MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS MEETING

December 18, 2006

Pursuant to notice duly given, a meeting of the Michigan State Fair Authority was brought to order by Mr. Mark T. Gaffney, Chairman, on this date, beginning at 1:37 PM, in the Administration Building, Conference Room, at the Michigan State Fairgrounds, 1120 W. State Fair Avenue, in Detroit. 

PRESENT:    Mark T. Gaffney, President Michigan AFL/CIO

                        Edward Deeb, President & CEO of MFBA

                        Pat G. Albright, Owner of Albright Farms

                        Thomas G. Coon, Ph.D., Professor and Director of MSU Extension

                        Kenneth J. DeCock, Partner of DeCock and Sons LLC/Boyka's Farm Market

                        Elaine Driker, Former Director, Detroit Orientation Institute @ WSU

                        Monique Field, Representing   Lisa Webb Sharpe, Director of DMB

                        Tim Jenkins, MSF Interim General Manager

ABSENT:       Robert G. Porter, Mayor of the City of Ferndale

                        Mitch Irwin, Director of MDA

  Also Present:   Daryl Love, MSF Facility Manager

                             Margaret Fletcher, MSF Finance

                            Thomas Schimpf, Office of the Attorney General

                            Sue Horvath, DMB

                            Jamie Uphaus, DMB

                           Keith Paasch, DMB  

ACCEPTANCE OF AGENDA

ON MOTION BY Mr. DeCock, supported by Mr. Deeb, and carried, the Agenda for today's Board meeting was accepted.

APPROVAL OF MINUTES

The minutes of the meeting held on October 18, 2006 were reviewed.   ON MOTION BY Mr. Deeb, supported by Mr. Coon, and carried, the minutes were approved and the Motion was unanimously passed with the following amendments:

Chairman Gaffney stated that the "unknown" person who sat in on a phone conference with him, Elaine Driker and Mayor Porter was "Brad Coombs" of Meridan Entertainment.

Mr. DeCock stated that he was upset with the way Mr. Siegel's situation was handled.   Mr. DeCock believed the State Fair Authority Board should have been informed when Mr. Siegel first informed State Fair staff of the problems earlier in 2006.  Mr. DeCock does not blame Mr. Siegel or Mr. Jenkins for this lack of action.  The State Fair Authority Board received Mr. DeCock' s statement today and the Minutes of October will reflect this change on Page 2, just before the Interim Managers Report.

CHAIRMAN'S COMMENTS

Chairman Gaffney gave an update on the lengthy discussions that took place at the previous meeting of the Board.   He stated that an extensive discussion had taken place regarding the one-year and five-year plans and the public meeting that was to be scheduled.  It had been suggested that a meeting of the November and December meeting of the Board be combined with a meeting of the local Neighborhood Advisory group.  Chairman Gaffney stated that after reviewing his notes from the October meeting, he would like to suggest that the Board assist him today in putting together a calendar of months and dates.  This calendar would establish a timeline to draft and complete the one-year and five-year plan and to set a meeting with the local Neighborhood Advisory group.

Chairman Gaffney stated that the first thing that we should do is collect data from the State Fair staff on what suggested changes and recommendations they would like to see take place at the Fair and any suggestions as to what should be in the one-year plan.   Mr. Jenkins distributed a two-page 2006 recap of information that had been gathered from the recent State Fair staff meetings.  Chairman Gaffney stated that today we may also appoint a sub-committee to draft the one-year plan and suggest the process of having the Authority Board approve the plan.  Chairman Gaffney said that we should also set the date for the public meeting and then present and explain the one-year plan to the public group and solicit their input and suggestions for the five-year plan.  Chairman Gaffney stated that the Board should discuss the necessary process to draft and adopt the one-year and five-year plan and also look at what is suggested in the legislation as a separate report to the Governor.  

Mr. Albright suggested that the one-year plan should be made top priority with a goal being set that by the end of the 2007 Michigan State Fair, the five-year plan should be in place, if legislation permits.   Mr. Albright stated that the various departments i.e. commercial exhibitors, livestock, community arts, and other departments be brought in to make presentations to the Board as to what immediate needs, suggestions or changes they would like to see added to the facility in order for the Fair to be successful.  He added that Mr. Jenkins input would be received with each of these recommendations. Mr. Albright stated that due to the necessary amount of time it will take to put together the five-year plan, he feels it is key for us to have someone do the legwork for the plan and this should be someone we have faith and confidence in.

