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6.5. SR 06-02-1997.fy of Item # 6.5. iver MEMORANDUM TO: Mayor & City Council FROM: DATE: Pat Klaers, City Admin~~-~ June 2, 1997 SUBJECT: Sub-Floor Heating in Ice Arena Locker Room Area Youth Hockey is committed to doing the heating in the locker rooms. They are also committed to spending about $35,000 on this part of the project. B & D Plumbing and Heating is going to do the heating work in the Ice Arena locker rooms, and they have suggested an alternative to the original heating proposal which would cost about $6,000 more. This alternative has been reviewed and researched and found to be beneficial to the City and a better heating system for the locker room area. The Ice Arena Commission passed a motion on 5/15/97 which supports this alternate heating proposal. Attached for your information is my memo to the Ice Arena Commission on the sub-floor heating topic. Building Official, Cliff Skogstad will be in attendance at the City Council meeting to answer questions regarding the sub-floor heating proposal as being recommended. It is recommended that Youth Hockey and the City split the additional $6,000 expenditure for the sub-floor heating alternate. In addition to the City's share of $3,000 for the heating expenditure, the City will then finance sprinkling system corrections that are needed in the locker room areas based on what was originally installed versus the locker room design that is currently being constructed by Youth Hockey. This additional expenditure for the City is estimated at $2,500 and falls within the 1.5 - 2% construction over-run that is discussed in the CIP memo. Recommendation It is recommended that the City Council approve a cost sharing with Youth Hockey for the extra heating cost that is associated with the sub-floor heating alternate and that as part of the construction budget the City make sprinkling head corrections in the locker room area. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 r'ity of MEMORANDUM iver Ice Arena Commission FROM: Patrick D. Klaers, City Administrator DATE: May 15, 1997 SUBJECT: Agenda Memo A special Ice Arena Commission meeting has been called by Chair Dale Martin for Thursday, May 15, 1997, at 7 p.m., to discuss heating in the locker room area. Youth Hockey is committed to completing the locker room areas and part of this commitment includes heat. In reviewing the heating proposal from B & D Plumbing, the concept of sub floor heating was introduced. With hmited knowledge of the concept, the sub floor heating proposal appears to be beneficial to all parties involved. As I understand the situation, for approximately an additional $6,000 the city can: · provide ~hot water for the Zamboni which is needed for the resurfacing of two sheets of ice · reduce heating bills and overall operating expenses (25% payback?) · reduce roof maintenance expenses as only one air handling (heating) unit will be installed instead of two. For the additional $6,000, I understand that the city will be receiving an additional boiler and reserve water tank, the heating coils would be installed in the locker room floor area, one air handling roof unit would be installed instead of two, and two additional inches of "concrete" would be added to the locker room areas over the heating coils. In my discussion with the building official (who will be at the Thursday meeting), it appears as though this type of heating system is rehable and has been installed in other buildings and has a somewhat dependable history. In other words, we are not breaking new ground with this type of heating system and the building official recommends this installation. My only concern with the proposal is the funding. Attached for your review is the financial information that was used in obtaining the bonds for the ice 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 arena project. This information was based on the adjusted Marquette Partners study and this information was also the basis for the city 1997 ice arena operating budget (see attachments). Unfortunately, nowhere in these budgets are capital outlay items discussed or considered. This presents us with a problem as even $6,000 in expenditures (or a $10,000 expenditure for a public address system) was not envisioned as a budget issue when the new arena was planned. Besides capital outlays not being in the budget, we don't know if the city will receive all of the revenues that are being projected or will be able to keep the expenditures to the level that is being proposed. This makes authorizing additional expenditures very difficult. If the City Council is to accept a proposal for this sub floor heating, then reserve funds will have to be accessed and used. Equipment/Infrastructure reserves are available for this type of expenditure if deemed appropriate by the City Council. I think that is the issue that needs to be evaluated by the Council and, in this regard, the Commission may need to "sell" the proposal. Attachments: · Financial Data for Bonds · 1997 Budget · Revised Marquette Study