2. - 11. ICESR 08-08-2006C
~~
~~
Ver MEMORANDUM
TO: Ice Arena Commission, Members
FROM: Rich Czech, Arena Manager
DATE: August 3, 2006
SUBJECT: Agenda Memo -August 8, 2006
5) Review 2005 operating finances current information on 2005 financial status
Attached for your review are the financial summaries for the Arena for the years 2002
thru 2005, along with the budget for 2006.
Revenues for ice rentals should meet or exceed the budget. So far this year we rented
$205,492.00 in ice sales. With the months of August through December to go, I'm
anticipating that we will sell about another $180,000.00 in ice.
The recreation fees look like they will be falling short of the budget. So far this year we
took in $84,827.00 in registrations for the Skating Academy and the Hockey skating
clinics and leagues. Looking back at what was taken in for the months of August through
the end of the year in 2005, we should expect another 20,000.00 to 25,000.00 in
registration fees.
With twenty high school games left to be played in 2006, the revenues for admission
should be over by about $3,500.00. This will largely depend on when the Roger's Arena
will be built, which will be addressed later. Attached for your review is the home high
school Hockey schedules to be played at the Arena.
Most expenditure line items look like they will be within the budget; however, I'm
always concerned with the utilities going over budget. At a resent M.I.A.M.A.
(Minnesota Ice Arena Manager's Association) meeting, a representative from Excel
Energy noted that energy costs may go up as much as 15% this winter. If this holds true,
we could see utility cost increase by an additional $10,000.00. Over the years we have
implement some policies and equipment to help conserve on electricity, motion detectors
for the lights in all of the locker rooms and bathrooms, keep only one bank of lights on
when there's no one on the ice, and install energy efficient motors whenever possible.
One possibility we are looking at is installing high efficiency fluorescent bulbs over the
rink surfaces. Most rinks that have been built over the last few years have installed these
types of fixtures because they use less electricity than medal halide fixtures.
Ice Arena Commission Memo Page 2 of 5
August 8, 2006
In 2007 we have budgeted under the Capital Improvement Plan, three major items.
1) Re -skinning (Insulating) of the Olympic Ice Plant.
The insulation on the ice plant is falling off and needs major work. Over the years,
condensation has gotten between the steel and insulation and has separated the
insulation from the steel causing the insulation to fall off. Before the new insulation is
put back on, the thickness of the steel wall on the low pressure receiver will be
checked to make sure it is still within specifications. I do not foresee any problems;
however we want to make sure that we don't run into any problems in the future.
2) When the dehumidifier was purchased in 1998, The representative from Munters
(The manufacturer of the dehumidifier) indicated that the desiccant wheel that dries
out the air typically lasts eight to ten years depending on the usage. The desiccant
wheel will be inspected over the next few years to determine when and if the
desiccant wheel has become inefficient and should be replaced.
3) The walking track around the Olympic rink is scheduled to receive a synthetic
coating. The synthetic flooring will have a 4 to 6 millimeter elastic base, which will
make it softer to walk on as well as being easier to maintain than the concrete floor.
6) Concession Stand
As you are aware of, last season Elk River Youth Hockey decided not to operate the
concession stand and the city took over the operations. As reported in April, the
concession stand has a net profit of $15,700 so far for 2006. If all goes well we should
exceed the projected net profit of $21,500 that is noted in the budget.
Last fall, equipment and a few different products were added to enhance the operations of
the concession stand. This summer we are looking at adding a high speed blender to
make frozen smoothies. With the wide range of flavors they are very appealingly to all
ages. The smoothies would sell for $3.50 fora 16 ounce glass. The profit on a 16oz glass
will be about $2.50 per glass.
We are planning on opening the concession stand late August or the first part of
September depending on ice sales. The hours of operations will stay the same as last year,
5:00 pm - 9:30 pm Monday thru Friday, Saturday from 8:00 am thru 10:00 pm, and on
Sunday from 10:00 am thru 9:30 pm. These times may vary a little depending on the
activities that are scheduled.
7) Customer Service /Office Assistant
This spring we interviewed three qualified candidates for the position of the Customer
Service /Office Assistant. We offered the position to Shari Peterson, Shari accepted the
position and has been learning the ropes of the Arena over the last couple of months.
Shari has experience in concessions as well as some clerical background, which is very
beneficial to the Arena.
Ice Arena Commission Memo Page 3 of 5
August 8, 2006
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8) Arena Commission Policies and Procedures
Attached for your review are the policies and procedures that the Arena Commission has
approved over the years. You will notice that the first two pages deal mainly with ice
rates and the shooting area. The third page notes other policies that the commission
approved over the years. There were several other items that Arena Commission voted
on that are not listed such as, the Arena's budget, the Barn's floor, and other
miscellaneous items.
9) Ice Sales /Ice Rates / Roger's Ice Arena
Attached for your review is the usage schedule for the 2005 - 2006 season along with a
draft usage schedule for the 2006 - 2007 season. There are still a few hours to be booked
for the coming year; however, the majority of the hours are set. This summer we rented
about 1001ess hours than in 2005. This can be contributed to the Roger's Girls High
school hockey coach not running his camp and The John Bazzachini Hockey camp
canceling his Mini Mite level due to lack of interest.
