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HomeMy WebLinkAboutCity Council Committees - Public Facilities District Board - 01/30/2014 KENT W ASNIH OtON Public Facilities District Board Minutes January 30, 2014 ShoWare Center 625 West James Street Board Members present: Mike Miller, Cass Prindle, Lew Sellers, and Jeff Piecewicz Others present: ShoWare General Manager Tim Higgins, ShoWare Director of Finance Arletta Voter, ShoWare Director of Marketing Ryan Hart, Seattle Thunderbirds Vice President / Assistant General Manager Colin Campbell, Seattle Thunderbirds Director of Ticket Sales Sean Runnels, Councilmember Jim Berrios,.Finance Director (Board Treasurer) Robert Nachlinger, Assistant Finance Director Paula Barry, Acting City Attorney Pat Kirkpatrick, Economic and 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 4:02 p.m. a. Introductions. Participants introduced themselves. b. Motion to approve the minutes of July 25, 2013 and October 24, 2013. Mike Miller moved to approve the minutes of July 25, 2013 and October 24, 2013, seconded by Cass Prindle. Motion carried 4-0. II. Finance Reports a. City of Kent. Ben Wolters, Economic and Community Development Director discussed the retirement of Bob Nachlinger and communicated that this is his last meeting. He communicated that he will miss him and wished him well. Miller communicated that anytime he needed anything from him he got it in a timely manner. He thanked him for all of his work and Wolters gave the details of a farewell celebration for him at City Hall. Bob Nachlinger, Finance Director introduced Paula Barry, Assistant Finance Director. He discussed the financial documents and reviewed the Public Facilities District fund, sales tax collections, and the ShoWare Operating Fund. Miller confirmed with Nachlinger that the sales tax revenues are utilized to pay for the revenue bonds. He added that the sales tax numbers are looking better and Nachlinger verified that they have been getting better every year since 2009. Prindle communicated that the operating fund and the sales tax mirror in this and other industries are doing as well as can be expected. b. ShoWare Center. Tim Higgins, General Manager highlighted the income statement for the facility and that the facility budget for the fiscal year ending 2013 was $495,000 which meant a loss of $370,000 based on the actuals. Higgins discussed the compressor issue and noted that it is something they are working on. Wolters further explained that the claim is estimated to be $150,000 and the work was 1 covered by a bond, so there will be negotiations with the bond company about it in the future. Wolters also inquired if the B&O tax has stabilized and if there was a refund coming to the ShoWare. Higgins communicated that there was a refund of $45,000 even though the State favored with the ticketing company. Piecewicz confirmed with Higgins that the claim on the bond is for the repairs on the compressor. Berrios confirmed with Higgins that the system that assists with the ice had water left in it when it was delivered and the company who delivered it didn't clear the moisture from the system. Higgins noted that over time, the system freezes and it is an ongoing issue. Higgins added that there have been significant band aids put into fixing the system. He confirmed that the compressor costs about $1 million. Wolters responded that the claim is for improper installation of the compressor. He stated it is difficult to get moisture out of the system and it is corroded now. He noted