11.2 SR 04-07-2025[ITEM_HEAD]
To
City Council
Meeting Date
April 7, 2025
Item Description
Multi -Purpose Facility Advisory Commission Powers
and Duties
Request for Action
Item Number
11.2
Prepared By
Joe Stremcha, Business Services Director/Assistant
City Administrator
Reviewed by
Katie Harstad
Cal Portner
Tina Allard
Action Requested
Discuss the MFAC ordinance including, but not limited to: membership, purpose, powers, and duties.
Background/Discussion
The city's Conflict of Interest Ordinance and the process of setting fees by the Multipurpose Facility Advisory
Commission (MFAC) were reviewed by the City Council during its Work Session on March 18, 2024.
The Council began setting facility rates during the preliminary budget meeting process while soliciting input
from commission members in joint session meetings. Staff is seeking input from the Council on the role of this
commission going forward to update the ordinance accordingly. The MFAC will be present to provide
feedback to the Council members.
Financial Impact
None
Mission/Policy/Goal
Appropriately govern in an ever -changing environment.
Attachments
I . City Code: Conflict of Interest
2. Memorandum from Campbell Knutson
3. City Code: Div 4 Multipurpose Facility Commission
The Elk River Vision
A welcoming community, with revolutionary and spirited resourcefidnm, exceptional service, and community P� d W E R E D 0d
engagement that encourager and inures pro perityA we
249
Sec. 2-132. Intent of division; conflicts of interest prohibited.
The credibility of the local government rests heavily upon the confidence which citizens have in public
officials and employees to render fair and impartial services to all citizens without regard to personal interest
and/or political influence. Thus, city officials and employees must scrupulously avoid any activity which suggests a
conflict of interest between their private interests and city responsibilities. Officials and employees of the city, or
their family members, shall not engage or have financial interest in any business or other activity which could
reasonably lead to a conflict of interest with the official's or employee's primary city responsibilities. Family
members of an official or employee shall be deemed to be the official's or employee's spouse, parents, children,
siblings, father-in-law, mother-in-law, brothers-in-law, and sisters-in-law and the lineal descendants of any of
them. Examples of activities which are not in accordance with this policy include, but are not limited to, the
following:
(1) Entering into any sale, lease, or contract in violation of Minn. Stats. §§ 471.87-471.89;
(2) Acceptance by a local official of any gift from an interested person in violation of Minn. Stats. §
471.895;
(3) Activities which require the official or employee to interpret city codes, ordinances, or regulations
which such activity involves matters with which the official or employee has business and/or family
ties;
(4) Consulting activities carried out within the city if such consulting involves talents or skills primarily
related to the official's or employee's city work responsibilities;
(5) Using an official's or employee's authority, influence, or city position for the purpose of private or
personal financial gain;
(6) The use of city time, facilities, equipment, or supplies for the purpose of private or personal financial
gain;
(7) Entering into a business transaction when it involves using confidential information gained in the
course of employment;
(8) Accepting other employment or public office where it will affect the official's or employee's
independence of judgment or require use of confidential information gained as a result of city duties;
(9) Conducting personal business while working regularly scheduled hours; and
(10) Accepting rebates or procuring any financial gain through the bidding process or employment of
outside personnel.
(Ord. No. 99-33, § 2(220.00), 12-20-1999)
(Supp. No. 59)
Created: 2023-10-18 09:21:19 [EST]
Page 1 of 1
Page 223 of 249
MEMORANDUM CAMPBELL KNUTSON
FROM: JARED SHEPHERD, CAMPBELL KNUTSON, P.A.
DATE: MARCH 18, 2024
RE: POTENTIAL CONFLICT OF INTEREST MFAC
FACTO
In 1996, to help manage the ice rink, the City created an advisory Arena Commission. The
commission membership included members of the city council, as well as designated seats for
representatives of groups that frequently used the ice rink such as the school district. As the ice
rink grew over the years to include new types of facilities, the commission expanded to include
designated members representing these new uses, and, in 2020, the City established the
Multipurpose Facility Advisory Commission (MFAC) to replace the Arena Commission. Current
membership on the MFAC includes designated seats representing facility users, ice uses, the city
council, the school district, the senior center, and two at -large members.
At the same time as its uses and membership expanded, the MFAC also expanded its duties,
which currently include recommendations about use fees and discounted rates.
QUESTION PRESENTED
Does the scope of the MFAC, with representatives from user groups advising on the fees
their own groups will be required to pay, create a likely conflict of interest for Commission
Members?
