5. - 13. ICESR 04/04/2006MEMORANDUM
TO: Ice Arena Commissioners
FROM: Rich Czech, Arena Manager
DATE: March 30, 2006
SUBJECT: Agenda Memo - Apri14, 2006
5. Review 2005 operating finances current information on 2006 financial status
Attached for your review are the financial summaries for the Arena for the years 2003
and 2004, along with the budget for 2005 and 2006. Included is some historical data and
an outline of capital improvements that have been made over the years.
Lori Johnson, City of Elk River Administrator, will be in attendance at the meeting to
present information regarding the 2005 and 2006 budget.
The Arena took over the concession stand last fall from Elk River Youth Hockey. In the
Expenditure and Revenue report you will notice that the concession stand lost $5,344.00.
This was due to the fact the Arena purchased about $9,700.00 in equipment to operate the
concession stand efficiently and a large amount of supplies and products were needed to
get the concession stand up and running. The report also shows that the concession stand
has a net profit of $15,700.00 so far in 2006.
6. Ice Sales / Rogers Arena
The attached graph shows atwo-year history of how many hours were rented each year
and the customer type that is renting the hours. In addition to the chart is an itemized
break down of the customers renting the hours for the past two seasons. You will notice
that we increased the number of hours sold this past season by about 100 hours. The
increase in hours can largely be credited to the increase in the amount of hours sold in the
summer time, mainly in the amount sold to customers running clinics. Noticeable
decreases came in the area of the high school group; however that was to be expected
since we did not sell hours to Becker/Big Lake this past season.
Depending on whom you talk to, and when, the Rogers Arena maybe built this year or
next year. From what I have heard, the structuring of the finances is all that remains. One
of the rumors has each Rogers Youth Hockey player paying $200.00 per year for the next
nine years towards the debt service of the Arena.
Last year we rented 388 hours of ice to the Rogers High School programs and their
association. During the summer last year the Rogers girls and boys coaches rented an
additiona185 hours for their summer camps.
Out of the 388 hours that Rogers rents, there are about 40 hours that are right after school
or are hours during the holiday break. When Rogers builds, these hours maybe lost due
to the fact that the younger groups can not get here because they are still in school or
because the coaches are still at work. Youth Hockey anticipates they will need about
1,500 hours this coming season; this is an increase of about 174 hours. This will leave
us with about 174 hours of ice to sell. I have been in contact with the Athletic Director
from Becker, he is very interested in moving his high school team back to Elk River. I
told him that we need to find out if Rogers will be back next year before committing any
hours to his group.
I have spoken with Paul Gustafson, Rogers High School Athletic Director. In our
conversation I explained to him that we needed to know if he plans on renting ice for the
whole season or just part of the season. At that time he didn't know what his needs were
going to be. We came to a mutual agreement that by the end of April he would give me a
definite answer of when or if he plans on renting ice from Elk River for the 2006 - 2007
season. This still gives me enough time to sell the hours he will not be using.
This past spring we expanded the Break Away Hockey League to the Monticello Arena.
We were hoping to expand the league into an A and B level and increase the participants
in the league. We have noticed a few more registrations in the squirt level as well as in
the mite level. Mini mite registrations are pretty much at the same level as last spring.
Over all we used about the same amount of ice hours as last spring, which doesn't
include Monticello.
7. Ice Rates / Rogers Arena
Last year we increased the seasonal prime time ice rate from $145.00 an hour to $153.00
and the non prime time rate from $115.00 an hour to $125.00 an hour. We also
increased the off season prime rate from $120.00 to $125.00 and the non prime time
hours from $75.00 an hour to $95.00. Attached for your review are the rates adopted last
year.
After reviewing the Arena's operation costs and other hourly rates at other Arenas in the
Northern area, my recommendation is to keep the seasonal (September -Mid March) ice
rates at their current rates, and review the non seasonal (Mid March -August) rates at the
August meeting.
8. Concession Stand
As stated above, the Arena took over the operations of the Concession Stand from Elk
River Youth Hockey. The city enhanced the operations of the Concession Stand by
purchasing some new equipment. A large three department sink that was in the front area
of the concession stand was traded in for a smaller three department sink that was
installed in the back room. A table was purchased and was placed where the old sink
was; this provided some extra room to prepare food items. A two door freezer was
purchased so that we could store more product and two refrigerators from Bernicks Pepsi
were added to store food products as well as 20 oz bottles of pop. Anew point of sales
system was added, that has touch screen operations. The system is tied in with the ice
scheduling program that is used and has been very beneficial in keeping track of
inventory as well as day to day operations of the concession stand. Two new safes were
also added, one so that the money from each shift could be dropped and not accessed by
any of the part time staff, and another where the start up money is stored when the
concession stand is not opened.
