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6. - 12. ICESR 04-13-2004MEMORANDUM TO: Ice Arena Commission, Members FROM: Rich Czech, Arena Manager DATE: April 2, 2004 SUBJECT: Agenda Memo -April 13, 2004 6. Review 2002 operating finances current information on 2003 financial status Attached for your review are the financial summaries for the Arena for the years 2002 and 2003, along with the budget for 2003 and 2004. Included are some historical data and an outline of capital improvements that have been made over the year. The Barn is usually scheduled to have ice by the third week in September. Due to the problems with the floor, the Barn was not in operation until November 8t". Because of this, the Arena lost about $33,000.00 in ice sales and another $4,269.33 in programs that had to be cancelled. This is reflected when comparing what was budgeted for Ice Rentals ($344,400.00) for 2003, and the actual amount that was taken in ($314,601.00) for 2003. Operating expenditures were higher due to the fact that $27,162.00 was spent on repairing the floor to get it operating this season (see attached information). Another area in our operations that expensed an increase was our utilities. Due to soft spots on the Barn's rink, we had to set the temperature of the floor about 2 degrees colder than usual. It's hard to predict how much more this cost, however the compressors noticeably ran more this season than in the past. Another area of revenue that was low was admissions. These are gate receipts for high school games being played at the Arena. The Arena took in about $13,000.00 less than what was budgeted for admissions. This is largely due to that in 2003 there were fewer games played at the Arena, and low attendance at the games. Attached for your review are some attendance figures over the last six years. The Arena's budget for 2003 estimates a net income loss of $65,500.00; the Actual net income lost totaled $130,367.00. If not for the income loss of $37,269.00 from lost ice sales and programs due to the Barn starting later, and the expense of $27,162.00 to repair the floor, the Arena would have lost $65,936.00, about what was estimated in the budget. 7. Ice Sales A. Usage The attached chart shows athree-year history of how many hours were rented each year and who is renting them. You will notice a loss of about 300 hours from 2002 - 2003 season to this past season (2003 - 2004). This was due to the Barn not being in operation until November. If the Barn did start when it was scheduled to, I believe the Arena would have gone over 4,000 hours of ice rented this season. B. Demand This past season was the first year of the Roger's High School programs and Roger's Youth Hockey Association skating at the Arena. There were a few conflicts during the season, however considering what happened to the Barn, things went as well as can be expected. This coming season, the Roger's High School programs are looking at expanding their programs. The Boys are looking at increasing their practice time from one hour a day to two hours a day. The Girls are looking at increasing from one hour to one and a half hours each day. Considering holidays and other days when teams skated more than one hour on a day this year, the girls would increase their hours from 60 hours to about 85 hours and the boys from 80 hours to about 110 hours. To accommodate these hours we would have to displace another customer or customer's hours. Becker /Big Lake would seem to be the logical customer to let go if we were to let a customer go. Becker /Big Lake is looking at moving their program to Monticello if Monticello builds this year. This would open up about 80 hours of ice. Which would take care of the increase in the demand for ice from the Roger's high school programs. If Becker /Big Lake is not welcomed back, the Arena would lose some revenue from their games. Becker /Big Lake has six to eight games each year; each game takes in about $465.00 over the actual cost of the ice. Releasing Becker /Big Lake will leave the Arena with one less customer to absorb ice hours if and when Roger builds their own rink. There are about 450 hours rented through both Rogers high school programs and Rogers Youth Hockey. Depending on when a rink would be built in Rogers, the existing customers would be hard pressed to rent all of these hours, unless it's four to five years down the road. C. Ice Rates Attached you will find the ice rates for the Arena this past season along with rates of other Arenas in our area. After comparing our price with other comparable Arenas, I feel that our hourly rate is in the lower tier of the going rate. The 2004 Minnesota Ice Arena Managers (M.LM.A.) survey is due to be out in April, hopefully it will be available before we meet so that we can compare our rates with other rates at other Arenas. Elk River Youth Hockey and the Arena completed athree-year agreement to hold their hourly ice rate for three years. Their ice rate was held at $135.00 an hour for their donation of $30,000.00 towards the Olympic Bleachers. This year they will return to standard Arena's rates. At this time I do not feel that we should increase the hourly ice rates, any increase would only add an additional burdened to Elk River Youth Hockey members. At the August Arena Commission meeting I would like to review the summer rates for 2005. By April when these rates are usually reviewed, there is ice booked for the summer. Adjusting the ice rates in August for the next summer, would able me to give perspective customers their rates far in advance so that they can plan accordantly. 