Mike Pratt, Interim President/CEO Padraig Paddy Power, Director ORDA Finance David McKillip, HR Director
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1 NYS Olympic Regional Development Authority Board Meeting March 21, 2017 Present: Excused: Also Present: Introduction: Agenda: Minutes: Pat Barrett, Chairman Joseph Kelly Bill Beaney Jill Broderick Cliff Donaldson Bob Flacke Jeff Stefanko, DEC John Parete Arthur Lussi Andy Lack Steve Hunt, ESD Paul Laudato Mike Pratt, Interim President/CEO Padraig Paddy Power, Director ORDA Finance David McKillip, HR Director The presiding Chairman thanked everyone for coming and called the meeting to order at 1:02pm. The Chairman then asked for a roll call to confirm a quorum was present. The Chairman welcomed Arthur Lussi as the new Board member representing the Town of North Elba. He then acknowledged and thanked Bob Miller and Derek Doty, representing the Town of North Elba and Randy Preston, Supervisor for the Town of Wilmington for attending. The Chairman stated that an agenda is included in the board packet. The agenda was approved as presented. Arthur Lussi asked to discuss a strategic plan during new business On a motion by Joe Kelly, seconded by Bob Flacke, the minutes of the Board of Directors Meeting held on December 13, 2016 were approved as amended.. On a motion by Cliff Donaldson, seconded by Joe Kelly, the minutes of the Board of Directors Special Meeting held on December 22, 2016 were approved as amended. The Chairman asked Mike to give the President s Report President s Report: Mike thanked everyone for attending and thanked everyone for the kind welcome then gave a power point presentation that covered the following: Capital Projects:
2 o Whiteface 2 story addition on Bear Den (Lodge for kids programs) in two phases-. Phase 1 to focus on downstairs to be ready for 2017/2018 season then 2 nd story open for Work to be done on Cloudspin Lodge- raise roofline and dormer to open up the bar area, improve services and traffic patterns and address outstanding code issues. o Gore Work to be done on Saddle Lodge- raise roofline, small addition for bathrooms, expand seating area from 86 to approx.212 seats, Northwoods Lodge- two small additions to expand its rental and kids area and dress up the outside to give more Adirondack look and Summit Lodge to finish off the building and add 6 waterless composting toilets o Belleayre This will be ORDA s 4 th season operating at Belleayre and there have been a lot of changes- new rental shop, new compressor, replaced grooming fleet, added conveyor lift and remodeled lodges but it is still an awkward facility. Lodges are at different elevations- the new gondola will go base to summit and will improve traffic patterns and open up year round operational opportunities. ORDA will look to finance part of the gondola cost in order to fix other lodge issues. Mike added that these capital investments will improve all 3 ski areas, improve satisfaction and turn customers into sales people. Art Lussi asked if staff or Board members are involved in the process- Mike answered that each mountain has a unit management plan (UMP)/public process that must be followed. The Belleayre UMP was approved by the Dept. of Environmental Conservation (DEC) last year, Gore and Whiteface approved first by the Adirondack Park Agency (APA) then the DEC. Gore and Whiteface will go through UMP amendments in the near future but every project discussed has been approved and permitted. Old Business: The Chairman then asked Padraig Power to present the financial report. OLYMPIC REGIONAL DEVELOPMENT AUTHORITY FINANCIAL REPORT FOR THE ELEVEN MONTHS ENDED FEBRUARY 28, 2017 PRESENTED BY PADRAIG POWER DIRECTOR OF FINANCE COMPARISON OF REVENUES AND EXPENSES-ELEVEN MONTHS ENDED 02/28/17 vs. 02/28/16 BY VENUE Whiteface Mountain: o Revenues for the month total $2.9m and YTD of $9.3m vs. prior year figures of $2.3m and $7.4m, respectively. This is a YTD increase of 21% over prior year directly related to a stronger weather season and higher visitation over winter months. o Personal service expense YTD is $4.9m vs. prior year total of $5.1m, a decrease of 2%. Non-personal service expense YTD totals $1.84m vs. prior year total of $1.78m, an increase of 4%. Total venue expenses are $6.81m vs. prior year total of $6.83m, a slight decrease year over year, but a direct result of strict management oversight of expense and spend levels. o Net operating income YTD totals $2.5m vs. prior year of $902k, a positive gain of $1.6m.
