Minutes of the FARGODOME Authority meeting
A regular meeting of the Fargo Dome Authority was held on Tuesday, December 22, 2020 at 3:30 p.m. in FARGODOME Meeting Room 203 with President Blake Nelson presiding.
Members present: President Blake Nelson, Troy Goergen, David Suppes, Michael Ellingson, Nancy Jordheim (via phone), Dan Armbrust and Rick Steen.
Members absent: None
Others present: Ryan Green – City of Fargo; Ben Armbrust – Dawson Insurance; Bernie Larson, Assistant General Manager – FARGODOME; Susan Thompson, Director of Finance – FARGODOME and Rob Sobolik, General Manager – FARGODOME.
Media present: Barry Amundson – The Forum
President Blake Nelson called the meeting to order at 3:30 p.m.
David Suppes made a motion, seconded by Rick Steen, to approve the agenda of the December 22, 2020 Fargo Dome Authority meeting as presented. Motion carried.
Rick Steen made a motion, seconded by David Suppes, to approve the minutes from the November 24, 2020 Fargo Dome Authority meeting. Motion carried.
Rob Sobolik presented the General Manager’s report as follows:
- Year-to-Date Net Income through November 2020 is stated at -$1,227,860 which is a negative variance (to budget) of $1,608,812.
- Upon review, Rick Steen made a motion, seconded by Mike Ellingson, to approve the November 2020 financial statements as presented.
On call of the roll, Armbrust, Ellingson, Goergen, Jordheim, Nelson, Steen and Suppes voted aye.
The motion was declared carried.
- Review of Current Events: Rob gave an update on the status of current and cancelled events.
Insurance Renewals: Ben Armbrust presented Dawson Insurance’s 2021 insurance renewal recommendations. Please see attachments.
Following a two-year rate lock with Zurich Insurance for property coverage, Dawson representatives approached several property carriers for quotes, but were met with little interest and/or higher annual quotes than Zurich. Due to current market conditions, no premium increase assessed for 2020, annual property coverage valuation increases, and FARGODOME’s pending Business Interruption claim, the annual rate quoted from Zurich for 2021 is $193,974, up from $139,823 for 2020. With the renewal, the deductible will increase from $25,000 to $100,000 and communicable disease coverage has been excluded. Despite the rate increase and other policy changes, Dawson Insurance recommends we remain with Zurich, as they are a good company in a difficult market.
Our long-time liability insurance provider, K&K Insurance, offered to price the 2021 base rates for General Liability, Umbrella, and Excess insurance coverage from our 2020 attendance figures, which are significantly lower than typical annual attendance projections. The 2021 policy is auditable with premium adjustments to be made at year-end 2021 for higher actual attendance figures.
Rick Steen made a motion, seconded by Mike Ellingson, to move forward with the recommendation from Dawson Insurance for 2021 Liability and Property Insurance coverages as presented.
On call of the roll, Ellingson, Goergen, Jordheim, Nelson, Steen and Suppes voted aye.
Dan Armbrust abstained from the vote.
The motion was declared carried.
Spectra Services Agreement Renewal: Rob Sobolik presented the three-year Food & Beverage Management renewal proposal from Spectra Services for 1/1/2021-12/31/2023. Terms of the renewal include decreased monthly base fee from $3,000/mo. to $1,500/mo., for calendar year 2021, with return to $3,000/mo. for 2022 and 2023. Incentive calculations remain unchanged: 4% on annual gross receipts up to $1.5 million; 7% from $1.5 million to $3 million; and 10% in excess of $3 million.
Dan Armbrust made a motion, seconded by Troy Goergen, to approve the contract extension of Food & Beverage Management to Spectra Services for 1/1/2021 – 12/31/2023.
On call of the roll, Armbrust, Ellingson, Goergen, Jordheim, Nelson, Steen and Suppes voted aye.
The motion was declared carried.
The next Fargo Dome Authority meeting will be on January 26, 2021 at 3:30 p.m.
There being no further business, the meeting was adjourned at 4:00 p.m.