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5. - 10. ICESR 04-02-2002 /i City of Elk River MEMORANDUM TO: Ice Arena Commission FROM: Rich Czech, Arena Manager DATE: April 2, 2002 SUBJECT: Agenda Memo 5. Review 2001 Operating Finances. Current Information on 2002 Financial Status Attached for your review are the financial summaries for the arena from 1997—2002. With capital improvements and debt service it will be awhile before the arena cash flows. For 2001 you will see that the budget indicates a deficit of$52,460. Under contributions/rebates you will notice there is $7,540. The Veterans of Foreign Wars (VFW) donated $5,000 for the boulevard display sign scheduled for installation in a few days. If this money were taken out then the actual deficit would be $57,460. However, some of this deficit is from the bleachers. Elk River Youth Hockey's portion of$10,000 was not due until 2002 so it was not included in the 2001 budget. The surcharge of one dollar to all Elk River High School Hockey games collected for the 2001 —2002 season was $8,831. However, only $2,540 was collected during games played in the fall of 2001. The actual deficit, excluding capital improvements, is $28,619. This is up slightly from what was budgeted and up substantially from 2000. Most of the added deficit can be contributed to utility costs,which was budgeted at$94,500. The actual cost for utilities was closer to $111,000. Another reason for the added deficit is that as the building and its equipment get older, more money is being spent on maintaining the arena. From replacing light bulbs to maintaining the ice plant, along with everything in between, more money and time is being spent to keep the building operating effectively. As I noted above, the high school gate receipts only took in $8,831. At this pace we will fall short of the $30,000 we were hoping to collect over three years. We may need to extend the surcharge of one dollar per ticket for an extra season to collect the total $30,000. 6. Discuss the Status of South End of the Barn The bleachers on the south end of the Barn have been removed and the area is vacant. The next step is to determine what to do with this area, if anything. At this time renovating this area is not high on the list of the arena's priorities. I could see this area being used for office space, a meeting room, and a viewing area in the future. 7. Certification of Bleachers/Spectators Safety Attached you will find a copy of one of the certification forms I received from the State. Each set of bleachers received a certification and, as recommended in the State's memo, a certification sticker has been placed on them. The new bleachers were in place before the first high school game and very favorable comments regarding the look and comfort of the wood benches were received. Even with the lower attendance (see below attendance information) the bleachers have helped manage the crowds and should help in drawing more spectators to future games. Recently, at a NHL game, a young girl was killed when a puck was deflected off the rink. This is the first time in the NHL's history that a flying puck killed a spectator. The Olympic rink was installed with glass that is eight feet high and has protective netting at each end. The sides have six feet high glass that protects spectators from most of the errant pucks. The Barn has five feet high glass at each end along with protective netting at the south end to help keep pucks from going out of the rink surface. The side where the bleachers are has six and a half feet high glass that keeps most of the pucks from leaving the rink. At this point I feel we have sufficient protection from errant pucks. Having said that, the rinks are not one hundred