08/19/05 Minutes

GEORGIA WORLD CONGRESS CENTER AUTHORITY
COMPENSATION COMMITTEE MEETING
August 19, 2005

Committee Members Present:
Bill Archer
Glenn Hicks, Ex-Officio
Bob Prather, Chair
Tommy Vance

Committee Members Absent:
David Allman
Don Balfour, Legislative overview

GWCCA Staff Present:
Dan Graveline
Khalil Johnson
Sherrie Spinks
Dale Aiken

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Chairman Prather called the Compensation Committee meeting to order at 8:05 a.m.

Minutes, 2004 Compensation Committee

Mr. Prather asked for approval of the minutes of the meeting held August 24, 2004.

Motion to approve the 2004 Compensation Committee meeting minutes as presented was made by Bill Archer seconded by Tommy Vance and unanimously approved.

Key Employee Incentive Plan

Personnel Changes to Program
Mr. Graveline reviewed Personnel changes to the program. There were three changes in the Congress Center and one in the Dome. Al Dyess was hired as Assistant General Manager of GWCC to replace Mark Zimmerman, who was promoted to General Manger when John Smith retired; Frazier Bolton was hired as Director of Public Safety to replace Alan Davis who retired; Crystal Senterfitt was promoted to Director of Human Resources to replace Wayne Stacey who retired; and Charles Allen was promoted to Security Manager of the Dome to replace Curt Washington who left for another position. These changes will be in place for the current fiscal year (FY 2006).

Motion to approve the Personnel Changes for 2005 was made by Tommy Vance, seconded by Bill Archer and unanimously approved.

Fiscal Year 2005 Review
Mr. Graveline pointed out to the Committee that for the past fiscal year, the facilities generated approximately $2 billion of total economic impact to Georgia's economy, which resulted in $160 million new tax dollars to State and local governments. One Committee member asked if other agencies such as ACVB, Chamber of Commerce, Sports Council, etc. were using the same economic impact amounts in their reports. Mr. Graveline confirmed they probably were for the most part. There is certainly some overlap. Mr. Graveline noted that the Economic Impact Analysis report is developed by The Selig Center for Economic Growth, Terry College of Business, University of Georgia, and is based on data from GWCC attendance statistics fed into an econometric model developed for this industry. This report gives important third party validity to the numbers.

The 2005 Fiscal Year Overview also notes the GWCC lost $1.9 million. This is the first time GWCC has been in the red since 1985. However, we have adequate funds to cover the loss. The Dome, on the other hand, had a record year. The Park had a pretty good financial year, also.

Mr. Graveline went over the Summary of Consolidated Financial Results, which noted FY 2005 revenue was over forecast by approximately $2 million, expense was amazingly close, but over forecast by $141,199 (.2%), and net gain was over forecast by almost $2 million (24.8%). At this time Mr. Graveline went over each facility's financial report details.

Facility Performance Reports
Mr. Graveline suggested Committee members read each of these reports as time permits. A lot of hard work by each facility staff went into generating the reports. Committee member Glenn Hicks requested the General Managers run through their individual reports at the September Planning Retreat. Mr. Graveline agreed this was a good idea.

Economic Impact Analysis
Sherrie Spinks noted we will receive the completed report in mid-September and will distribute to Authority members and Legislative Overview members at that time.

Executive Director FY 2005 Merit Review

At this time Mr. Graveline distributed several handouts: 1) Copy of an August 29 AJC article regarding the State Department of Human Resources is initiating an incentive award program. 2) A memorandum noting the State is limiting merit raises for State Agencies to 2% this year. However, Authorities like us who are self-supporting, have flexibility with regard to merit raises. 3) An update on personal use leased automobiles that are being phased out. Six vehicles remain, but these vehicles will be eliminated a year from now when their leases expire, 4) Dan Graveline's salary history, and 5) A list of positions Mr. Graveline recommends be added to the Key Employee Incentive Program for the coming year. We propose this to be at an "entry" or lower level than the current list of positions.

Mr. Graveline reminded the committee that at last year's meeting the committee suggested it would like to consider revising the Key Employee Incentive Plan this year by considering Mr. Graveline's incentive award as separate from the rest of the incentive pool in order that his award would have no impact on the other participants.

Mr. Graveline, Khalil Johnson, Sherrie Spinks, and Dale Aiken were excused from the meeting for Committee deliberations. Upon the return of Mr. Graveline, Mr. Johnson, Ms. Spinks, and Ms. Aiken, Chairman Prather reported the committee unanimously voted to make the following recommendations, which will be brought to the Authority for approval at the next meeting scheduled for August 30, 2005:

1. All employees receive an average three percent (3%) merit raise, with a range of 0-4%.

2. The Committee voted to recommend a four percent (4%) merit raise for Mr. Graveline.

3. The Committee voted to award the overall organization a superior rating, thereby establishing a total compensation pool of $295,006 for the Key Employee Incentive Plan.

4. The Committee then voted to award Mr. Graveline a superior rating of 150%, which awards Mr. Graveline $77,181 spread over three years as his portion of the Key Employee Incentive Plan.

5. The Committee voted to accept the recommendation to add seventeen (17) positions to the Plan at a "level five" for the current year, which will result in approximately $46,000 potential additional funding to the Incentive Pool.

6. The Committee voted to fund the Executive Director and Chief Operating Officer positions separate from the rest of the pool for future years in order to eliminate the possible negative impact awards to those two positions could have on remaining participants.

Mr. Prather requested the minutes reflect that a motion to approve the above referenced recommendations was made by Bill Archer, seconded by Tommy Vance, and unanimously approved.

Mr. Graveline thanked the committee for their continued support and for recognizing the staff's hard work during these tough times. Mr. Graveline suggested the Committee meet again mid year to review plan revisions again.

Motion to adjourn the meeting at 9:25 a.m. was made by Bill Archer, seconded by Tommy Vance and unanimously approved.

Respectfully submitted: Dale Aiken, Assistant Secretary
Approved: Robert Prather, Jr., Chair