8.3 SR 07-17-2023Request for Action
To
Item Number
Mayor and City Council
8.3
Agenda Section
Meeting Date
Prepared by
General Business
July 17, 2023
Joe Stremcha, Assistant City Administrator
Item Description
Reviewed by
Two Brothers Hockey Agreement
Tim Dalton, Facility Superintendent
Reviewed by
Cal Portner, City Administrator
Action Requested
Approve, by motion, an ice use agreement with Two Brothers Hockey as recommended by the Multipurpose
Facility Advisory Commission.
Background/Discussion
The Multipurpose Facility Advisory Commission recommended ice rental rates in 2022 with a provision that
users could request differing rates. Facility staff, seeking to ensure revenue assurances for budget purposes,
sought ice contracts for this purpose. The Commission and Council have recommended and respectfully
approved contracts with rates differing from the original ice rental rates for our tax exempt, community based
users.
The Commission recommends a reduced rate for bulk purchases as a business decision to maintain the strong
business partnership with Two Brothers Hockey, a for -profit organization.
The estimated aggregate discount provided to Two Brothers Hockey over the term of this agreement is $43,390.
Staff recommends the City Council consider providing a governmental fund transfer during the budget process to
offset reduced rental rates purchased in bulk by users in the interest of promoting local youth athletics and
maintaining affordability for its users within our community.
89% of our facility ice rentals are under contracted rates and this represents roughly 65% of gross revenues for
the FT Center. A survey of peer communities shows that our that premier facility provides ice rentals below the
market average of comparable complexes. The FT Center further provides a community benefit with maintaining
walking tracks, senior center maintenance/utilities, etc. without a dedicated funding source.
Staff also recommends reviewing the facility revenues closely during the budget process in the fall of 2023 to
account for these community benefits.
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires pi ospei ly.
M
TUREJ
Updated: Januay 2023
2023-2024
2023-2024
$/HR for
"Prime
Time"
$/HR for
"Non -Prime
Time"
Blaine
$240
$200
Bloomington
$250
$180
Centennial
$230
$185
Eden Prairie
$245
$185
Edina
$269
$200
Minnetonka.
$235
$185
Osseo/Maple
Grove
$220
$180
Wayzata
$260
$210
Woodbury
$230
$185
Average
$242
$190
Elk River
$230
$180
Financial Impact
Optimizing underutilized ice and turf helps the FT Center achieve its budgetary goals.
Mission/Policy/Goal
Establishing relationships with growing programs helps the FT Center meet the needs of our community.
Attachments
Two Brothers Agreement
Two Brothers Agreement Revisions Comparison Chart
Contracted vs Regular Ice Rate Users
C:AUsers\kporath\AppData\Local\,,hcrosoft\Windows\INetCache\Content. Oudook\C3YBEDSZ\8.3 sr Two Brothers Agreement 2.0.docx
Furniture and Things Community Event Center Contract
Two Brothers Hockey 2023-2026 (3.5 Year)
This ice facility use agreement (Agreement) is made and entered into this day of
2023, between the City of Elk River, a Minnesota municipal corporation, herein
after referred to as (PROVIDER) and Two Brothers Hockey, a hockey training organization, herein
after referred to as (USER). PROVIDER and USER agree to the following use of ice skating facilities
within the Furniture and Things Community Event Center (FT Center) located at 1000 School Street,
Elk River, MN 55330 for the period of January 1, 2023, through August 31, 2026.
1. SCHEDULE OF TIME:
a. PROVIDER agrees to make ice time available to the USER at the time and dates
shown on the attached ice use schedule for the USER. Such a schedule may be
amended from time to time upon the written agreement of both parties'
representatives.
2. RATES:
a. USER agrees to pay the following rates for FT Center usage:
PARTIAL YEAR
January 1, 2023, through August 31, 2023.
$ 220
Prime Hourly Ice Rate- 2:30p-4:30p School Days
$ 125
6 a.m. to 10 a.m. School Year Weekday Ice (Breakfast Club)
$ 175
Off-peak Hourly Ice Rate
$ 0
Field House (Winter) - Fieldhouse use- 30 sessions at no charge
(session=30 mins) Any additional sessions billed at $30/30 mins.