For the first year of operations the concession stand went very well. The hardest part was
starting with a fresh crew. Once everyone got acclimated to the equipment and the
routine things went smooth. Not a whole lot of items were added or changed; we reduced
the amount of different kinds of $.75 candy offered, however we added $1.50 candy
where there is a better profit margin. We went from fountain pop to 20oz bottles of pop
and Gatorade. A few new items were tried throughout the year; however for profit
margins and sales a good hotdog or slice of pizza can't be beat.
9. Damage to Olympic roof
Last September during one of the major storms the roof to the Olympic rink was
seriously damaged by hail. The damage to the roof also caused some major water
damage to the walls of the Arena as well. Working with the insurance adjuster, Bill
Maertz, and Lori Johnson we were able to get a new roof put on before winter set in. The
roof included not only a new membrane, but a new vapor barrier and insulation. New
metal flashings were installed as well as scuppers and down spouts. As noted above the
interior walls of the Olympic rink sustained some water damage. This spring the walls
will be cleaned and re-painted.
10. Arena Office Assistant
An Arena Office Assistance is to be hired by mid April. This is a part time position,
working 20 hours per week. The Office Assistant will help with customer service as well
as clerical support and general accounting. This position will also assist in
administrating the Break Away League as well as Skating lessons.
11. Arena Banners
Over the past few years there have been several banners hung in the Arena for the High
school boys and girls State Tournaments. These banners range from state champions to
participating in the state tournament. A few years back, the Elk River High Boys Hockey
Team was ranked number one in the nation by the United States Hockey Report
(U.S.H.R.). It is my understanding that there is a banner being made that the high school
team would like to hang in the Arena. I'm not sure if we want to hang banners from a
ranking where no actual game was played to determine an outcome. I believe we need to
develop a policy regarding banners in the Arena, not only for the high school level but
also for the youth hockey level as well as for the figure skating club.
12. N.H.L. Pro Game
There has been a request that the Arena donate ice time for an N.H.L. pro charity game.
The funds raised would benefit Elk River Youth Hockey. Trevor Stewart, an Elk River
High school alumni is organizing the event and has received commitments from Dan
Hinote, from the Colorado Avalanche, and Paul Martin, from the New Jersey Devils. In
talking to Trevor I told him that if the Arena donated the ice time, we would like to have
exclusive rights to the concessions for the evening. I believe this would be a great event
for the community as well as the Arena.
13. Staff updates
A. Summer Projects
The following are some of the bigger projects we have going on this summer:
^ Adding center groove to the north wall of the Barn
^ Paint the upper level of the floor to the bleachers of the Barn.
^ Redo the benches in the locker rooms.
^ Painting of the Olympic rink.
B. Dryfloor
^ The Jose Cole Circus: May 3rd
^ The Spring Craft Fair: May 6th and 7th
^ Summer Youth Dance: June 2nd
^ Fall Dance: September 8th
^ Fall Craft Show: September 16th and 17th
C. Goals
^ Work with customers to bring more tournaments to the Arena.
^ Hire part time customer service/secretary position.
^ Update Capital Improvement Plan.
^ Start a dialog with Youth Hockey, the High School Boys Hockey Blue Line
Club, and the High School Girls Booster Club about locker rooms for the high
school hockey teams.
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Elk River Ice Arena
Account Revenue and Expenditure Summary
..............................
