Monthly Meeting of the Prairie Meadows Board of Directors May 21, :00 p.m.

Transcription

1 Monthly Meeting of the Prairie Meadows Board of Directors May 21, :00 p.m. The Monthly Meeting of the Prairie Meadows Board of Directors was called to order by Jack Peters in the James Rasmussen Board Room at Prairie Meadows in Altoona, Iowa at 2:05 p.m. Roll Call. Diana Ewing - absent E. J. Giovannetti Linda Grandquist Mark Hedberg Michael Knapp Andrea McGuire Bob Myers Jack Peters Also in attendance were: Gary Palmer, President/CEO Ann Atkin, Vice President/COO Brian Wessels, Vice President/CFO Dan Riley Paul Rogness John Rowen Lisa Moody-Tunks Martha Willits - absent Gene Meyer Michael Helak Tom Flynn, Legal Counsel Nancy Winget, Its Recording Secretary Members of the Press, Public, and Staff Approval of the Minutes. A motion was made by Mr. Rowen to approve the Minutes of the monthly meeting of the Prairie Meadows Board of Directors held on April 23, 2014, as written. The motion was seconded by Mr. Giovannetti and passed on a voice vote. Public Comment. Dean O Connor, Altoona City Council member, said he missed the last meeting, but wanted to pass along Altoona s thank you for the support of the Bass Pro Development and all that Prairie Meadows does for Altoona; the Council is working hard to be fiscally sound and responsible and there will be less TIF money given out; thank you again for all you do. Mr. Peters requested Ann Atkin and Derron Heldt talk about the Triple Crown. Ms. Atkin said nothing has been finalized yet; there is an opportunity for California Chrome to become a Triple Crown winner at the Belmont Stakes on June 7 as he won the Kentucky Derby and the Preakness; ads will be coming out soon; we had a big crowd on Kentucky Derby day and we ll be packed on Belmont Stakes day; everyone is very excited about this race. Mr. Heldt said a horse hasn t won the Triple Crown since 1978 and this could be an opportunity for a Triple Crown winner; PM s post time is 5:00 p.m. 5:15 p.m., we ll stop for the Belmont, and the resume racing; there s been a lot of national exposure on California Chrome and he will be able to wear a nasal strip. Ms. Atkin said if any Board member wants to come out and watch the race on June 7 to please call Nancy Winget to reserve a table as it will be a sold out day. 1

2 Financials. Mr. Wessels reviewed the April 2014 YTD financials: Net Revenue below plan 4.5%; Total Expenses below plan 3.3%; Net Income before Community Betterment below plan 8.4%; year over year, revenue is down $3.3 million. Licensee Comparisons Property Net Win Slot Hold YTD Year over year PMRC -5.1% 8.29% Council Bluffs Market -.2% n/a (Horseshoe, Harrah s and Ameristar) Horseshoe/Harrah s n/a 10.5% / 10.7% Ameristar n/a 9.5% Lakeside n/a 9.8% State as a whole -4% n/a Illinois -9.1% n/a Missouri -5.3% n/a Kansas City -5.7% n/a Hotel Occupancy PM vs. Market DM Market Competitive Set April 80% 65.7% 75.9% Performance Goals April 2014 Year-to-date Exceeds/Below Plan Casino Revenue -4.1% Total Revenue -3.9% Net Revenue -4.5% Operating +2.9% Expenses Capital Goals April 2014 Year-to-date Exceeds/Below Plan Capitals Phase % Capital Expenses Maintenance Charitables (Legacy, Community Betterment, Altoona Economic Dev.) flat flat 2

3 Mr. Helak noted the hotel occupancy rate is decent to the market and asked if the rates were consistent with the forecast; Mr. Wessels said we lowered the rate to get the occupancy; Mr. Palmer said there are a lot of players staying in the hotel and some rooms are comped. Lobbyist Report. Troy Skinner handed out a Legislative Update for the end of the session; SF 2362 is the Dog Racing bill it passed both houses and is waiting for the Governor to sign it; it s an election year and there are several area elections Joe Riding and Zach Nunn for the Altoona State Representative seat, Dennis Black retired and Chaz Allen and Chrystal Brunz will run for that seat, and Mitchellville has a mayoral election. Mr. Rogness thought the Governor has not decided about the Dog Bill and Mr. Skinner said that was correct the Governor is not thrilled that no proceeds will go to the state, but he believes the Governor will sign it. Director Report. Michele Wilkie, Director of Human Resources, said it s been a year and a half since she s spoken to the Board; HR is like Las Vegas whatever happens in HR stays in HR; HR has eight employees that serve 1,400 employees; HR s goal is to make PM Iowa s Favorite Place to Play and Iowa s Favorite Place to Work; what does HR do to make PM the best place to work benefits; benefits include: two health insurance plans (HMO and PPO), dental plan (free to the employee, employee can purchase family coverage), vision, Flex Spending Account, Life Insurance (1x salary, with the option to purchase additional coverage and coverage for a spouse and children), Long Term and Short Term Disability, Employee Assistance Program (also includes family members), 401k (PM matches up to 4.5% of the salary with the option to give a discretionary contribution), paid sick leave, vacation, holidays, tuition assistance, reimbursement for fitness, Wellness Program, subsidized meals in JACKPOT Grill, and Employee Appreciation gifts/events through the Community Relations department. Code of Ethics and Business Conduct Policy Discussion. Mr. Peters said this item was briefly discussed at the last meeting and everyone received a copy for further review; we wanted to freshen the policy and asked Mr. Flynn to make suggestions to get the dialog going; Mr. Flynn was given little direction and we ve never had to use the policy, but if we did, there was nothing about how to proceed. After a lengthy discussion, comments and concerns include: the Board should be advised of all issues, even if no action is required; the number of votes needed to remove someone from the Board; maybe separate staff Directors and Board Directors; keep the Board informed on both staff Directors and Board Directors issues, along with informing the Board on internal HR issues; the Board shouldn t micro-manage staff issues, but the Board should be informed; a tight interpretation of No designated personal shall work simultaneously, either as an employee. on page 2 raises issues about County and Partnership members being on the Board - the intent is that the Board member not profit from being on the Board; we need a super majority or the full Board to vote on issues, so a quick meeting isn t called and members couldn t attend; it s important to articulate conduct and we need to say what the penalty would be be transparent and above board with simple language; there s a need for a theory for dismissal; all Boards have a conduct policy. 3