$ 0
Field House (Summer) - $0 Unreserved Turf Access When Building
is Open
USER agrees and acknowledges that agreement is for unreserved
access to fieldhouse when it is not in use. No dedicated time slots
are to be reserved for the USER by the PROVIDER when it comes
to field house scheduling and this agreement.
YEAR ONE 2023-2024
September 1, 2023, through August 31, 2024.
$
220
Prime Hourly Ice Rate 2:30p-4:30p School Days
$
130
6 a.m. to 10 a.m. School Year Weekday Ice (Breakfast Club)
$
180
Off-peak Hourly Ice Rate
$
0
Field House (Winter) - Fieldhouse use- 30 sessions at no charge
session=30 mins Any additional sessions billed at $30/30 mins.
$
0
Field House (Summer) - $0 Unreserved Turf Access When Building
is Open
USER agrees and acknowledges that agreement is for unreserved
access to fieldhouse when it is not in use. No dedicated time slots
are to be reserved for the USER by the PROVIDER when it comes
to field house scheduling and this agreement.
Estimated Annual Contract Costs
Type of Use
Hours
Rate
Total
School Year Morning Weekday Ice
61
$ 130
$ 7,930
Prime Ice
35
$ 250
$ 8,750
Off Peak Ice
329
$ 180
$ 59,220
School Year 2:30p
- 4:30p
40
$ 220
$ 8,800
Unreserved Turf Access Fee
$
TOTAL
$ 84,700
YEAR TWO 2024-2025
September
1, 2024, through August 31, 2025.
$
220
Prime Hourly Ice Rate 2:30p-4:30p School Days
$
130
6 a.m. to 10 a.m. School Year Weekday Ice (Breakfast Club)
$
185
Off-peak Hourly Ice Rate
$
0
Field House (Winter) - Fieldhouse use- 30 sessions at no charge
(session=30 mins) Any additional sessions billed at $30/30 mins.
$
0
Field House (Summer) - $0 Unreserved Turf Access When Building
is Open
USER agrees and acknowledges that agreement is for unreserved
access to fieldhouse when it is not in use. No dedicated time slots are
to be reserved for the USER by the PROVIDER when it comes to
field house scheduling and this agreement.
Estimated Contract Costs
Type of Use
Holy';,
Rate
Total
School Year Morning Weekday Ice
61
$ 130
$ 7,930
Prime Ice
35
$ 260
$ 9,100
Off Peak Ice
329
$ 185
$ 60,865
School Year 2:30p
- 4:30p
40
$ 220
$ 8,800
Unreserved Turf Access Fee
$ -
TOTAL
$ 86,695
YEAR THREE 2025-2026
September 1, 2026, through August 31, 2026.
$
220
Prime Hourly Ice Rate 2:30p-4:30p School Days
$
130
6 a.m. to 10 a.m. School Year Weekday Ice (Breakfast Club)
$
190
Off-peak Hourly Ice Rate
$
0
Field House (Winter) - Fieldhouse use- 30 sessions at no charge
session=30 mins Any additional sessions billed at $30/30 mins.
$
0
Field House (Summer) - $0 Unreserved Turf Access When Building
is Open
USER agrees and acknowledges that agreement is for unreserved
access to fieldhouse when it is not in use. No dedicated time slots
are to be reserved for the USER by the PROVIDER when it comes
to field house scheduling and this agreement.
Estimated Contract Costs
Type of Use
Hours
Rate
Total
School Year Morning Weekday Ice
61
$ 130
$ 7,930
Prime Ice
35
$ 270
$ 9,450
Off Peak Ice
329
$ 190
$ 62,510
School Year 2:30p
-4:30p
40
$ 220
$ 8,800
Unreserved Turf Access Fee
$ -
TOTAL
$ 88,690
3. PRIME HOURS: Prime and Non -Prime Hours are described as follows:
a. Prime Hours:
i. After 2:OOpm Monday thru Friday, September 1-March 15.
ii. All hours on Saturday and Sunday and non -school days, September 1-
March 15.
b. Off -Peak Hours:
i. All hours March 16 through August 31.
ii. 5:OOam-1:59pm on school days.
4. SERVICES:
a. PROVIDER agrees to provide a usable ice surface, secure and clean locker
facilities, parking facilities and, on the day of games, FT Center seating for
4
spectators. In addition, on game dates, PROVIDER shall provide appropriate
management, Zamboni driver(s) and any cleanup/maintenance staff required by
the USER. The USER shall provide ticket seller(s), time/score keeper(s), penalty
box attendant(s) and security staff. All USER staffing of games to be reviewed and
approved by the PROVIDER.
b. The USER shall be responsible for the complete repair of any damage to any locker
room or other space within the FT Center that is damaged while being utilized by
the USER.