Mrs. Driker shared with the Board, her association and affiliation with Heather Carmona, Executive Director of the Woodward Avenue Action Association.  At the suggestion of Chairman Gaffney, Ms. Carmona will be invited to attend the January meeting of the State Fair Authority Board.  Ms. Carmona will be invited to share with our Board any thoughts and ideas she may have for a strategic plan for the State Fair, as well as special plans such as the Woodward Avenue 200th Celebration and other events and programs related to future developments on Woodward Avenue.   Mrs. Driker stated this would be a great opportunity for us to develop a relationship with the Woodward Avenue Association and to learn what's happening in our area and how we can partner together on special plans for the surrounding area.

*AS AMENDED AT THE BOARD MEETING OF JANUARY 17, 2007: 

Mrs. Driker shared how she participated in a strategic planning process led by two consultants from the Detroit Executive Service Corps (DESC) for Hillel of Metro Detroit and that it involved four 2-hour meetings to put together a strategic plan for a smaller scale, less complex organization.   Mrs. Driker suggested that we contact Ms. Carmona and/or the DESC to help begin the process of putting together the plan for the future of the Fair.   Mr. Deeb stated that he sits on the DESC board and it was suggested that we also invite someone from this group to come in and discuss with the State Fair Board the possibility of working together to create the five-year plan for the Fair.  DISCUSSION WAS HELD at length regarding contracting a small firm or person to help draft the five-year plan.  Mr. Jenkins agreed to contact the Detroit Executive Service Corps before the next meeting of the Authority Board and ask them questions that will help determine whether or not it would be feasible to hire their group to assist us in drafting the future plans for the Fair.

Chairman Gaffney stated that today we may be able to cover at least sixty percent of the one-year plan and he added that we would begin the planning process with a presentation being made today on the overall facility and maintenance of the Fairgrounds.   Mr. Gaffney suggested that Mr. Jenkins also get in touch with the Friends of the Fair to not only invite them to get involved in the five-year planning for the State Fair, but also to get their input regarding being a financial agent we can consider for non-profit related matters.

ON MOTION BY Mr. Deeb, supported by Mrs. Driker, and carried, to adopt the discussion that has already taken place today.  The Board agreed to follow-up on the goals and steps indicated to have someone from the Detroit Executive Service Corps come in to meet with the Authority Board to discuss the process of drafting the five-year plan.  The Motion passed unanimously.  

The Authority Board members decided to all sit on the strategic planning committee as opposed to developing a sub-committee to draft the five-year report.   DISCUSSION WAS HELD at length regarding how much time would be needed and how many times the Board would have to meet in order to put together the five-year plan. The Board agreed that, if necessary, they would hold additional meetings in order to accomplish this task in a timely manner.  Mr. Jenkins stated that the actual operating budget should be done and in place by the February meeting of the Board.  He stated that the final budget meeting with livestock and maintenance will take place on Tuesday, January 9th.    Chairman Gaffney stated that today we will discuss the one-year plan, by the end of January we will draft the one-year report and by February we will be prepared to submit the report to the Board for acceptance and approval.  Mrs. Driker stated that if it turns out that we are working with a facilitator who has a defined process, we should be prepared to let that person know what our time-table is and make sure that this time frame fits into their process.  Mr. Jenkins agreed to get in touch with the DESC and bring information back to the Board as to how this group may be able to assist us.

DISCUSSION WAS HELD regarding setting the date for the local Neighborhood Advisory group to come in and meet with the State Fair Authority Board.  

ON MOTION BY Mr. Albright, supported by Mr. Coon, and carried, to change the date of the State Fair Authority Board of Directors' meeting for January and April.  Instead of holding these two meetings on the second Wednesday of the month, the Board decided to hold a meeting on Wednesday, January 17th, beginning at 12:00 Noon and Thursday, April 19th, at 4:00 p.m., with a meeting of the local Neighborhood Advisory Council to follow at 5:30 p.m.  All future meetings of the Board will be held on the second Wednesday of each month, unless otherwise noted.  The Motion to change the date of the two Board meetings was unanimously passed.  Chairman Gaffney stated that the goal is to have the five-year plan drafted and adopted by the State Fair Authority Board by the May 2007 or sooner.  He added that we will try to begin meetings with the DESC in February and certainly we will try to avoid additional meetings of the Board. 

Chairman Gaffney then shared and reviewed items that should be included in the one-year plan for the Fair.   He invited the Board to offer any recommendations and suggestions they had for the plan.  The following is a list of items suggested to be included in the one-year plan. 

1)   Budget.

2)   Facility and building maintenance needs based on today's presentation.

Fair programs, which would include band shell entertainment, the community      

arts,   livestock, any potential special events and staff recommendations.