that the corrosion has caused the system to seize repeatedly. Additionally, he said he would be working with McInstry on a permanent fix to this. Berrios confirmed with Wolters that the warranty is for one year and the bond term against defects is seven years. Wolters added that the City is issuing a claim letter soon. Piecewicz confirmed that the claim for this issue would need to be filed within seven years. Mr. Wolters added that the claims company is probably going to want the City to settle and agree not to issue any further claims. Higgins communicated that there were 177 events last year and the capacity is 365 per year. He stated that this number of events is comparable to previous years. Miller communicated that compared to other comparable facilities that number is right on. Higgins added that the same ShoWare crew has been here all year and there hasn't been any changeover in personnel because the facility is booked. Higgins communicated the budget and predicted a net income loss of $484,949 and responded to Sellers that it would take seven sell out events or the Thunderbirds making it to the finals to bring the net income loss amount down to zero. Wolters also noted that generally the numbers industry-wide are down by a third. Higgins added that the community events don't bring in revenues, but they solidify the relationship with the residents. He said that there are seventeen graduations between eleven schools scheduled in 2014. He confirmed that there were fifteen or sixteen graduations at the ShoWare in 2013. Miller communicated that the year-to-date loss of $370,000 doesn't include admission sales taxes. He stated that an estimate for admission sales taxes is $180,000, which would cut the loss amount in half. Wolters communicated that the budget of the ShoWare was adopted as a part of the SMG Agreement. He also stated that the City is looking at the maintenance and operating costs and the cost to repair the major items going forward as a part of the City's capital budget. 2 III. Operations Update a. General Manager/Marketing Update. Ryan Hart, ShoWare Director of Marketing commented that 371,545 people have come to the ShoWare this year and 1,853,796 have been there since the building opened. He noted that there are 6,604 "Likes" on Facebook, 1,000 more since the last meeting. He discussed the 5th Anniversary event and that Mayor Cooke attended. He discussed the "open" ice event and that it is important to share the facility with the community. As far as the Thunderbirds, he said there are 12 home games left in 2014, The Harlem Globetrotters, Bee Gees tribute, Led Zepplin, Crossfit, and seventeen graduations in June will occur at the ShoWare, he said. Higgins also communicated that there are a lot of "hold" dates in the fourth quarter. Berrios inquired what revenues were received from the CrossFit event and Higgins replied that it is primarily a rental with more health-oriented food brought in for the participants. Sellers communicated that there are at least four playoff games for the Thunderbirds right now. b. City Update. Ben Wolters, Economic and Development Director discussed this being the final year in the current contract with SMG to operate the building. He stated he will be discussing it with the Council and explore what a contract extension will consist of. The key question is does the City go out for an RFP or do a renewal agreement with SMG. IV. Seattle Thunderbirds Update a. Sales, Marketing & Attendance Update. Miller commented that the team is doing well