percent protected from pucks. However, if past history is any indication, then we have adequate protection. I am planning on having signs made saying, "Watch for flying pucks." Below you will see the seasonal attendance for the boy's high school hockey games since the games have been played on the Olympic rink. Year/Regular Season Attendance/Sections 97 —98 6,140 773 98— 99 8,058 726 Exhibition games (2) 99—00 10,403 1,253 00—01 8,021 01 —02 7,111 8. Boulevard Display Sign In January of this year the VFW donated $5,000 for a display sign to be placed along School Street. The sign is scheduled to be placed by the end of March. The sign will assist in promoting events held at the arena. 9. Ice Usage Update/Rates/Customers In the packet I have included the usage summary reports for the 2001 — 2002 season. The report is designed to give you an idea of the ice rentals. The financial information from the usage scheduling report will not reflect the information you will find in the financial report since the financial report is from January through December. The arena just finished its first year of a three-year agreement with Elk River Youth Hockey to freeze their rates at$135 an hour for prime time ice. In exchange Elk River Youth Hockey agreed to donate $10,000 a year for the next three years towards the new bleachers in the Olympic rink. Every two years we look at whether we should adjust our rates. Last season we increased the Barns rates to $135 an hour,which matched the rates of the Olympic rink. Our ice rates remain in the middle of other rinks surrounding Elk River; therefore, I would recommend that we hold off any rate increase for the 2002—2003 season. Rogers has a nonprofit organization that has been looking at forming its own hockey association. It is my understanding that MAHA (Minnesota Amateur Hockey Association) will not allow them to form until Rogers High School is open. Officials from the Rogers group have contacted me regarding future ice availability. However, even with the Monticello Youth Hockey Association not purchasing ice from us next season, at this point we are booked. As many of you are aware, Rogers is looking at building a new rink. A third sheet of ice in the area will be needed within the next three to four years, and the Rogers area is probably the best place to build one. A feasibility study will be finished within two months to determine if any arena is feasible. If the feasibility study indicates that an arena is warranted then the arena could be completed as early as January of 2004. I0. Staff Updates A. Sign Sales Advertising in the arena has been constant over the last few years. The bleachers on the east side of the building have given us another avenue to get advertising in the building. However,with the economy being down most businesses are watching their advertising budget closer. After this season it looks like North Memorial will be pulling it's advertising from the Zamboni. We have been looking for another advertiser for the Zamboni but have not found one. B. Concessions When the Olympic rink was built part of the financial agreement with Elk River Youth Hockey was that they would lease the concession stand from the city. Even though there is not any written agreement, I believe this arrangement has been working out for both parties. Youth Hockey leases the area from the arena for $21,500 a year, an increase is not anticipated even though the rate has not been increased in several years. C. Summer Projects The matting in the players' hallway in the Barn will be replaced and three more sections of center grove will be installed in the Barn. The player's boxes in the Barn will be refurbished along with the scorer's table area. The Barn is in the third