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04-08-2014 ICE MIN Meeting of the Arena Commission Held at the Elk River City Hall Tuesday, April 8, 2014 Members Present: Vice Chair Johnson, Commissioners Westgaard, Givens, Holmgren, Cunningham and Larson. Members Absent: Commissioner Ballenger (Chair Martin has stepped down) Staff Present: Arena Manager Rich Czech, Arena Assistant Laura Estby, 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 6:04 p.m. by Vice Chair Johnson- followed by the recital of the Pledge of Allegiance. 2. Oath of Office to New Commission Members Mike Larson took the Oath of Office. 3. Consider 04/08/14 Arena Commission Agenda Moved by Commissioner Westgaard and seconded by Commissioner Cunningham to approve the April 8, 2014, agenda. Motion carried 6-0. 4. Consider 8/13/13 Arena Commission Minutes Arena Assistant Laura Estby noted, that there were two errors in the minutes. In the “other business” section (5.3) the contract that Arena Manager Czech was discussing was with “Bernicks” not “Berwicks”. Also, the meeting was adjourned by Chair Martin, not by Mayor Dietz. 4.1 Minutes Moved by Commissioner Westgaard and seconded by Commissioner Cunningham to approve the 8/13/13 Arena Commission Minutes pending the above changes. Motion carried 6-0. 5. Open Forum No one appeared for Open Forum. Arena Commission Minutes Page 2 April 8, 2014 ----------------------------- 6 Financial Update Finance Director Tim Simon reviewed the Arena’s 2013 performance and notes that because the Arena is a special revenue fund- any profits that are made throughout the year, stay in the Arena’s account for the following year. Simon comments the Ice Rental numbers for 2013 were above budget, but down $5,000 from their projection. The recreation programs are trending a decrease, however this corresponds to a decrease in the cost of staff for those programs. Advertising sign rentals have increased $6,000 an increase of $11,000 in the past few years. Arena Manager Czech notes that we anticipated that one of our Zamboni advertisers would not renew their contract, but they did, and we also picked up some additional advertisers, and added the option of advertising on our scheduling monitor. Finance Director Tim Simon states that the figures are for a January – December year- and that the arena had interest income from the money in the account from 2012 and 2013. Commissioner Cunningham notes that there will be revenue losses in 2014 due to the games that were played at Hockey Day in MN. Czech continues that due to the numerous school cancellations this year, and the subsequent game cancellations, there will be a dip in revenue there as well, as rescheduled games are not always at a favorable time if they can be made up. Finance Director Simon continues with personnel service and operating expenses coming in close to budget, and the concessions revenue coming in at $24,302 which was a slight decrease from 2011 and 2012. The arena had a net income of $144,754, which was a decrease from 2012. In addition, due to the delay of the capital outlay projects, the arena had an additional “income” of $68,586 since the projects weren’t completed, but budgeted for. Collectively, at the end of 2013, the Arena had a balance of $245,125 in it’s account. This money will move forward to 2014- so there are now sufficient funds for the capital outlay projects that were slated for 2013 (roof membrane for the barn and dehumidification system). Due to the debt service being paid off in 2011, the Arena has not needed a transfer from the general fund for a few years. Arena Manager Czech adds that the roof membrane will cost between $100,000- $125,000, and it is hard to spend the money on it, if there is a possibility of a new facility. Commissioner Westgaard inquires about the progress of a new building. Arena Manager Czech notes there will be more information later in the meeting. (Finance Director Tim Simon leaves) Arena Commission Minutes Page 3 April 8, 2014 ----------------------------- 7.1 Election of Chair and Vice Chair Vice Chair Johnson notes that former Chair Dale Martin had been with the Arena Commission since it’s inception. Commissioner Westgaard notes that Vice Chair Johnson is the person with the most experience on the Commission, and inquires to his interest in being the Chair. Vice Chair Johnson states that he will take it, but that he only anticipates being on the Commission for one more term himself. Moved by Commissioner Westgaard and seconded by Commissioner Cunningham to elect Vice Chair Johnson to the Chair position of the Arena Commission. Motion carried 6-0. Moved by Commissioner Givens and seconded by Commissioner Westgaard to elect Commissioner Givens to the Vice Chair position of the Arena Commission. Motion carried 6-0. \[It was later noted that the appointment of Commissioner Givens was not done Correctly. She volunteered for the position, and then it was seconded without a formal motion. The Commission re-voted to approve Commissioner Givens as the Vice Chair at the August 19, 2014 meeting. \] 7.2 Consider adding Dawn Peterson to the Wall of Fame Chair Johnson states that it is a “no brainer” to add Dawn Peterson to the wall, and that her qualifications fit the criteria established at the November 10, 2010 arena commission meeting. Moved by Commissioner Cunningham and seconded by Commissioner Larson to add Dawn Peterson to the Arena’s Wall of Fame Motion carried 6-0. Arena Manager Czech notes that he will contact Mike Jackson to get a shadow box ordered for Dawn. Vice Chair Givens inquires about where the money for the shadow boxes comes from. Arena