3 o Winter revenues and visitation through 2/28/17 total $7.3m and 161,000 which are 6% and 8% over 3 year averages, respectively. Three year averages through 2/28 total $6.9m in revenue and 149k visitors. Gore Mountain: o Revenues for the month total $2.8m and YTD of $7.3m vs. prior year figures of $1.8m and $5.2m, respectively. This is a YTD increase of 39% over prior year directly related to a stronger weather season and higher visitation over winter months. o Personal service expense YTD is $4.75m vs. prior year total of $4.71m, an increase of 1%. Non-personal service expense YTD totals $1.9m vs. prior year total of $2.5m, a decrease of 20%. Total venue expenses are $6.7m vs. prior year total of $7.2m, a decrease year over year of 6%. o Net operating income YTD totals $563k vs. prior year loss of $1.9m, a positive gain of $2.5m. o Winter revenues and visitation through 2/28/17 total $7.2m and 163,000 which are 4% and 20% over 3 year averages, respectively. Three year averages through 2/28 total $6.9m in revenue and 135k visitors. Belleayre Ski Center: o Revenues for the month total $1.8m and YTD of $4.6m vs. prior year figures of $1.3m and $3.2m, respectively. This is a YTD increase of 42% over prior year directly related to a stronger weather season and higher visitation over winter months. o Personal service expense YTD is $3.82m vs. prior year total of $3.89m, a decrease of 2%. Non-personal service expense YTD totals $1.6m vs. prior year total of $1.7m, a decrease of 1%. Total venue expenses are $5.46m vs. prior year total of $5.56m, a decrease year over year of 2%. o Net operating loss YTD totals $888k vs. prior year loss of $2.3m, a positive gain of $1.5m. o Winter revenues and visitation through 2/28/17 total $4.3m and 101,000 which are 9% and 5% over 3 year averages, respectively. Three year averages through 2/28 total $3.9m in revenue and 96k visitors. Other Notable Venues: o Mt. VanHoevenberg is up YTD in revenues $181,000 or 11%; Net operating loss YTD is $995k which is a positive variance of $246k year over year. o The Olympic Center is up YTD in revenues $341,000 or 15%; Net operating loss YTD is $1.3m which is a positive variance of $282k year over year. o Conference Center is up YTD in revenues $207,000 or 109%; Net operating income YTD is $131k which is a positive variance of $167k year over year. ORDA Totals o YTD revenues total $28.3m vs. $22.2m in prior year an increase of 27%. o YTD personal service expense totals $23.7m vs. $23.8m in prior year a decrease of nearly 1%. o YTD non-personal service expense totals $10.9m vs. $11.1m in prior year a decrease of 1% o Net operating loss YTD totals $6.4m vs. a prior year loss of $12.6m through February 2016 a positive variance of $6.2m or 49%. This is stated prior to state and town funding totaling $7.3m YTD. COMPARISON OF REVENUES AND EXPENSES BUDGET TO ACTUAL
4 Total operating revenues are $2.8m under budget. Much of these variance can be attributed to an aggressive budget as well as budgeting figures including ski operations in April 2016 which did not occur to do poor weather prior year. Personal service expense YTD is $790k or 3% under budget. This success is a function of a focused management effort on consolidating positions and cutting staff where appropriate and available as the organization recovered from prior year financial lag. The organization still managed to come in under budget while seeing increases of nearly 5% in both worker s compensation and health insurance expense. Non-personal service expenses are $1.4m or 11% under budget. This is a large success for the organization with a focused management directive controlling the NPS spent through the summer months in preparation for the expense heavy winter. Additionally, the organizations capital budget allows for NPS spend to be controlled more aggressively while still taking the necessary steps in preparing our venues for the busy season. Net loss from operations, before depreciation, is $6.4m as of February 2017 which is a slight negative variance of $611k from budget as a function of the above points. 