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6.5. SR 05-02-2005 Item 6.S. MEMORANDUM TO: Mayor and City Council FROM: Pat Klaers, City Ar.ri~istrator May 2, 2005 Y DATE: SUBJECT: Ice Arena Commission Update Councilmember Farber is the City Council representative on the Ice Arena Commission. The most recent meeting of the Ice Arena Commission was April 5, 2005. Attached for your review are the draft minutes from this meeting. At the May 2, 2005 City Council meeting, Councilmember Farber is scheduled to provide an update on recent Ice Arena activities. At the last meeting of the Commission, a rate increase was recommended to the City Council. Attached is a separate page from Arena Manager Rich Czech that identifies all of the rates for various times and seasons at the Arena. Action Requested It is recommended that the City Council approve the rate change as recommended by the Ice Arena Commission and as outlined on page 5 of the draft April 5, 2005 Commission meeting minutes. s: \ Council\Pat\2005 \IceArenaRates.doc MEETING OF THE ELK RIVER ICE ARENA COMMISSION HELD AT ELK RIVER CITY HALL TUESDAY, APRIL 5,2005 [Q)[prl~[Fl Members Present: Chair Martin, Commissioners Farber, Foss, Halgren, Johnson, Malzahn, and Polston-Hark Members Absent: None Staff Present: Arena Manager Rich Czech, Finance and Administrative Services Director Lori Johnson, Parks and Recreation Director Bill Maertz, and Recording Secretary Jessica Miller 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 6:00 p.m. by Chair Martin. 2. Consider 04/05/05 Ice Arena Commission Agenda Election of Officers was added to the agenda. MOVED BY COMMISSIONER]OHNSON AND SECONDED BY COMMISSIONER FARBER TO APPROVE THE APRIL 5, 2005 ICE ARENA COMMISSION AGENDA AS AMENDED. THE MOTION CARRIED 7-0. 3. Consider Ice Arena Commission Minutes · 08/03/2004 Regular Meeting Minutes · 09/28/2004 Special Meeting Minutes MOVED BY COMMISSIONER HALGREN AND SECONDED BY COMMISSIONER POLSTON-HORK TO APPROVE THE AUGUST 3, 2004 REGULAR MEETING MINUTES. MOTION CARRIED 7-0. MOVED BY COMMISSIONER POLSTON-HORK AND SECONDED BY COMMISSIONER HALGREN TO APPROVE THE SEPTEMBER 28, 2004 SPECIAL MEETING MINUTES. MOTION CARRIED 7-0. 4. Open Mike Kent Madsen, 19312nd St NW - stated that he was recently at the Ice Arena in Des Moines, Iowa and they had pictures of hockey players that played youth or high school hockey at the Arena that went on to play professional hockey. Mr. Madsen explained that the signs were made of vinyl and had a current picture of the player along with a brief player history. Mr. Madsen indicated that he believed the cost of the signs to be approximately $350. Parks and Recreation Director Bill Maertz stated that he would check with the Planning Department in regards to the city's sign ordinance to see if these types of signs would be allowed. Ice Arena Commission Minutes April 5, 2005 Page 2 Discussion took place and it was the consensus of the Commission that they liked the idea of having signs displaying former players turned professional at the Arena. Mr. Madsen stated that he will research the signs further and hopes to come back before the Commission at the August meeting so the signs could be up before the fall season begins. 4.1. Election of Officers MOVED BY COMMISSIONER MALZAHN AND SECONDED BY COMMISSIONER POLSTON-HORK TO ELECT THE FOLLOWING OFFICERS TO THE ICE ARENA COMMISSION FOR 2005: SECRETARY - DAVE HALGREN VICE CHAIR - RONALD JOHNSON CHAIR - DALE MARTIN MOTION CARRIED 7-0. 5. Review 2004 Operating Finances/Current Information on 2005 Financial Status Finance and Administrative Services Director Lori Johnson reviewed the Account Revenue and Expenditure Summary. Ms. Johnson reviewed the 2004 fmancial information and discussed the transfers from other funds of $464,537 for the floor and $39,260 to cover the operating deficit. She indicated that revenues were up considerably from 2003, but at a level similar to 2002, because in 2003 the Barn was not in use part of the year because of the floor problem. She reviewed the draft 2005 budget and indicated that the budget has increased in 2005 mainly due to increased utility costs and additional recreational programming. Ms. Johnson stated that contributions from other City funds total $1,201,452 from 1997 to 2004. 