5. FT CENTER ACCESS:
a. Keys and/or electronic access cards to the FT Center and/or locker rooms are
the exclusive property of the PROVIDER and will be issued as deemed necessary
by the FT Center management to USER's approved personnel. Keys and/or
access cards must be signed for at the beginning of each season and returned no
later than two weeks after the last day of the season. Keys and/or electronic access
cards may not be duplicated by USER or any of USER's coaches or personnel.
Duplication of keys and/or electronic access cards or other security breaches may
be considered a breach of this Agreement and, in addition to other remedies, may
result in restriction or loss of after-hours access privileges. If PROVIDER
determines that a breach of security has resulted due to a violation of this
paragraph PROVIDER may change the locks or change electronic access codes
to the FT Center at USER's expense.
6. USE OF FACILITIES:
a. PROVIDER will allow USER reasonable limited access to and use of the meeting
rooms and other facility spaces for team activities. A Two Brothers adult coach or
trainer must be always present during any use facility use. USER and USER's
support staff shall have use of appropriate space, as determined by the
PROVIDER. The USER shall pay for any use of FTCenter facilities at the
standard rental rates, as determined by the PROVIDER.
b. Annual Unreserved Turf Access Fee. In exchange for the specified annual fee, the
USER will have the ability to utilize the Turf Area for training purposes. All
Unreserved Turf Area Use by the USER must be approved with PROVIDER in
advance and is subject to availability. PROVIDER has discretion to assign use of
space or to modify space assignments to accommodate other priority or paid users.
USER agrees to keep the facilities in a clean and orderly condition and in at least
as good a condition as existed prior to USER's use. USER agrees to pay for the
actual costs of cleanup as determined by PROVIDER if the PROVIDER
determines the ancillary use required additional cleaning service.
5
7. PAYMENTS:
a. PROVIDER shall bill USER on a monthly basis by submitting an itemized list of
hourly practice, game ice, and room usage to the USER. Upon proper billing and
documentation, USER will promptly pay PROVIDER any required deposits and
an amount equal to the number of hours of practice and game ice usage at the rate
agreed to.
8. CANCELLATIONS:
a. PROVIDER may cancel this Agreement for any material default by the USER in
terms of this Agreement. PROVIDER may also reschedule the dates or times of
the scheduled ice usage upon five days written notice to the USER. PROVIDER
shall not be held responsible for the cancellation of ice time for reasons beyond
the reasonable control of PROVIDER, its agents, or employees, such as but not
limited to equipment failure, loss of power, severe weather or acts beyond
PROVIDER'S control. In the event of such an occurrence, PROVIDER will
attempt to reschedule USER'S ice times or USER may cancel and promptly receive
a return of any fees paid.
9. ASSIGNMENT:
a. If scheduled ice time cannot be used by the USER, they shall promptly notify the
PROVIDER in writing within 14 days and the PROVIDER will attempt to
reassign that time to another group. If the time cannot be assigned to another
group, the USER will pay the charged fees for their scheduled time.
10. RULES AND REGULATIONS:
a. USER agrees to use the facilities according to the Rules and Regulations of
PROVIDER which will be adopted and posted from time to time within the
facility.
11. SIGNAGE:
a. USER recognizes that it does not have rights to post any signs without the express
written consent of PROVIDER. Any signs so consented to shall conform to and
be consistent with the sign usage policy of PROVIDER and be subject to
PROVIDER review and approval. PROVIDER will allow placement of a
temporary "sandwich board" sign and a temporary 6' banner with Two Brothers
Logo to be displayed in the front lobby area.
12. LIABILITY:
6
a. USER acknowledges that PROVIDER has not asserted or accepted any
responsibilities for supervision, security or control of USER'S property or
activities. USER shall be solely responsible to provide security for its equipment
kept on the premises and shall be solely responsible to provide supervision of its
players, staff, and spectators, on and off the ice. PROVIDER shall be solely
responsible for the action of its employees, agents, and invitees.
b. USER assumes all risks of personal injury arising from its usage of the FT Center
or any part connected or contiguous thereto which result from an act or failure to
act on the part of the USER or others over whom it has supervisory responsibility.
