2. - 4. ICESR 03-04-1997 ,-(/ --\(
it k ,�y of � MEMORANDUM
li
lRiver TO: Ice Arena Commission
FROM: Patrick D. Klaers, City Ad 'n'strator
frDATE: March 4, 1997 o'
SUBJECT: Agenda Memo
Commission members Farber and Gongoll have requested this March 4,
1997, 6:00 p.m., Special Ice Arena Commission Meeting. By resolution, the
first regular meeting will be held at 6:00 p.m., April 1, 1997, at City Hall. It
is anticipated that this first special meeting on March 4 will be "more or less"
an organizational meeting.
2. Review Ordinance and Resolution
Attached for your information is the ordinance that establishes the Ice
Arena Commission and the resolution which establishes the minimum
meeting dates. Also attached is the roster of the Commission.
In the ordinance, the City Council established a membership balance
for the Commission by selecting two public members, two Youth
Hockey members, a School Board, City Council, and Community
Recreation member. If something would happen to affect this
membership balance, then the City Council would need to be advised
so that it can react to a changing situation. For example: If Jeff were
to leave the School Board, then the Council would need to request the
school to submit another name for the Commission. Likewise, if Tom
would be elected to the Youth Hockey Board, then the City Council
would need to review the membership balance of the Commission and
react accordingly.
The terms of the Commission are staggered so that either two or three
terms are up each year. In this manner, there will be some continuity
of membership and there will not be a 5 or 6 member turnover in any
given year. Time will tell, but it is assumed that the members that
were appointed for one year terms will seek reappointment for a three
year term.
•
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425
• 3. Election of Officers
Per ordinance, the Commission needs to select a Chair, Vice Chair, and
Secretary. The Secretary is the recording officer for the meetings, but
the City will assist with the typing and distribution of the minutes.
4. Budget Update
When the bonds for the Ice Arena project were sold last spring, an
operating budget had to be submitted. The operating budget that was
submitted was the one that came out of the revised Marquette study
that the Ice Arena Task Force adjusted and which the City Council
accepted. This operating budget and the one adopted by the City
Council, which is identical, is attached for your review.
Regarding the revenues, I think that everyone understands that the
ice rental revenues is the key factor in this budget and this is the
major concern in order to have revenues exceed expenditures so that
funds are available to pay off the building debt. However, an
additional concern in the revenues is the $20,000 for sign rental. At
this point, we have not had any signs being sold. Regarding the
• expenditures, the personal services amount is a concern as it appears
that Rich needs more man hours in order to adequately manage the
expanded facility. The other expenditure area of concern is the capital
outlay category. No expenses are scheduled, but we know that some
expenditures are necessary for Rich's office and for equipment to run
the operation (computer, cash register, etc.). Also, we know that
additional capital items will be needed which were not known at the
time of construction (the public address system falls into this category)
or which are necessary because items that were part of the
construction project are not working out as planned. The capital
outlay expenditures is a big question mark at this time, especially
when considering that no funds are allocated towards this expenditure
category.
5. Ice Rental Rates and Schedule
The ice rental rates for the 1997-98 season and the 1998-99 season
have been established for the school district. It is anticipated that
these rates will be the same for everyone and not just the school
district. The rate schedule will be distributed at the meeting.
•
Our issue at this time is to sell sufficient ice time in order to meet our
• revenue projections. Also,we should acknowledge that we may need to
sell more ice time than what is identified in our revenue projections if
expenditures also exceed earlier estimates. A concern with the ice
time situation relates to the possible St. Michael's Ice Arena and
whether or not they will be attracting associations that typically would
have rented from us (i.e.: Monticello). At this meeting we should be
far enough into next year's schedule for Rich to update us on who is
requesting ice time and in what quantities and for what times.
Nothing from Rich is included in this packet and we will discuss this
item at the meeting.
