5.0 ICESR 07-27-2010MEMORANDUM
TO: Ice Arena Commission, Members
FROM: Rich Czech, Arena Manager
DATE: July 21, 2010
SUBJECT: Agenda Memo -July 27, 2010
5. 2010 Financial update
Attached for your review is the budget information for the yeazs 2007 - 2010. The
current budget will be discussed at the meeting as well as projected numbers for 2011.
6. Energy Efficiency Projects
The Low Emissive Ceiling for the Olympic rink is scheduled to begin August 7`h and
should be completed within two weeks. The replacement of the lights over the
Olympic rink will begin July 25`h. Once the Olympic light fixtures are installed, the
electrician will begin replacing the other fixtures in the Barn. The work to replace the
boilers will begin the last week of July and is expected to be completed within a few
days.
7. Ice rates
At the April meeting the discussion of ice rates was tabled until the August meeting.
Below are some the proposed ice rates of Arena's in the northwestern metro area for
the 2010 - 2011 season. The Arena's noted reflect some of the same operational
expenses that we experience.
Prime
Andover $175.00
Brooklyn park $190.00
Buffalo $169.00
Champlin Pazk $185.00
Maple Grove $185.00
Non Prime
$140.00
$150.00
$125.00
$145.00
$145.00
Moose Sheritt
(Monticello) $175.00 $140.00
New Hope $191.00 $165.00
Plymouth $180.00 $165.00
Rogers $180.00 $140.00
Super Rink $195.00 $195.00
Average $182.50 $151.00
The Arena's 2009 - 2010 ice rate was $170.00 an hour for prime time, and $145.00
for non prime time hours. The summer rate is $145.00 an hour with weekend hours at
$1 15.00. During summer hours I negotiate ice costs for ice hours that are not being
sold or when customers buy lazge blocks of ice.
Attached for your review are the hours of ice that the Arena sold through the months
of September of 2009 through mid March of 2010. These hours will be the hours that
aze affected by any ice rate increase that the Arena Commission decides on
As you will see, the Arena sold 3,220 hours of ice time between September of 2009
and March of 2010. Out of these hours there's about 314.5 hours that are
programming hours for the Break Away hockey League, hockey clinics, and the
skating Academy. Under Arena Recreation there are 210 hours noted as "ice for
sale". These aze hours that aze for sale on the Arena web site as well as "Rink
Finder.Com". There are 90 hours that are for high school games, and 412 hours for
open skating, and open hockey sessions. None of the above hours would be affected
by an hourly ice increase, which leaves 2,193 hours of ice time that is sold on an
hourly basis. Out of these hours there are about 25 hours that are considered non
prime time, leaving about 2,168 hours that would be affected by an increase.
My recommendation to the Commission is to increase the hourly seasonal (September
-Mid March) prime rate by $6.00 ($ ] 76.00) and to leave the non prime time rate at
$145.00 an hour. The hourly increase would generate an estimated $13,008.00.
$176.00 an hour is well under the average chazge of surrounding Arenas.
Elk River Youth Hockey is considering decreasing their ice hours by approximately
seventy (70) hours. These hours come from weekends where there isn't enough
teams to use all of the hours. If Elk River Youth Hockey decreases their hours by
seventy (70) hours, it would be a reduction of $12,250.00 in ice sales. I have
contacted surrounding associations to see if there is any interest in purchasing these
hours, however I have not received any correspondents back from the other
associations.
8. Banners /Pictures for Arena
At the August meeting in 2005, the Arena Commission approved placing banners of
Alumni's that have played in the N.H.L. In the motion is does not define a length of
time that a player has play in the league. To clarify this, I am asking that Commission
to define "playing and or played in the N.H.L".
Over the last month Laura and I have been working on putting together some
information to give to the paper about the Alumni's pictures for the Arena. When
reading the motion of the policy outlining the criteria to have a player's picture hanged
at the Arena, I noticed that it doesn't have any length a time a player has play with
either the association or the High School or does it indicate weather a college player
has to graduate from their respective school. Before moving forward I would like the
commission to clarify their position on these two issues. Attached for your review is
the page outlining the motion at the 2007 August meeting.
9. Arena Expansion
The existing debt service for the Arena will be completed at the end of 2013. If an
Arena Expansion is to take place in 2013, we should start exploring our options so that
user groups, if they choose, can start fund raising for any amenity's they wish to add to
the project. If the commission is going to explore the possibility of an addition I
would recommend that a committee be formed from our customer base, the
commission, city staff, and the city council.
10. Compressors Vessels
At the April 2010 Arena Commission meeting we discussed the possibility of having
to replace three units from the two ice plants due to the fact that they were not
A.S.M.E. certified. Attached for your review are pictures of the three units in question.