8. Construction of the Barn As you are aware of on November 10, 2003, the city council approved to move forward with the replacement of the Barns floor and dasher boards. The low bids received for both projects came from Commercial Refrigeration. The bid for the removal of the old floor and the installation of the new floor was $298,912.00. The bid for the new set of dasher boards was $85,784.00 and are subcontracted to Becker Arena Products. The removal of the old boards will be the responsibility of the Arena. Some of the gates to the existing boards in the Barn will be reused. On February 23, 2004 the city council approved two other major improvements. To replace the condenser to the Olympic ice plant in the amount of $24,660.00 and to install a backpressure regulator to the Olympic plant in the amount of $2,213.00. Both projects were scheduled in the Capital Improvement Plan for the Arena, by completing both of the projects now the city saved over $10,000.00. Attached for your review is my memo to Pat Klaers reviewing both projects. The construction of the Barn's floor and boards is still on line to start May 3`a, after the Craft Fair. Before this, we will be preparing the building for the construction, the score clock as well as bleachers will be covered with plastic to protect them from the concrete dust, and all unnecessary items will be removed from the rink area. On Monday (May 3`d) the boards will start to come down and will be removed from the Arena. There is still a question of what we are going to do with the used boards. Most of the gates are going to be reused as well as some of the sections for a shooting area on the south side of the Barn. There are three options: dismantling them, reuse them, or sell them. The sections of boards are in good shape, so dismantle them would be the last option I would recommend. There is no interest by the Parks and Streets Supervisor to use them on any of the existing outside rinks. So it would seem like selling them would be the best solution. To sell them we could advertise them through the local paper, trade magazines, web sites, or even one -bay. Depending if we want to sell them locally will depend on how we would advertise them. We would need to ask for seal bids from prospective buyers, and allow at least a week between the date we advertise and the time we would open the bids. Another option would be to sell them in the citywide garage sale with a minimum bid. I'm not sure if the city has enough other items this year to hold it, however if they do, the boards could be sold there. There has been some talk by Elk River Youth Hockey that they may want to find a place for them in Elk River. It is my understanding that state laws prohibits the city from donating items to non profit organizations, which Elk River Youth Hockey is. If Elk River Youth Hockey were still interested in the boards, they would have to go through whatever process we set up. If Elk River Youth Hockey would like to proceed with finding an area for outside practices they should direct this item to the Parks Commission. The Arena Commission may want to recommend that the Parks Commission help Elk River Youth Hockey find a place, however this is more of a parks issue rather than an Arena issue. Having said that, a site that may work is on Gary Street. This area once housed a skating rink and is set up to accommodate a small rink. There are outdoor lights in place and a water hydrant for flooding. Some kind of warming area would have to be established. However as stated above this item should be directed towards the Parks Commission or the City Council. 9. Capital Improvement Plan (C.LP.) Attached for your review is the C.I.P. memo that Pat Klaers and I reviewed this past winter. The items on the list consisted of items that need to be replaced, rebuilt, and other items that will keep or increase the efficiency of the Arena. These items are important to the Arena, however each item will have to be weighed against the other needs of the city when they are budgeted. 