and they sold out last Saturday and they are in first place in their league. Wolters communicated that Campbell said he has seen an increase of suite sales which has also led to an increase of advertising sales. Berrios verified that a sellout is 6,200 in attendance and currently eight sellouts out of 20 games. V. Other Business None. VI. Adjournment Miller confirmed that the next meeting is on April 24, 2014. Meeting adjourned at 4.45 p.m. Ronal F. oore, C Board cretary, 3 KENT SPECIAL EVENTS CENTER PUBLIC FACILITIES DISTRICT FUND (PFD) December 31, 2013 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 786,843 576,296 622,136 649,277 677,937 709,248 Intergovernmental 3,072,614 3,129,437 3,093,077 3,064,025 3,104,475 Interest - Sales Tax 2,312 1,279 880 646 561 315 Total Revenues 789,155 3,650,189 3,752,453 3,743,000 3,742,523 3,814,200 Total Resources 2,559,032 3,822,822 3,857,702 3,856,261 3,863,734 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 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 1,772 Ending Fund Balance 166,327 105,249 113,261 121,211 123,989 125,761 Kent Public Facilities District Sales Tax Collections Inception to Date Collected For the 2008 2009 2010 2011 2012 2013 Net.Chg. Net.Chg. Net.Chg. Net.Chg. Net.Chg. in Month of 2008-09 2009-10 2010-11 2011-12 2012-13 March January 68,928.08 43,938.87 43,066.80 47,395.15 46,602.21 51,168.67 -36.25% -1.98% 10.05% -1.67% 9.80% April February 64,340.03 40,442.93 44,888.03 45,652.41 49,815.46 49,710.74 -37.14% 10.99% 1.70% 9.12% -0.21% May March 77,107.07 47,073.92 55,381.54 54,357.38 54,277.64 59,046.95 -38.95% 17.65% -1.85% -0.15% 8.79% June April 72,061.77 44,944.15 47,699.19 50,376.18 49,261.77 55,538.05 -37.63% 6.13% 5.61% -2.21% 12.74% July May 73,138.12 45,221.78 47,255.93 54,864.70 56,321.68 60,088.10 -38.17% 4.50% 16.10% 2.66% 6.69% August June 82,904.41 50,355.97 54,575.49 57,478.70 61,884.22 62,538.27 -39.26% 8.38% 5.32% 7.66% 1.06% September July* 61,870.79 47,063.45 52,789.08 52,706.22 57,393.92 62,625.41 -23.93% 12.17% -0.16% 8.89% 9.12% October August 57,569.76 46,071.06 51,167.58 54,198.64 59,303.71 60,085.81 -19.97% 11.06% 5.92% 9.42% 1.32% November September 63,238.50 60,040.81 59,765.33 59,118.63 61,748.38 62,922.07 -5.06% -0.46% -1.08% 4.45% 1.90% December October 55,649.74 46,106.71 52,382.66 59,964.74 57,441.73 61,637.13 -17.15% 13.61% 14.47% -4.21% 7.30% January November 48,144.96 41,577.34 49,791.39 50,966.32 54,623.15 -13.64% 19.76% 2.36% 7.17% February December 61,890.26 63,459.30 63,372.68 68,908.15 69,263.39 2.54% -0.14% 8.73% 0.52% Total 786,843.49 576,296.29 622,135.70 655,987.22 677,937.26 585,361.20 -26.76% 7.95% 5.44% 3.35% -13.66% %annual change -26.76% 7.95% 5.44% 3.35% -13.66% * -Sourcing of sales tax went from origin to destination base on July 1, 2008 1/22/2014 Kent Public Facilities District Sales Tax Collections 2008 to Date 90,000 80,000 70,000 2008 c 60,000 2009 � 2010 50,000 2011 2012 40,000 2013 30,000 J air ��` �a� � A 1/23/2014 Kent Public Facilities District Cumulative Sales Tax Collections 900,000 800,000 700,000 600,000 - —2008 500,000 —2009 —2010 400,000 —2011 300,000 —2012 2001000 —2013 100,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1/23/2014 KENT EVENTS CENTER OPERATING FUND December 31, 2013 2010 2011 2012 2013 2013 2014 Actual Actual Actual Budget Est Actual Budget Beginning Fund Balance (1,025,923) (1,627,111) (1,910,845) (2,735,809) (2,735,809) (2,536,662) Revenues Admissions Tax 199,199 193,900 281,458 350,000 204,241 400,000 SMG Income 200,000 