New ideas and non-Fair events such as the Hob Nobble Gobble, hockey and the Dumar's Fieldhouse program.

Marketing and promotions, Fair and non-Fair events.

Sponsorships.

Patron & fairgoer concerns and suggestions and increasing attendance

Exhibitors, letters of praise and complaints

Concessions and midway.

Governance and collaboration with other organizations. 

It was suggested that past proposals and future developments, i.e. Bowling Alley, Golf Dome, The Drive-in Movie Theater could be included in the five-year plan.   Chairman Gaffney stated that some of the one-year plan could also be included in the five-year plan as a continued effort for the successful future of the State Fair.

Mrs. Driker asked Chairman Gaffney to take one of the items and give his vision of what that portion of the plan would look like.   Chairman Gaffney stated that the there should be one page or less for each topic listed.  He added that this report will include a review of what we want to add, keep or change in the specific area and the recommended 20% cut in the various departments will be included in the budget portion of the report.  Mr. Deeb asked Mr. Jenkins if he and the State Fair staff would be able to put together some basic information on all of the items listed for the one-year report and then present this information at the next meeting of the Board in January.

A question was raised concerning the expired appointments of various Board members.   Chairman Gaffney stated that he has been in touch with the Governor's Appointments office and he assured the Board that they are looking very hard to fill the two empty Board slots.  The Governor's office would like to appoint someone who either lives in the City of Detroit or is very connected with the city to serve on the Board as a Business representative to replace Karen Batchelor, who resigned from the Board nearly eight months ago.  They are also committed to looking at the County Fairs division for a replacement for Tom Valliere, of the Midland County Fair, whose term on the State Fair Board expired.  

Mr. Albright suggested that we develop an organizational chart to help the Board understand who's responsible for what and how various in-departmental decisions are made at the Fair and he suggested that this may also help with the five-year planning process.   Mr. Jenkins stated that something like this may already be in place and he would be willing to share it with the Board at a future meeting.

Mr. Deeb moved to approve the outline of the one-year plan which was jointly discussed and accepted at today's meeting and the change of the meeting dates and times for January and April, Mr. Coon supported, and carried. The Motion passed unanimously.

INTERIM MANAGER'S REPORT

Mr. Jenkins distributed a breakdown of the 2006 State Fair attendance and he gave a brief report on the items included.   Mr. Jenkins stated that the total paid attendance for the 2006 Fair was up by approximately 15% and the parking was also up by a small percentage.  He added that the Board could review this day-to-day attendance report and see how the weather and big name entertainment affects our daily attendance.  Mr. Jenkins distributed a recap of the final financial report and shared information as it relates to the 20% budget reduction in various areas of the Fair and he discussed how these current reductions would affect future Fair revenue.  He added that the reduction is a way of bringing our expenses in-line with our revenue and our aim and goal is to decrease expenses and increase revenue.  Mr. Jenkins stated that the Fair staff has already begun identifying ways in which we can reach the goal of cutting our expenses in various departments without causing the programs to suffer.  Mr. Jenkins distributed and highlighted various items listed on a Budget Status Report.   The financial report offered by Mr. Jenkins was reviewed and received by the Authority Board at today's meeting.  Mr. Jenkins suggested the Board keep the attendance chart handy and available for future discussions that may help with the one-year and five-year planning.

Mr. Jenkins reported that we have met with the Radio Disney people about bringing in talent for the 2007 State Fair and they have agreed to work with us again.   Mr. Jenkins stated that it has been agreed that we will give Radio Disney the band shell one evening pro-bono and they will book the talent themselves at no charge or very little cost to us for the staging and lighting.  Last year, Radio Disney, a brand new radio network, paid $40,000 for Raven Symone to perform at the State Fair and this show was one of the best attended concerts offered held at the 2006 Fair.   Radio Disney is considering booking Hanna Montana for the 2007 State Fair.

Mr. Jenkins stated that while at the recent International Association of Fairs and Expositions convention in Las Vegas, he was able to put out many offers for entertainment and he feels very good about the suggested line-up which he has made offers on.   Mr. Jenkins gave the proposed "tentative" 13-day musical line-up for the 2007 State Fair.  He announced Alice Cooper has agreed to come back.  He added that we will also have a special gospel night with local churches and gospel talents.  Mr. Jenkins stated that we are hoping to book our musical entertainment for the upcoming Fair early in 2007 and possibly begin special radio promotions and Fair announcements earlier in the year.  He added that we would also like to consider holding an earlier Press Conference in 2007. 