6. Review Construction Project
The construction project is essentially finished as far as the contractors
are concerned. There is still the second lift of blacktop that needs to be
installed this spring and the City along with Mortenson will be
ensuring that this gets completed. Once the blacktop is installed, the
City will stripe the parking lot and sign it appropriately. The City also
has to hire a fencing firm to install the chain link fence to the north of
the arena along the homeowner's property line. Additional work for
inside the arena includes ensuring that the snow melt pit functions
correctly. In the spring/summer it is understood that the Youth
Hockey Association will be taking the lead in the landscaping, signage
and painting of the facility, along with any work that they desire in the
locker rooms which is part of Phase II of the project.
The project is substantially completed, but will not be finalized until
sometime this summer. At this time, it appears that the project will be
1-2% over the $2.65 million budget. There are some valid reasons for
the "over runs" and contingency expenditures that took place and the
construction budget will be discussed in some detail at the next
meeting on April 1, 1997. It is premature to talk about the
construction budget at this time until some of the latest bills are
finalized, but staff should be able to respond to questions.
8. Plaque
Councilmember Holmgren has inquired as to whether or not there will
be a plaque in the new ice arena. I advised him that the commission
would talk about this issue, but that I had not given it much thought.
9. Aprill, 1997. Agenda
• Construction manager, Pat Barnett, is scheduled to be at the April 1,
Ice Arena Commission meeting to answer questions from the
Commission on the status of the construction project. Additionally, as
noted above, we should be closer to finalizing out the project by that
time and will be able to talk with more certainty about the status of
the construction budget. I need to hear from Commission members
what else they would like on the agenda for the next meeting on April
1, 1997.
•
•
ORDINANCE 96-25
AN ORDINANCE ADDING SECTION 217 TO THE CITY OF
ELK RIVER CODE OF ORDINANCES CREATING
THE ELK RIVER ICE ARENA COMMISSION
The City Council of the City of Elk River does hereby ordain as follows:
Section 1. The City of Elk River Code of Ordinances is hereby amended by adding
thereto Section 217, entitled "Ice Arena Commission", as follows:
217.00 — ESTABLISHMENT OF ICE ARENA COMMISSION
There is hereby established in the City of Elk River an Ice Arena Commission pursuant to the
provisions of this Ordinance.
217.02 — PURPOSE OF COMMISSION
The Ice Arena Commission is established to make recommendations to the City Council on the
development and management of the City of Elk River Ice Arena Complex. The scope of the
Commission's responsibilities shall consist of advising the City Council regarding matters
• relevant to the development and operation of the Ice Arena Complex.
217.04 — MEMBERS AND TERM
The Ice Arena Commission shall consist of seven (7) members who shall be appointed by the
Council for terms of three (3) years. The Commission will consist of the following:
2 representatives designated by the Elk River Youth Hockey Association.
1 representative designated by Independent School District 728.
The Elk River Area Community Recreation Director.
1 representative of the Elk River City Council.
2 representatives from the public.
A vacancy during the term of any member shall be filled by City Council appointment for the
remainder of the term. Officers of the Commission shall consist of Chair, Vice Chair and
Secretary, as elected by the Commission. The Chair shall preside at all meetings of the
Commission if present, and perform all other duties and functions assigned by the Commission
or the City Council. The Vice Chair shall perform these duties in the absence of the Chair. If
• a vacancy occurs in the Chair Office, the Vice Chair shall assume the Chair's duties for the
remainder of the year and a new Vice Chair shall be elected by the Commission at the next
scheduled Commission meeting. The Secretary shall prepare minutes of the Commission
• meetings and assume the Chairs duties in the absence of the Chair and Vice Chair. A quorum
shall consist of a majority of the sitting members. As the Commission advises the City Council
on activities that affect individuals outside of the City limits, it is, therefore, acceptable for non-
city residents to be members of the Ice Arena Commission.
217.05 — COMPENSATION
The members of the Commission shall serve without pay or reimbursement for expenses.
