NYS Olympic Regional Development Authority Board Meeting September 30, 2010

Transcription

1 NYS Olympic Regional Development Authority Board Meeting September 30, 2010 Present: Excused: Also Present: Introduction: Agenda: Minutes: Chairman: President s Report: Joe Martens, Chairman Bob Flacke Ed Weibrecht Jerry Strack Peter Wohl, ESD Harold Hagemann, OPRHP Scott Abrahamson, DEC Pat Barrett Serge Lussi Cliff Donaldson Ted Blazer, ORDA President/CEO Jeff Byrne, ORDA Sr. Vice President Jim Amell Marvin and Company The presiding Chairman thanked everyone for coming and called the meeting to order at 10:45 A. M. The Chairman then asked for a roll call to confirm a quorum was present. The Chairman stated that an agenda is included in the board packet and asked if anyone would like to add any additional items to the agenda. The agenda was approved as presented. On a motion by Jerry Strack, seconded by Ed Weibrecht, the minutes of the Board of Directors Meeting held on June 22, 2010 were approved. The Chairman asked Ted Blazer to give the President s Report Ted Blazer, President/CEO welcomed the Board, members of the press and ORDA staff, and thanked everyone for attending. Ted started by reviewing summer activities through September. ORDA has had a solid summer due to great weather, solid preparation and critical pricing initiatives. The summer passport was a big success. Skating activities were up this summer with lots of kids in the arena. Highlights of summer activities included Wet And Wild Wednesdays at the Ski Jump Complex as well as Soaring Saturdays. Plenty of hockey tournaments and camps rounded out the Olympic Center. The Memorial Highway celebrated the 75 th

2 anniversary of the opening of the roadway. Gore was able to operate their gondola for rides and mountain biking. The ORDA staff was absolutely fantastic. Ted then reviewed upcoming events: North Atlantic Figure Skating Oktoberfest at Whiteface Fall Festival at the Jumps Harvest Festival at Gore Bobsled-Luge-Skeleton training through mid Oct Halloween Division I Hockey at Olympic Center Stars on Ice Bobsled-skeleton World Cup World Cup Freestyle Skiing Eastern Syncro Skating Disney on Ice Empire State Games Multi sport competitions, camps, tournaments and events Ted reviewed a Cross country Biathlon committee that has been formed. Community interest will be discussed with Mt Van Hoevenberg staff. Pat Gallagher is spearheading. The x-c homologation will be researched. Ted reviewed the basics of the new ORDA/USOC contract. By the end of the new term the fee will increase $100k to %525,000 annually. A motion to approve the contract was passed On a motion by Jerry Strack, seconded by Ed Weibrecht to approve the contract was passed. Ted reviewed the upcoming Anheuser Busch contract and that it may be more advantageous for us to enter into a 2 year agreement. If so ratification will be requested of this contract at the next appropriate meeting. Ted reviewed the revised ORDA operations budget. He compared results and how they apply to the new budget. He reviewed state appropriations for the last four years. He then did a detailed review of the procedures ORDA will use to deal with the $2.2m appropriation reduction. During this portion of his report he detailed that summer revenues are up, that payroll is down as well as NPS spending. With this in mind the budget philosophy was reviewed which shows that with decreases in payroll and nps spending and modest increases in revenue, the budget will be attainable. Given that ORDA has a good head start in this process, Ted was very confident that ORDA will meet budget and therefore deal with the appropriation loss. Ted stressed that ORDA has deferred maintenance at the venues and delayed equipment purchases. Ed Weibrecht stated that deferred maintenance will eventually come back to haunt us.

3 Ted then reviewed ORDA s decision making when it comes to setting prices at the venues. With a combination of staff input, review of past strategies, competition pricing, financial trends, marketing initiatives, capital improvements, preliminary pricing is set. Then the overall ORDA financial picture is revisited and adjustments made to coincide with revenue required to make budget. Stake holders are then notified (hotels, pass holders, potential pass holders, groups and brokers) Ted then reviewed several marketing initiatives that are to be employed this year. He reviewed the Off the Wall committee initiatives (elevator coverings in Albany, Road Warriors). He then demonstrated how with a cell phone potential visitors can review our marketing pieces and actual play a promotional video on their smart phone. There was a lot of excitement about the plans for marketing our venues. Ted notified the board that on Monday there would be a big announcement about Whiteface/lake Placid. Bob Flacke asked who pays the utilities at the US Olympic Training Center in Lake Placid. Ted responded that USOC pays the utilities. Bob Flacke then asked who pays for capital improvements. Ted responded that ORDA takes care of capital needs at the training center. Bob Flacke then asked if this contract is a positive revenue source. Ted relied that it was. Chairman Martens: All in favor? All were in favor, none opposed. Ted Blazer: Because of cuts to ORDA s NYS Appropriation, I am presenting a revised budget for the current fiscal year. Chairman Martens asked Ted if the budget will be presented at the December board meeting, Ted said that it will be. Peter Wohl asked Ted how will increased visitation be accomplished. Ted responded that there are new marketing strategies to bring more visitors, and pricing is being examined. Ed Weibrecht asked if there was a cost associated with the revenue increase. Ted responded that there was not. Ed Weibrecht asked that it be noted in the minutes that part of the success we re achieving (with budgetary problems) is because of deferred maintenance, deferred equipment purchases, and deferred capital projects. We must remember that we re helping the state, but it must be a temporary measure, we must fulfill our mandate and help athletes. We can t go on like this. Bob Flacke said that originally ORDA received a two fold appropriation from the state, operations and capital. Because of the deep recession we re in, we should have a separate meeting with DOB. The state has a responsibility for capital improvements.