200,000 Transfer In from GF 500,000 500,000 500,000 Total Revenues 199,199 193,900 281,458 1,050,000 704,241 1,100,000 Total Resources (826,724) (1,433,211) (1,629,387) (1,685,809) (2,031,568) (1,436,662) Expenditures Salaries & Benefits Supplies Services 842,763 477,634 1,092,422 510,000 505,094 520,200 Transfers Out 14,000 Total Expenditures 842,763 477,634 1,106,422 510,000 505,094 520,200 Change in Fund Balance (643,564) (283,734) (824,964) 540,000 199,147 579,800 Ending Fund Balance (1,669,487) (1,910,844) (2,735,809) (2,195,809) (2,536,662) (1,956,862) 1/29/2014 ShoWare Center Income Statement For the Quarter Ending December 31, 2013 October October November November December December Total YTD Total YTD Actual Budget Actual Budget Actual Budget Actual Budget Variance Direct Event Income Rental Income $ 91,175 $ 96,598 $ 178,434 $ 136,928 $ 73,796 $ 61,212 $ 1,089,555 $ 923,784 $ 165,771 Service Revenue 4,909 11,229 20,786 13,988 7,275 12,433 123,645 91,158 32,487 Service Expenses (80,725) (105,653) (187,310) (126,402) (120,129) (81,172) (1,075,601) (905,425) (170,176) Total Direct Event Income 15,359 2,174 11,910 24,514 (39,058) (7,527) 137,599 109,517 28,082 Ancillary Income F&B Concessions 68,526 63,287 125,309 72,893 111,169 85,983 661,024 572,819 88,205 F&B Catering 13,633 10,852 11,649 10,424 18,460 42,382 164,241 167,994 (3,753) Novelty Sales 0 1,500 (3,479) 1,200 8,221 3,960 24,383 21,110 3,273 Total Ancillary Income 82,159 75,639 133,479 84,517 137,850 132,325 849,648 761,923 87,725 Other Event Income Luxury Box Ticket Sales 3,179 5,200 8,664 3,200 21,222 8,000 76,656 53,900 22,756 Ticket Rebates 5,130 21,640 84,693 53,700 8,885 18,450 192,153 180,640 11,513 Facility Fees 27,967 31,880 58,519 47,064 25,095 29,256 263,389 241,099 22,290 Total Other Event Income 36,276 58,720 151,876 103,964 55,202 55,706 532,198 475,639 56,559 Total Event Income 133,794 136,533 297,265 212,995 153,994 180,504 1,519,445 1,347,079 172,366 Other Operating Income 57,479 59,882 64,274 59,882 73,699 68,695 687,323 669,579 17,744 Adjusted Gross Income 191,273 196,415 361,539 272,877 227,693 249,199 2,206,768 2,016,658 190,110 INDIRECT EXPENSES Salaries&Wages 120,418 125,349 166,805 127,852 160,042 145,793 1,371,805 1,352,398 1'9,407 Payroll Taxes&Benefits 22,630 25,262 28,354 25,262 25,707 42,923 278,472 320,805 (42,333) Labor Allocations to Events (36,519) (48,938) (81,323) (51,622) (55,717) (65,201) (484,585) (424,557) (60,028) Net Salaries and Benefits 106,529 101,673 113,836 101,492 130,032 123,515 1,165,692 1,248,646 (82,954) Contracted Services 8,928 10,464 8,864 10,464 11,011 10,975 121,763 128,079 (6,316) General and Administrative 23,055 18,543 54,159 16,243 29,865 21,614 300,347 250,443 49,904 Operating 12,393 4,791 10,866 2,918 7,249 4,302 76,292 52,988 23,304 Repairs&Maintenance 40,262 3,467 15,830 3,467 6,130 13,783 133,414 84,820 48,594 Operational Supplies 4,649 3,550 6,204 3,650 9,522 3,600 80,355 62,748 17,607 Insurance 6,993 6,134 6,993 6,134 6,993 6,134 86,756 81,608 5,148 Utilities 45,811 48,000 49,454 50,000 48,419 53,000 480,813 470,000 10,813 SMG Management Fees 11,018 11,050 11,018 11,050 11,018 11,050 132,210 132,600 (390) Total Indirect Expenses 259,638 207,672 277,224 205,418 260,239 247,973 2,577,642 2,511,932 65,710 Net Income(Loss) $ (68,365) $ (11,257) $ 84,315 $ 67,459 $ (32,546) $ 1,226 (370,874) $ (495,274) 124,400 1 ShoWare Center JANUARY 1,2013 TO DECEMBER 31,2013 Budget Variance Percentage Actual Fiscal Positive Change Actual Actual Actual Actual FY2013 Year