10. Parks and Recreation Director As many of you aware, the city will be hiring a Parks and Recreation Director. The person for the position is to be hired about July 6, 2004. Part of the person's responsibility will to develop park systems and facility, which includes the Arena. Another area the person will be responsible for is to supervise the Arena manager. Until this person is hired and some history is developed, it will be hard to predict what affect this will have on the operations of the Arena. The Arena Commission will keep in tact for now, however whether the Parks and Recreation Director will have the Arena Commission report to the City Council or report to the Parks Commission is up in the air. 11. Shooting Area The Bleachers on the south end of the Barn have been removed for a few years. Initially my thought was that this area would be a great place for a meeting room and offices. However, the Arena's needs and budget would not have permitted this until the far future. This area has been wide open were it has become a prime area for kids to gather for a pick up game of floor hockey or tag. Pucks and balls some times fall along the main hallway and the area is not very safe due to the low railing looking over the rink. There was some discussion that Elk River Youth Hockey may use this area for a shooting area. Other Arena customers have approached me to use this area for uses such as stretching and other dry floor activities. For scheduling purposes I feel that this area could be better served by the Arena's customers if the Arena schedules this area. We have installed a cyclone fence and will be installing shooting panels that can be removed so that this area could be used for other activities. A few sections of the used Barn boards and plexie glass will be used to secure this area as well as make it a safer place to use pucks. Customers can either pay a yearly fee or on a per time basis. The fees have yet to be determined. 12. Staff Update A. Arena Advertisement North Memorial did not renew their advertisement on the Zamboni. We have been using this space to advertise our own programs until another advertiser can be found. Other advertisers we have lost are Ace Hardware (they are looking at selling the business) and Elk River Ford. Anew advertiser is AMCAP Mortgage. B. Summer Projects Besides the construction of the Barn's floor and boards there are a few more projects that we will be working on this summer. May 17tH we will be taking the ice out of the Olympic rink to level the sand. We will be making some minor repairs to the boards as well as general maintenance to other parts of the Olympic rink. Besides these repairs the new condenser will be installed at this time as well as the backpressure regulator. All this work has to be completed by June 1St so that we can have ice ready to go by June 6tH Other items that we will be working on are: Installing rubber matting in the remaining locker rooms Fresh coat of paint in several areas of the rink Detail cleaning New siding outside of the Barn Water proofing parts of the Barns roof Completing the shooting area C. Dryfloor The 4tH _ 6tH grade dance will be held April 16t"; the summer dance will be cancelled due to the construction of the Barn. The fall dance will take place September l Otn This year the Jose Cole Circus will be held Apri121 St, about a month earlier due to the construction of the Barn. The spring Craft Fair will be held May 1St and 2"d, right before the construction of the Barn. The fall Craft Fair is scheduled on September 18tH and 19tH. Over the last few craft Fairs, attendances has been steadily decreasing. From what I have heard from crafters this has hold true not only to our craft show but to other shows as well. The shows that seem to do well are festivals, Fairs, and other community celebrations were large crowds gather. To try to increase attendance we added Antiques to the spring craft show, hopefully this will add more interest to the show. We will be looking at expanding our advertising by using more neon billboard signs, add more smaller signs on the higher traffic streets in the area, and will be looking at alternative ways to advertise without a lot of added expense. Elk River Ice Arena Financial Summary Historical Data Detail of Transfers Year 2003 2002 2001 2000 1999 1998 1997 TOTAL Year 2003 2002 2001 2000 1999 1998 1997 Net Income Loss $ (130,367) (33,279) (118,138) (28,268) (145,221) (198,628) (53,393) Operating Deficit $ 108,730 21, 554 28,619 13,037 16,712 233,229 Transfers in From Other Funds $ 115, 407 27, 896 57,619 27, 325 133,677 233,229 $ 595,153 Capital Outlay Other $ - $ 6,678 6,342 29,000 14,291 116,965 Total $ 421,881 $ 166,598 $ 6,678 3/31 /2004 Elk River Ice Arena Financial Summary 2004 2003 2003 2002 2001 Budget Budget Actual Actual Actual Revenues: Ice Rental $ 355,000 $ 344,400 $ 314,601 $ 336,876 $ 323,813 Recreation Programs 139,000 138,000 118,030 137,785 134,311 Admissions 40,000 42,000 28,933 39,561 34,000 Sign Rental 18,500 16,500 17,367 19,766 17,855 Dry Floor Events 15,000 15,000 15,124 17,886 13,071 Concession Rent 21,500 21,500 21,500 21,500 21,500 Vending 34,500 34,500 30,471 31,034 34,164 Skate Sharpening 7,500 7,500 