3.1 ICESR 05-31-2018Regular Meeting
Of the
Arena Commission
I. CALL MEETING TO ORDER
2. PLEDGE OF ALLEGIENCE
3. GENERAL BUSINESS
AGENDA
3.1 Revue Ballard 1 Kings Operations Study
Tuesday, May 31, 2018
5:30 p.m.
City Hall
Uppertown Conference Room
Meeting Protocol
" No sidebar discussions
No interruptions
" State your concern
■ Ensure you understand
• Don't take things personally
Adhere to time limits
■ Come prepared
" Lnsure all are heard
4. DATE OF NEXT ARENA COMMISSION MEETING
November 20, 2018 6:00 p.m. in Uppertown Conference Room
This agenda is available in alternate formats upon a 73 hour advanced notice. Auxiliary aids and services are also available upon a 72 hour
advanced notice. Please contact the City Clerk at 763. 635.1000 to make a request Examples of alternate formats may include: large print,
Braille, audio tape, etc. Examples of auxiliary aids may include a sign language interpreter, assistive listening device, etc.
i'llwErl�e er
ATURE
Request for Action
To
Item Number
Ice Arena Conunission
3.1
Agenda Section
Meeting Date
Prepared by
Community Center
Ma 31, 2018
Rich Czech, Arena Mana er
Item Description
Reviewed by
Community Center/Arena Update
Cal Portner, Ci Administrator
Reviewed by
Action Requested
Discuss the status of the Community Center/Arena.
Background/Discussion
Ballard*King & Associates have completed a draft of their revenue study for the three recreation facility
options. The final report should be completed next week and will be sent to each Arena Commissioner.
Financial Impact
N/A
Attachments
0 N/A
Ipnwf8[a Ir
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Elk River Operations Analysis
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The operations analysis represents a conservative approach to estimating expenses and revenues
and was completed based on the best information available and a basic understanding of the
project. Fees and charges utilized for this study reflect a philosophy designed to meet a
reasonable cost recovery rate and future operations cost and are subject to review, change, and
approval by the City. There is no guarantee that the expense and revenue projections outlined in
the operations analysis will be met as there are many variables that affect such estimates that
either cannot be accurately measured or are subject to change during the actual budgetary
process or partnership.
Expenditures
Expenditures have been formulated on the costs that were designated by staff and Ballard*King
and Associates to be included in the operating budget for the facility. The figures are based on
the size of the center, the specific components of the facility, and the hours of operation. All
expenses were calculated to the high side and the actual cost may be less based on the final
design, operational philosophy, and programming considerations adopted by the City. The
consulting team was tasked with exploring three different operating models that included a
different mix of components. The Community Center includes two sheets of ice, community
rooms and community programming. The Multi-purpose option includes two sheets of ice, an
indoor turf field, leased space and community room. The Ice Arena option includes a two -sheet
ice facility, concession area and upgraded locker room facilities.
ategory Comm.Center Multi -Purpose _ ,Ice Arena
Personnel
Full-time
Part-time
Total
$250,599
$316,493
$567,092
$250,599
$155,520
$406,119
$250,599
$132,284
$382,883
Cate o Comm Center Multi-PuKpose Ice Arena
Utilities $228,750 $338,950 $ 210,000
(gas & elect)
Telephone $ 3,500 $ 3,950 $ 3,500
Category _
Comm Center
„Multi -Purpose
Ice „Arena
Fuel/Lube
$
300
$
500
$
300
Contract services
$
15,000
$
15,000
$
15,000
Training/Conference
$
1,900
$
1,900
$
1,900
Rental equipment
$
4,000
$
7,500
$
7,500
Concessions
$
45,000
$
65,000
$
35,000
Merch. for Resale
$
30,000
$
40,000
$
30,000
Publishing/Printing
$
7,500
$
7,500
$
7,500
Postage
$
250
$
400
$
250
Bank CC Fees
$
4,500
$
8,000
$
4,500
Operating Supplies
$
60,000
$
80,000
$
60,000
Uniforms
$
1,000
$
1,500
$
1,000
Insurance
$
5,000
$
10,000
$
5,000
Building Repair
$
30,000
$
30,000
$
20,000
Dues/Subscriptions
$
650
$
650
$
650
Building/Structure
$
7,500
$
10,000
$
10,000
Equipment
$
15,000
$
25,000
$
15,000
Total
$459,850
$645,850
$427,100
Grand Total
$1,026,942
$1,051,969
$809,983
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Pull -Time Staff
Positions _ Facilityget
Full -Time
Existing FT Staff $179,950
PERA $ 21,100
Medicare S 4,100
Insurance $ 28,800
Workers Comp $ 9,350
Total Full -Time Personnel $243,300
Plus 3% for future increase $259,599
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RAT �T ARD ICING
A SS0CItl..TE9 Li D
Recreation raeHity Planning and Operation Consult.ints
Revenues
The following revenue projections were formulated from information on the specifics of the
project and the demographics of the service area and other similar facilities. Actual figures will
vary based on the size and make-up of the components selected during final design, market
stratification, philosophy of operation, fees and charges policy, and priority of use. All revenues
were calculated conservatively as a result.