ANALYSIS
State law prohibits public officers from participating in contracts with the city (such as a
rental agreement for using city facilities) if the officer has any personal financial interest. Minn.
Stat. § 471.87. Years after creating the MAFC structure, the City also enacted a conflict of interest
ordinance that is stricter than statutes. City code § 2-132 aims to protect the "credibility of local
government" by prohibiting any financial or business interest in matters city officials and
employees oversee in an official capacity. The city code directs employees and officials to be
cautious, and to avoid any activity which even "suggests a conflict of interest." City Code § 2-131
explicitly states that commission members are subject to these requirements
The MFAC currently advises on both the base rates and any potential discount rates for use
of the City's facility. MFAC members, however, explicitly represent certain groups that will be
responsible for paying those rates. There is clear logic in having facility users —who will be most
familiar with the facility and what services are needed —provide input on how best to operate the
facility. But their inclusion on a City commission could create the appearance that certain groups
have been given the power to set their own terms. This is especially true given the City Council's
more recent directions to have the facility become revenue -neutral. As the facility needs to raise
1
2303340
Page 224 of 249
more money to cover its operating cost, any discount given to one group will need to be made up
by fees paid by others. This at least creates the appearance of a direct conflict over what base rates
and discounts the MFAC recommends.
RECOMMENDATION
We recommend altering the MFAC to remove the user groups. This change will prevent
the appearance of a conflict of interest or a conflict, in factor, that is institutionally -created for
Commission members User groups should be, of course, still welcome and able to submit
suggestions and apply for discounted rates. But this change would clarify that they are doing so on
their own behalf as facility users, and that no user group is being given unfair access to the City's
decision -making process.
2
2303340
Page 225 of 249
- CODE OF ORDINANCES
Chapter 2 - ADMINISTRATION
ARTICLE V. - BOARDS AND COMMISSIONS
DIVISION 4. MULTIPURPOSE FACILITY ADVISORY COMMISSION
DIVISION 4. MULTIPURPOSE FACILITY ADVISORY COMMISSION'
Sec. 2-250. Established.
There is hereby continued, as heretofore created, a multipurpose facility advisory commission.
(Ord. No. 24-14, 6-3-2024)
Sec. 2-251. Membership.
The commission shall consist of nine members appointed by the council to include:
(1) A city resident and member in good standing of the Elk River senior center.
(2) Two members in good standing representing turf -use associations, which use the facility, including:
a. Elk River Youth Football Association.
b. Elk River Youth Baseball Association.
C. Elk River Youth Softball Association.
d. Elk River Youth Lacrosse Association.
e. Elk River Flag Football Association.
(3) Two members in good standing representing ice -use associations, which use the facility, including one
each from:
a. Elk River Youth Hockey Association.
b. Elk River Figure Skating Club.
(4) A sitting member of the city council.
(5) A designee of ISD #728. The school district may have a proxy representative in case of absence of the
appointed designee. The proxy's name shall be provided to the staff liaison prior to a meeting. The
proxy representative does have voting rights.
(6) Two at -large residents of the community with no affiliation to the former organizations for at least five
yea rs.
Representatives of the ice and turf -use associations and the ISD #728 designee may be nonresidents of the
city, but there shall be no more than three nonresidents of the city serving on the commission at any one time.
(Ord. No. 24-14, 6-3-2024)
'Editor's note(s)—Ord. No. 24-14, adopted June 3, 2024, repealed the former div. 4, §§ 2-251-2-254 and enacted
a new div. 4 as set out herein. The former div. 4 pertained to similar subject matter and derived from the
Code of 1982, §§ 217.00, 217.02, 217.04-217.07; Ord. No. 03-002, § 1, adopted February 10, 2003; Ord. No.
12-13, § 1, adopted August 6, 2012; Ord. No. 20-06, §§ 1, 2, adopted June 1, 2020
Elk River, Minnesota, Code of Ordinances
(Supp. No. 62)
Created: 2025-02-10 11:22:38 [EST]
Page 1 of 3
Page 226 of 249
Sec. 2-252. Purpose.
The commission shall set goals and expectations for the community use and enjoyment of the multipurpose
facility. The commission shall seek community input regarding the use and development of the facility and make
recommendations to the city council to protect and preserve the facility as an asset to the community. The
commission shall recommend an operational budget and capital plan that meets or exceeds the goals, values, and
vision of the facility.
(Ord. No. 24-14, 6-3-2024)
Sec. 2-253. Powers and duties.