10. Concession Stand Parks and Recreation Director Bill Maertz indicated that the city received a request from Elk River Youth Hockey requesting that the concession stand annual lease amount be lowered. Mr. Maertz eXplained that the lease payment began as Elk River Youth Hockey's contribution to the Arena when a second sheet of ice was installed after the city took over operations at the Arena. Mr. Maertz further explained that the Arena cannot afford to lower the concession stand lease payments when the Arena continues to lose money each year due to building debt payments. Mr. Maertz indicated that the city is also concerned that the concession stand has not been open during many peak times which causes Elk River Youth Hockey to lose money and also reflects poorly on the Arena. Commissioner Farber stated that he also doesn't believe the city is in a position to lower the lease payment of the concession stand. He also stated that if Youth Hockey doesn't have the ability to keep the concession stand open and staffed during peak hours and varsity games, Ice Arena Commission Minutes April 5, 2005 Page 3 that another way to run the stand should be found as he believes it to be a detriment to the city if the concession stand is not open. Commissioner Johnson indicated that the concession stand used to have a concession manager and part-time employees and used to be quite profitable. Discussion took place and it was the consensus of the Commission that if Elk River Youth Hockey would like to keep running the concession stand, that they must make a commitment to ensure that the stand is open and staffed properly during all varsity games and other peak ice times or the city may wish to take over the concession stand operations. Chair Martin asked Commissioners Malzahn and Foss to relay this information to Elk River Youth Hockey. Commissioner Malzahn indicated that Elk River Youth Hockey is holding their annual business meeting on April 20 and he will make them aware of the Commission's thoughts on the concession stand and report back to Arena staff after the meeting. Commissioner Farber indicated that this is an important topic for the Ice Arena and he would like to see the Commission hold a special meeting once Elk River Youth Hockey has made their decision on the concession stand. Commissioner Johnson stated that when he was involved with Youth Hockey, they did many fundraisers including boat raffles and pizza sales and that they made a lot of money. He indicated that the organization is only as strong as their fundraisers and believes that Youth Hockey has to have a strong person in charge of fundraising in order to organize and hold profitable fundraisers. Judy DeGreef, Fundraising Chair for Elk River Youth Hockey - stated that as a part of joining Elk River Youth Hockey, parents are required to either volunteer or pay a "buy-out" amount. She indicated that at this time, many parents would rather pay the amount rather than spend their time volunteering. She believes that if this "buy-out" rate was increased, that Youth Hockey would get more volunteers for such things as running the concession stand and for fundraising. 6. Ice Sales Arena Manager Rich Czech reviewed a chart outlining total ice hour usage by customer for June 2003 through May 2004 and June 2004 through May 2005. Mr. Czech stated that the substantial increase in ice hours for the 2004-2005 ice season is largely due to the Barn having ice on schedule as well as an additional 1 00 hours of ice time being sold January through May. Mr. Czech indicated that Elk River Youth Hockey has requested additional ice time during the week and in order to accommodate this, ice time would have to be taken from one of the High School teams which would more than likely be the Becker/Big Lake High School Boys Hockey Team. Mr. Czech explained that Becker/Big Lake booked 77 hours of ice time last year, 4 of which were on Saturdays, which leaves 73 hours of weekday ice time during the season. Mr. Czech stated that he has been in contact with the Becker/Big Lake Athletic Director regarding this issue and he is working on booking ice time at the Monticello rink but he believes most of Monticello's prime time hours may already be spoken for. Mr. Czech Ice Arena Commission Minutes April 5, 2005 Page 4 indicated