4 Mr. Flynn said the policy was written so the Executive Committee would be the filter and could decide if an issue did or didn t need Board action; the Board would hear all issues; it was not the intent of no designated personal. to prevent those entities to not have representation on the Board the Board signs a conflict of interest and the key point is transparency and why the member abstained and didn t vote (i.e. horse representative doesn t vote on horse issues, etc.); if a meeting is required, a notice will be given and the meeting will have a closed session so the person can present his/her case. Mr. Palmer said this came about from questions during Board Member Orientation regarding representation Board members represent only Prairie Meadows and if a Board member violates this trust, we need a way to remove that Board member; the policy was quoted in the Orientation packet, but the policy was not included; an example is discussion in a Closed Session is discussed with the Board member s entity that placed them on the Board that entity would know what PM would present in advance of the presentation; we ve never had a violation and this is a preventative measure to ensure the Board member represents Prairie Meadows and not the entity that placed them on the Board; the one past issue we had was taken care of by the DCI as it was a criminal issue if someone has his/her license pulled, they can t be on the Board. Mr. Palmer suggested the Board continue to think about this and discuss it again in June; Mr. Flynn said to call or send questions/comments to him or Mr. Peters; Mr. Peters said members could also contact Mr. Palmer or Mr. Myers. President s Report. Mr. Palmer reported: June 7 Belmont Stakes June 15 - Father s Day with specials in Triple Crown Eatery IRGC Public Hearing is May 29 in Jefferson (site visit at 8:30 a.m., public comments at 2:30 p.m.) and the vote is June 12 in Burlington; we have several speakers from state-wide nonprofit organizations that will speak for us. Mr. Peters said the Jefferson hearing will be held in a theater and space is limited. Mr. Palmer said there s approximately seating for 300 and Cedar Rapids and Fort Dodge will send representatives; gaming is down in Iowa and we plan to emphasize that if a license is granted, it would be a for-profit taking money from a nonprofit in the range of $12-$15 million; he will meet with all the Commissioners prior to the June 12 vote; all the non-profits have been contacted and are contacting the Commissioners. Committee Reports. Human Resources. Mr. Rowen said the committee did not meet. Finance. Mr. Knapp said the committee met on Monday and reviewed the financials it s clear that revenue is off and management is taking appropriate actions to reduce costs (i.e. voluntary early-outs, not filling positions, health insurance costs are lower than expected, construction is under budget); management is optimizing the operation in lieu of the light revenue numbers. 4

5 Facilities. Mr. Myers said the committee met on Monday and reviewed the following: o Construction update - the current phase will be done by June 23 and open to the public for the July 4 weekend; the construction walls are coming down; the construction dates were revised and the whole project will be done by mid-february; construction costs are $500,000 under plan right now as the low ceiling area was not as costly as anticipated and we hope that carries on throughout the low ceiling area. o Construction of the Bullpen it s a 1,800 sq. ft. building in the NW corner of the track area, it s been approved by Altoona and the County and is in the budget, the cost is $400,000 and we hope to get some value engineering, the project will be completed in mid-february. o Capitals Budget some projects are being delayed and may shift to next year staff is managing the outflow of funds. o The committee toured the facility the remodeling is a vast improvement and the new lighting is a huge improvement. Audit. Mr. Riley said the next scheduled meeting is in July. Grants. Ms. Grandquist said the committee didn t meet and meeting dates are being scheduled. Other. None. Adjournment. Mr. Riley moved to adjourn the meeting. There being no further business, the meeting adjourned at 3:15 p.m. Respectfully submitted, Mark Hedberg, Its Secretary 5