5.-11. ICESR 04-08-2008MEMORANDUM
TO: Ice Arena Commission, Members
FROM: Rich Czech, Arena Manager
DATE: April 08, 2008
SUBJECT: Agenda Memo -January 08, 2008
5. 2007 Financial update
Attached for your review is the budget information for the years 2004 - 2008. The overall
budget in 2007 came in better than what was anticipated. Tim Simon, the cities finance
director, will be at the meeting to discuss the 2007 as well as the current budget and any
other questions the Commission may have regarding future budgets or Capital
improvements.
6. Lobby expansion for the Arena /Naming rights for Arena
Bill Mertz, Parks and Recreation Director, Jim Nystrom, from the Parks and
Recreation Commission, and I meet with Council member Farber about a possible
Parks and Recreation levy. The levy would include funds for a verity of projects
throughout the community including the expansion project for the Arena. Council
member Farber was intrigued by the idea, however thought that with the environment
of the economy being the way it is, it would not be finically reasonable to ask home
owners and businesses for additional funds. He however thought that some of
mentioned projects could be completed independently throughout the next few years.
7. Lighting Replacement for Olympic Rink
I have placed the light fixtures replacement project for the Olympic rink in the
Arena's C.I.P. (Capital Improvement Plan) for 2009. Along with the Light fixtures
replacement project I placed the replacement / recoating of the Barn's roof in the
2009 as well. This summer the City Council will be prioritizing all of the Cities
C.I.P. items, so we should have an idea where the light fixture project places by this
fall.
If the City Council moves forward with the Lighting project, I would like to hire an
Electric Engineer, one which specializes in lighting, to come up with specifications
(design, plans) that we could then get bids on. Over this process I have dealt with
many venders that all have different ideas of how the lighting system should be
designed. Having our own Lighting specialist that is independent from any of the
venders that will be bidding on the project may save us some money, but more
importantly will give us the lighting system we want and will allow us to compare
apples to apples between all the venders.
I am applying for a grant with the Clean Energy Resource Teams (C.E.R.T.) for the
replacement of the light fixtures. The grant is in the range of $5,000.00, which can be
more if they determine the project is worthy of it. I will keep you posted of the
outcome.
8. High School Coaches wall of fame
Kent Madsen and I will be reviewing the information we received from Dave Halgren
this coming summer and will be looking at how we want to honor these individuals. If
all goes well we should have something together for the commissioners to review by
the August meeting.
9. Ice Rates
Attached for your review are the ice rates from the 2007 - 2008 season, along with
2008 - 2009 ice rates of other Arena's in our area. As you can see our rates are about
average when comparing both our regular season rates and our summer rates. My
recommendation is to keep the regular season rates as is for one more year and to
look at the summer rates for 2009 in August.
10. New Zamboni
The Zamboni is scheduled to be delivered sometime in October. The City of Roger's
was initially interested in the purchasing of the old Zamboni. However their Youth
Hockey Association was going to make a contribution for the machine but it never
materialized. Since we have no buyers for the old Zamboni it will now be traded in.
Unless we get a sponsor or the Commission has a color preference, the New Zamboni
will be painted the same color as the other machine.
11. Staff Updates
A. Dry Floor Events
Elk River Arena Craft and Home Business Show Saturday May 3`d
Kids Garage Sale Saturday May 10tH
Jose Cole Circus Monday May 12tH
B. Clinics /leagues /Annual Ice Show
The Break Away Hockey League expanded into Rogers this Spring. The number of
participants for each rink was very good and should only get better as the word gets
out of the leagues fair rates and competition.
The Annual Skating Show will take place Friday May 16tH and Saturday May 17tH for
two exciting shows. The number of participants has more than doubled from last
years show, this year's theme, "Under the Sea".
C. Projects and Summer Repairs
The center groove project in the Barn is on one of it's last phases, on the wall of the
new Zamboni and Compressor room. The project should be complete sometime in
June.