Manager Czech said it comes from the miscellaneous line of the budget. Arena Assistant Laura Estby inquires about what will go in the box. Arena Manager Czech states he will contact Dawn or Dave Halvorson to get an item for the box. Arena Commission Minutes Page 4 April 8, 2014 ----------------------------- 7.3 Arena Construction Arena Manager Czech states the Parks and Recreation Department sent out 2500 surveys asking the public their opinions on different parks projects, including a new facility that would include the arena, a senior center, banquet facilities, etc. They needed 450 to come back before they started to process the results and they are there. City Administrator Cal Portner is in the process of putting together an RFP, and it should be done by the end of this week or early next. Czech anticipates it will include information on building at Lion’s Park versus other sites, and notes that there are peat issues on the grounds of Lion’s Park. Czech noted the survey asked about it going to a referendum as part of a master parks plan if the Council decides to move forward. Commissioner Westgaard inquires about the current Arena and Senior Center properties. Czech notes that it will be included in the RFP to potentially sell the current properties and use the money towards the project. Commissioner Westgaard notes it will be interesting to see what value is placed on the properties. Commissioner Cunningham agrees noting there is a difference between property value and building value and that the current arena site would be a great location for a field house. Arena Manager Czech states we should know by the end of next week what is in the RFP, and adds that Portner is taking “a different approach” to the project, as we can’t compare our potential new building model to what other communities have done. With regards to the capital improvement projects, Czech notes that updating the refrigeration system is a $2.2-2.4 million project, and if we were to fix everything that needs to be fixed in the current facility we are at $5 million and that wouldn’t even be noticeable fixes to the public. In addition, the cost of construction goes up 3-6% each year, so the longer we wait the more expensive it is getting. Czech concludes that the issues are long standing problems that have been put off over the years in part due to the anticipation of a renovation or new facility, and they can’t be put off any longer. Commissioner Westgaard inquires about how much time we have before the projects need to be done? Arena Commission Minutes Page 5 April 8, 2014 ----------------------------- Czech states there was a refrigeration leak over the weekend, and we lost 1,000-1,500 lbs of refrigerant at a cost of $8/lb. He notes we need an R22 detector, and that it can’t be delayed as the other projects have been. Commissioner Larson inquires about the cost of an alarm. Czech notes he is working with an electrician, but he anticipates it will be $30,000- $40,000 and stresses that we aren’t asking for things that we don’t truly need. The alarm is a safety issue, and with our old system, we will continue to make fixes. Commissioner Westgaard inquires about the $250,000 Mighty Duck grant. Czech states it can be used towards a new direct system and that voting for funding takes place this week, and he urges the commission to contact their Senators. Commissioner Westgaard notes there will be $5 million available over the next 6 years and that 60% of the arenas in the state need a renovation to eliminate their need for R22. Westgaard suggests calling a special meeting in June to discuss the RFP. He also notes that typically the public’s view of a bond referendum is not positive. Commissioner Cunningham notes there will be two competing referendums (one from the school district as well). Commissioner Holmgren stresses it will be crucial for the City and the School District to be on the same page and that it will be interesting to see what the public feels is needed. Arena Manager Czech clarifies Cal’s RFP will address new buildings, and the survey done through Parks and Recreation addresses all of the parks needs including trails, etc. Commissioner Westgaard notes that because the city has not kept The Pinewood Golf Course, the monies that have been set aside for capital projects there as well as for staff salaries, etc will not be needed anymore. He adds a new facility would include banquet space and retail spaces, and that if we built new, we wouldn’t have to interrupt our current operations. Commissioner Cunningham states dual purpose partnerships with school districts do exist, however they require extensive planning. Commissioner Westgaard notes he is having discussions with Jacob Pace at Cable to get an above ice video system permanently mounted in the arena. He notes that Cable is looking to give back francise fee dollars, and that the cameras would be high definition on each end of the rink which could be edited to make seamless video. It would be broadcast quality and tv 12 could use the feed. Arena Commission Minutes Page 6 April 8, 2014 ----------------------------- Commissioner Larson inquires if it could be used for surveillance as well? Arena Manager Czech confirms as well as noting we already have surveillance cameras in place. Vice Chair Givens notes she doesn’t not believe the Figure Skating Club would have a need for it, but that it is a good idea. Arena Assistant Laura Estby inquires about the ability to broadcast the ice show and holiday show on cable- or if the feed could be sent to monitors in the locker rooms. Commissioner Westgaard notes that we should get all of our