MINUTES OF THE FARGODOME AUTHORITY MEETING
A regular meeting of the Fargo Dome Authority was held on Tuesday, January 28, 2020 at 2:00 p.m. in the FARGODOME Conference Room with President Troy Goergen presiding.
Members Present:
President Troy Goergen, Blake Nelson, Michael Ellingson, David Suppes, Rick Steen and Nancy Jordheim
Members Absent:
Dan Armbrust
Others Present:
Ryan Green – City of Fargo; Sarah Dykema, Director of Marketing – FARGODOME; Bernie Larson, Assistant General Manager – FARGODOME; Susan Thompson, Director of Finance – FARGODOME; Amanda Muellenbach, Administrative and Auxiliary Services Manager – FARGODOME and Rob Sobolik, General Manager – FARGODOME
Media Present:
None
President Troy Goergen called the meeting to order at 2:03 p.m.
David Suppes made a motion, seconded by Mike Ellingson, to approve the agenda of the January 28, 2020 Fargo Dome Authority meeting. Motion carried.
David Suppes made a motion, seconded by Mike Ellingson, to approve the minutes from the December 9, 2019 Fargo Dome Authority meeting. Motion carried.
Nancy Jordheim joined the meeting
Rob Sobolik presented the General Manager’s report as follows:
• Year-to-Date Net Income through November 2019 is stated at $468,682 which is a negative variance (to budget) of $8,625.
• Year-to-Date Net Income through December 2019 is stated at $455,475 which is a positive variance (to budget) of $76,710.
• Upon review, Blake Nelson made a motion, seconded by David Suppes, to approve the November and December 2019 financial statements as presented. On call of the roll, Ellingson, Goergen, Jordheim, Nelson, Steen and Suppes voted aye.
Absent and not voting: Armbrust.
The motion was declared carried.
• Past Events: ND Ag Expo on December 3-4, 2019. Health, Tech and Trades Career Expo on December 5, 2019. NDSU Football Playoff Game on December 7, 2019. Cirque Dreams Holidaze on December 11, 2019. NDSU Football Playoff Game on December 14, 2019. NDSU Football Playoff Game on December 21, 2020. Rumble on the Red on December 27-28, 2019. Rumble on the Red Youth Tournament on December 29, 2019. Fight the Frost on January 10-13, 2020. PAW Patrol Live on January 18-19, 2020. RRV Boat & Marine Show on January 24-26, 2020.
• Upcoming Events: Monster Jam on January 31-February 1, 2020. ND Corn and Soybean Council on February 3-4, 2020. An American in Paris on February 6, 2020. Jason Aldean on February 8, 2020. NDSU Spring Career Fair on February
11-13, 2020. Kiwanis Pancake Karnival on February 15, 2020. ND State HS Wrestling Tournament on February 20-22, 2020.
Blake Nelson presented the FargoDome Authority Building and Finance Committee report. The Fargo Dome Authority Building and Finance Committees met on Wednesday, January 22, 2020. Items discussed included:
• November and December 2019 Financial Statements: The November and December 2019 Financial Statements were approved by the Finance Committee at the meeting on January 22, 2020.
• Insurance Update - Excess Liability: An overview of the current Property and Liability coverage, including excess liability coverage was provided to the committees. Please see attachments. In 2018, FARGODOME held $5M in excess additional liability (for a total of $15M) and in 2019 increased to $15M (for a total of $25M) due to benchmarking of comparable venues along with the reasonable price of the coverage. Due to current market conditions, additional limit capacity that was previously offered at a premium of roughly $1,000 per million in excess of the primary $10M limit has increased to approximately $4,500 per million. After discussion, Rob suggested that the Authority consider a return to coverage at the 2018 level of $5M in excess additional liability (for a total of
$15M) at the cost of approximately $22,500. There is currently $15,000 remaining in the 2020 budget for additional excess liability coverage resulting in an anticipated budget deficit.
• The Building Committee and Finance Committee each accepted a motion to move forward with $5M in excess additional liability (for a total of $15M) at the cost of approximately $22,500.
• Ticketing RFP Update: Ticketing RFP’s were due on Friday, January 17, and there were four companies that responded. The RFP’s will be evaluated and compared to the required criteria. Companies will be selected for interviews and committee members are encouraged to attend the interviews.
• Additional Items:
• Project Updates: Rob continues to work with RL Engebretson on potential upgrades to the backstage area, including dressing rooms and the catering room. More discussion on this item to come at upcoming meetings.
• Economic Impact Study: Information regarding the economic impact study that was done over the last year should be available at the March or April meeting. November and December 2019 Financial Statements: The November and December 2019 Financial Statements were approved by the Finance Committee at the meeting on January 22, 2020.
• Insurance Update - Excess Liability: An overview of the current Property and Liability coverage, including excess liability coverage was provided to the committees. Please see attachments. In 2018, FARGODOME held $5M in excess additional liability (for a total of $15M) and in 2019 increased to $15M (for a total of $25M) due to benchmarking of comparable venues along with the reasonable price of the coverage. Due to current market conditions, additional limit capacity that was previously offered at a premium of roughly $1,000 per million in excess of the primary $10M limit has increased to approximately $4,500 per million. After discussion, Rob suggested that the Authority consider a return to coverage at the 2018 level of $5M in excess additional liability (for a total of
$15M) at the cost of approximately $22,500. There is currently $15,000 remaining in the 2020 budget for additional excess liability coverage resulting in an anticipated budget deficit.
• The Building Committee and Finance Committee each accepted a motion to move forward with $5M in excess additional liability (for a total of $15M) at the cost of approximately $22,500.
• Ticketing RFP Update: Ticketing RFP’s were due on Friday, January 17, and there were four companies that responded. The RFP’s will be evaluated and compared to the required criteria. Companies will be selected for interviews and committee members are encouraged to attend the interviews.
• Additional Items:
• Project Updates: Rob continues to work with RL Engebretson on potential upgrades to the backstage area, including dressing rooms and the catering room. More discussion on this item to come at upcoming meetings.
• Economic Impact Study: Information regarding the economic impact study that was done over the last year should be available at the March or April meeting.
Blake Nelson made a motion to approve the Building and Finance Committee report as presented.
On call of the roll, Ellingson, Goergen, Jordheim, Nelson, Steen and Suppes voted aye. Absent and not voting: Armbrust.
The motion was declared carried.
Capital Reallocation Request: Rob presented the committee with a capital reallocation request. Rob is requesting to reallocated $100,000 from FD1614 (Video Board Project)
to FD 1902 (Architectural Services) for work related to potential upgrades to the backstage area. This would leave approximately $300,000 in the Video Board Project line item.
Nancy Jordheim made a motion, seconded by Blake Nelson, to approve the above reallocation request.
On call of the roll, Ellingson, Goergen, Jordheim, Nelson, Steen and Suppes voted aye. Absent and not voting: Armbrust.
The motion was declared carried.
The next Fargo Dome Authority meeting will be on February 25, 2020 at 3:30 p.m.
There being no further business, the meeting was adjourned at 2:32 p.m.