04-12-2011 ICE MINMEETING OF THE ELK RIVER
ICE ARENA COMMISSION
HELD AT CITY OF ELK RIVER
TUESDAY, APRIL 12"', 201 16:00 PM
Members Present: Chair Martin, Vice Chair Johnson, Commissioners Foss,
Malzahn,(arrived late) Barth
Members Absent: Gumphrey, Niziolek
Staff Present: Finance Director Tim Simon,Arena Manager Rich Czech, Arena
Assistant Laura Estby
1. Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Elk River Ice
Arena Commission was called to order at 6:25 p.m. by Chair Martin.
2. Consider 4/12/2011 Ice Arena Commission Agenda
MOTIONED BY COMMISSIONER BARTH AND SECONDED BY
COMMISSIONER FOSS TO APPROVE THE APRIL 12, 2011 ICE
ARENA COMMISSION AGENDA. MOTION CARRIED 4-0.
3. Consider 1/12/11 Ice Arena Commission Minutes
MOTIONED BY COMMISSIONER BARTH AND SECONDED BY
COMMISSIONER FOSS TO APPROVE THE JANUARY 12T", 2011
ICE ARENA COMMISSION MINUTES. MOTION CARRIED 4-0.
4. Onen Mike
Commissioner Dave Foss and Chair Dale Martin were sworn in.
Financial Update
Financial Director Tim Simon gives an overview of the 2010 financials. He
notes the revenue generated from the 2010 ice rentals exceeded expectations,
revenue from recreation programs as well as hockey programs has decreased,
admissions was on target with projections, and there was an increase in both
advertising revenue and dry floor event revenue. Vending costs have also
decreased, however some of that was made up with the increase in
concessions revenue over what was projected. Overall the projected 2010
revenue was $665,100 and the actual revenue was $653,000, a difference of
$30,000. He notes that the general fund transferred $76,000 to cover building
debt, and that the bleacher fund is now at $6700, and will be used to cover the
architect's fees for the plans/schematics.
The capital outlay for 2011 includes $44,000 for the new edger and condenser.
It is estimated that the arena will need $156,000 transferred from the general
fund for 2011. He also notes that the building debt for the arena will end on
12/1/2013.
Arena Manager Czech discusses the allocation of hours purchased in 2010. He
notes that the figure skating club has purchased more hours, and that will
continue as they will be taking over the upper level skating classes (Freestyle
levels) beginning in the fall. At this point, those hours fall under recreation.
He also states that foundation hockey hours were up this year, and youth
hockey hours were down.
Vice Chair Johnson inquires about the commitment the commission was given
last year by youth hockey when the rates were not raised. Arena Manager
Czech notes that over all Youth Hockey was down 40 hours which translates
to $6800 in revenue.
6. Arena Renovation Uydate
Arena Manager Czech notes that the 292 group has come up with 3
conceptual drawings for expansions and one for renovation. The next meeting,
scheduled for Wednesday, April 13th will include figures for the various plans.
He also states that he has discussed briefly with Tina Allard (City Clerk)
about the steps needed to have a November Special Election. They include:
confirming pole sites, printing ballots, hiringjudges, notifications, etc- which
typically costs approximately $20,000. Czech notes that the commission
should consider a special meeting in May to decide if they want to move
forward with a special election, so it can be presented to the city council.
Commissioner Malzahn inquires based on the needs for a special election, if it
is possible to complete it all before November, based on the timelines given
by Clerk Allard.
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Czech notes that the next council work session is Monday, May 9th, and that if
the commission has a special meeting prior to that, he believes there would
still be time.
Ice Rates
Arena Manager Czech notes that the average rate in our area of the metro is
$180.89($10 over current rate) for prime time regular season, and that our off
prime/summer rates are already on par with other arenas. He notes that
Finance Director Tim Simon and City Administrator Lori Johnson have
recommended raising the rates $10/hour, since the rates have frozen for the
past 3 years.
Commissioner Barth notes that the school district is anticipating the rate
increase.
Commissioner Foss inquires if Arena Manager Czech believes that some of
the additional revenue generated in 2010 from the sale of ice hours would
diminish if our rates were raised. Arena Manager Czech notes he doesn't think
it will be an issue.
Commissioner Malzahn clarifies that the increase would only be for the
regular season peak hours which is confirmed by Arena Manager Czech.
MOTION MADE BY COMMISSIONER MALZAHN AND SEC
BY VICE CHAIR JOHNSON TO INCREASE THE REGULAR
SEASON PEAK HOURS ICE RATE $10 BRINGING IT TO
$180/HOUR. MOTION PASSES 5-0.
8. Outside Banners
Arena Manager Czech notes that the banners on the outside of the arena are
weathered and need to be taken down. He notes that originally, Youth Hockey
paid for the banners- and that the cost to replace them would be $800 per
banner or $1200 with installation.
Commissioner Barth notes that regardless of the cost, we need to keep the
banners up as they are great advertising for our programs.
Arena Manager Czech notes that he will approach Utilities to see if they
would be able to hang the banners to reduce the cost, but he does not know
who could front the revenue for the banner production.
Vice Chair Johnson suggests the blueline club could do a fundraiser.
Commissioner Barth suggests it should be done by the start of the 2011-2012
season, and that Commissioners Foss and Malzahn(Youth Hockey Reps)
should bring up the issue to Youth Hockey at the next board meeting.
9. Staff Updates
Arena Manager Czech reviews upcoming dry floor events:
Gun Show April 22-23
Kids Consignment Sale Apri128-30
Craft Show May 7-8
Ice Show May 20-21
He also notes that the ice will be shaved down in the Olympic and repainted
the end of May.
10. Other Business
Commissioner Barth notes that the High School has submitted a letter of
intent to the Fox Sports Network to have an outside game broadcast at the
Handke Pit for Hockey in MN Day. He states that the City is already behind
it, and suggests that the commission endorse it also.
MOTION MADE BY COMMISSIONER FOSS AND SECONDED BY
VICE CHAIR JOHNSON TO ENDORSE THE FSN HOCKEY IN MN
DAY VENTURE. MOTION PASSES 5-0.
11. Adiournment
MOTION MADE BY COMMISSIONER MALZAHN AND SECONDED
BY COMMISSIONER FOSS TO ADJOURN THE MEETING.
MOTION PASSES 5-0 AT 7:35PM.
Minutes~ared J Lau Estby
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Tina Allard, City Clerk
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Dale Martin, Chair