217.06 — 'SOWERS AND DUTIES
The Ice Arena Commission shall have those responsibilities assigned to it by this ordinance,
including:
1. Make recommendations to the City Council with respect to:
a. Operation of the Ice Arena Complex.
b. Rules and requirements for Conduct Within the Ice Arena Complex.
c. Capital Improvements to the-Ice Arena Complex.
d. Annual.operating budgets and revenue sources..
2. Assist in the promotion of the Ice Arena Complex.
•
3. Submit an annual report to the City Council which shall include the Commission's
recommendations with respect to the above items.
4. Listen to community input and comments on the operation of the Ice Arena Complex.
5. Such other responsibilities as the City Council shall assign from time to time.
217.07 — MEETINGS
The Commission shall meet at least two times each calendar year. The dates, times, and
locations will be established by City Council resolution. Additional meetings may be held at any
time at the call of the Chair or the request of any two other Commissioners. Notice of
additional meetings, including the time and place thereof, shall be communicated to each
member of the Commission at least three (3) days prior to the meeting, posted at City Hall and,
if time permits, published in the City's official newspaper.
All Commission meetings shall be open to the public. The Commission shall be governed and
operate pursuant to Robert's Rules of Order as most recently advised.
Section 2. This Ordinance shall become effective upon its passage and publication.
PXB 134479 2
•
'4) Passed and adopted by the City Council of the City of Elk River this 21st day of
October , 1996.
/Henry . Duitsman, Mayor
ATTEST:
Sandra A. Thackeray, City Clerk
•
PXB 134479 3
RESOLUTION 96- 96
• A RESOLUTION FOR THE CITY OF ELK RIVER
A RFS():1:,TTTTON ESTABLISHING THE ICE ARENA COMMISSION
MEETINGS
WHEREAS, the Elk River City Council has discussed the need to
establish an advisory committee related to the operation
and management of the Elk River Ice Arena facilities; and
WHEREAS, the Elk River City Council has adopted Ordinance 96-_
which calls for the creation of the Elk River Ice Arena
Commission; and
WHEREA.S, the meeting section of this ordinance calls for the City
Council to establish by resolution the two meeting dates,
times and locations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Elk River that the Elk River Ice Arena Commission shall
• meet on the first Tuesday of April, 6:00 p.m. at City
Hall and the first Tuesday of August, 6:00 p.m. at
City Hall , with additional meetings being held at the
call of the Chair or at the request of two other
Commissioners.
Passed and adopted by the Elk River City Council. on October
Twenty Eight (28) 1996.
,1 tiL
.11M,(1.4 M,(1.� Cr //
,fenny . Duitsman, Mayor
ATTEST: G�
//
Sandra A. Thackeray, City Clerk
s:\document\resoluti\9o-icemt.doc
110
By Ordinance, all terms are for three years, but will be staggered initially so
• that there are two or three appointments considered each year. In this
regard, both youth hockey representatives and both public
representatives will not come up in the same year.
COMMISSION MEMBERS TERM EXPIRES PHONE
JEFF GONGOLL 12/31/97 441-1348
13900 Riverview Drive
Elk River, MN 55330
JEFF ASFAHL 12/31/99 241-3523
1230 School Street
Elk River, MN 55330
LARRY FARBER 12/31/99 441-8508
19404 Norfolk Ave NW
Elk River, MN 55330
DALE MARTIN 12/31/98 441-3121
UPA
Box 800
Elk River, MN 55330
DAVE TAUS 12/31/97 441-6137
8605 168th Ave NW
Ramsey, MN 55303
RONALD JOHNSON 12/31/99 441-5769
8010 176th Lane NW
Ramsey, MN 55303
THOMAS KUPKA 12/31/98 856-5077
12717 274th Circle
Zimmerman, MN 55398
•
ESTIMATED ELK RIVER ICE ARENA OPERATING AND MAINTENANCE BUDGET
BUDGET YEAR
1996-1997' 1997-1998 1998-1999
el Revenues
Ice Rental $ 295,970 $ 337,115 $ 348,914
ISD 728 Ice Rental 27,600 27,600 28,000
Admissions 25,000 30,000 30,000
Sign Rental 15,000 20,000 20,000
Dry Floor Events 6,000 6,000 6,000
Concession Rent 20,000 20,400 21,000
Vending Machine 18,000 20,000 20,000
Skate Sharpening 3,500 5,000 5,000
Miscellaneous 1.500 1.500 1.500
Total Revenues 412,570 467,615 480,414
Expenditures
Salaries 65,000 69,400 72,870
Benefits 12,000 15,000 15,750
Maintenance & Repair 25,000 39,000 40,950
Zamboni Op. & Maint. 5,000 6,000 6,300
Professional Services 4,000 4,000 4,200
Utilities 60,000 90,000 94,500
Insurance 20,000 20,000 21,000
Supplies 4,000 4,000 4,200
Dry Floor Events 1.500 2.000 2.100
Total Expenditures 196,500 249,400 261,870
IIAvailable for Debt Service $ 216,070 $ 218,215 $ 218,544
*Partial year beginning December 1, 1996, ending May 31, 1997.