The three units in question are the oil receiver and an oil separator on the Olympic ice
plant, and an oil separator on the Barn's ice plant. Denny Anderson and Bob Ruprecht
from the building Department, along with myself, meet with Paul Bearden, from the
state of Minnesota Boiler inspection Division. Afrer looking over the units in
question, The Boiler Inspector took some pictures and said he would review the
situation with his supervisor and let us know of the results. The following week
Denny Anderson talked with the Boiler Inspector, the Inspector said we would have to
replace the three units in question due to the fact that when a pipe expands, it is
considered a vessel and that it is subject to be certified. The estimated cost to replace
the two oil separators, and the oil receiver as well as replacing two relief valves is
$15,000.00
11. Arne Indoor Air Quality /State of Minnesota
Even though the bill outlining air quality for ice Arena's did not make it through the
State Senate this yeaz, the subject of setting a higher air quality standard for Ice
Arena's has not gone away. However the good news is that the Minnesota Department
of Health is once again looking at making the changes along with input from the
(M.I.A.M.A.) Minnesota Ice Arena Manager's Association. Over the last six to eight
years M.I.A.M.A. has worked with the department of health to update the air quality
standards for ice Arena's. One of the key items that both parties have been working
on over the last few years is finding equipment that continuously monitors the air.
Even though there aze a few monitoring systems available, the State Health
Department has not found an air monitor that meets all of their stringent criteria's. I
would expect by the summer of 2011, the State Health Department will have approved
a monitoring system for Arena's.
It is my understanding that by 2013 that the Minnesota department of Health will
mandate that all ice maintenance equipment, Ice Resurfacers and Ice Edgers, will have
to be powered by a non -combustible means. A battery operated edger is in the 2011
budget, this will make the Arena an all electric Arena, no combustible motors will be
used to maintain the ice.
12. Staff Updates
This has been a very busy year for dry floor activities; Laura has done a great job keeping
all the events organized and the customer's satisfied. Next year we may have a gun show
the last weekend of April, we have not worked out all the details, but before the end of
the month I hope to have everything together to bring the show to the Arena.
The numbers for clinics and leagues are down, a few of the factors we have been dealing
with is the economy, several clinics to choose from, and the expansion of other sports,
such as Lacrosse.
Besides the three major projects, we continue to work on maintenance of the building.
We replaced the paneling outside the front of the building along the Barn. New coat
racks were installed in several of the locker rooms, and a new fresh coat of paint
throughout the building will be completed in August.
Elk Riverlce Arena
Revenue and Expenditure Summary
For the Period Ending June 30, 2010
2010 2010 2009 2008
Budget as of 06/30 Actual Actual
REVENUES
Ice Rental 449,800 209,750 437,098 424,106
Recreation Programs 135,650 57,980 119,288 139,706
Admissions 22,550 15,041 18,530 23,354
Sign Rental 17,000 83 16,688 17,293
Dry Floor Events 12,000 10,400 16,038 9,034
Concession Rent - - - -
Vending 18,700 6,604 14,215 17,212
Skate Sharpening 4,800 2,550 4,767 4,980
Building Rent 2,600 - 2,600 2,600
Other Mdse Sales/Misc. 2,000 1,043 1,666 2,238
TOTAL 665,100 303,451 630,890 640,523
EXPENDITURES
Personal Service 273,600 129,924 267,992 253,447
Other Operating Expenditures 261,500 116,098 240,001 268,189
Vending Mdse for Resale 9,000 3,420 6,222 7,279
Other Mdse for Resale 900 179 1,335 1,577
Recreation Programs 63,700 23,324 47,669 55,132
TOTAL 608,700 272,945 563,219 585,624
CONCESSIONS
Sales
Less: Product & Supplies
Salaries
Net Profit
OPERATING INCOME (LOSS)
Capital Outlay
Building Debt'
NET INCOME (LOSS)
Other Income
Contributions/Rebates
Transfers In
Capital Outlay -Liquor Fund
General Fund
Building Project
Change in Fund Balance
67,750 37,806 59,510 66,500
28,150 15,143 25,019 31,544
22,700 8,403 16,225 24,430
16, 900 14, 260 18, 266 10, 526
73,300 44,766 85,937 65,425
- - 100,202
199,900 19,950 198,450 201,715
(126,600) 24,816 (112,513) (236,492)
4,619 4,731 7,368
- - 6,961 100,202
126,600 - 105,552 136,290
- 29,435 4,731 7,368
Cash balance of surcharge $ 44,036 $ 39,417 $ 34,686
=building debt matures on 12/01/2013
7/21/2010
Revenues
2009 2009 2009 630,890
2008 2008 2008 640,523
2007 2007 2007 fi59,607
2006 2006 2006 652,550
2005 2005 2005 633,339
2004 2004 2004 6t7,9t4
EIk River lce Arena
s7o,coo
660.000
650,000
640,000
630,000
620,000
610,000
~', 600,000
590,000
2009 2008 2007 2006 2005 2004
Revenues
7/21/2010