that the Arena makes money from the Becker/Big Lake High School games and so it would be nice to be able to keep their games if they could find practice time elsewhere. Commissioner Malzahn questioned if the crunch on weekday ice time came when Rogers High School Hockey came on board. Mr. Czech indicated that yes, that is when weekday ice became hard to get. Commissioner Johnson expressed concern that the issue comes back to the bottom line on the budget. He questioned if it is in the best interest of the Arena to take back the 77 hours to accommodate Youth Hockey in turn losing the profit from the Becker/Big Lake games. Mr. Czech stated that the Arena would be losing approximately $5,000 annually by releasing Becker/Big Lake games. Commissioner Farber stated that Elk River Youth Hockey is bursting at the seams and now may be the time to accommodate our own community. Commissioner Halgren concurred that the Arena's first priority should be to accommodate organizations within our community because the Arena was built for the community. MOVED BY COMMISSIONER MALZAHN AND SECONDED BY COMMISSIONER]OHNSON TO WITHDRAW THE WEEKDAY HOURS FROM BECKER/BIG LAKE HIGH SCHOOL AND OFFER THEM TO ELK RIVER YOUTH HOCKEY WITH ELK RIVER YOUTH HOCKEY HAVING FIRST RIGHT OF REFUSAL FOR THE HOURS AND IF THEY DON'T WANT THEM, BECKER/BIG LAKE CAN PICK THEM UP. MOTION CARRIED 7-0. 7. Ice Rates Arena Manager Rich Czech indicated that the ice rates have not been adjusted since the 2003-2004 season. Mr. Czech stated that the current rates are $145 an hour for prime time rates and $115 for non-prime time rates and $120 for summer rates. Mr. Czech indicated that after reviewing the 2004 ice rate survey from the Minnesota Ice Arena Manager's Association, it appears that Elk River is on the lower side of the average hourly rate. Mr. Czech stated that even increasing the rates by a couple dollars will help make up some of the debt as well as some of the income being lost by releasing the Becker/Big Lake games. He noted that the Arena needs to be careful as to not price people out of skating. Mr. Czech indicated that two things that need to be looked at when considering raising ice rates are utilities and personnel. Mr. Czech stated that his recommendation would be to raise the prime time ice rates to $150 an hour and non-prime time to $125. He also stated that he is recommending that the off- season prime time rates be adjusted to $125 an hour and non-prime time to $95 an hour. Mr. Czech is recommending that the beginning time for prime rate hours be changed to Sunday at 10:00 a.m. instead of 11:00 a.m. during the regular season. He is also recommends that the spring season begin after the second weekend in March rather than having a specific date set. MOVED BY COMMISSIONER]OHNSON AND SECONDED BY COMMISSIONER POLSTON-HORK TO RECOMMEND THE FOLLOWING CHANGES TO THE ICE RATES: Ice Arena Commission Minutes AprilS, 2005 Page 5 REGULAR SEASON: $153.00 PRIME $125.00 NON-PRIME OFF SEASON: $125.00 PRIME $95.00 NON-PRIME AND FOR THE SPRING SEASON TO BEGIN AFTER THE SECOND WEEKEND IN MARCH. MOTION CARRIED 7-0. 8. Construction of the Barn Floor Arena Manager Rich Czech stated that the construction of the Barn's floor went very well. Mr. Czech explained that during the construction there was one change order because the radiuses at each end of the rink had to be redone due to the concrete in that area being old and brittle. He indicated that there are a couple of items remaining on the punch list that will be completed once the ice is removed this spring and the city is retaining $3,000 to ensure the work gets completed. 9. Capital Improvement Plan (eLP.) Arena Manager Rich Czech stated that there is $40,000 in the 2006 budget to construct a new Arena Manager's office more centrally located and easier for the public to find. He stated that the current office is located in the upper level of the Barn in the far southwest corner and is difficult for the public to locate. Mr. Czech indicated that as much as an office is needed, he would rather see items purchased that will generate revenue for the Arena rather than constructing a new office. He stated that a better utilization of the money may be to purchase indoor turf for the Barn floor. He stated that the turf costs approximately $70,000 