5.1. ICESR 08-18-2015 Gty of
Elk ,,.,,,;� Meeting of the Arena Commission
River Held at the Elk River City Hall
Tuesday,April 21,2015
Members Present Vice Chair Givens,Commissioners Holmgren,Balabon,Ballenger,
Cunningham,Madsen(Sworn in tonight)
Members Absent: Commissioner Westgaard, (Chair Johnson has stepped down)
Staff Present Arena Manager Rich Czech,Arena Assistant Laura Estby,Parks and
Recreation Director Michael Hecker,Finance Director Tim Simon
1. Call Meeting to Order
Pursuant to due call and notice thereof,the"meeting of the Ice Arena Commission
was called to order at 6:02 p.m.by Vice Chair Givens.
2. Pledge of Allegiance
Recited by Commission Members and Staff
3. Oath of Office to New Commission Members
At large representative Kent Madsen is sworn in
4. Consider 04121/15 Arena Commission Agenda
Moved by;Commissioner Cileningham and seconded by Commissioner
'Balabon to approve the April 21,2015, agenda. Motion carried 6-0.
5. Consider Minutes
5.1 August 19, 2014 Minutes
Arena Assistant Estby.:'rtes that in section 8 of the minutes,it was not noted who
made the'motion to eliminate the January and November commission dates.
Moved by Commissioner Cunningham and seconded by Commissioner
Balabon to approve the August 19,2014 minutes with the following revision:
"Motion by Chair Johnson and seconded by Commissioner Balabon to
eliminate the Ice Arena Commission Meetings in January and November and
to change the April and August meetings to the 3'1 Tuesday of the month.
Motion carries 6-0.
Arena Commission Minutes Page 2
April 21,2015
6. Open Forum
No Discussion
7. Financial Update
Finance Director Tim Simon reviews the Arena's 2014 numbers. Starts by noting
that the Arena is a special revenue fund for the city,so any profits that are made on
an annual basis,the arena keeps for upcoming capital projects,etc.
On the revenue side,Simon notes that ice rentals were down,however,recreation
programs increased,which offset the decrease in rentals. Sign rentals were down
from 2013 as well as dry floor events,but vending revenue was up as were the
miscellaneous merchandise sales,which was in part due to rebates from utilities.
Overall revenue saw a.39%increase from 2013-2014.
The arena's operating expenses increased,which was due to increased costs in
electricity,the purchase of additional R22 refrigerant and a new Zamboni battery.
Recreational ro ams also saw a decrease in expenses. Overall,expenses saw a
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4.86%increase.
Simon noted that concessions made a profit of$22,000. Overall the operating
income increased. He noted that the capital expenditure was used for a dehumidifier,
and all other capital projects are on hold until there is a decision made about a new
facility.The on hold projects include a new roof for the barn,varsity locket rooms a
refrigeration unit. Due to the lengthy lead time between ordering a new Zamboni
and it arriving,the Arena will be asking the council to let them order in 2015 in the
hopes of receiving it by 2016.
In response,Arena Manager Rich Czech notes that there wasn't an advertiser for the
score clock for part of the year,which accounted for part of the loss of revenue,
however they have an advertiser now. In addition,the Zamboni that is being
replaced doesn't have an advertiser,but he hopes to find one for the new machine so
that it can be"wrapped"right away when we receive it.This process usually takes 3
weeks.
Czech notes the new director of the Learn to Skate program is doing a great job and
he hopes to continue seeing increases here.With regards to concessions,Czech
states that we have a new supplier for several of our concessions items which
of the change there.He also noted a Zamboni battery that was
accounts for some o th ry
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originally supposed to be ordered in 2015 had to be ordered in 2014.
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Arena Commission Minutes Page 3
April 21,2015
8. Action Items
8.1 Elections of Chair and Vice Chair
Arena Manager Czech suggests DeAnn Givens should be the new chair. Givens
agrees to the position.
Motion made by Commissioner Cunningham and seconded by Commissioner
Madsen to elect Vice Chair Givens to be the new Chair of the Ice Arena
Commission.Motion carries 6-0.
Motion made by Chair Givens and seconded by Commissioner Cunningham
to elect Commissioner Balabon as the Vice Chair of the Ice Arena
Commission. Motion carries 6-0.
8.2 Parks and Recreation Master Plan/Arena Construction
Arena Manager Czech notes that there is a light at the end of the tunnel with the
Parks Master Plan.The study results will be looked at in May and then it will be
submitted to the City Council for approval.A portion of the plan addresses indoor
facilities which would include the Ice Arena as well as the Senior Center.The
Council will also decide how to fund the projects.
Parks and Recreation Director,Michael Hecker states the master plan suggests the
possibility of combining the Arena,Activity Center as well as the Lions Park facilities
in one building. He confirms the Lion's Park location is not a viable choice for a new
facility due to issues with the ground,however no other alternatives have been
suggested.
Hecker notes the Senior Center needs$40,000 in improvements,and it gets a
considerable amount of use.
The Parks and Recreation Commission will approve the final plan in May and then it
will be submitted to the Council. City Administrator Cal Pottier will be overseeing
the RFP.
