MEETING NOTES

METRO OREGON CONVENTION CENTER ADVISORY COMMITTEE

Wednesday, June 13, 2001

Metro Meeting Room 270

Members Present:  George Bell, Shirley Bledsoe, Mike Fisher, Kevin Neary, Harold Pollin, Chuck Sellers, Roy Soards

Members Absent:  Samuel Brooks, Joe D’Alessandro, Mary Erickson, Bruce Fery, Pat La Crosse

Staff/Council Present:  David Bragdon, Rex Burkholder, Peggy Coats, Dan Cooper, Tony Mounts, Karl Schulz, Jennifer Sims, Mark Williams, Cherie Yasami

The meeting commenced at 4:03 pm.

Councilor Bragdon introduced himself, and reiterated Council’s desire, through this committee, to build a relationship with industry representatives and Oregon Convention Center (OCC) stakeholders, as well as to create greater accessibility to Council. He also said that He hoped the structure and work of the committee would help to facilitate communication among users who are funding the facility’s expansion, and the elected officials who are establishing policy.

1.  Election of Committee Chair

Joe D’Alessandro and Pat La Crosse were both nominated. Since both committee members were absent, Councilor Burkholder agreed to contact them and determine who was willing and able to take on the role of chair, and report back at the next meeting.

2.  OCC Building Update

Karl Schulz, Project Manager for the OCC expansion, distributed a construction project report. The concrete, parking garage, and steel have been bid. The rest of the project will be bid in late August. At this point, the project is under budget, but this may be a challenge to maintain with upcoming bids because of changing, weaker, market conditions. There is a $5 million contingency fund to help deal with shortfalls.

Mr. Shulz was asked what the status of the parking consultant’s report was, and, if problems arise, how will they be addressed. He replied that a staff draft would be available in two weeks, but would not be ready to circulate for another month after that. He further stated that if additional spaces were needed as a result of the report, the project could accommodate it. The committee expressed an interest in participating in the review process if any decisions needed to be made in September. The group agreed that a quarterly building update by Mr. Schulz would be adequate, along with a monthly written report.

3.  Questions Regarding Background Materials

▪  There is a seven-year sunset date in the IGA. Does the hotel/motel tax go away at this point?

Dan Cooper, Metro Legal Counsel responded. Taxes on car rentals and hotel/motel are key to paying off the bonds, and last beyond the seven-year sunset date. The seven-year term is the amount of time a specified subsidy to OCC will be provided, based on current operating projections.

▪  If hoteliers generate more revenue than anticipated in taxes, will there be pressure to pay off the bond earlier?

Dan Cooper responded. If there is extra revenue after the earmarked amounts have gone to each “bucket”, the remainder goes to the Visitor Development Fund (VDF). However, before the surplus can be spent on VDF-authorized expenditures, there must be enough built up as a reserve to pay off the bonds in years 25-30.

▪  How is the amount of excise tax charged to OCC determined, and what is it used for?

Jennifer Sims, Metro Administrative Services Director, responded. The excise tax is exacted on goods and services delivered by Metro. The rate is established by Council as part of the annual budget process. In the past nine years, the rate has changed from 6% to 7.5%. The revenues generated by the excise tax are used to pay for Metro’s general government needs. Metro’s annual budget is over $400 million, and approximately $7 million comes from excise tax. 75%-80% of the excise tax generated comes from Solid Waste. The Zoo and MERC are also charged excise tax, but PCPA, being a City-owned facility, is not.

4.  Identify and Prioritize Policy Issues

Several issues were added to the list under the “marketing allocation and strategy” category. A revised copy of “Policy Issues and Questions” will be distributed to committee members before the next meeting. The committee agreed that the top priorities are:

▪  Operational Support/Long-term health of the building

▪  Marketing allocation and strategy

▪  Revenue and reinvestment issues

▪  Alternative funding mechanisms

It was stated that required resources for marketing, as well as overall strategy and market analysis should be studied further. There is a concern that there may be inadequate funding for successful marketing.

5.  Discuss Coordination of Work with Existing Committees

A handout was distributed summarizing the three existing committees, their charges, and membership. The MERC OCC Advisory Committee deals with real-time issues in day-to-day operations. The OCC Expansion Advisory Committee deals with project management and oversight. The Metro OCC Advisory Committee deals with broader policy issues rather than detailed operations or project oversight.

6.  Topics for Next Agendas

Jul 11:  Market Analysis, Marketing Strategy and Required Resources: presentation by POVA

Aug 8:  Parking Lot and Kitchen/Catering Concerns: presentation by OCC staff and Aramark catering

Sep 12:  Review status of next round of bids/Project update

The meeting was adjourned at 5:31 pm.