Revenue Projection Model:
Category Comm Center Multi -Pu ose Ice Arena
Admissions $ 59,250 $ 73,000 $ 59,250
Bld Rentals $ 26,860 $ 26,860 $ 8,500
Ice Rental $534,000 $534,000 $ 534,000
Turf Rental $ 0 $151,520 $ 0
Recreation Fees $ 48,100 $ 48,100 $ 48,100
Skate Sharpening $ 4,500 $ 4,500 $ 4,500
Special Events $ 1,500 $ 7,500 $ 1,500
Vending $ 12,000 $ 17,500 $ 12,000
Birthday Parties $ 6,000 $ 11,250 $ 6,000
Advertising $ 25,000 $ 45,000 $ 25,000
Contributions $ 6,700 $ 6,700 $ 6,700
Dry Floor $ 24,375 $ 24,375 $ 24,375
Concessions $115,500 $165,500 $ 115,500
Silver Sneakers $ 12,960 $ 12,960 $ 0
Misc 6,500 $ 7,000 $ 5,000
Grand Total $8831245 $1,135,765 S 850,425
4jPac
Expenditure — Revenue Comparison
Category
Community
Multipurpose
Ice Arena
Center
Expenditures
$1,026,942
$1,451,969
$809,983
Revenue
$883,245
$1,135,765
$850,425
Difference
($143,687)
$83,796
$40,442
Recovery percentage
86
107%
105%
Future years: Expenditures — Revenue Comparison: Operation expenditures are expected to
increase by approximately 3% a year through the first 3 to 5 years of operation. Revenue growth
is expected to increase by 4% to 8% a year through the first three years and then level off with
only a slight growth (3% or less) the next two years. Expenses for the first year of operation
should be slightly lower than projected with the facility being under warranty and new. Revenue
growth in the first three years is attributed to increased market penetration and in the remaining
years to continued population growth. In most recreation facilities the first three years show
tremendous growth from increasing the market share of patrons who use such facilities, but at the
end of this time period revenue growth begins to flatten out. It is not uncommon to see the
amount of tax support to balance the community center budget increase as the facility ages.
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Part -Time Worksheets
Part -Time — Community Center
Existing Part-time staff level $101,850
Benefits 17,000
Total Part -Time $118,850
Existing Senior/Comm Center $180,350
Positions Hours/Wk Amount
Part -Time
Front Desk 30 hrs/wk $ 16,065
($10.50/hr)
Benefits (7.65%) S 1,228
Total $ 17,293
Part -Time — lee Arena
Existing Part-time staff level $101,850
Benefits $ 17,000
Total Part -Time $118,850
Positions Hours/Wk Amount
Part -Time
Program/Maint Attendant (32 wks) 26 hrs/wk $ 12,480
($15.00/hr)
Benefits (7.65%) $ 954
Total Part -Time Salaries $ 13,434
61Pa"t
Part -Time Worksheets — Multipurpose Option
Existing Part -tithe staff level $101,850
Benefits
Total Part -Time
$ 17,000
$118,850
Positions
Hours/Wk Amount
Part -Time
Front Desk
30 hrs/wk $
16,065
($10.50/hr)
Turf Attendant/Maint (32 wks)
45 hrs/wk $
15,000
($12.50/hr)
Salaries
$
34,065
Benefits (7.65%)
$
2,605
Total $ 36,670
Turf Attendant (32 wks)
Mon -Fri
5pm-1 Opm 5 1 5 25
Saturday
8am-10pm 12 1 1 12
Sunday
Noon -bpm 10 1 1 8
Total 45 hours
Total $15,040
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B LT.ARD*KING
- 11 TAT E 5 L T ll
Recreation Facility Planning and Operation Consultan. is
Part-Time Worksheets — Multipurpose Option — Expanded Food Service
Option only.
