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Home My WebLink AboutCity Council Committees - Public Facilities District Board - 04/27/2023 (2) Public Facilities District Board Regular Meeting April 27, 2023 Minutes Kent, Washington Approved 10/26/2023 Date: April 27, 2023 Time: 4 p.m. Place: accesso ShoWare Center Other Attendees: General Manager, Tim Higgins Director of Marketing, Kelly Spreitzer-Saucer Director of Finance, Arletta Voter Thunderbirds President, Colin Campbell Assistant City Attorney, Logan Todd City Clerk, Kimberley Komoto Finance Budget Manager, Michelle Ferguson Records Management Administrator, Melissa McCormick Agenda: 1. Call to Order The meeting was called to order at 4:04 p.m., with Zenovia Harris presiding. 2. Roll Call Zenovia Harris - Present Carmen Goers - Present Jeff Piecewicz - Absent Greg Haffner - Present Dillon Stearns - Excused 3. Changes to the Agenda Haffner moved to approve the agenda as presented, seconded by Goers. The motion passed unanimously with a vote of 3-0. 4. Annroval of Minutes dated October 27. 2022 Goers moved to approve the minutes dated October 27, 2022, seconded by Haffner. The motion passed unanimously with a vote of 3-0. S. Excused Absence for Boardmember Dillon Stearns Haffner moved to approve the excused absence for boardmember Stearns, seconded by Goers. The motion passed unanimously with a vote of 3-0. 6. Update on Recruitment for Board Position No. 4 (Carmen Goers) Kim Komoto, City Clerk, advised board position No. 4 is appointed by the Kent City Council based on recommendations from the Kent Downtown Partnership, Kent Chamber of Commerce and Local Labor Council. Komoto will be reaching out to these entities. Chair Harris offered to provide Labor Council contact information. Page 1 of 2 Public Facilities District Board Regular Meeting April 27, 2023 Minutes Kent, Washington Approved 10/26/2023 7. Financial Reports A. City of Kent. Michelle Ferguson, Budget Manager, presented the ShoWare Center Operating Fund through March 31, 2023, and provided a detailed overview of each line item for both revenues and expenses and provided further details on the SMG Income Loan Proceeds, transfers in from the General Fund and Capital, in addition to expenditures related to the bank account adjustment, Debt Service on the SMG Loan and lifecycle maintenance. Ferguson reviewed the Kent Special Events Center Public Facilities District Fund through March 31, 2023, and also provided additional details on the sales and use tax revenues and expenditures related to the debt service. B. accesso ShoWare Center. Tim Higgins, SMG General Manager, provided an overview of the accesso ShoWare Center 2023 Income Statement for the three months ending on March 31, 2023 Actual to Budget Comparison. Higgins also reviewed the accesso ShoWare Center Income Statement for 2022, detailed the variances between the budgeted and actual numbers. 8. Operations Update A. General Manager Update. Higgins talked about upcoming events and staffing challenges. He gave an update on the new score board and detailed recent and future capital projects, including a new Marque planned for August. B. Marketing Update. Higgins provided the marketing update at the same time as the General Manager Update. C. City of Kent Update. None. 9. Seattle Thunderbirds Update Thunderbirds President, Colin Campbell indicated the Thunderbirds are in the third round of the play-offs. Campbell advised that ten players on the roster have been drafted by the NHL, five of which were first round