USER assumes responsibility for damages to the property of PROVIDER arising
out of the negligence of USER under its performance of this agreement.
PROVIDER will notify the USER of any damages and allow the USER a
reasonable opportunity to review the damage before repairs are made.
PROVIDER is responsible for the repair or replacement of PROVIDER'S
property and will invoice the USER for the damages. USER'S obligation shall be
to reimburse PROVIDER for the cost of labor and replacement of like -kind and
quality equipment.
c. PROVIDER agrees to indemnify and hold harmless USER from and against all
claims, costs, expenses (including attorney fees) and liabilities of whatever nature
arising from(i) any negligent or wrongful act or omission of PROVIDER, its
licensees, agents, or employees; or (ii) arising from any accident, injury, including
death, or damage to any person or property occurring on the premises and caused
by the negligence or other wrongful conduct of PROVIDER, excluding claims
arising from USER'S performance under this agreement. This paragraph shall not
act as a waiver of any tort liability caps or legal immunities that may exist to protect
the PROVIDER.
d. USER agrees to indemnify and hold harmless PROVIDER from and against all
claims, costs, expenses (including attorney fees) and liabilities of whatever nature
arising from (i) any negligent or wrongful act of omission of USER, its licensees,
agents, or employees; or (ii) arising from any accident, injury, including death, or
damage to any person or property occurring on the premises and caused by the
negligence or other wrongful conduct of USER, excluding claims arising from
PROVIDER's performance under this agreement.
13. INSURANCE:
a. Both USER and PROVIDER shall maintain liability insurance against claims for
bodily injury, death or property damage occurring on or about the FTCenter. Such
insurance shall be written on an occurrence basis with a combined single limit of
not less than $1,000,000 per occurrence. If the insurance policy is written on a
7
"claims -made basis," the party will maintain coverage for a minimum of three years
past the expiration of this agreement. The retroactive date of the policy shall be
indicated on the certificate of insurance outlining coverage.
b. In addition, both parties shall name the other party as an additional insured with
respect to its own operations on said policies of insurance. Both parties will
maintain all workers' compensation insurance required by law.
THIS CONTRACT AND ANY ATTACHED SCHEDULES OR SIGNED ADDENDUMS
CONSTITUTES THE ENTIRE AGREEMENT BETWEEN PROVIDER AND USER. THE
UNDERSIGNED USER AGREES TO PURCHASE ALL HOURS OUTLINED IN THE
ATTACHMENT. NO PROVISION OF THIS AGREEMENT MAY BE CHANGED, WAIVED
OR TERMINATED UNLESS DONE IN WRITING AND EXECUTED BY BOTH PROVIDER
AND USER.
Dated:
USER:
Its:
Dated: PROVIDER: CITY OF ELK RIVER
8
Commission
TBH Revision
TBH Revision
Partial Year - 2023
Option
Approved
1
2
January 1, 2023 through August 31, 2023
4/10/2023
4/17/2023
6/1/2023
6/12/2023
Prime Hourly Ice Rate- 2:30p-4:30p School Days
$
235
$
220
$
220
NA
6 a.m. to 10 a.m. School Year Weekday Ice (Breakfast Club)
$
125
$
125
$
125
$
125
Off-peak Hourly Ice Rate
$
175
$
175
$
175
$
175
Prime Ice
$
240
$
230
Unreserved Turf Access Fee (When FT Center is Open)
$
2,000
$
1,000
$
-
$
1,000
Annual Discount From Base Rates