requests in “up front” so that if it happens, we can get exactly what we want. Arena Manager Czech states (in relation to the Mighty Ducks grant) that we need to get our needs known or the money will go to another arena. He believes we have a good chance of getting grant money in part due to our direct system using more refrigerant than an indirect system. In addition he feels that if we can say that we are already in the process of a new building, that it may give us an advantage. Vice Chair Givens notes that this could be considered another “urgency”. If we have a better chance at getting the grant money by being organized it gives us more incentive. Chair Johnson refers to the Stevens Engineering Study included in the packet. Czech notes that it was done a few years ago, and when it was realized just how much needs to be done to the current building- the discussion of a new facility was born. 7.5 New Indoor Air Quality Guildelines Czech states that indoor air quality issues are not new, however funding to establish the guidelines were cut so it wasn’t talked about for awhile, and now it is back in the forefront. The Elk River Arena is all electric (Zamboni and edgers), so air quality isn’t as much of an issue for us with the exception of our CoRayVac unit, however we are still required to stick to the guildelines.Czech is looking into the cost of sensors, and they appear to range between $10,000-$13,000 with the state approved system which fits directly into the boards being at the high end- and we will need two. While the state has a recommended system, it is not a mandated system, so we are exploring our options including if the sensors could be reused in a new facility. Commissioner Larson inquires, from a safety perspective, which is more urgent- a CO2 detector or and R22 detector. Arena Commission Minutes Page 7 April 8, 2014 ----------------------------- Czech believes that because we are an all-electric facility, that the R22 detector is more important if we have to choose. He notes that it is fortunate that the staff member that noticed the leak (identified as a strange smell) left the vicinity and informed management immediately instead of trying to “fix” the issue or exposure could have been a big issue. 7.6 Ice Rates Arena Manager Czech states the rates were raised from $180 to $185/hour last year and that typically we raise the rates every 2 years, however he likes to bring it to the commission every year for review. He also notes that we typically fall “in the middle of the pack” in regards to rates at comparable arenas. In addition, Elk River Youth Hockey’s ice time needs have diminished as their constituents have fluctuated and they schedule two teams on the ice more often. Czech also included a spreadsheet of the partnerships that many area arenas have as in some cases it effects their rates. He suggests keeping the rates the same. Vice Chair Givens notes that even a $5 increase is significant for the Elk River Figure Skating Club. Moved by Commissioner Holmgren and seconded by Vice Chair Givens to keep both the peak and off peak ice rates the same for the 2014-2015 season Motion carried 6-0. Arena Manager Czech notes we lost a major user in the summer, Foundation Hockey but that another user has stepped up and taken some of the hours and has even suggested a tournament in early August. However the tournament would require putting the ice back in the barn on a temporary basis. He states he is looking into it, however with the poor insulation in the barn, keeping the ice in during the hottest month of the year would be a challenge. The new user also has suggested having multiple tournaments through future summers, which is something to think about if it would be financially feasible to have ice in during the summer. Czech noted that he has lowered ice rates for the new user in an effort to help them get established. 8 Arena Managers Update Chair Johnson notes that the “look up line” is a new idea for him, and he inquires about it being mandatory for the High School League. Arena Manager Czech notes it is currently a USA Hockey thing, and states that after awhile, the line loses it’s effect. Arena Commission Minutes Page 8 April 8, 2014 ----------------------------- Commissioner Cunningham said he doesn’t believe it is on the school’s radar, and that it would effect more than just the arena, as it could cause a loss in advertising revenue, etc. Arena Manager Czech notes it might be more effective just in the corners? Commissioner Westgaard inquires about research as to where accidents are happening? Czech states it is just discussion now, but concurs with Commissioner Cunningham that it effects more than just the safety of the players. Commissioner Cunningham notes (in regards to the Gun Show at the arena) that they school gets calls every year about it, and asks if the arena gets added security. Arena Manager Czech notes they haven’t in the past, but that the Police Chief always knows about it when it happens. Chair Johnson commends Arena Assistant Laura Estby on a job well done in filling the craft show so early. 9. Announcements Commissioner Westgaard suggests the commission puts the second Tuesday in June on their calendars as a tentative special meeting to discuss the RFP. 10. Date of Next Commission Meeting 11. Adjournment Moved by Commissioner Westgaard and seconded by Commissioner Cunningham to adjourn the meeting. Motion carried 6-0 at 7:43 p.m. Minutes prepared by Laura Estby ___________________ Ronald Johnson, Chair Arena Commission Minutes Page 9 April 8, 2014 ----------------------------- _____________________ Tina Allard, City Clerk