The multipurpose facility advisory commissions authority shall include, but not be limited to, the study and
recommendation to the city council on the following:
(1) Develop a value statement and a mission statement for the commission. Review each statement
annually and amend as so desired.
(2) Serves as a conduit to the public to gain feedback on the effectiveness of the facility and services
provided. Holds at least one annual public hearing to receive community comments regarding the
operation, use, and future development of the facility.
(3) Develop and provide a verbal annual report on the outcomes and activities of the facility to the city
council.
(4) The commission shall review facility rental rates annually and recommend a fee schedule for
incorporation into the annual budget.
(5) The commission shall recommend a budget that balances facility revenue and expenses. The budget
will include projected revenue, expenses, transfers, and capital improvements. The budget shall be
completed no later than November 1 of each year.
(6) The commission shall annually provide a draft capital improvement plan to the city council that
includes capital replacements, repairs, and additions. The plan shall project improvements over a
rolling ten-year period. The capital plan shall be completed no later than September 1 of each year.
(7) The commission shall review and recommend operational policies for the facility and review all policies
at a minimum every two years.
(Ord. No. 24-14, 6-3-2024)
Sec. 2-254. Meetings.
The commission shall meet regularly at least three times each calendar year at such time and place as
established per their bylaws. The sitting council member and the designee from ISD #728 are excluded from
holding chair or vice chair positions.
(Ord. No. 24-14, 6-3-2024)
Sec. 2-254. Reports.
Reports, conclusions, and recommendations shall be made to the city council throughout the year as
needed. An annual meeting shall be held with the city council to review commission vision, goals, tasks, and
accomplishments.
(Supp. No. 62)
Created: 2025-02-10 11:22:37 [EST]
Page 2 of 3
Page 227 of 249
(Ord. No. 24-14, 6-3-2024)
Secs. 2-255-2-270. Reserved.
(Supp. No. 62)
Created: 2025-02-10 11:22:37 [EST]
Page 3 of 3
Page 228 of 249
[ITEM_HEAD]
To
City Council
Meeting Date
April 7, 2025
Item Description
FT Center Financial Report
Request for Action
Item Number
11.2
Prepared By
Joe Stremcha, Business Services Director/Assistant
City Administrator
Reviewed by
Katie Harstad
Cal Fortner
Tina Allard
Action Requested
Review the financial report comparing 2023 vs 2024 budget to actual.
Background/Discussion
Through the end of 2024, revenues of $2,242,013 exceeded expenditures of $1,933,568 by $308,445. In 2023,
the year-to-date budget deficit was $141,274. 2024 had several exciting trends and one-time anomalies:
■ 2023 had a budgeted "use of fund balance" of $100,350 to offset operational expenses.
■ 2024 Food and beverage sales ($271,477) nearly tied non -ice facility rentals ($271,693).
■ $405,000 ARPA funds were transferred as planned to allow for the FT Center field house
improvements to occur this fall and create a concrete floor multipurpose dry floor event space.
■ $70,000 one-time employee severance paid through the organization restructuring.
Overall, these factors resulted in an operational deficit of $27,073 in 2024 compared to $241,624 in 2023.
This is a net year -over -year improvement of $214,551, and the FT Center continues to trend upwards with
strong momentum in early 2025.
Financial Impact
None
Mission/Policy/Goal
Responsible for every dollar - good stewards.
Attachments
I . Financial Report - FYE 2023
2. Financial Report - FYE 2024
The Elk River Vision
A welcoming community, with revolutionary and spirited resourcefidnm, exceptional service, and community P� d W E R E D 0
d
engagement that encourages and inspires prosperity INA&UP
249
Page 230 of 249
CITY OF ELK RIVER
MULTIPURPOSE FACILITY - BUDGET TO ACTUAL
MONTH ENDED DECEMBER 31, 2023
Revenues:
Ice Rental
Admissions
Dry Floor Events/Craft Shows
Facility Rental
Advertising/Naming Rights/Sponsorships
Recreation fees (Skating/Hockey)
Concessions/vending
Other Revenues (interest, etc.)