and final stage of receiving new light fixtures. In the Olympic rink we will be moving four sections of boards. The gate in the southwest corner will be switched with a northeast corner section. This gate is large enough to freely remove the nets from the ice and the area outside the rink has enough space to store the nets comfortably. Currently, nets are stored outside the Zamboni room where employees sometimes struggle to take them on and off. By having an area where the nets can be taken on and off freely we may avoid injury to arena staff.With the relocation of the gate, the players gate on the north end will be switched with a south end section,which will provide an area where skaters can enter and exit the rink from that part of the rink. We are planning on taking out the ice in the Olympic rink on Sunday, May 19, 2002, after the Skating Academy Ice Show. During this time we will be working on the ice plant's condenser and installing the city's new logo in the center of the ice when the ice is put back in June. The roof to the old Zamboni room and the ice plant room are in need of replacement. This year the roof to the Zamboni room will be replaced and next year the ice plant room will receive a new roof. Each roof is estimated to cost about $5,000. Other summer projects consist of painting, cleaning, refurbishing an exit in the Barn, and rebuilding some of the arena's equipment. D. Dryfloor Usage The arena will hold its usual events: fourth through sixth grade dances in April, May, and September, the Chamber's Business Expo in April,Jose Cole's Circus in May and a craft fair in May and September. We may be hosting a Christian concert on June 14,2002. The arena will be having a roller blade league over the summer and Community Education will be holding its dog-training classes Monday evenings throughout the summer. • E. Rink Floor of the Barn We will again be pressure checking the rink floor. We know there is a leak because we lost refrigerant over the season. A plan should be figured out for determining how to pay for the replacement of the floor. Preliminary numbers indicate that the floor could cost as much as $400,000 and will only go up with the cost of construction. i O Elk River Ice Arena Account Revenue and Expenditure Summary 20021 2001 ) 2001 2000 1999 1998 1997 Budget - Actual* Budget Actual Actual Actual Actual REVENUES Ice Rental 335000 323813 285,900/ 319,253 289,597 268,936 295,141 Recreation Programs 125;t)ao:• 134,311 82,700.: 113,178 72,822 31,227 Admissions •42,000:i 34,000 i 53,900; 41,516 35,320 28,058 23,811 Sign Rental s5,800:; 17,855 ' 13500 15,636 17,240 12,205 16,809 Dry Floor Events 13,700,; 13,071 ; 15000! 13,690 15,836 12,915 6,705 Concession Rent 21,500 ! 21,500 21,500• 21,500 21,500 21,000 20,000 Vending 33,0001 34,164 26,500: 31,750 28,476 30,035 23,103 Skate Sharpening 8,0'00: 6,529 8,500': 7,547 6,579 6,341 4,637 Other Mdse Sales/Phone Comm. 5;x00 li 3,283 ':. 2,2fJ0' 2,965 1,864 8,055 1,544 TOTAL • 598200 588,526 I:485,900'i 567,035 489,234 418,771 391,750 EXPENDITURES Personal Service - 174ei14 172,580 '.181,700 i 178,419 141,639 127,815 102,041 Other Operating Expenditures 241,900. 175,724 • 1•176,750•- 186,534 161,881 154,234 115,031 Vending Mdse for Resale $7,500 i 16,206 ! ¶4,000! 16,617 15,254 16,470 11,683 Other Mdse for Resale 2,400! 1060 1,.190;; 1,428 855 1,012 953 Recreation Programs 4575Q 1', 54,213 TOTAL • 437,750 419,783 is 373 5501 382,997 319,630 299,531 229,708 OPERATING INCOME(LOSS) 160,450 168 743 x172,350'. 184,038 169,604 119,240 162,042 11apital Outlay 14,400 I 88,996 29,000 ! 14,291 116,965 120,447 10,847• Building Debt 292,500 ! 197,885 • .197,900 198,015 197,860 197,420 204,588 NET INCOME(LOSS) (52,45 •.