This operating budget is based on projections from the Elk River Youth
Hockey Association (ERYH), Marquette Partners (an independent consulting
firm) and the Ice Arena Task Force. ERYH supplied information to Marquette
Partners for a Ice Arena Expansion Feasibility Study which was completed in
April, 1994. After reviewing the document, the Task Force made adjustments
to the projections. The adjusted projections are presented above. Changes in
ice rental, admissions, and sign rental revenues could substantially change the
amount available for debt service. Commitment letters have been received
for part of the Ice Rental revenue, but rental agreements have not been signed.
The above projections are based on a June 1 to May 31 fiscal year. When City
operation of the arenas begins,the fiscal year will be January 1 to December
31.
iii
ICE ARENA
Provides
• --- for the total operation of the Elk River Ice Arena facility as
• . •
authorized by the City Council •including debt payments for the
1996/97 ice arena expansion project.
1997 BUDGET COMPARED WITH 1996 BUDGET
This is a new budget, and as such, the proposed expenditures and revenues
cannot be compared to previous years. In 1996, the City Council agreed to
the ownership,financial responsibility, and management of the
existing Elk River Ice Arena. Additionally, in 1996 the City Council
approved the expansion of the ice arena and the construction of a second
sheet of ice was completed by the end of 1996.
The financial feasibility`of making the debt payment for the construction of a,
second sheet of ice was analyzed in a study completed by Marquette
Partners. This April, 1994, report was updated by a City Council appointed
:Ice-Arena-Task Force and the-revised financial figures were approved by the
City._Council:-These revised figures were used as financial' in
order to obtain long term (20 years) financing from local financial institutions
for the-construction project: The $2.65'million construction project,was
financed-by a Mighty Ducks grant of$250,000, contributions from the Elk
. River Youth Hockey Association, a $50,000 donation'from the Rogers Plastic -
Foundation, and city f Inds.
; Itis anticipatedrthat the annual operating revenues,will exceed the annual., ;
j{ operatuig expenses so that there will be sufficient monies available to make
annual debtpayments` Essentially it is believed that the revenue::-
generated:froni selling ice time for two sheets of ice will be sufficient to pay
off the debt for the construction of one additional sheet of ice.. If not,,the city
is"the responsible°agency and will have to.access other funds in-order to meet;- }
:this obligation For;this new endeavor the city has hired the current ice
• arena employees including the full time arena manager: Additionally, the ._
' City Council has established an Ice Arena Advisory Commis. sion to help
oversee the management of the arena.
The adjacent page shows the proposed revenues and expenditures for-1997 -
These figures were taken from the revised financial feasibility study:. The : '
city fiscal'year is the calendar year and the ice skating"year" is mainly the.
winter season and is part of two different calendar years. Initially this will`
complicate the budget process. The first complete year of city:management of s,
an ice skating season`at the ice arena will be 1998. These;1998 year end•
• = .:figures will be available in 1999, so the 2000 ice arena budget will be the first
one based on actual year end figures as managed by the city.
73:.
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