4,311 5,074 6,529 Other 3,800 3,500 1,881 3,679 3,283 TOTAL $ 634,800 $ 622,900 $ 552,218 $ 613,162 $ 588,526 Expenditures: Personal Service $ 200,200 $ 205,150 $ 184,639 $ 189,099 172,580 Operating Exp. 202,300 200,750 237,259 171,659 175,724 Vending Mdse. 17,500 17,500 13,984 15,253 16,206 Other Mdse. 2,800 2,800 395 2,356 1,060 Recreation Programs 56,800 60,700 44,823 54,724 54,213 TOTAL 479,600 486,900 481,100 433,091 419,783 OPERERATING INCOME (LOSS) Capital Outlay Building Debt NET INCOME (LOSS) Other Income Interest Income Sale of Assets Contrib./Rebates Total Transfers In Capital Outlay Other General Fund Total Change in Fund Balance 155,200 136,000 71,118 180,071 168,743 0 0 - 10,879 88,996 200,250 201,500 201,485 202,470 197,885 $ (45,050) $ (65,500) $ (130,367) $ (33,279) $ (118,138) $ - $ 383 $ 519 32,325 21,503 7,540 32,325 21,886 8,059 6,342 29,000 7,000 6,678 25,000 28,600 108,730 21,554 28,619 25,000 35,600 115,408 27,896 57,619 $ (20,050) $ (29,900) $ 17,366 $ 16,503 $ (52,460) 4/1 /2004 Elk River Ice Arena Financial Summary NOTES: Capital Outlav: 1997 -Heaters 1998 -Dehumidification 1999 - $34,305.00 Bleachers; $82,659.98 Ice Resurfacer 2000 -Matting for floors 2001 -Floor Scrubber & Bleachers ($30,000 to be paid by ERYHA; $27,460 from admission surcharge) Received $5,000 contribution for sign to be purchased in 2002. 2002 -Matting and sign Contributions: 2001 - $5,000 sign; $2,540 admission surcharge for bleachers 2002 -Bleachers $10,000 ERYHA, $11,503 admission surcharge 2003 -Bleachers $10,000 ERYHA; $7,365 admission surcharge; $14,960 one time refund from Bernicks Vending Other Transfers In: 2003 - Zamboni repair 4/1/2004 N n m ~ o ~ v ~ N O ~ -Np ~ O O C L ~U N N 1O o U ~~ N ~ O O) w M M O •~ fD (~O U ~ c m ~ ~ ~ ° - a U 0 V 0 ~ ~ C ~ O •N y d N N N N ~ ~ ~ N N LL. W m c ~ ~ C N ~ f~ f~ O tD O ~ ~ w a U ~ r ~ ,, ~ C ~ ti ~ ~ N N c ( >0 N _ O ~~ ^~ O ~ N y c0 CO f~ ap ~ O O d' J N~~ O O ~ U' Q M ~ c0 N m ~ 3 m ~ ao ti a~ m 2 N ~ r ~ O O N ~ `- - N ~ Of ~ W ~ c N a o x O o ~ oa C cDOM CO O~ M ~ O . O ~ C ~ ~ a. ~ c '~ ~ ~ ~ ~ C11 ~ N N N m M O) M M M 61 ~NNhNNNtD '~ M ~t0~O~ (D ~ dj ~ O N d' O M t{ a0 n ~ C M a0 tD ~ ~ n N^ r' Q M V V V N < - ~! U v M c6 N O N N _ N ~ _ ~ ~ N M M ~ N N N N 0 N N N O U v M m cD o °D ~ N N .m+ O) I~ (O CO (O ~ V' 1'' N a0 N ~ N O) ~ ~ m O V M M ti ~ W N ~ U V' d' 0 U r f9 h ~ M N N ~~ ~ h N N tD (D ~ ~ ~o cd m -o c M~ M~ f~ a ~ n ~~ n N N ti C CD N M !` ~ Q) ~ MAN rn ~ N ~p M ~ N N ~ ~ C N O ' ' N O ~ g N V NO)O~ O N N V' 7 7 ~ <T ~t ~ O O O O !' V d' V N ~ ~ to ~ ~ N N~ O r O M CO ~ ti O ~ O O ~ 7 U; M ~ M I` W~ ti ti V ' V ' N a Q~ N~ ~ r- f7 '- N~ ~ (6 ~ iA u) ~ N = ~ U I- NNNNF- Elk River Ice Arena Usage By Customer Type -Detail Customer Type 6/1/2001 to 5/31/2002 16/1/2002 to 5/31/2003 1 6/1/2003 to 5/31/2004 Adult Hockey 100.00 109.50 87.00 Adult Hockey Totals 100.00 109.50 87.00 Arena Recreation Break Away Hockey 291.00 195.00 200.00 Breakfast Club 3.00 ER Arena Skills Plu 44.00 42.00 36.00 ER City Rec 4.00 Skating Academy 414.00 478.00 465.75 Skating Academy Show 46.25 50.83 50.50 Arena Recreation Totals 799.25 768.83 752.25 Clinics Pro Edge /D Ness 24.00 24.00 Vic's Hockey School 10.00 Adam Hauser Goalie Clinic 10.00 Barry Hohlen/ERYHA 54.75 52.50 Elk River Youth Hockey 22.50 Joe Dziedzic 24.00 Clinic Totals 34.00 78.75 109.00 Figure Skating Elk River Figure Skating 32.50 49.17 82.50 Figure Skating Totals 32.50 49.17 82.50 Dry Floor Craft Show 22.00 Dry Floor Totals 22.00 High School Becker/Big Lake HS 64.50 63.00 56.17 ISD 254.92 248.75 410.33 HS Totals 319.42 311.75 466.50 S:Offsite/Ice/Usage Stats Elk River Ice Arena Usage By Customer Type -Detail Customer Type 6/1/20olto 5/31/2002 I6/1/2002to 5/31/2003 I6~1/2003 to 5/312004 High School Games Becker/Big Lake/Rum River 19.33 34.67 24.67 ERHS Boys 46.17 46.00 33.83 ERHS Girls 37.08 42.75 43.00 Girls HS Sections 2.00 2.25 1.83 Rogers Boys' Games 42.00 Rogers Girls' Games 16.17 High School Games 104.58 125.67 161.50 Individual Totals 161.00 ~ 159.50 ~ 206.25 Individual Totals 161.00 159.50 206.25 Programs pd per time ER Boys' Captains 36.00 33.00 48.75 ER Girls' Captains 21.00 21.00 8.75 Open Hockey 110.25 126.25 81.25 Open Skating 320.58 315.33 304.67 Rogers Boys' Captains 14.50 Rogers Girls' Captains 10.25 Program pd per time Total 487.83 495.58 468.17 Youth Hockey Anoka Area Hockey Assn. 24.00 Becker/Big Lake Youth 6.00 3.00 Elk River A Pee Wees 3.00 Minnesota Selects 15 11.00 Monticello Youth Hockey 48.00 Warroad Youth Hockey 1.00 District 10 Playoffs 19.75 17.75 18.50 ER Girls' Booster 4.75 12.00 12.50 ER Youth Hockey 1486.50 1688.92 993.17 ER Youth Hockey 128.00 32.92 Rogers Youth Hockey 300.92 St. Michael Youth Hockey 8.00 VFWA Bantam Tourney 64.50 38.58 36.75 Youth Hockey Totals 1772.50 1781.25 1405.75 GRAND TOTAL 3811.08 3902.00 3738.92 S:Offsite/Ice/Usage Stats m ~' ~ ~ N N M Q a y ~ N N T pp (6 ~ ~ a U (6 U C t0 C N c~ C O O L U L ~ N rn rn .