• (118 138) (114,550): (28,268) (145,221) (198,628) (53,393) Other Income Interest Income 519 - 940 1,543 - 1,490• Sale of Fixed Assets - 10,000 - - Contributions/Rebates 7,540 - - - 20,350 1,100 Transfers In Capital Outlay 10,q0 29,000 • 29,O0D 14,291 116,965 - - Eliminate Deficit(General Fund) x0 i 28,619 t 27,500 13,037 16,712 233,229 - Change in Fund Balance (42.050): (52,460)::.:„.:••• 58,..0501.( (0) (0) 54,952 (50,803) 'Unaudited as of December 31, 2001 Capital Outlay: 1997-Heaters 1998-Dehumidification 1999-$34,305.00 Bleachers; $82,659.98 Ice Resurfacer 2000-Matting for floors 2001 -Floor Scrubber&Bleachers($30,000 to be paid by ERYHA;$27,460 from admission surcharge) Received$5,000 contribution for sign to be purchased in 2002. Contributions: 2001 -$5,000 sign; $2,540 admission surcharge for bleachers 2/27/02 ai I • Department of Administration March 07, 2002 Cliff Skogstad Elk River Ice Arena 1000 School St. Elk River MN 55330 Subject: Bleacher Certification of Compliance- Compliance Label Enclosed Location: 141045 Name of Facility: Elk River Ice Arena Location/Description of Facility: Ice Arena Bleacher Number: BL0649 Dear Bleacher Contact: This is to inform you that we are in receipt of the completed Certification of Compliance form you submitted to this office. In order to aid in identifying your bleacher as having been certified, we have enclosed a self-adhesive identifying label for the Certification of Compliance that you submitted. We recommend you apply this label to the bleacher in a location visible from the front,preferably near one side and 4 to 6 feet above floor or grade. Note: A Certification of Compliance is considered void if it was completed in error and the bleacher was in violation of the Minnesota Bleacher Act, or the Bleacher otherwise becomes non-complying due to a change in the structure. This certification must be renewed every five (5)years. BUILDING CODES AND STANDARDS DIVISION Sincerely, Scott D. McLellan, Supervisor Plan Review& Regional Services Enc: Compliance Label Building Codes and Standards Division,408 Metro Square Building, 121 7th Place East, St. Paul, MN 55101-2181 Voice: 651.296.4639, Fax: 651.297.1973;TTY: 1.800.627.3529 and ask for 296.9929 CP Elk River Ice Arena Page 1 of 3 Usage Statistics by Customer Type - Detail Printed 3/25/2002, 12:04 PM 6/1/2001 to 5/19/2002/Sun, Mon,Tues,Wed, Thurs, Fri,Sat/4:00 AM to 11:55 PM Facilities:Dry Flo015,Dryfloor,Olympic 02,The Bar017 Customer Type Customer Hours % Total Gross Revenue Tax Tot Revenue % Total Adult hockey Andy Thompson 1.0 0.03% $115.00 $7.48 $12248 0.04% North Metro Senior Hockey League 102.0 2.59% $12,065.00 $753.03 $12,818.03 3.99% Adult hockey Totals: 103.0 2.61% $12,180.00 $760.50 $12,940.50 4.03% Arena Recreation Break Away Hockey 287.0 7.28% $0.00 $0.00 $0.00 0.00% Elk River Arena Skills Plus Hockey Sch 44.0 1.12% $0.00 $0.00 $0.00 0.00% Elk River City recreation 44.0 1.12% $0.00 $0.00 $0.00 0.00% Skating Academy 428,0 10.85% $0.00 $0.00 $0.00 0.00% Skating Academy Show 42.25 1.07% $0.00 $0.00 $0.00 0.00% Arena Recreation Totals: 845.25 21.43% $0.00 $0.00 $0.00 0.00% Clinics Pro Edge/Diane Ness 24.0 0.61% $2,640.00 $171.60 $2,811.60 0.88% Vic's Hockey Schools 10.0 0.25% $1,150.00 $74.75 $1,224.75 0.38% Clinics Totals: 34.0 0.86% $3,790.00 $246.35 $4,036.35 1.26% Dry floor 4th, 5th,and 6th, grades dance 17.0 0.43% $0.00 $0.00 $0.00 0.00% Community Education!Dog School 9.0 0.23% $135.00 $0.00 $135.00 0.04% Elk River Area Chamber of Commerce 27.0 0.68% $0.00 $0.00 $0.00 0.00% Jan's Closet 13.5 0.34% $350.00 $0.00 $350.00 0.11% Dry floor Totals: 66.5 1.69% $485.00 $0.00 $485.00 0.15% Figure Skating Elk River Figure Skating Club 33.0 0.84% $3,405.00 $0.00 $3,405.00 1.06% Figure Skating Totals: 33.0 0.84% $3,405.00 $0.00 $3,405.00 1.06% High School Becker/ Big Lake High Schools 64.5 1.64% $8,707.50 $0.00 $8,707.50 2.71% Independent School District 728(I) 254.92 6.46% $34,413.75 $0.00 $34,413.75 10.72% High School Totals: 319.42 8.10% $43,121.25 $0.00 $43,121.25 13.43% 1igh School Games Becker Big Lake Games 19.33 0.49% $0.00 $0.00 $0.00 0.00% Powered by MaxiACILITYIt.a product of Maximum Solutions,Inc. Elk River Ice Arena Page 2 of Usage Statistics by Customer Type - Detail Printed 3/25/2002, 12:04 PM 6/1/2001 to 5/19/2002/Sun, Mon,Tues,Wed,Thurs, Fri,Sat/4:00 AM to 11:55 PM Facilities:Dry FIo015,Dryfloor,Olympic 02,The Bar017 Customer Type Customer Hours %Total Gross Revenue Tax Tot Revenue % Total Elk River High School Boys Games 46.17 1.17% $0.00 $0.00 $0.00 0.00% Elk River High School Girls Games 37.08 0.94% $0.00 $0.00 $0.00 0.00% Girls High School Sections 2.0 0.05% $0.00 $0.00 $0.00 0.00% High School Games Totals: 104.58 2.65% $0.00 $0.00 $0.00 0.00% Individuals 88 Minnesota Blasters 3.0 0.08% $345.00 $0.00 $345.00 0.11% Classical Elite/Hockey Tournaments In 2.0 0.05% $250.00 $16.25 $266.25 0.08% Cole Ende 17.0 0.43% $2,040.00 $132.60 $2,172.60 0.68% Doug Olejnicak 1.0 0.03% $120.00 $7.80 $127.80 0.04% Elk River Bluline Club 1.5 0.04% $0.00 $0.00 $0.00 0.00% Elk River Fire Department 23.0 0.58% $2,181.32 $141.79 $2,323.11 0.72% Feet 1.5 0.04% $0.00 $0.00 $0.00 0.00% Minnesota Knights 4.0 0.10% $540.00 $35.10 $575.10 0.18% Minnesota Showcase Hockey 10.0 0.25% $1,200.00 $78.00 $1,278.00 0.40% Monticello 1 Maple Lake/Annendale 2.0 0.05% $270.00 $8.78 $278.78 0.09% Northwest Suburban Hockey League 36.0 0.91% $4,140.00 $269.10 $4,409.10 1.37% Paul McElhone 1.0 0.03% $120.00 $7.80 $127.80 0.04% Scott McCarthy 1.0 0.03% $115.00 $7.48 $122.48 0.04% St. Michael Captains practice 10.0 0.25% $1,150.00 $74.75 $1,224.75 0.38% Steve Lundeen 1.0 0.03% $115.00 $7.48 $122.48 0.04% Stone Core Films 4.0 0.10% $540.00 $35.10 $575.10 0.18% Tom Look /Elk River Coaches 45.0 1.14% $4,950.00 $293.15 $5,243.15 1.63% Travis Wibeto 1.0 0.03% $110.00 $7.15 $117.15 0.04% Individuals Totals: 164.0 4.16% $18,186.32 1,122.31 $19,308.63 6.01% Programs paid on a per time bases Boys High School Captains Practice 36.0 0.91% $0.00 $0.00 $0.00 0.00% Girls High School Captains Practice 21.0 0.53% $0.00 $0.00 $0.00 0.00% Open Hockey 108.75 2.76% $0.00 $0.00 $0.00 0.00% Open Skating 285.08 7.23% $0.00 $0.00 $0.00 0.00% 'rograms paid on a per time bases Totals: 450.83 11.43% $0.00 $0.00 $0.00 0.00% Youth Hockey Powered by MaxFACILITY13%a product of Maximum Solutions,Inc. Elk River Ice Arena Page 3 of 3 Usage Statistics by Customer Type - Detail Printed 3/25/2002, 12:0 PM 6/1/2001 to 5/19/2002/Sun, Mon, Toes,Wed,Thurs, Fri,Sat/4:00 AM to 11:55 PM Facilities:Dry Flo015,Dryfloor,Olympic 02,The Bar017 Customer Type Customer Hours % Total Gross Revenue Tax Tot Revenue %Total Becker Big Lake Youth Hockey 6.0 0.15% $810.00 $0.00 $810.00 0.25% District 10 Playoffs 19.75 0.50% $2,666.25 $0.00 $2,666.25 0.83% Elk River A- Pee Wees 3.0 0.08% $390.00 $0.00 $390.00 0.12% Elk River Girls Booster Club 4.75 0.12% $641.25 $0.00 $641.25 0.20% Elk River Youth Hockey 1536.5 38.95% $199,675.00 $0.00 $199,675.00 62.20% Elk River Youth Hockey/Tournaments 128.33 3.25% $17,420.42 $0.00 $17,420.42 5.43% Minnesota Selects 15 12.0 0.30% $1,440.00 $83.85 $1,523.85 0.47% Monticello Youth Hockey 48.0 1.22% $6,547.50 $0.00 $6,547.50 2.04% V.F.W. A-Bantam Tournament 64.5 1.64% $7,941.25 $0.00 $7,941.25 2.47% Warroad Youth Hockey 1.0 0.03% $I 15.00 $0.00 $115.00 0.04% Youth Hockey Totals: 1823.83 46.24% $237,646.67 $83.85 $237,730.52 74.05% Grand Total: 3944.42 $318,814.24 2,213.01 $321,027.25 End cdlisting Powered by MaxFACILITY®,a product of Maximum Solutions,Inc.