4.1. SR 04-06-1998.ity of
iver
MEMORANDUM
Item 94.1.
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Pat Klaers, City Admini~tr~r
April 6, 1998
Ice Arena Update
This agenda item was continued from the 3/23/98 CIP worksession. There
are two issues which are planned to be reviewed. The first item is the project
construction cost figures and the second item is a financing plan for the
heating, dehumidification, and ventilation capital improvement project.
Please review the attached material from the 3/23/98 meeting.
During the audit presentation on May 4, 1998, staff will be prepared to
discuss with the City Council the financial results of the 1997 operations and
the projections for annual operating revenues and expenditures.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
Ice Arena project
· Review construction project figures...Attached for your review
is the ice arena construction figures which are subject to only
very minor changes. It should be noted that the sewer and
water utilities, which came in higher than expected, were
always outside of the project budget and considered a
donation from the city and the Utilities. Excluaing this
expenditure, the project came in very close to the original
$2.65 million budget. The total was about 2 percent over
budget. Unfortunately most of this overrun, or approxi~nately
$39,000 of the overrun, is a city obhgation. The Council has
previously indicated that this overrun would come out of the
equipment reserves and the capital projects reserve.
· Review funding options for the heating, dehumictification,
and ventilation project...This expense is estimated to
approach $150,000, but could be less. This cost really should
have been part of the original construction project but was
deleted in the hope that an alternative system would meet
our needs. This expenditure can not be absorbed within the
ice arena operating budget and an alternative source of
CIP Worksession
Page 8
funding must be identified for this expenditure. Additionally
it seems that this expenditure is needed for the adequate
functioning of the arena. It is recommended that 50 percent
of the net proceeds from the selling of the Holt and Jackson
commercial site be apphed to this expenditure. It is
estimated that 50 percent of the net proceeds will be in the
$120,000-$130,000 range. It has been previously stated that
staff would recommend that the other 50 percent of the net
proceeds be dedicated toward economic development
activities.
i
ELK RIVER ICE ARENA EXPANSION PROJECT
Final Project Summary - March, 1998
ProJect Revenues
Bond Issue
Mighty Ducks Grant
Rogers Plastics Foundation
ERYHA Contribution
ERYHA Contribution (5 yrs)
City of Elk River
City of Elk River (ERYHA 5 year commitment)
City of Elk River (Sewer improvements)
ERYHA Concession Construction Reimb.
lSD 728 Public Address System Contribution
Interest Income
TOTAL REVENUES
Budget
May 6,1996
$ 2,100,000.00
250,OOO.O0
50,000.00
150,000.00
50,000.00
50,000.00
2,650,000.00
Actual Proiect
$ 2,100,000.00
250,000.00
50,000.00
139,609.56
89,908.71
50,000.00
50,075.57
4,330.00
5,000.00
27,277.85
2,766,201.69
Project Expenditures
Construction Contracts
RSP
M.A. Mortenson
I.C.E
Legal, Engineering & Other Professional Serv.
Bond Issuance
Builders Risk Insurance
Miscellaneous
Contingency
Subtotal
Sewer Improvements
TOTAL PROJECT
2,225,800.00 2,350,706.00
125,000.00 I
112,000.00 ~_~ 334,096.82
27,500.00
31,850.00
15,000.00 18,045.60
5,000.00 221.00
1,500.00
106,350.00 13,056.70
2,650,000.00 2,716,126.12
0 50,075.57
2,650,000.00 2,766,201.69
Notes:
Does not include water improvements contributed by Elk River Municipal
Utilities.
ERHYA has paid $10,000 of the $50,000 five year contribution commitment.
3/20/98:ICEPROJ.XLS