A couple of compressors are due for their annual maintenance. Their shaft seals will
be replaced and their Top ends overhauls. This work will be done throughout the
summer to make sure that the Olympic rink operates without interruptions.
The snow melt pit will be looked at to see if we can get the water temperature up so
that snow will melt during the season. Right now the snow builds up and hot water
from the water heater has to be used to melt the snow (very wasteful) and the snow
has to be moved around with a shovel to get it into the pit. Besides the expense of
heating the water, my main concern is that someone is going to hurt their back when
breaking up the snow to get it into the pit. We may have to hire an Engineer to find
out what the best solution to the problem.
Most of the rink will see a new fresh coat of paint to cover the stick and puck marks
from over the season. Some of the other minor repairs will be, re -landscape the
front area, install a new toilet bowl in men's bathroom, repair and caulk worn-out
joints around the rink area, clean the boards and glass in the Barn, and connect sub
floor heat coils to the threshold in the Barn to the heating system. There is a variety
of other small projects scheduled as well.
Elk Riverlce Arena
Revenue and Expenditure Summary
For the Period Ending December 31, 2007
2008 2007. 2007 2006 2005 2004
Budget Budget Actual Actual Actual Actual
REVENUES
Ice Rental 420,000 ' 418,400 423,098 410,210 403,503 376,127
Recreation Programs 139,000: 133,000 154,808 135,471 108,771 106,089
Admissions 32,500 32,500 30,407 42,556 41,018 47,270
Sign Rental 18,500 18,500 12,352 15,792 19,664 17,572
Dry Floor Events 14,000 16,000 10,933 12,002 13,662 12,339
Concession Rent - - - - 10,750 21,500
Vending 30,000 35,400 19,151 25,407 29,935 29,370
Skate Sharpening 4,000 4,000 4,594 3,916 3,847 3,939
Building Rent 2,600 2,600 2,600 5,200
Other Mdse Sales/Misc. 3,000 3,000 1,664 1,996 2,190 3,709
TOTAL 663,600 663 400. 659 607 652 550 633 339 617 914
EXPENDITURES
Personal Service 279,150 25$,750 244,201 233,878 221,771 200,721
Other Operating Expenditures 265,900 257,450- 256,696 236,768 219,338 218,030
Vending Mdse for Resale 15,500 15,500 11,983 13,293 12,682 14,852
Other Mdse for Resale 1,200 2,400 637 139 808 1,101
Recreation Programs 59,550 ' S9 650 60 330 51 169 39 370 40 667
TOTAL 621,300 ' 593,750 573,847 535,247 493,970 475,371
CONCESSIONS
Sales 78,000 75,000 71,934 71,805 27,101
Less: Product 8, Supplies 30,750 29.500 28,904 28,395 23,749
Salaries 22,500 22,500 19,811 20,907 8,696
Net Profit 24,750 23,000 23,219 22,503 (5,344)
OPERATING INCOME (LOSS) 67,050 92,650 108,979 139,806 134,024 142,542
Capital Outlay 100,000 - - - 70,290 447,630
Building Debt 201,700 199,400 199,410 201,820 198,660 200,215
NETINCOME(LOSS) (234,650). ..(.106,750) (90,431) (62,014) (134,925) (505,303)
Other Income
Interest Income - - - - -
Sale of Fixed Assets - - - - -
Contributions/Rebates - 9, 519 15,436 1,400 11, 000
Admission Surcharge - - - - 8,384 9,098
Transfers In
Capital Outlay 100,000 - 9,500 - 66,703 -
Eliminate Deficit (General Fund) 134,650 . ....706,750 79,931 57,514 66,302 39,260
Building Project - - - 464,537
Change in Fund Balance - 8,519 10,936 7,863 18,592
2007 2006 2005 2004
Revenues 659,607 652,550 633,339 617,914
Expenses 573,847 535,247 493,970 475,371
4/4/2008