8.3 2015-2016 Ice Rates
Arena Manager Czech notes that the arena's operating expenses continue to increase.
MLAMA (Minnesota Ice Arena Managers Association) compiled a list of rates from
surrounding rinks. Historically the Elk River Arena has tried to stay on the lower
end,but in line with other rinks nearby.Typically rates increase$5/hour every other
year.
Commissioner Ballenger notes that obviously Elk River Youth Hockey wants to
keep the rates as low as possible so as to not have to pass the costs on to their
association.Their numbers last year were flat if not slightly down. However he also
notes that having a$5 increase every other year is easier to handle than holding off
for a longer period of time and then seeing a larger increase.
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Arena Commission Minutes Page 4
April 21,2015
Chair Givens asks Arena.Manager Czech about the Igloo and how it will impact the
ice sales at the Elk River Arena.
Arena Manager Czech notes that in general it has had a limited amount of impacted
on spring sales.The Igloo's ice sheet is smaller sized,and costs $125 for 50 minutes
of ice,while Elk River is at$145.00 an hour,60 minutes,for a full size sheet of ice.
The Igloo does however serve Alcohol
Chair Givens notes the ice is soft as the building is kept warmer.
Commissioner Madsen notes the Rogers Youth Hockey Association is looking at ice
at the Igloo.
Givens inquires if Ice Rental at the Igloo would replace the hours that Elk River
Youth Hockey has been purchasing at Princeton and Anoka.
Commissioner Ballenger states the Elk River Youth Hockey board has had several
turn overs,and that they want to look at the contract as early as late May or early
June.They will finalize their budget in.early summer so they know how much their
fees will be,and registrations begin in July and August.
Arena Manager Czech inquires about possible District 10 or MAHA rules regarding
alcohol at hockey practices/games.
Commissioner Balabon confirms there is a separate entrance for players than for
parents/visitors.
Commissioner Ballenger adds there is a clear separation in the building between
where alcohol is allowed and where it isn't.
Chair Givens asks Arena Manager Czech if it is his suggestion to raise the rate
$5/hour for prime ice,and he confirms.
Motion by Commissioner Balabon and seconded by Commissioner Ballenger
to raise the rate to $190 per hour and hold the rate for 2 years. Motion passes
6-0.
Commissioner Ballenger inquires about the non-prime rate.Arena Manager Czech
notes that the non—prime time rate will remain at$145.00 an hour.
8.4 Rink Camera System
Arena Manager Czech updates the commission that the cost to run the system was
$2300/month,and while there was discussion about the cost being coveted in part
by youth hockey or the blue line club it never took off. He adds the Blaine Super
Rink was supposed to be a test for the same system,but it never happened.
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Arena Commission Minutes Page 5
,April 21,2015
The system would have allowed coaches to have access to all of the cameras for a fee
and parents could purchase the footage as well,but it would only be from the main
camera vantage.
Czech notes the Super Rink is working with a different video company--and that
the issue at the Elk River Arena may be revisited with the Cable Commission.
Commissioner Ballenger notes many tournaments are streamed live on the internet
under a pay per view system. He inquires if the MN Sports Network documents the
games.
Commissioner Cunningham confirms,however you need to give them the rights to
the footage.
9. Arena Manager's Update
Arena Manager Czech notes the Mighty Ducks (for the conversation of rinks using
R-22) grant has the support of the MN State Senate,however the House and the
Governor are not on board.If it passes,we would apply for one which would award
$50,000 to update plants that run on R22 or$200,000 to replace the plants (typically
with ammonia systems).The Governor believes the issue can be tabled until 2020;
however the changeovers are supposed to be completed by then.
A new ice plant would cost an estimated$2 million,however for us that would mean
updating to one plant instead of the two that we currently have which would
decrease our utility costs.
The"look out line"issue has been tabled with USA Hockey,but Czech suspects it
will not go away and will be revisited in a few years.
Upcoming Arena events include removal of the ice in the barn the week of April 20,
the AC Expos Gun Show April 25—26,the 25th Annual Spring Craft Show
May 2—3 and the 18th Annual Ice Show May 15—16.
Commissioner Cunningham notes the football season begins very early this year,
with the first game on August 24.The season has moved up so it can conclude for
playoffs at TCF Stadium.
Commissioner Ballenger adds the early football season makes it even more
important to get Elk River Youth Hockey's hours finalized as many of the Bantam
aged players also play football.
Chair Givens inquires if the Arena Commission will need a special meeting with
regards to a new facility after the Parks and Recreation Master Plan has been
approved and sent to the City Council.
Arena Manager Czech replies he doesn't believe so.
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Arena Commission Minutes Page 6
April 21,2015
Commissioner Ballenger notes for the August meeting it would be good to review
the information from the master plan.
Parks and Recreation Director Michael Hecker states if there is a referendum to fund
a new facility,it wouldn't be happening this fall.
I I. Date of the next Arena Commission Meeting
August 18,2015-6:00 p.m.
12.Adjournment
Motion by Commissioner Ballenger and seconded by Commissioner
Cunningham to adjourn.Motion passes 6-0 at 7:02 p.m.
Minutes prepared by Laura Estby
John J. Dietz,Mayor
Tina Allard,City Clerk
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