~ ~ o ~ co a~ °' m in ca °~ m Q a ~~ ~ m T ~ m _m C7 a ~ T cD O U N m ~ N ~ (O N ~ ~ ~ ~ ~ N Q Q N O ~~ L ~ >, O~ M O O r ~ ~ N ~ ~ Q (0 N N ~ N m N (O (D O M ~ ~ (D O) ~ ~ m m N L-~ N UI ~ ~ ~ O O cp f~ ~ I~ ~ ~ p p~ M ~ f~ (D O f~ O N ~ ~ ~ ~ N ~ ~ ~ ~ Q Q C Q O N m a w ~ m ~ ~ m~ rn rn~ rn x ~ m .~ .~ ~ a. ~' ~ ~ m ~, > ul oO O O 6~ N M N N ~ ~ N N ~ c~0 aMD ONi M U C7 ~ ~ ~ ~ ~ ~ N Y ~ ~ (6 _ W C N N 01 c6 C (6 ~ [6 O M 1~ O V CO O N O V r~ ti ~ r N ~ u 7 N 0 C ~ ~ i6 Q Q N L C C~ ~ r C m r r r r r r T Q t0 ~ ~ ~ a w y ~ > N ~ W M (D r ~ '6 ~ O~ O~ O V ~ CrD ~ T Y m lU M~ M~ ti V .3 (~ W O Q a0 ~ O N M ~ O~ 0 0 0 0 0 0 0 ~ L~ } ~ M m O N M ~, O OOp~OOOO Elk River Arena's 2003 - 2004 ice rates Prime Time Hours: These are hours that are most frequently requested by the customers. The cost for prime time ice is $145.00 per hour for both rinks. Non Prime time: These are hours of ice that are usually late night or early hours where a substantial discount is offered The cost per hour for Non Prime time is $115.00 per hour for both rinks. All hours are charged according to the time the hour is schedule to begin. Seasonal rates: September 1, 2003 -March 20, 2004 Both Rinks Days of Times the week Sunday 12:OOam - 10:59am 11:OOam - 9:20pm 9:21 pm - 11:59pm Monday - 12:OOam - 5:59am Thursday 6:OOam - 9:20pm 9:21 pm - 11:59pm Friday - 12:OOam - 5:59am Saturday 6:OOam - 10:OOpm 10:01 pm - 11:59pm Rate per hour $115.00 $145 $115 $115.00 $145 $115 $115.00 $145 $115 When School is in session the ice rate per hour from 6:OOam - 2:30pm Monday -Friday will be half of the non prime time rate. Summer Rates for the year 2004 1 - 50 hours rented 51 - 75 hours rented 76 - 100 hours rented 101 - 125 hours rented 126 - 200 hours rented March 21, 2004 -August 31, 2004 $120 $115 $105.00 $95.00 $85.00 Neighboring Ice Rink Rates: Blaine Fogerty: Prime $125.00 Non $105 Summer $ 105 Will be looking at a $10.00 increase this summer. Brooklyn Park: Prime $160.00 2004 - 2005 $165.OU Non /Summer $115.00 2004 - 2005 $120.00 Maple Grove: Prime $155.00 Non $13 5.00 Summer $125.00 No plans on increasing rates until the 2005 - 2006 season Plymouth: Prime $145.00 2004 - 2005 $155.00 Non $125.00 Summer $120.00 2004 - 2005 a $5.00 surcharge will be applied to customers that didn't help fund third sheet. ELK RIVER ARENA 1000 SCHOOL STREET ELK RNER, NLN 553 3 0 (763) 635 - 1141 FAX * (763) 635 -1144 To: Pat Klaers From: Rich Czech Date: Febi-ua.iy 17, 2004 Subject: Equipment for Olympic Ice Plant Thank you for meeting with me regarding the Arena's Capital Improvements. I felt it was important to keep you abreast of *dZe items the Arena needs ar~d the potential problems that may occur if they are left Lmattended. I also feel it is very important that we have a plan in place to face the challenge of replacing or repairing the building and it's equipment as they get older. One area we discussed in length is the Olympics Ice Plant. Two items that were discussed in detail were the Condenser and the Backpressure Regulator. As I reviewed with you; the Condenser is a large tower that sits outside of the north side of the building. By using blowers and water, the Condenser cools the high-pressure aas from the compressors into ahigh-pressure liquid as it passes through the coils of the Condenser. The liquid then is used to pump the refrigerant froze the pumpers out into the floor. y Over the years we have been dealing with the water of the condenser freezing when the outside temperature goes below freezing. Two things cause this; first the condenser is under sized for our climate. Second, the outside cooling pipes that carry the high- pressure gas is layered with scale. The scale acts like an insulator that does not allow the air or water to cool the high-pressure gas. The scale was caused from the last owner not treating the water, which would have removed impurities from the water that would have prevented the scale from building up on the pipes. Since we have had the Ice Plant in operation; we have treated the «~ater u%itli chemicals to help remove some of the scale from the pipes. We have had some success, however some of the pipes still have scale on them. When the condenser uses ~~~ater while the outside temperature is below freezing, the water freezes on the blowers and on -the belts of the motor that drives the blowers. This usually results in the belts breaking and the blowers having one to two inches of ice on them. This problem happens about six to eight times per year. When it happens, we have to take a larDe torch to the condenser to thaw out the motor and the blowers. Then we need to replace the three belts that drive the blowers. The freezing usuall;~ occurs at ni;ht when the outside temperature drops below freezing. This results in someone Navin; to come in to make these repairs. Beim that it is dark, i_cy and that we have to use a ladder to get to the frozen area of the condenser it creates an unsafe situation for staff members. The best