Concession (32 wks)
Mon-Fri
4pm-9pm 5 1 5 25
Sat_ a urday
9am — 9pm
12
1
1 12
1 pm-9pm
8
1
1 8
4pm-9pm
5
1
1 5
Sunday
9am-6pm
9
1
1 9
1 pm-6pm
5
1
1 5
Total
74 hours
Positions Hours/Wk Amount
Part -Time
Concession Attendant (32 wks) 74 hrs/wk $ 23,680
($10.00/hr)
Revenue will increase an addition $60,000 should the City elected to expand the concession
operation.
8 11' a �_-, c:
Pro ram Fees and Revenue Worksheet
Community Center
Admissions
CategoEy
Number
Fee
Revenue
Daily
9,000
$5.00
$45,000
Passes
150
$45.00
$ 6,750
Family Pass
75
$100
$ 7,500
Total $59,250
Rentals
Building Rentals
Category_ . _ _ Number Fee
Revenue
Dry Floor
$24,375
Building Rentals
$ 2,500
Lease Space
$ 6,000
Meeting Rooms 312
$ 9,360
Banquet Room 18 $500
9,000
Total
$51,235
Ice Rentals
Category _
Number
Fee
Revenue
Prime
2050
$200.00
$410,000
Non Prime
800
$155.00
$124,000
Total $534,000
Ice Programs
Category
Number
Fee
Revenue
LTS
275
$44.00
$12,100
Hockey
$36,000
$48,100
Birthday Parties
Category
Number
Fee
_.... Revenue
Ice
40
$150.00
$6,000
911'Ligz
Concessions
Category Revenue
$45,000 FC should gross 2.5 times the cost $112,540
Pro -Shop $ 3,000
Vending $ 12,000
$127,500
lee Arena
Admissions
Category
Number
Fee
Revenue
Daily
9,000
$5.00
$45,000
Passes
150
$45.00
$ 6,750
Family Pass
75
$100
$ 7,500
Total $59,250
Building Rentals
Category
Number
Fee
Revenue
Dry Floor
$19,500
Building Rentals
$ 2,500
Lease Space
6,000
$28,000
lee Rentals
Category
Number
Fee
Revenue
Prime
2050
$200.00
$410,000
Non Prime
800
$155.00
$124,000
Total $534,000
Birthday Parties
Category Number Fee Revenue
Ice 40 $150.00 $6,000
Concessions
CategoryRevenue
$45,000 FC should gross 2.5 times the cost $112,500
Pro -Shop $ 3,000
Vending $ 12,000
$127,500
1011'a(" c
lee Programs
Category
Number
Fee
Revenue
LTS
275
$44.00
$12,100
Hockey
$ 57,600
Turf Field — N/P
$36,000
$110/hr
32
$ 14,080
$48,100
Multi -Purpose
$851hr
32
Admissions
%2 Field N/P
8
$65/hr
Category
ate or _ _
Number
Fee
F „
Revenue
Daily
10,800
$5.00
$54,000
Passes
200
$45.00
$ 9,000
Family Pass
100
$100
$10,000
Total $73,000
Rentals
Category
Number/wk
Fee
Weeks
Revenue
Turf Field — Prime
12
_._.
$150/hr
32
$ 57,600
Turf Field — N/P
4
$110/hr
32
$ 14,080
'/2 Field Prime
10
$851hr
32
$ 27,200
%2 Field N/P
8
$65/hr
32
$ 16,640
Meeting Rooms
6
$30.00
52
$ 9,360
Banquet Room
18
$500.00
Annual
$ 9,000
Tournaments
24
$150/hr
10
$ 36,000
Total
$ 169,880
Building Rentals
Category
Number_
Fee
Revenue
Dry Floor
_
$24,375
Building Rentals
$ 2,500
Lease Space
$ 6,000
$28,000
lee Rentals
Category
Number
Fee
Revenue
Prime
2050
$200.00
$410,000
Non Prime
800
$155.00
$124,000
Total $534,000
11 l'agC
lee Programs
Category Number Fee Revenue
LTS 275 $44.00 $12,100
Hockey
$.36,000
$48,100
Birthday Parties
Category Number „ „ Fee Revenue
Ice/Turf 75 $150.00 $11,250^
Silver Sneakers
Category Number/wk Visit Fee Months Revenue
Fitness 90 360 $3.00 12 $12,960
Concessions
Category _ -- _Revenue
$65,000 FC should gross 2.5 times the cost $162,500
Pro -Shop $ 3,000
Vending $ 12,000
$127,500
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