Minnesota Ballpark Authority Board Meeting Minutes – July 10, 2014

Chair Steve Cramer called the board meeting of the Minnesota Ballpark Authority for July 10, 2014 to order at 1:00 p.m. The roll was taken.  Commissioners Barb Sykora, Paul Williams, Joan Campbell and Martin Olav Sabo were present.  

Commissioner Sykora moved approval of the agenda, seconded by Commissioner Campbell and approved unanimously – 5 YEAS, O NAYS.
										   APPROVED

Commissioner Campbell moved approval of the April 3, 2014 meeting minutes, seconded by Commissioner Williams and approved unanimously – 5 YEAS, 0 NAYS.														
APPROVED

Chair’s Report – Chair Steve Cramer  reported that he is now reaching out to other board members regarding Executive Director Kenney’s annual review which takes place in August and there will be a resolution at the October meeting to take action on this item.  
   
Executive Director’s Report – Executive Director Dan Kenney gave an update on Target Field Station reporting that all of the public art projects are finished, and Caribou Coffee is open.  There was an excellent turnout for the World Cup showings at Target Field Station and the first movie night is scheduled for Friday, July 11th.  Public feedback regarding Target Field Station have been very favorable.

Audit Committee Report – Commissioner Joan Campbell stated that the audit committee reviewed the 2015 Operating Budget.  Also noted, at the end of 2013 there was a general overall loss or decrease for the MBA’s investment earnings and this was the case for all of Hennepin County’s investments. Commissioner Campbell moved to adopt the 2015 Operating Budget, Commissioner Barb Sykora seconded and was approved unanimously.

ACTION ITEMS 

07-10-14 Proposed Resolution 14-MBA-102

Purpose:

To authorize submittal of the proposed 2015 MBA Operating and Capital Reserve Budget to Hennepin County.    

Background: 

Minnesota Laws 2006, Chapter 257, Section 12, subdivision 11 provides that the County may use certain proceeds from the authorized sales tax revenue to pay for governmental operating costs of the Authority, other than operating and maintaining the Ballpark. And subdivision 1 authorizes Hennepin County to make grants to the Authority for reserves for Ballpark capital improvements. The Grant Agreement between the Minnesota Ballpark Authority and Hennepin County provides details regarding an annual grant for Authority operating costs and annual payments into a reserve fund for Ballpark Capital Improvement Expenses. The Grant Agreement requires the Authority to submit a proposed operating and capital improvement budget to Hennepin County before August of every year.  

Attached is the MBA proposed operating budget for 2015. The MBA Audit Committee reviewed the proposed budget on Monday, June 30, 2014 and has recommended approval of the proposed budget as attached.

The total proposed General Fund budget represents a 0.2% decrease in expenditures from the 2014 budget.  

Per the Grant Agreement, Hennepin County also agrees to make annual payments for 30 years into a special revenue fund for ballpark capital improvements.  The required annual contribution shall be $1,100,000 in the first year and escalates by an inflation factor thereafter. 

The inflation factor is defined in the Ballpark Lease Agreement as an annual CPI increase. This is defined as an increase calculated in the index known as the US Department of Labor Bureau of Labor Statistics, Consumer Price Index, All Urban Consumers, Unites States City Average, All items.  As calculated for the period beginning January 2010 through May 2014, the County capital contribution is proposed to be $1,207,687.

To remain consistent with previous year budget practices, staff recommends using the CPI increase for the period beginning January 2010 through June 2014.  Though the June CPI tables are not available yet, the change is not expected to be significant.  Language has been included in the Resolution, allowing for the calculation of CPI through June.

The Ballpark Lease Agreement between the MBA and the Minnesota Twins, LLC Section 3.1 outlines annual Tenant rent of $900,000, of which $600,000 is indexed for inflation.  As calculated for the period beginning January 2010 through May 2014 the Twin’s rent amount is proposed to be $958,738 for 2015.  This too is expected to change slightly, when calculated for the period from January 2010 to June 2014. 

Action Requested:

BE IT RESOLVED that the Minnesota Ballpark Authority Board hereby approves the Audit Committee recommendation for a Proposed MBA General Fund Operating Budget of $848,000, and authorizes the Executive Director to submit the proposed 2015 MBA operating budget, attached as Schedule A, to Hennepin County, requesting a grant of $848,000 from Hennepin County Ballpark Sales Tax;  and

BE IT FURTHER RESOLVED that the Minnesota Ballpark Authority Board hereby approves the Audit Committee recommendation for the Proposed MBA Capital Reserve Fund Budget of $2,208,000, attached as Schedule B, and authorizes the Executive Director to request an annual capital reserve contribution from Hennepin County Ballpark Sales Tax in the amount indexed for inflation, for the period from January 2010 through June 2014, as more clearly defined in the Development Agreement By and Among Hennepin County and Minnesota Ballpark Authority and Minnesota Twins, LLC.  

DISCUSSION ITEMS 

Target Field Operations Update – Matt Hoy, MN Twins, Senior VP Operations – Mr. Hoy gave an update for All Star activities stating that most of the preparation work is complete and the focus is now on the execution of the events. The perimeter security work is finished and the $1.5 million update to the WiFi system is done.  WiFi and cell coverage for the events will be excellent and probably the best in any ballpark.  The entire ballpark has undergone a complete cleaning, including the scoreboard and the batter’s eye.  500 police officers from several agencies will be on board to help with security for All Star events.  

Two Skyline concerts are scheduled for August 8th and 9th.  The Paul McCartney concert is scheduled for August 2nd.  

MBA Financial Report - Brenda Juneau, MBA Finance Coordinator – Ms Juneau  stated that everything is in order for the annual state audit which should start at the end of this month and hopefully will be complete before the October MBA board meeting.  

The current financial statement through May 31, 2014 in the meeting packet shows payment of $1.5 million to the Interchange project.

The 2014 MBA Operating budget is tracking to be well below budget at the end of the year.

There being no further business, Chair Cramer moved to adjourn. The motion was approved unanimously - 5 YEAS, 0 NAYS.  The board meeting of the Minnesota Ballpark Authority for July 10, 2014 was adjourned at 1:22 P.M. 

Next Meeting: October 9, 2014 Target Field Tour Theatre