 & 27
• ShoWare College Classic: Seattle University vs. PLU Men's BBall —December 1
• Thunderbirds Season Ticket Holder Skate—December 14
• Exotic Metals: Employee Party— December 19
• ShoWare Shootout HS BBall — December 20
• Kent Chamber Membership Luncheon —January 7
• Kent School District Tech Expo—January 15
• Martin Luther King Showcase HS BBall —January 19
• You, Me, We event—January 30
• Washington FIRST Robotics State Championships—January 31
• ShoWare Center in Kent -Washington's Premier Sports and Entertainment Venue •
2
CENTER
^� SEATTLE ..r SEATTLE IMPACT
THUNDERBIRDS SEATTLE HOME OPENER
vs. EDM ONION vs. SAN DIEGO
ISEATTLEj '
Oct 30 ( 7:05pm Nov 8 1 7:30pm
$16 - $40 FC $9 - $39
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THUNDERS/RD5 ON SALE NOW! 2014 ON SALE NOW!
SEATTLE T-BIRDS �*. SEATTLE T-BIRDS DISNEY ON ICE
vs. VANCOUVER c, vs. RED DEER I�t'�Ct�± presents LET'S
Nov 1 1 7:05pm Nov 4 1 7:05pm i CELEBRATE!
/SEATTLE/ /SEATTLE/
: °tiet � Nov 12-17 1 Vary
ON SALE NOW! ON SALE NOW!
tiL. ON SALE NOW!
SEATTLE T-BIRDS SEATTLE IMPACTlilt
SEATTLE SEATTLE U. vs.
vs. SPOKANE vs. TURLOCK �E L PLU LUTES
/SEATTLE' Nov 21 1 7:35pm Nov 281 7:30pm Dec 1 17pm
_ FC
ON SALE NOWT r ON SALE NOW! l ON SALE SOON!
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100.7 THE WOLF - 1964 BEATLES HOT 103.7 FM—
��ra�+•••_ ��_,� HOME TOWN TRIBUTE HOT HOUSE PARTY
HO ;row HOLIDAY Dec 11 1 8pm `, —T Dec 121 7pm
HQl:..IDiTz Dec 10 1 8pm ON SALE NOW! � ON SALE NOW!
rs'
' ON SALE NOW!
DISNEY LIVE! r WA FIRST HARLEM
1 ' Pirate & Princess ROBOTICS STATE GLOBETROTTERS
Adventur CHAMPIONSHIPS B GLO TR�LT 4 Feb 141 2 &7pm
Jan 17 1 1,4 &7pm Jan 31 1 8am ~a~R ON SALE NOW!
ON SALE NOW! FREE TO PUBLIC!
o 01
. • • - - •
Tickets can be purchased at the ShoWare Center Box Office,ShoWareCenter.com, or by calling 866.973.9613.
Box Office Hours: Monday- Friday-- I Oa-5p/Box Office opens two hours before events
Ticket prices subjectto convenience fees. For • • Sales : Suites '- • • 1