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3.1 MPFAMIN 12-12-2022 Meeting of the Multipurpose Facility Advisory Commission Held at the Furniture and Things Community Event Center Monday, November 14,2022 Members Present:Chair David Williams, Commissioners Betsy Gulden, Greg Loidolt, Mike Westgaard(arrives 6:34pm), Matt Westgaard, Mike Cunningham, Jim Hecker, Kara Walker (arrived at 7:40p.m.) Members Absent: Vice ChairJake Peterson Staff Present:City Administrator Cal Portner,Facility Superintendent Tim Dalton, Assistant Facility Superintendent Jeff Shelby, Customer Service Associate Laura Estby 1.Call Meeting to Order Pursuant to due call and notice thereof, the meeting of Multipurpose Facility Advisory Commissionwas called to order at 6:32p.m. byChair David Williams. 2.Consider11/14/2022 Agenda Motionby CommissionerLoidoltand seconded by Commissioner Matt Westgaardto approve the November 14,2022agenda. Motion carries 6-0. 3.Consider Minutes Moved by Commissioner MattWestgaard and seconded by Commissioner Heckerto approve the October 10, 2022,minutesMotion carries 6-0. 4.Open Forum No one appeared for open forum, however, Facility Superintendent Tim Dalton brought forward a concernby senior activity center member Linda Lee,who believes that the resident vs non-residentand single vs dual membership rates for senior center membership are unfair. Commission directed Dalton to pass this information on to the Parks and Recreation Commission since they oversee the Senior Activity Center. 5.Action Items 5.1 Review and Approve 2023 FTCenter Budget Facility Superintendent Tim Dalton reviews the figures on the FTCenter budget, noting: Multipurpose Facility Advisory CommissionPage 2 11/14/2022 ----------------------------- The $830,000 ice revenue figure includes the approved ice contract figures (acct #3464). The admissions figures represent high school game and sectional game tickets (acct #3465). The fieldhouse rental figures (acct #3475) were brought down to more feasible numbers, from $300,000 to $150,000. The meeting room revenue (acct #)3475 was brought down to more feasible numbers from $250,000 to $25,000. On the marketing line, (acct #4349) we added $10,000 to be able to advertise the building. In the equipment section (acct #4560) the figure represents a capital improvement item (new Zamboni) that was previously approved by the City Council in the CIP process. The current Zamboni that we have is 13 years old and typically we would replace after 10 years. We ordered the new machine in August of 2022, but we did not need to put down a deposit. The naming rights figures (acct #3485) represents our current sponsors. The V.F.W. who had previously expressed interest in purchasing naming rights for the fieldhouse will not be doing so. Commissioner Matt Westgaard asks what percentage of ice we currently selling. Facility Superintendent Tim Dalton estimates we are booking a very high percentage of sellable regular season ice. Commissioner Matt Westgaard asks if there is $250,000 worth of potential for the meeting rooms and $300,000 worth of potential revenue in the fieldhouse. Dalton believes the former $250,000 budget figure was established at a 65% capacity rate, which could be possible to achieve in the future, but not for 2023. Dalton noted when factoring in concessions figures and programming figures, the budget currently presented shows a $167,000 deficit. Chair David Williams requests monthly gross, monthly net, paper product cost, labor cost and food costs for concessions when they get up and running to be sure we are really looking at the entire picture when it comes to revenue and costs from the concession stand. Commissioner Cunningham also suggests knowing the percentage of practices vs games that the concession stand will be open considering in the old facility it was open all of the time regardless of what was happening in the building. He also asked if there was another fund within the city that could help offset the cost of the new Zamboni. Multipurpose Facility Advisory CommissionPage 3 11/14/2022 ----------------------------- City Administrator Cal Portner notes the liquor store fund is currently being used to keep taxes lower for residents. Commissioner Loidolt stated he believes we outpriced ourselves with room rentals. We need to get people in the door, so customers need to be sold on our business. We have gotten blasted in the public because the facility is turning back into a hockey arena. Commissioner Matt Westgaard notes the City Council agreed to take approximately $650,000 out of the ARPA funding and put it into the FTCenter fund balance, however he is nervous about using that to balance the budget instead of keeping it for upcoming capital expenditures. He adds the supply his head around the staffing budget and asks what we were doing for services before as opposed to now to see such an increase. City Administrator Cal Portner notes the city typically operates at a 8-10% vacancy includes a 4% increase as well as step increases. Facility Superintendent Tim Dalton notes the building was originally only budgeted for 20 hours of Customer Service per week, when the building is open 120 hours a week. This raised CSA costs by approximately 100,000 annually. Commissioner Kara Walker arrives at 7:40 p.m. Commissioner Loidolt suggests we consider having volunteers to help in the senior center, as used at the Monticello Senior Center. Chair Dave Williams asks if at least a portion of the weekday daytime front desk staff can come out of the general fund. Commissioner Mike Westgaard notes we must find ways to increase revenue. Motion by Commissioner Jim Hecker and seconded by Commissioner Gulden to approve the budget with the following changes: Increase recreation revenue projection by $10,000 to a new total of $175,000 Increase room rental revenue projections $40,000 to a new total of $65,000. Decrease part-time staff expenditures $17,000 to a new total of $210,000. Decrease capital expenditures $102,000 to a new total of $100,000 (attributing $102,000 to the facility fund balance). Motion passes 7-0. Multipurpose Facility Advisory CommissionPage 4 11/14/2022 ----------------------------- Motion by Commissioner Mike Westgaard and seconded by Commissioner Loidolt to table action item 5.2. Motion carries 7-0. 6. Superintendent Updates Facility Superintendent Tim Dalton announces the concessions stand is on track to be open for the first high school game on Thursday, November 17, and we are continuing to work on selection of approved caterers and finalizing a catering agreement. 7. Announcements Commissioner Mike Cunningham with issues in the stands for sporting events. 8. Adjournment There being no further business, Chair Williams adjourned the meeting of the Multipurpose Facility Advisory Commission at 8:45 p.m. Minutes prepared by Laura Estby ___________________ Dave Williams, Chair ___________________ Tina Allard, City Clerk