Ending Increase FY2012 FY201 l FY2010 FY2009 12/31/2013 e ative ecrease Event Income Direct Event Income Rental Income 1,089,555 923,784 165,771 17.94% 985,295 842,227 973,069 697,400 Service Income 123,645 91,158 32,487 35.64% 78,377 105,324 68,041 132,367 Service Expenses (1,075,601) (905,425) (170,176) 18.80% (1,069,066) (866,723) (898,805) (781,981) Total Direct Event Income 137,599 109,517 28,082 25.64% (5,394) 80,828 142,305 47,786 Ancillary Income F&B Concessions 661,024 572,819 88,205 15.40% 481,921 556,187 456,993 533,589 F&B Catering 164,241 167,994 (3,753) -2.23% 244,630 171,689 224,120 168,517 Novelty Sales 24,383 21,110 3,273 15.50% 31,173 24,466 30,390 23,424 Total Ancillary Income 849,648 761,923 87,724 11.51% 757,724 752,342 711,503 725,530 Other Event hicome Luxury Box Ticket Sales 76,656 53,900 22,756 42.22% 46,946 54,255 14,034 16,848 Ticket Rebates(Per Event) 192,153 180,640 11,513 6.37% 141,648 157,640 141,598 158,188 Facility Fees 263,389 241,099 22,290 9.25% 223,913 250,839 206,295 243,211 Total Other Event Income 532,198 475,639 56,559 11.89o/u 412,507 462,734 361,927 418,247 Total Event Income 1,519,445 1,347,079 172,366 12.80% 1,164,837 1,295,904 1,215,735 1,191,563 Other Operating Income 687,323 669,579 17,744 2.65% 659,657 779,583 816,409 958,929 Adjusted Gross Income 2,206,768 2,016,658 190,110 9.43% 1,824,494 2,075,487 2,032,144 2,150,492 Operating Expenses Employee Salaries and Wages 1,371,805 1,352,398 (19,407) -1.44% 1,370,838 1,371,055 1,336,101 1,473,104 Benefits 278,472 320,805 42,333 13.20% 278,971 279,898 241,588 221,155 Less: Event Labor Allocations (484,585) (424,557) 60,028 -14.14% (449,246) (254,357) (407,571) (474,691) Net Employee Wages and Benefits 1,165,692 1,248,646 82,954 6.64% 1,200,563 1,396,596 1,170,118 1,219,568 Contracted Services 121,763 128,079 6,316 4.93% 121,183 150,925 145,405 227,366 General and Administrative 300,347 250,443 (49,904) -19.93% 267,260 278,881 243,533 285,139 Operations 76,292 39,588 (36,704) -92.71% 44,576 58,873 53,8,94 69,898 Repair&Maintenance 133,414 98,220 (35,194) -35.83% 165,264 70,654 60,951 42,019 Supplies 80,355 62,748 (17,607) -28.06% 60,583 49,348 38,336 55,681 Insurance 86,756 81,608 (5,148) -6.31% 76,916 71,513 70,725 75,653 Utilities 480,813 470,000 (10,813) -2.30% 465,693 478,617 428,278 411,615 SMG Management Fees 132,210 132,600 390 0.29% 129,997 250,099 248,023 244,404 Total Operating Expenses 2,577,642 2,511,932 (65,710) -2.62% 2,532,035 2,563,342 2,459,263 2,631,343 Net Income(Loss)From Operations (370,874) (4.95,274) 124,400 25.12% (707,541) (487,855) (427,119) (480,851) Other Income(Expenses) Net Income After Other Income(Expenses) (370,874) (495,274) 124,400 25.12% (707,541) (487,855) (427,119) (480,851) Rolling Forecast-12-13 ShoWare Center-2014 BUDGET JANUARY 1,2014 TO DECEMBER 31,2014 Lead Income Statement Total Event Income Direct Event Income Rental Income 783,608 Service Income 73,646 Service Expenses (684,908) Total Direct Event Income 172,345 Ancillary Income F&B Concessions 608,131 F&B Catering 159,515 Novelty Sales 13,260 Other Ancillary - Total Ancillary Income 780,906 Other Event Income Luxury Box Ticket Sales 55,939 Ticket Rebates(Per Event) 151,399 Facility Fees 225,313 Total Other Event Income 432,651 Total Event Income 1,385,902 Other Operating Income 669,579 Adjusted Gross Income 2,055,481 Operating Expenses Employee Salaries and Wages 1,282,281 Benefits 360,479 Less: Event Labor Allocations (410,330) Net Employee Wages and Benefits 1,232,430 Contracted Services 128,700 