4 Peter Wohl said that we should quantify and have a list of capital needs. Bob Flack commented that he met with Kathy and ORDA management and they have the data necessary to support this request for support. Ed Weibrecht asked Mike Pratt how old one of the lifts at Gore Mountain was. Mike Pratt responded that it is the oldest in North America. All others in the country have been replaced. Chairman Martens: A Motion to adopt the budget? Ed Weibrecht motioned, and Jerry Strack seconded the motion. All were in favor. None Opposed. Bob Flacke: When changing prices there are two factors, pricing and volume. What percentage do you figure on each? Ted answered 3% each. Chairman Martens asked if there are any more comments. Bob Flacke commented that ORDA has a great marketing plan. Chairman Martens asked Jim Amell to make the financial report. Jim Amell offered the following: OLYMPIC REGIONAL DEVELOPMENT AUTHORITY FINANCIAL REPORT FOR THE FIVE MONTHS ENDED AUGUST 31, 2010 PRESENTED BY JIM AMELL, CPA MARVIN AND CO COMPARISON OF REVENUES AND EXPENSES- FIVE MONTHS ENDED 8/31/10 vs. 8/31/09 Total operating revenues are $71,400 higher than last year. Tour, Area, Event income is $277,000 higher than last year, primarily to due higher summer income, while Skiing, skating and activities is $39,000 lower than last year, and Sponsorships are $217,700 less than last year due to USOC and other sponsorship agreements which have not yet been signed and therefore not billed. Personal service expense (before capitalized labor) for fiscal 2010/11 decreased by $231,200 (4.25%) from 2009/10. The decrease is due to reducing overtime, running operations with fewer people, and laying off seasonal staff earlier. Payroll added costs increased by $48,000 (3%) primarily health insurance. After deducting

5 capitalized labor, net personal services decreased by $248,000 from last year. Total non-personal service expenses, excluding depreciation, are $213,800 lower (7.3%) than last year. Supplies and materials accounted for most of the decrease. Through August 2010 there is an operating loss before depreciation of $4.755 million vs. an operating loss of $5.288 million through August 2009 an improvement of $533,200. Non-operating income/expense is $3.092 million through August 2010 a decrease of $1.7 million from last year, which is all attributable to a decrease in State appropriations. Capital contributions are $1.034 million year to date, primarily the ESD construction grant. Managers have continued to do an excellent job controlling costs!! COMPARISON OF REVENUES AND EXPENSES-BUDGET TO ACTUAL Total operating revenues are $247,400 under budget. Tour, Area, Events is under budget by nearly $578,000, sponsorships are under budget by $188,100 and Activities is over budget by $439,000. Personal service expense, before capitalized labor, is $18,100 over budget, and net of capitalized labor is $30,000 under budget. Non-personal service expenses $450,700 under budget. Utility expense is the largest item under budget, by $251,800, followed by supplies & materials which is $130,100 under budget. Net loss from operations, before depreciation, is $233,300 better than budget. Non-operating income/expense is $42,700 over budget. STATEMENT OF CASH FLOWS Operations provided cash of $1,490,692 Investing and capital activities used cash of $1,698,000 Financing activities used cash of $202,200. Payments on debt were $494,500 while there were additional net borrowings on the credit line of $284,300 Overall, unrestricted cash and cash equivalents decreased by $409,421 from 3/31/10. Chairman Martens thanked Jim for his report and asked if there were any questions or comments. Chairman Martens asked why the utilities savings was so large. Ted responded that we closed down early in April, and there is less construction at Whiteface and Mt. Van Hoevenberg. Chairman Martens announced that the Lake Placid Visitor s Bureau Board Members were present to speak about marketing the Conference Center. Jim McKenna commented that the Visitor s Bureau and ORDA staff are on the same team. A conference is already scheduled for May, 2011, that will bring business to Lake Placid at

6 a normally slow time. Bob Hammond gave a brief update on the Conference Center. Peter Wohl commended Bob for being on schedule. Tracy Ridenour, Lake Placid Visitor s Bureau, Director of Sales and Marketing for the Conference Center gave a video presentation of the marketing plan. Chairman Martens announced that the Board would go into Executive Session at 1:05 P. M. Regular Session resumed at 1:40 P. M. After return to regular session, a motion to adjourn was offered by Harold Hagemann, seconded by Peter Wohl. The meeting adjourned at 1:46 P. M.