solution to eliminate this problem is to purchase and install a new Condenser. The Condenser would be sized so that water wouldn't be needed when the outside temperature is below freezing. Attached are three quotes for a new Condenser for the ice plant. The quote from Commercial Refrigeration, $24;660.00 is the lowest quote and is substalztially lower than the $35,00.00 that was in the C.LP. a few yeais back. This is mostly due to the fact that Commercial Refrigeration will already be on site installing the Bam's rink floor and will not have the overhead costs associated with installing the Condenser from scratch. Another item of importance is the Backpressure Regulator. The Backpressure Regulator would allow more heat to enter through the heat reclaimer that is used to melt the snow in the snowmelt pit. Currently the snow that is dumped in the pit builds up during busy times, causing the need to melt the pit in alternative ways such as moving the snow to other areas of the pit by using a shovel or by using hot water to melt the built up snow. This project was originally scheduled for 2000. However, due to the heat exchanger in the furnace Going out to the Barn; the money was used on that project and the Backpressure Regulator was moved to 2005. With the new floor in the Barn being installed this year, it would be cost effective to install the Backpressure Regulator this year. Commercial Refri~Teration will be on site installing the floor, making it less expensive for them to install the Backpressure Regulator. Attached is Commercial Refi-i~eration's quote to install the backpressure regulator. In the Capital Improvement Plan, the estimated cost of the backpressure regulator is $3,300.00. Commercial Refrijeration's quote is $2,213.00 if we install it during the construction of the Bani's floor, saving close to $1,100.00 compared to ~~~hat ~~,~as budgeted for the project in 2005. I'm available to discuss this further if needed, please jive me a call at the Arena. ELK RIVER ARENA 1000 SCHOOL STREET ELK RIVER, MN 55330 (763) 635 - 1141 Fax (763) 635 - 1144 To: Pat Klaers From: Rich Czech Date: January 21, 2004 Subject: Capital Improvement Program Since the last time we reviewed the Capital Improvement Plan (C.LP.) several items have been taken care of, while several issues are still at hand and a few more have been added. There are two main factors that are considered when itemizing these projects; safety of employees and public, and what effect it has on the operation of the Arena. The last few items have a question mark next to the date. These items may not directly effect the day to operation of the Arena, however they would enhance the operation of the Arena or expand the programming of the Arena. I look forward in meeting with you to discuss the direction the Arena will take in the future. 2004: Condenser: For Olympic Ice Plant: Estimated cost: $30,500 The Condenser is part of the ice plant that cools high-pressure gas into ahigh-pressure liquid. This liquid is then used in the pumping process that carries the refrigerant out to the rink. The gas is cooled by fans blowing air across the tubes or by a water pump that pumps water over the pipes to cool the high-pressure gas. Sometimes the fans and the water will work together to condense the high-pressure gas into a liquid. When we purchased the ice plant, the Condenser had heavy amounts of scale around the cooling pipes, caused from non-treated water being used to cool the pipes. Soon after the Arena was in operation, we treated the condenser to help reduce the amount of scale built up on the pipes. Over the last few years we have intensified the treatment with some success, however we have still been experiencing problems associated with the condenser being neglected when it was new. When the outside temperature is below freezing the condenser should be able to cool the high-pressure gas with just the fans. However the condenser for the Olympic rink sometimes uses water even when the temperature is below freezing, which then freezes the belts on the pulleys. The motor for the fans then tries to turn the belts; the belts break because they are frozen to the pulleys, causing the high-pressure gas to rise to a pressure that then shuts down the compressors. To bring the ice plant back on line, the ice in the fans needs to be thawed out with a large torch so that the fans will turn again and new belts have to be installed. The belts range from $30.00 - $45.00 a belt, and three belts are needed to operate the fans. So far this season we have had to go through this process four times. 