Interfund Loan - Zamboni
Use of Fund Balance
Total Revenues
Operating expenses:
Personal services
Supplies
Other service charges
Capital Outlay
Total Expenditures
Revenues over/(under) expenditures
Current Year to Date =Budget
Budget Actual
$830,000
$807,498
97.29%
40,000
45,005
112.51%
5,000
(7,906)
-158.12%
238,100
173,139
72.72%
168,000
118,988
70.83%
175,000
201,548
115.17%
110,000
146,256
132.96%
13,900
92,087
662.50%
0
200,000
100,350
100,350
100.00 %
$1,680,350
$1,876,965
111.70%
$917,800
$1,002,053
109.18%
102,850
181,427
176.40%
457,700
626,864
136.96%
202,000
--$1,680,350
207,895
102.92%
$2,018,239
120.11%
$0 ($141,274)
Page 231 of 249
CITY OF ELK RIVER
MULTIPURPOSE FACILITY - BUDGET TO ACTUAL
MONTH ENDED DECEMBER 31, 2024
Revenues:
Ice Rental
Admissions
Dry Floor Events/Craft Shows
Facility Rental
Advertising/Naming Rights/Sponsorships
Recreation fees (Skating/Hockey)
Concessions/catering/vending
Other Revenues (interest, etc.)
Transfer - ARPA funds
Total Revenues
Operating expenses:
Personal services
Supplies
Other service charges
Capital Outlay
Total Expenditures
Revenues oved(under) expenditures
Current Year to Date % of
Budget Actual Budget
$893,500
$946,645
105-95%
45,000
31,874
70.83%
7,000
1,278
18.25%
244,400
271,693
111.17%
178,000
134,763
75,71%
290,000
165,407
57.04%
229,000
271,477
118.55%
9,100
13,357
146.78%
0
405,518
-
—5%--
$900,650
$1,037,337
115.18%
159,800
252,549
158.04%
661,300
643,681
97.34%
120,400
0
0.00%
1,842,150
$1,933,568
104.96%
$53,850 $308,445
FTCenter
December 2024
Page 232 of 249
[ITEM_HEAD]
(Ayof
El',,tk
River"'--'
To
City Council
Meeting Date
April 7, 2025
Item Description
FT Center 2026 Ice, Turf, and Room Rental Rates
Action Requested
Discuss the 2026 FT Center rate schedule.
Request for Action
Item Number
11.2
Prepared By
Joe Stremcha, Business Services Director/Assistant
City Administrator
Reviewed by
Katie Harstad
Cal Portner
Tina Allard
Background/Discussion
The City Council and Multipurpose Facility Advisory Commission held a joint Work Session in August
2024 to discuss the 2025 FT Center rate schedule. The City Council determined that the future rates
for the FT Center will be discussed annually in April to be effective January 1 the following year. This
gives the city and its user groups ample time to budget and plan accordingly.
Contracts
• Existing contracts with terms ending in 2024 were extended to expire on December 31, 2024.
• Existing contracts with terms ending in 2025 or later will not be renewed.
• User groups will follow the established FT Center rate structure upon the sunset of contract
terms.
Bronze Level User ® Organizations/individuals that purchased 0+ total hours in FYE 2023:
• $255/hr ®
Prime (September 1 ® March 31)
• $204/hr =
Non -Prime (April 1 ® August 31)
• $128/hr ®I
728 School Hours
Silver Level User ® Organ izations/I nd ivid uals that purchased 200+ total hours in FYE 2023:
• $250/hr ®
Prime (September 1 — March 31)
• $184/hr =
Non -Prime (April 1 ® August 31)
• $128/hr =
ISD 728 School Hours
of Level User ® Organ izations/I ndividuals that purchased 800+ total hours in FYE 2023:
• $242/hr ® Prime (September 1 ® March 31)
• $153/hr ® Non -Prime (April 1 ® August 31)
The Elk River Vision
A welcoming community, with revolutionary and spirited rmurcelidnm, exceptional service, and community P 0 W I R 1 0 0lvent that encourager A we
,gesand i),ispiresprosperily I in
INA&%jW d
engage249
2025 Turf Rates
* $180/hr = Prime (November 1 — April 30)
* $130/hr = Non -Prime (May, September, and October)
* $1 00/hr = ISD 728 School Hours
* $85/hr = Summer (June, July, and August)
2025 Room Rates
* $50/hr = Individual Party Room
* $95/hr ® Combined Party Room
* $60/hour = Individual Meeting Room
* $11 0/hour ® Combined Meeting Room
* $1 /hour ® Flex Space
* $1/hour ® Upper lobby
* Room rental fees can be waived for events using FT Center catering services with
food/beverage order margins exceeding the room rate.
Financial Impact
Rental rates have a direct impact on the anticipated revenues within the annual FT Center budget.
Mission/Policy/Goal
Responsible for every dollar - good stewards.
Attachments
I . FT Center 2026 Rates Discussion (April 7, 2025)
Page 234 of 249
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