picks. Attendance is up over 37% from last year and the Thunderbirds have a record number of wins to date. 10. Adjournment Harris adjourned the meeting at 4:34 p.m. Kimberley Komoto, City Clerk April 27, 2023 Page 2 of 2 Public Facilities District Board Special Meeting October 27, 2022 Minutes Kent, Washington Pending Approval Date: October 27, 2022 Time: 4 p.m. Place: accesso ShoWare Center Other Attendees: General Manager, Tim Higgins Director of Marketing, Kelly Spreitzer Director of Events, Jennifer Nelson Assistant City Attorney, Adam Long Thunderbirds General Manager, Colin Campbell City Clerk, Kimberley Komoto Treasurer, Paula Painter Steve Hunter, Kent Reporter Agenda: 1. Call to Order The meeting was called to order at 4 p.m., with Greg Haffner presiding. 2. Roll Call Carmen Goers - Present Jeff Piecewicz - Present Greg Haffner - Present Zenovia Harris - (Remote) Dillon Stearns - Present (Arrived after vote to approve the agenda) 3. Changes to the Agenda Greg Haffner moved to approve the agenda as presented, seconded by Jeff Piecewicz. The motion passed unanimously with a vote of 4-0. 4. Welcome Dillon Stearns - Board Position No. 3 The Board welcomed Dillon Stearns and Stearns expressed his interest in serving on the Board. S. Approval of Minutes dated May 12, 2022 Goers moved to approve the minutes dated May 12, 2022, seconded by Piecewicz. The motion passed unanimously with a vote of 5-0. 6. Nomination and Election of Officers Goers moved to set the slate of officers for the 2023 year as follows: Zenovia Harris, Chair Carmen Goers, Vice Chair Jeff Piecewicz, Secretary Piecewicz seconded the motion. The motion passed unanimously with a vote of 5-0. Page 1 of 2 Public Facilities District Board Special Meeting October 27, 2022 Minutes Kent, Washington Pending Approval Financial Reports A. City of Kent. Paula Painter, Treasurer, presented the ShoWare Center Operating Fund through September 30, 2022, and provided a detailed overview of each line item for both revenues and expenses and provided further details on the SMG Income Loan Proceeds, transfers in from the General Fund and Capital, in addition to expenditures related to the bank account adjustment, Debt Service on the SMG Loan and lifecycle maintenance. Painter reviewed the Kent Special Events Center Public Facilities District Fund through September 30, 2022, and also provided additional details on the sales and use tax revenues and expenditures related to the debt service. B. accesso ShoWare Center. Tim Higgins, SMG General Manager, provided an overview of the accesso ShoWare Center 2022 Income Statement Actual to Budget Comparison through the third quarter of 2022. 6. Operations Update A. General Manager Update. Tim Higgins, General Manager talked about upcoming events and introduced Jennifer Nelson, Director of Events. Higgins detailed the recent and future capital projects. B. Marketing Update. None. C. City of Kent Update. None. 7. Seattle Thunderbirds Update Thunderbirds President, Colin Campbell indicated the Thunderbirds have started out the season strong with an 8-0 record. Campbell advised 2021 was a tough year, but 2022 is up 28% over the same time last year. Campbell talked about the increase in televised games for 2022 and is looking forward to hosting a New Year's Eve Game. 9. Adjournment Haffner adjourned the meeting at 4:38 p.m. Kimberley Komoto City Clerk October 27, 2022 Page 2 of 2 SHOWARE CENTER OPERATING FUND March 31, 2023 2020 2021 2022 2023 2023 Actual Actual Prelim Adj. Budget YTD Beginning Fund Balance 