but believes it would pay for itself in a couple of years. The turf could be used for such events as indoor soccer and indoor LaCrosse. Commissioner Halgren questioned when the indoor seasons begin and if ice time would be lost if indoor turf was installed on the Barn floor. Mr. Czech indicated that the indoor seasons run from about the beginning of March to the beginning of May and that the indoor turf would generate more income per hour than the ice time. He noted that the Barn floor would be removed early for the turf but the Olympic rink would still have ice available. Commissioner Polston-Hork indicated that it would be beneficial to get commitments from organizations that would use the indoor turf prior to purchasing it. She noted that Parks and Recreation staff is currently in the process of negotiating with a soccer league for use of outdoor fields. Chair Martin indicated that he would like to see Mr. Czech explore both the turf and the office option further and bring additional information for discussion at the August Ice Arena Commission meeting. The Commission concurred. Ice Arena Commission Minutes AprilS, 2005 Page 6 11. Staff Updates A. Shooting Area Arena Manager Rich Czech stated that the shooting area that was completed last fall was very popular throughout the season. He stated that no fee was charged and the plan is to not charge a fee again this year. Mr. Czech noted that the shooting area was reserved by teams and the supervision was good. MOVED BY COMMISSIONER HALGREN AND SECONDED BY COMMISSIONER JOHNSON TO RESCIND THE MOTION MADE AT THE AUGUST 3, 2004, ICE ARENA COMMISSION MEETING STATING THAT FEES WOULD BE CHARGED FOR USE OF THE ARENA SHOOTING AREA. MOTION CARRIED 7-0. MOVED BY COMMISSIONER HALGREN AND SECONDED BY COMMISSIONER JOHNSON TO RECOMMEND THAT THERE BE NO CHARGE FOR THE ICE ARENA SHOOTING AREA. MOTION CARRIED 7-0. B. Summer Projects Arena Manager Rich Czech stated that this year the Arena added a water softener that provides soft water throughout the building. Mr. Czech indicated that the water softener has already made a big difference in the condition of the ice as the ice sets up faster and has a clarity it has never had before. Mr. Czech also noted that the scale that once built up on the equipment is no longer there, resulting in a newer looking Zamboni. Mr. Czech also indicated that this summer the cooling towers chemical treatment plan will be reviewed to see if the amount of chemicals can be cut down on. He noted that using cooler water to resurface the ice will also be looked at which would cut down on the gas and electric bills. Mr. Czech stated that besides the usual cleaning, Arena staff will be painting, installing rubber matting, installing outlets, and putting up a couple sections of center groove in the Barn during the summer. C. Dryfloor Mr. Czech reviewed the dryfloor schedule for the summer months. 12. Other Business There was no other business. 13. Adjournment There being no further business, MOVED BY COMMISSIONER HALGREN AND SECONDED BY COMMISSIONER POLSTON-HORK TO ADJOURN THE MEETING OF THE ELK RIVER ICE ARENA COMMISSION. THE MOTION CARRIED 7-0. Ice Arena Commission Minutes April 5, 2005 Page 7 The meeting of the Elk River Park Ice Arena Commission adjourned at 8:15 p.m. Respectfully submitted, ~1J1uv Jessica Miller Recording Secretary Elk River Arena Ice Increases, 2004 - 2005 / 2005 - 2006 Regular season prime time ice rates has increased from $145.00 an hour to $153.00 an hour. Regular season non - prime time rates increased from $115.00 an hour to $125.00 an hour. On Sundays, the time of when prime time ice begins has changed from 11 :00 am to 10:00 am. The ending date of when the regular season rates ends and when the off-season rate begins has changed to March 21 st to the third weekend in March. The beginning of the regular season (September 1 st) is still the same. Off-season prime time ice rates increased from $120.00 an hour to $125.00 an hour. Non prime time ice rates are still at $95.00 an hour. Weekend off-season ice rates increased from $70.00 an hour to $95.00 an hour. The date of when the weekend off - season ice rates begin has changed from March 21 st to June 1 st. The increase in ice rates was needed to keep the deficit the Arena faces each year to a mmlmum.