2004: Back Pressure Regulator: Estimated cost: $3,300 This project was scheduled for 2000, however due to the heat exchanger in the furnace going out to the Barn, the money was used on that project. The unit would allow more heat to enter the heat reclaimer on the compressors. This would be beneficial to melting the snow in the ice pit and to heat the sub floor in the rink. 2004: Replace /Rebuild Ice Plants: Estimated cost: $3,500 There are several items on both ice plants that will need attention within the next few years. This is an opportune time to give attention to these items, as Mark from Commercial Refrigeration will be here to install the new floor in the Barn. Usually we would have to hire someone to complete some of the repair work. Since Mark will already be here, we will be able to make these repairs with Mark's assistance. 2005: Rebuild the Barns roof: Estimated cost $80.000 - $100,000 The Barn's roof was a few years old when put on some time in the early 70's and is well past its life expectancy. This winter during some of the warmer weather there were several leaks on the south end effecting Elk River Youth Hockey's Office as well as the Arena Manager's Office. 2005: Water softener: Estimated cost: $8.500 Adding a water softener to the Arena's water supply should pay for itself within the first couple of years. The softener would eliminate a lot of minerals in the water so that we could reduce the temperature of the water we use to make ice. Since it would eliminate a lot of the minerals in the water, it would reduce the amount of chemicals that would be needed to treat the condensers. 2005: Move the pole for the walking track: Estimated Cost: $12,500 By the Zamboni gate in the Olympic rink where the goalie nets are brought in and out of the rink, a pole is set halfway between the wall and the boards. The goalie nets have to be jockeyed around this pole when placing them on and off the rink. To do this most of the employees go inside the nets to lift them with their back. If the pole was moved a modified two-wheeler could be used to put the nets on and off the rink with minimum lifting from the employees. I will be working with Dave from M.M.U.A. to see if we will be able to get any grant money through the state. 2006: Replace Co Ray Vac pines in the Barn estimated cost: $17,000 The Co Ray Vac system that is used in the Barn to heat the bleacher area is rusting and needs to be replaced. The system is a radiant system that is a series of heaters that are connected by a tube. This tube then carriers heat above the bleachers that radiates down on the bleachers. Over time the tubes have rusted and need to be replaced before they rust through, which will let the carbon monoxide escape into the rink area. 2007: Replace Desiccant Wheel on Dryer /Heater Unit: Estimated Cost: $7,500 The Desiccant Wheel is part of the Dryer /Heater Unit that dries out the air before it is introduced into the building. Hot air is moved across the wheel as it turns removing the humidity from. the air that then goes into the building. Over the years the Desiccant on the wheel wears to a point where it is no longer effective. The life expectancy of a wheel is about five to seven years. 2007: Condenser for the Barns Ice Plant: Estimated cost: $35,500 The Barn' condenser will be at the end of its life expectancy and should be replaced before any major problems arise. We are starting to notice some of the same symptoms that we are experiencing with the Olympic rink condenser. 2008: Re -skin the Low Pressure Receivers on Ice Plants: Estimated Cost: $10 000 The Low Pressure Receiver is a large holding tank where the refrigerant is stored in the Ice Plant. The outside is insulated with a dense insulation that is held in place by sheet metal that is wrapped around it. Over the years this sheet metal has become rusty and is pulling away of the insulation, causing the insulation to come off. We have made some patches to keep the sheet metal secure, however it is getting to the point where repairs will not hold up. 2009: Electric Ice Resurfacer: Estimated cost: $85,000 - $95,000 By this time the existing Electric machine will have over 5,000 hours of use on it, and the back up machine (Old Blue) will need a major over haul. By establishing an Ice Resurfacing purchasing plan the Arena will operate more smoothly without unexpected problems arising. 2010: New Heating System For the Barns Locker rooms: Estimated cost: $7,500 - $12,000 The heating system in the Barn's locker rooms is a home furnace that was installed in the year 2000. B @ D Plumbing told me that the furnace would last about ten years in this type of environment. We can either install a heating system that is designed for Arena's environment, (like the in -floor heating in the Olympic rink) or we can keep on changing out the furnace every eight to ten years. The in floor heating system will cost more upfront, but will save us in energy cost in future years. If we decide to go with the furnace we would still have to install new ductwork, the old ductwork is beat up from years of abuse. ??: Painting of the ceiling of the Olympic rink: Estimated cost: unknown Due to humidity problems when the rink opened in 1997, the ceiling of the rink has experienced rust and molding on the ceiling. Since we have installed