2,930,008 2,990,845 3,978,742 2,317,345 2,317,345 Revenues Admissions Tax 138,501 145,268 318,076 350,000 General Contributions 1,633,435 675,000 SMG Income-Loan Proceeds 500,000 Other Income 29,089 4,458 1,148 1,395 Transfer In from GF (Lifecycle) 545,000 Transfer In Capital (Lifecycle) 300,000 300,000 300,000 300,000 Transfer In from GF 500,000 500,000 500,000 500,000 Total Revenues 1,512,589 3,083,160 1,794,223 1,150,000 1,395 Expenditures Services 1,370,441 1,535,424 1,183,085 868,290 89,345 Capital Outlay (SMG) Other Capital Outlay 66,813 Bank Account Adjustment 30,028 461,222 447,707 Debt Service on SMG Loan 61,330 Lifecycle Maintenance 51,283 98,618 1,758,015 2,500,000 404,157 Total Expenditures 1,451,752 2,095,263 3,455,620 3,429,620 493,502 Change in Fund Balance 60,837 987,897 (1,661,397) (2,279,620) (492,107) Ending Fund Balance 2,990,845 3,978,742 2,317,345 37,725 1,825,238 KENT SPECIAL EVENTS CENTER PUBLIC FACILITIES DISTRICT FUND (PFD) March 31, 2023 2020 2021 2022 2023 Actual Actual Prelim YTD Beginning Fund Balance 349,089 393,357 268,704 228,730 Revenues Sales & Use Tax 1,174,973 1,359,473 1,517,359 117,761 City of Kent 1,873,811 812,873 844,051 Interest - Sales Tax & Investment 11,292 635 (30,001) 352 Total Revenues 3,060,076 2,172,982 2,331,410 118,113 Expenditures Internal Allocations 13,340 11,220 7,530 1,480 Investment Fee 191 265 204 4 Debt Service 3,002,277 2,286,150 2,363,650 - Total Expenditures 3,015,809 2,297,635 2,371,384 1,484 Change in Fund Balance 44,267 (124,653) (39,974) 116,629 Ending Fund Balance 393,357 268,704 228,730 345,359 8 KENT PUBLIC FACILITIES DISTRICT Sales Tax Collections As of March 31, 2023 Rec'd From For the 2023-2022 Percent State Month of 2020 2021 2022 2023 Variance Change March January 88,719 97,313 114,757 117,761 3,004 4% April February 79,619 95,081 112,199 0% May March 81,657 123,950 130,781 0% June April 83,034 109,745 119,866 0% July May 97,066 117,735 121,198 0% August June 102,181 120,016 140,566 0% September July 102,988 112,486 127,187 0% October August 102,324 111,035 126,624 0% November September 111,970 118,169 132,841 0% December October 105,319 117,817 155,217 0% January November 98,426 109,358 118,786 0% February December 121,671 126,767 117,338 0% Total 1,174,973 1,359,473 1,517,359 117,761 3,004 0% accesso ShoWare Center Income Statement ` For the Twelve Months Ending December 31,2022 Year to Date Year to Date Actual Budget EVENT INCOME Direct Event Income Rental Income $ 1,155,667 $ 951,453 Service Revenue 398,935 177,488 Service Expenses (1,623,817) (919,463) Total Direct Event Income (69,215) 209,478 Ancillary Income F&B Concessions 922,865 1,143,622 F&B Catering 209,913 154,505 Novelty Sales 15,581 0 Total Ancillary Income 1,148,359 1,298,127 Other Event Income Other Event Related Income 0 0 Luxury Box Ticket Sales 43,686 12,863 Club Seat Ticket Sales 0 0 Event Advertising Income 0 0 Ticket Rebates 417,165 236,775 Facility Fees 243,644 401,093 Total Other Event Income 704,495 650,731 Total Event Income 1,783,639 2,158,336 OTHER OPERATING INCOME VIP Parking 31,616 0 Luxury Box Agreements 41,881 74,520 Club Seat Agreements 128,551 96,241 Advertising 514,474 511,788 Shuttered Venue Operating Grant 675,000 0 Total Other Operating Income 1,391,522 682,549 Adjusted Gross Income 3,175,161 2,840,885 INDIRECT EXPENSES Salaries&Wages 2,245,818 1,974,448 Payroll Taxes&Benefits 494,855 400,917 Labor Allocations to Events (849,382) (697,411) Net Salaries and Benefits 1,891,291 1,677,954 Contracted Services 201,002 212,940 