2006 2tt0~`` 2005 2004
YTD Actual Budaef Actual Actua
REVENUES
Ice Rental 112,698 __,.: _ 389,44Q!'. 403,503 376,127
Recreation Programs 55,590 '134',500
' 108,771 106,089
Admissions 31,611 ~2,000
s 41,018 47,270
Sign Rental 18,500 :' 19,664 17,572
Dry Floor Events 4,036 15;000'.; 13,662 12,339
Concession Rent Oi' 10,750 21,500
Vending 7,092 35,000 ' 29,935 29,370
Concession Rent
Skate Sharpening 1,356 4',000:'. 3,847 3,939
Rental for Building 2,600 2',500?::
Other Mdse Sales/Phone Comm. 1 168 'x,800 : 2,190 3,709
TOTAL 216,151 .. _64:3,00:: 633,339 617,914
EXPENDITURES
Personal Service 46 811 235;gS{X: 221,771 200,721
Other Operating Expenditures 14,772 233iZ(7Q: 219,338 218,030
Vending Mdse for Resale 1 601 17,000: 12,682 14,852
Other Mdse for Resale 204 .2,400!;; 808 1,101
Recreation Programs 5,560 ' 59;65Q? 39,370 40,667
TOTAL 68,948 545',700:': 493,970 475,371
CONSESSIONS
Sales 28,364 75;000'' 27,101
Less: Product & Supplies 5,410 31';000 ' 23,749
Pay 7,254 22;500<: 8,696
Net Profit 15 700 21s?00: (5,344)
OPERATING INCOME (LOSS) 162 904 1191500 134,024_ 142,542
Capital Outlay - 0 ' 70,290 447,630
Building Debt - 198;650.! 198,660 200,215
NET INCOME (LOSS) 162,904 CI9150)! (134,925) (505,303
Other Income
Interest Income 278 0'.;
Sale of Fixed Assets
Contributions/Rebates 6 849 1,400 11,000
Admission Surcharge `` ': 8,384 9,098
Transfers In
Capital Outlay 66,703
Eliminate Deficit (General Fund) - 79;150 66,302 39,260
Building Project 464,537
Change in Fund Balance 170,031 0''s 7,863 18,592
Capital Outlay:
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
2004 -Barn Floor and Dasher Boards
2005 -Manager's Office ~ ~,~,
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 a dmission surcharge
2004 -Bleachers $10,000 ERYHA; $9,098 a dmission surcharge
2005 - $8,384 admission surcharge
2003
314,601
118,029
28,921
17,367
15,124
21,500
30,471
4,311
1,893
552,217
184,639
237,259
13,984
395
44.823
201,485
130.367
24,960
7,365
6,678
108,730
17,365
' 3/31/2006
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Item #7
Elk River Ice Arena Page 1 ofl
Printed 06-Apr-O5, 10: 57 AM
Hourly Rate Structure
Starting Ending Start Ending Hourly
Date Date S M T W T F S Time Time Rate
Ice / Regular
Regular Season Friday -Satu rday
O1-Sep-OS 19-Mar-06 12:00 AM 5:59 AM $125.00
O1-Sep-OS 19-Mar-O6 6:00 AM 10:00 PM $153.00
O1-Sep-OS 19-Mar-06 10:01 PM 11:59 PM $125.00
Regular Season Monday -Thursday
O1-Sep-OS 19-Mar-O6 12:00 AM 5:59 AM $125.00
O1-Sep-OS 19-Mar-06 6:00 AM 9:20 PM $153.00
O1-Sep-OS 19-Mar-06 9:21 PM 11:59 PM $125.00
Regular season Sundays
01-Sep-OS 19-Mar-06 12:00 AM 9:59 AM $125.00
01-Sep-OS 19-Mar-06 10:00 AM 9:20 PM $153.00
01-Sep-OS 19-Mar-06 9:21 PM 11:59 PM $125.00
Spring /Friday -Saturday
20-Mar-06 31-May-06 12:00 AM 5:59 AM $95.00
20-Mar-06 31-May-06 6:00 AM 10:00 PM $125.00
20-Mar-06 31-May-06 10:01 PM 11:59 PM $95.00
Spring / Mon -Thur
20-Mar-06 31-May-06 12:00 AM 5:59 AM $95.00
20-Mar-06 31-May-06 6:00 AM 9:20 PM 5125.00
20-Mar-06 31-May-06 9:21 PM 11:59 PM $95.00
Spring /Sunday
20-Mar-06 31-May-06 12:00 AM 9:59 AM $95.00
20-Mar-06 31-May-06 10:00 AM 9:20 PM $125.00
20-Mar-06 31-May-06 9:21 PM 11:59 PM $95.00
Summer /Saturday
O1-Jun-06 31-Aug-06 12:00 AM 11:59 PM $95.00
Summer /Sunday
O1-Jun-06 31-Aug-06 12:00 AM 2:59 PM $95.00
O 1-Jun-06 31-Aug-06 3:00 PM 9:20 PM $125.00
O1-Jun-06 31-Aug-06 9:21 PM 11:59 PM $95.00
Summer Monday -Thursday
O1-Jun-06 31-Aug-06 12:00 AM 5:59 AM $95.00
O 1-Jun-06 31-Aug-06 6:00 AM 9:20 PM $125.00
O1-Jun-06 31-Aug-06 9:21 PM 11:59 PM $95.00
Summer/ Friday
O1-Jun-06 31-Aug-06 12:00 AM 5:59 AM $95.00
O1-Jun-06 31-Aug-06 6:00 AM 2:59 PM $125.00
O1-Jun-06 31-Aug-06 3:00 PM 11:59 PM $95.00
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