1 $
(4,925)
$
(4,800)
$
(5,800)
$
(6,035)
Commission
TBH Revision
TBH Revision
Year One 2023-24
Option
Approved
1
2
September 1, 2023 - August 31, 2024
4/10/2023
4/17/2023
6/1/2023
6/12/2023
Prime Hourly Ice Rate- 2:30p-4:30p School Days
$
240
$
220
$
220
NA
6 a.m. to 10 a.m. School Year Weekday Ice (Breakfast Club)
$
135
$
130
$
130
$
135
Off-peak Hourly Ice Rate
$
180
$
180
$
180
$
180
Prime Ice
$
250
$
240
Unreserved Turf Access Fee (When FT Center is Open)
$
4,000
$
2,000
$
-
$
1,500
Annual Discount From Base Rates
1 $
(4,770)
$
(7,875)
$
(9,875)
$
(7,180)
Commission
TBH Revision
TBH Revision
Year Two 2024-25
Option
Approved
1
2
September 1, 2024 - August 31, 2025
4/10/2023
4/17/2023
6/1/2023
6/12/2023
Prime Hourly Ice Rate- 2:30p-4:30p School Days
$
245
$
220
$
220
NA
6 a.m. to 10 a.m. School Year Weekday Ice (Breakfast Club)
$
140
$
130
$
130
$
140
Off-peak Hourly Ice Rate
$
185
$
185
$
185
$
185
Prime Ice
$
260
$
250
Unreserved Turf Access Fee (When FT Center is Open)
$
4,250
$
2,000
$
-
$
1,750
Annual Discount From Base Rates
1 $
(6,670)
$
(10,530)
$
(12,530)
$
(8,880)
Commission
TBH Revision
TBH Revision
Year Three 2025-26
Option
Approved
1
2
September 1, 2025 - August 31, 2026
4/10/2023
4/17/2023
6/1/2023
6/12/2023
Prime Hourly Ice Rate- 2:30p-4:30p School Days
$ 250
$
220
$
220
NA
6 a.m. to 10 a.m. School Year Weekday Ice (Breakfast Club)
$ 145
$
130
$
130
$
145
Off-peak Hourly Ice Rate
$ 190
$
190
$
190
$
190
Prime Ice
$ 270
$
260
Unreserved Turf Access Fee (When FT Center is Open)
$ 4,500
$
2,000
$
-
$
2,000
Annual Discount From Base Rates
$ (8,570)
$
(13,185)
$
(15,185)
$
(10,580)
Aggregate Contract Discount
$ (24,935)
$
(36,390)
$
(43,390)
$
(32,675)
Contracted Rate Users VS Regular Rate Users
Ice Hours Sold: Sep 1, 2022 through Aug 31, 2023 As of Jul 11, 2023
Two Brothers
Shine a Ligh7
50.00
TBH STP Youth
48.00
Two Brothers
111.00
Two Brothers - Breakfast Club
66.00
Two Brothers Fall Advancement
47.00
Two Brothers Summer Advancement
144.00
STIR High School
48.00
514.00
14%
ERFSC
Elk River Figure Skating Club
259.68
Elk River Figure Skating Club
79.00
338.68
9%
ERYHA
Elk River Youth Hockey
1681.86
Elk River Youth Hockey
11.42
Elk River Youth Hockey Tournaments
191.50
1884.79
51%
MN SQUATCH
Ogden Mustangs
12.00
Minnesota Squatch
14.00
Minnesota Squatch
207.45
233.45
6%
ERHS
Elk River Boys Games
44.00
Elk River Boys Practice
127.42
Elk River Girls games
36.00
Elk River Girls Practice
114.09
321.51
9%
Contracted Rate Users
3292.41
89%
Other Users
AKA Sports
6.00
Anna Chelin
2.00
Boys Sections
33.63
Bre Thompson
1.00
Cathedral Crusaders Hockey
1.25
Cole Mears
1.00
Cory Thorson
2.00
District 10 Girls
4.50
District 10 Girls Tier 1
5.00
Elk River Blue Line Club
18.00
Elk River Girls Booster Club
18.00
HD Enterprises
3.00
Heidi Christopher
1.00
Hockey Finder LLC
38.00
Jamie Persell
2.00
Kim Waters
1.00
Kristen Riter
1.00
Kurt Remick
2.50
Laestadian Church
28.00
Laura Stamm Power Skating
6.00
Mandi Johnson
1.00
Mark Huselid
5.50
McKenna Hoff
1.00
Midwest Hockey/Play Hockey USA Inc
31.00
Minnesota Hockey- MN Blue Ox
1.00
Minnesota Reign
54.00
MN Selects
4.00
Nate Stone
26.00
Nick Perbix
2.00
North Metro Men's League
11.00
Red and Black League
7.75
Robert Halvorson
1.50
T.J. Salo
11.00
Tim Dunlap
1.00
Tim Jeanetta
11.00
V.F.W.
44.00
Vandenberge Middle School
1.42
Standard Rate Users
389.05 1.
TOTAL
3681.46 100%