General and Administrative 568,790 476,844 Operating 136,276 159,800 Repairs&Maintenance 139,476 166,162 Operational Supplies 86,412 90,750 Insurance 152,820 132,250 Utilities 585,286 522,400 Other 0 0 SMG Management Fees 157,999 153,500 Allocated Expenses 0 0 Total Indirect Expenses 3,919,352 3,592,600 Net Income(Loss) ($ 744,191) ($ 751,715) An ASm Global Managed Facility ShoWare Center-2023 BUDGET JANUARY 1,2023 TO DECEMBER 31,2023 Income Statement Total Event Income Direct Event Income Rental Income 1,213,869 Service Income 278,985 Service Expenses (1,774,679) Total Direct Event Income (281,825) Ancillary Income F&B Concessions 1,234,721 F&B Catering 131,554 Novelty Sales 6,000 Other Ancillary - Total Ancillary Income 1,372,275 Other Event Income Luxury Box Ticket Sales 27,085 Ticket Rebates(Per Event) 495,850 Facility Fees 541,750 Total Other Event Income 1,064,685 Total Event Income 2,155,135 Other Operating Income 659,159 Adjusted Gross Income 2,814,294 Operating Expenses Employee Salaries and Wages 2,336,618 Benefits 473,049 Less: Event Labor Allocations (1,001,673) Net Employee Wages and Benefits 1,807,994 Contracted Services 232,115 General and Administrative 473,732 Operations 127,161 Repair&Maintenance 181,419 Supplies 88,240 Insurance 179,908 Utilities 537,660 Other - SMG Management Fees 159,640 Less:Expenses Allocated - Total Operating Expenses 3,787,870 Net Income(Loss)From Operations (973,576) accesso ShoWare Center Income Statement For the Three Months Ending March 31,2023 Current Month Current Month Year to Date Year to Date Actual Budget Actual Budget EVENT INCOME Direct Event Income Rental Income $ 151,077 $ 181,519 $ 383,656 $ 421,263 Service Revenue 90,684 49,848 193,721 123,373 Service Expenses (310,094) (242,440) (686,063) (567,155) Total Direct Event Income (68,333) (11,073) (108,686) (22,519) Ancillary Income F&B Concessions 227,222 199,594 479,449 471,663 F&B Catering 49,534 27,153 97,968 59,088 Novelty Sales 13,464 3,000 15,903 3,000 Total Ancillary Income 290,220 229,747 593,320 533,751 Other Event Income Other Event Related Income 0 0 0 0 Luxury Box Ticket Sales 25,507 5,000 26,519 8,500 Club Seat Ticket Sales 0 0 0 0 Event Advertising Income 0 0 0 0 Ticket Rebates 53,631 45,150 75,838 77,800 Facility Fees 51,026 67,125 104,638 149,350 Total Other Event Income 130,164 117,275 206,995 235,650 Total Event Income 352,051 335,949 691,629 746,882 OTHER OPERATING INCOME VIP Parking 3,500 0 4,475 0 Luxury Box Agreements 7,924 7,056 16,996 18,144 Club Seat Agreements 23,741 16,944 58,073 50,833 Advertising 43,883 42,821 132,713 128,462 Shuttered Venue Operating Grant 0 0 0 0 Total Other Operating Income 79,048 66,821 212,257 197,439 Adjusted Gross Income 431,099 402,770 903,886 944,321 INDIRECT EXPENSES Salaries&Wages 284,708 194,715 722,989 584,155 Payroll Taxes&Benefits 66,380 37,274 177,916 137,591 Labor Allocations to Events (143,975) (83,473) (369,122) (250,421) Net Salaries and Benefits 207,113 148,516 531,783 471,325 Contracted Services 15,127 19,344 53,334 58,030 General and Administrative 56,088 36,734 178,629 134,649 Operating 12,592 12,666 42,020 37,992 Repairs&Maintenance 10,451 12,719 40,876 38,155 Operational Supplies 13,520 7,354 31,454 22,060 Insurance 14,472 13,814 42,758 41,442 Utilities 49,970 44,805 148,682 134,417 Other 0 0 0 0 SMG Management Fees 13,303 13,303 39,910 39,910 Allocated Expeneses 0 0 0 0 Total Indirect Expenses 392,636 309,255 1,109,446 977,980 Net Income(Loss) $ 38,463 $ 93,515 ($ 205,560) ($ 33,659) An ASM Global Managed Facility