Mr. Jenkins reported that Grounds Entertainment would again include the Show-Me-Safari.   The Show-Me-Safari, which brought us the Petting Zoo, Racing Pigs and the Pony Rides, will now include at no extra charge, a new exhibit called "Goat Mountain" which highlights baby goats doing special stunts and tricks for Fairgoers.  Mr. Jenkins reported another new attraction for the 2007 Fair will be the "Barnyard Express", an educational and entertaining venue that includes animals and a neat little dog and goat doing all sorts of exciting, family-fun acts.  The Lumber Jacks, Rowdy Rooster, the Circus with elephant rides, Dragon Scales and Faerie Tales in the Community Arts Auditorium, Galaxy entertainment in Gazebo, and the Puppetone Rockers are all among the returning entertainment.  The Fallen Giant and the Walking Treeman will not return for the 2007 Fair. 

DISCUSSION WAS HELD regarding how it would be helpful if we could coordinate with other entertainment venues, i.e. Arts, Beats and Eats, DTE Energy, Freedom Hill, and possibly eliminate some of the head-to-head competition that goes along with booking the same type of entertainment as other venues.    Mr. Albright suggested that it would be nice to coordinate these efforts and know in advance what type of musical entertainment (country, rock or R&B) was being booked at other venues as it relates to not hosting the same type of entertainment on the same day at our Fair.

Mr. Jenkins reported that he hopes to approach someone at Al Long Ford regarding a sponsorship arrangement for the 2007 Fair.   He added that a few years ago, Ford sponsored a special attraction that included an original 1923 Ford RV Camper and a couple who dressed up and sat outside of the Administration Building singing and entertaining fairgoers near the State Fair Avenue entrance.  Mr. Jenkins asked the Board for any assistance with a contact person to approach at the Ford Motor Company.    

OLD BUSINESS

Mr. Jenkins gave an update on the Fieldhouse L.L.C. and he stated that at the last meeting of the Board it was asked that a market analysis survey be completed to see that it supports the $50,000 lease arrangement between the State Fair and the Fieldhouse L.L.C.   Monique Field stated the Department of Management and Budget has reviewed the market analysis survey and the Fieldhouse L.L.C. contract and everything appears to be in good condition. 

Chairman Gaffney introduced two men, Keith Paasch and Jamie Uphaus, from DMB Facility and Maintenance Division, who joined the meeting and offered a detailed report on the buildings and maintenance of the Fairgrounds facility.

DISCUSSION WAS HELD at length regarding the various buildings, i.e. the White Hall Building and the Volunteer Headquarters, which were of major concern as they may be in violation of construction codes. 

Chairman Gaffney thanked Mr. Paasch and Mr. Uphaus for performing the study on the Fairgrounds building and facilities and then he thanked them for attending today's Board meeting and providing the Board with this additional information in such a timely manner.   Chairman Gaffney thanked the Board for their attendance and participation in today's lengthy discussions and he wished everyone a very Happy Holiday!

NEW BUSINESS

Mr. DeCock raised a question concerning the staff recommendation to have a livestock person at gate "C" early in the morning between 7:00a.m. - 8:00a.m. to sell and take tickets from the public wishing to come in early for special livestock judging events and demonstrations.   Mr. Jenkins explained that because we have experienced some problems in the past with patrons wanting to come onto the Fairgrounds early for livestock events, the staff made a recommendation to have someone present at the gate early enough to sell tickets.  Mr. Jenkins further explained that because of the few number of tickets that are taken at the gate in the early morning hours, it would not be financially beneficial for the Fair to bring in a contracted ticket taker for this service.  

PUBLIC COMMENT

There was no public comment to come before the Board at today's meeting.

DATE for NEXT MEETING

The next meeting of the Michigan State Fair Authority Board was scheduled for Wednesday, January 17, 2007 beginning at 12:00 p.m. in the Conference Room, State Fair Administration Building, at the Michigan State Fairgrounds in Detroit.

Future meetings of the Michigan State Fair Authority Board of Directors are as follows:

Wednesday, February 14, 2007         @  1:30 p.m.

Wednesday, March 14, 2007             @  1:30 p.m.

Thursday, April 19, 2007               @  4:00 p.m. with the Neighborhood group  @ 5:30p.m.

Wednesday, May 9, 2007                   @  1:30 p.m.

Please note on April 19, 2007 the Board of Directors will meet at 4:00 p.m. in the Conference Room of the Administration Building and the 5:30 meeting with the local neighborhood group will take place in the Community Arts Building (next door to the Admin. Building).

ADJOURNMENT

The meeting was adjourned at 3:50 p.m.