a dehumidifier, the rusting and molding on the ceiling has subsided. We will continue to monitor the ceiling to determine when we should paint the ceiling. ?? Year: Front addition / lobby: Estimated cost: $1,000,000 An addition to the lobby would definitely enhance the Arena. As it is now it gets very crowded during busy times at the rink. It would be nice to be able to have office space in this area so that the general public can easily get in contact with someone when visiting the Arena. At this time the southwest corner upstairs by the bleachers of the Olympic rink could be finished for an office space area. There has been some talk about a field house being built on the eastside of the Arena. If this comes about, it would be beneficial to see if a common lobby area between the field house and the Arena could be constructed. ?? Year: Remodel upstairs area: Estimated cost: $75,000 - 100,000 The bleachers are removed in the south end of the Barn. The Arena is in need of an area where meetings can be held as well as storage and office areas. This would be a good project to combine with one of the Arenas users such as Elk River Youth Hockey. ?..Year: Artificial Turf: Estimated cost: $80,000.00 The artificial Turf will give the Arena another source of revenue. Indoor soccer as well as Lacrosse programs could be played in the spring when the ice is out in the Barn. This project should be put on hold until it is determined when and if a field house is going to be built in Elk River. If a field house were to be built, we would have to determine if it is feasible to have turf in the Barn. Page 1 of 1 BRADLEY MUNSTERTEIGER From: "BRADLEY MUNSTERTEIGER" <strawberrybasket@worldnet.att.net> To: <dptveite@aof.com>; <martin@aol.com> Sent: Monday, March 29, 2004 12:09 PM Subject: Spring Breakaway Hockey To: Rich Czech -Elk River Arena Dale Martin -Chair person -Ice Arena Commission Dan Tveite -Council Rep -Ice Arena Commission Pat Klears -City Administrator My son, Jae is signed up for the spring Break Away Hockey League. We had to pay the $55.00 fee for this because we didn't receive information about it until March 9th or 10th. For that $55.00 I expected to be informed as to when my son would have his first game/practice time. The only thing 1 knew was that is was suppose to start sometime in March. A couple of weeks went by and 1 hadn't heard anything yet. So finalty, Thursday, March 25th, I got on the Internet to find a phone number of anyone who might have some information as to a start date. I got ahold of the Ice Arena and I believe I spoke with Rich. He informed me that the spring league had already started and gave me the name of my sons coach. How come nobody called me? 1 got ahold of the coach and told him how upset I was that we never received a phone call or Letter letting us know when hockey was starting. He then informed me that he didn't even know that he was going to have to coach until the day of the first practice. He didn't get a roster until he got to the arena. Being that most of the team was there that first day, he assumed that all players had been called. Then our school district had spring break last week and our coach knew that the other missing player was out of town and figured we were too since every other player had shown up at least once. How did all these other players find out about practice? Our coach did not call them. My son missed 4 games because nobody bothered to call us. We were NOT out of town. I am very angry and upset about this lack of communication and my sons lost ice lime. I believe (and so does our coach) that some department within the City of Elk River owes us an apology and a refund far our prepaid ice time. $55.00 paid up front for 11 games. That's $5.00 per game times 4 missed games. That's $20.00 you owe us. Sincerely, Bess Munsterteiger 12591 Aetna Ave. NE MonticeNo, MN 55362 (763)878-2875 3/29/2004 t-~.iver Arena To: Bess Munsterteiger From: Rich Czech, Arena Manager Subject: Spring Break Away Hockey League Date: April 1, 2004 I apologize that you did not receive a call regarding when the league was beginning. I can only speculate why you didn't receive a call, were very busy with late registrations, and organizing the league. I do not believe I talked with you on March 25th, not only would I have told you the league had started I would have told you when the next time your sons team would have been playing and would have tried to work out a mutual solution at that time for the lost games. I will gladly refund the portion of the fee that is due to you. The fee for the league was $45.00, if you paid $55.00 it was because of a $10.00 late fee. The league consists of 10 sessions; the 11th session was added for a parent's game. The cost of the jersey is $16.00. If you were to break it down each session is $2.90. However for your inconvenient I will refund the $20.00 you are asking for. Please allow a few weeks for processing the refund to you.