General and Administrative 249,405 Operations 54,600 Repair&Maintenance 114,927 Supplies 57,500 Insurance 83,816 Utilities 483,800 Other SMG Management Fees 135,252 Less:Expenses Allocated Total Operating Expenses 2,540,430 Net Income(Loss)From Operations (484,949) Other Income(Expenses) Net Income After Other Income(Expenses) (484,949) ShoWare KENT Marketing Update through January 28, 2013 Total Attendance—1,778,599 • 2009—349,761 • 2010—323,644 • 2011—381,159 • 2012 —352,490 • 2013 —371,545 (20k ahead of 2012 pace) SOCIALIZE with ShoWare Center Total Number of unique session visits to www.ShoWareCenter.com - 1,853,796 o 2009 monthly average— 19,373 o 2010 monthly average—28,463 o 2011 monthly average—37,393 o 2012 monthly average—39,804 o 2013 monthly average—37,141 Total Number of page views—21,341,673 (11.13 pages per visit) AS OF TODAY- Facebook.com/ShoWareCenter: • 6,604 Total Likes (up close to 1,000 since last mtg) • 1,812,097 Friends of Fans • Includes apps for ticket sales, e-news sign-up Twitter.com/ShoWareCenter: • 6,621 Tweets • 1,021 Following • 1,441 Followers Upcoming Ticketed Events • Seattle Thunderbirds (vs. Everett)— February 4 • Seattle Thunderbirds (vs. Spokane) — February 7 • Seattle Thunderbirds (vs. Tri-City) — February 14 • World Famous Harlem Globetrotters-February 15 • Seattle Thunderbirds (vs. Prince George)— February 16 • Seattle Thunderbirds (vs. Kamloops) — February 22 1 V • Seattle Thunderbirds (vs. Prince Albert) — February 25 • Seattle Thunderbirds (vs. Portland) — March 1 • Seattle Thunderbirds (vs. Everett) — March 2 • Stayin' Alive—Bee Gees Tribute —March 7 • Seattle Thunderbirds (vs. Everett) — March 8 • Seattle Thunderbirds (vs. Vancouver) — March 9 • Seattle Thunderbirds (vs. Spokane)—March 11 • Seattle Thunderbirds (vs. Portland) —March 14—last regular season game • Gerardo Ortiz—March 23 • Wedding Expo—April 6 • No Quarter—Led Zeppelin Experience—April 25 • NW Crossfit Regionals—May 16-18 • Seattle Mist— May 2 &July 26 Upcoming Community & Catering Events • 5t" Anniversay— FREE Skate ...just happened • ShoWalk, Monday & Wednesday mornings, 9a-11a —going on now... • Les Schwab Kent Shootout HS Bball —Jan 31 • SPSL Tournament HS Bball — Feb 11 • Graduations -June 2 CENTER �i� LES SCHWAB HARLEM KENT SHOOTOUT GLOBETROTTERS Local HS Basketball r t 11 i t i M XE N,T HARLEM Feb 15 1 2 & 7pm _� � OT o ,; Jan 31 5:05pm $28 - $124 $5 Student / $8 Adults GLOBETROTTERR, www.harlemgIobetrotters.com MWIMHUM AVAILABLE AT THE DOOR ON SALE NOW! SEATTLE T-BIRDS e SEATTLE T-BIRDS SOUTH PUGET VS. EVERETT vs. SPOKANE S P�'S`L SOUND LEAGUE /SEATTLE/ Feb 4 1 7:05pm /SEATTLE/ Feb 7 1 7:35pm TOURNAMENT ON SALE NOW! ON SALE NOW! Local HS BASKETBALL Feb 11 1 3:30pm SEATTLE T-BIRDS SEATTLE T-BIRDS r PRA SEATTLE T-BIRDS vs. TRI-CITY _ vs. PRINCE ' rg vs. KAMLOOPS /SEATTLE/ Feb 14 1 7:35pm /SEATTLE/ GEORGE SEATTLE/' Feb 22 6:05pm ON SALE NOW! b SALE NOW! - yy ON SALE NOW! O SEATTLE T-BIRDS STAYIN' ALIVE NO QUARTER vs. PRINCE BEE GEES TRIBUTE } ,' LED ZEPPELIN EXP /SEATTLE/ ALBERT Mar 71 8pm Apr 25 1 8pm Feb 25 1 7:05pm ON SALE NOW! ON SALE SOON! nN CAI F Nr)WI STAYIN V Reebok CROSSFIT GAMES LIKE the Follow us CrOSSFit NW REGIONAL ShoWare Center on Twitter GAMES May 16-18 1 Times Vary on Facebook @ShoWareCenter ON SALE SOON! OPEN in* INAV Ti-ckets can be purchased at the ShoWare Center Box Office,ShoWareCenter.com, or by calling 866.973.9613. Box Office Hours: • •. • . 1. • Box Office opens two hours before events Ticket p • to convenience fees. For • • Sales &Suites '' • • 1