3 MOUNTAIN PRESIDENT S WEEK COMPARISON The following figures for the three ski areas are for the 10 days of the February President s Holiday Week compared to prior years and are noted prior to F&B and rental commissions from concessionaire Centerplate. The holiday week provided some record revenue and visitation days for each of the mountains resulting in a strong financial month. Whiteface revenues totaled $1.4m and visitation for the week totaled just over 32k skiers and riders. This was the highest revenue total dating back to fiscal year 2010/2011 which was only $1k more in revenue. o Whiteface had visitation of over 6,000 skiers/riders on the Saturday and Sunday of the holiday both records for the mountain. Gore revenues totaled $1.2m and visitation for the week totaled right around 33k skiers and riders. This revenue figure is highest Gore has seen in records dating back 10+ years. o Gore had nearly 7,000 skiers/riders on the Saturday and Sunday of the holiday both records for the mountain. Belleayre revenues totaled $813k and visitation for the week totaled just over 21k skiers and riders. This isn t the highest holiday week for Belleayre in recent years, but has set the mountain up for a financially successful year. o Belleayre had visitors of 4,400 and 4,800 on the Saturday and Sunday of the holiday which proved to be the highest recorded during the holiday week dating back 10+ years. LOOKING FORWARD TO YEAR-END Financially, the organization is in a favorable position as we head into the final month of the fiscal year. March generally tends to be a strong revenue month for the organization with historical high snowfall and the attraction of spring skiing. The month is host to two major Canadian holidays which drive skiers/riders to our northern venues as well as numerous worldclass events including: ECAC Men s Hockey Championships which concluded this weekend with a Harvard title and nearly 9,000 attendees 2017 XC Junior Nationals which concluded the week of 3/12 with 300+ participants International World Airlines Ski Championships with 300+ skiers/riders from all over the world 3 rd Annual Miracle on Ice Fantasy Camp kicking off this Sunday with 60 campers and 15 of the original 1980 Miracle on Ice hockey team members in attendance.
5 With the recent major snowfalls seen at all of our venues and strong revenues to date, the organization is in a good cash flow position entering the end of the fiscal year. Outstanding liabilities have been kept up to date and additional state and grant funding remains for the organization as the fiscal year comes to a close. On a motion by John Parete, seconded by Jeff Stefanko the Financial Report was accepted. The Chairman thanked Paddy for his report and asked Joe Kelly for an update from the Audit Committee. Joe Kelly asked Paddy for gave an update on the Centerplate audit. Padraig stated that per the agreement ORDA started by going back 3 years and based on findings have only found very minimal differences. He stated he has no real concerns and added that Centerplate is now on the POS system which makes it easier to monitor. Joe Kelly stated that the Audit Committee met and reviewed allocations for all three mountains, discussed the Centerplate audit and examined questions regarding the ORDA line of credit and whether or not the interest rate is competitive. Paddy stated that we renew the line of credit annually and the interest rate is fairly competitive. ORDA has not had to use the line of credit this year and is designed as a safety net. Joe Kelly commented that the Governor has been very generous and recognized ORDA s needs and is providing much needed funding for the ski areas. Art Lussi expressed ORDA s need of a strategic plan and Mike absolutely agreed and plans to update the Board on future plans at the June meeting. New Business: Resolutions: Resolution #306 On a motion by Joe Kelly, seconded by John Parete, the Board adopted Resolution #306- Resolution Approving Capital Expenditures The Chairman asked for a motion to go into Executive Session and asked Mike Pratt, Interim President/CEO and David McKillip, HR Director to remain to discuss a personnel matter. On a motion by Cliff Donaldson, seconded by Jeff Stefanko, the Board entered into Executive Session at 1:47pm. At 2:28 pm the Board resumed regular session and David McKillip stated that the Board had discussed a personnel matter and the bargaining unit negotiations. Resolution #307 On a motion by Cliff Donaldson, seconded by John Parete, the Board adopted Resolution #307- Resolution Approving the President/CEO Terms of Employment
6 Adjournment: Before asking for a motion to adjourn the Chairman asked the Board to turn in their Annual Ethics Recertification to Mary and reminded them that the next ORDA Board meeting is scheduled for June 27. On a motion from John Parete, seconded by Joe Kelly, the meeting of the Olympic Regional Development Authority Board of Directors was adjourned at 2:35pm.
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