The Roger's city council voted to move forward with their Arena. The projected
completion date is December 15th; however a tighter time line will be established once
they know when the steel will be delivered. Typically it takes about six months to build
an Arena, depending on weather, deliveries of materials, and other unforeseen obstacles.
Six months would put the completion date of the Arena at about the end of January. On
July 25th the Roger's city council voted to fund a larger lobby for the Arena. This will
diffidently give them an advantage on getting any sectional high school games or other
"big games".
This year we have booked all of the Roger's High Schools ice. If the Roger's Arena
opens when projected, the Roger's teams will move their program to the Roger's Arena.
The School District will be held accountable for payment of open hours of ice at the Elk
River Arena that was scheduled for the Roger's teams. If we find buyers for the vacant
hours from the School District, the School District will not be responsible for these hours.
As stated at the April Commission meeting, Roger's High School and their association
rented 388 hours of ice during the 2005 - 2006 season. This season (2006 - 2007) they
are scheduled to rent about 345 hours of ice. 65 of these hours are in the summer, 25 of
these hours are on weekends leaving 255 hours of ice during the weekdays. Out of the
weekday hours there are about 40 hours that are right after school (2:50 - 5:00 pm).
These hours are hard to utilize by the youth groups since most of their players are still in
school and their coaches are still at work. This leaves about 215 hours of prime time
weekday hours, which will be easy to sell. However the remaining hours will be a little
more challenging to sell. Elk River Youth Hockey and the Elk River Skate Club can only
use so many weekend hours. We can schedule more Open Skating and Open Hockey
during the weekends; however they do not generate the kind of revenue that selling the
hours outright will. This coming season I will be working closely with the Elk River
Youth Hockey Association, The Elk River Skating Academy, and the Elk River Skate
Ice Arena Comrnission Memo Page 4 of 5
August 8, 2006
--------------
Club to see how each one of them will be able to utilize the open hours to optimize all of
the hours.
Last April, the Arena Commission reviewed the ice rates for this coming season and
decided keep the ice rates at their current level. At that time I made the recommendation
to the Commission that we look at the 2007 summer rates in August. Attached for your
review are some surrounding Arena's ice rates for the summer of 2007,
as you will see the average rate is $138.00 an hour. My recommendation to the
Commission is to raise the summer hourly prime time rate from $125.00 an hour to
$135.00 an hour. When researching the summer rates, a few managers indicated that
they are looking at increasing their regular season prime time for the 2007 - 2008 to
$180.00 an hour.
10) Arena Commission Meetings
There has been some discussion of adding one or two meetings a year to the Arena
Commission. Currently, the Arena Commission meets two times a year, the
second Tuesday in April, and the second Tuesday in August. The two meetings have
seemed to work well over the years. When specific items needed to be addressed, the
Commission has called special meetings to address them. Whether dates are added or not,
I would suggest that the dates of future meetings are not changed, unless it is the
consensus of the Commission to do so.
11) Staff Updates
A) Summer projects
We have finished the Center Groove along the north wall. We are now in the process of
re-installing the boards and putting up the protective netting.
Shaft seals will be replaced on Compressor # 2 on the Barn's ice plant, and on the # 1
Compressor on the Olympic ice plant. The oil on all four Compressors will be changed
before the regular season begins. These items are regular maintenance items and need to
be performed after so many hours of operation.
A project that was put on hold this summer was installing new benches in the locker
rooms. The Arena's budget had funds in it to install benches in two locker rooms. After
talking to Rebecca Haug, The City's Environmental Administrator, it was concluded that
since the project used recycled materials from milk cartons, the project could be funded
with abatement money from the landfill. Since the project was expanded to all eight
locker rooms, it was decided that. it should be part of the 2007 Arena Budget.
This fall we are installing coat hangers in all the locker rooms as well as shelves in locker
rooms 1 thru 4.
B) N.H.L. Charity game
The N.H.L. charity game was held June 23rd. According to Trevor Stewart, the charity
coordinator, $9,750.00 was raised for the charities. There were about 800 people in
attendance, and the concession stand made about $1,400.00 that evening. From all
aspects, the game went over very well.
Ice Arena Commission Memo Page 5 of 5
August 8, 2006
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C) Up coming Dryfloor Events
The 4th through 6th grade dance will beheld September 8th from 7 - 10:00pm
The fall craft Fair is scheduled for September 16th 9:00 - 4:OOpm and September 7th
10:00am - 3:OOpm
~~~ m ~ 5
REVENUES
Elk River Ice Arena
Account Revenue and Expenditure Summary
July 2006
2006 20.06 2005
D Actual Budget Actual
205,492 389,400 403,503
84,827 134,5D0 108,771
23,412 ' 42,OD0 41,018
- 18,500 ' 19,664
9,118 15, 000 13, 662
- - 10,750
14,202 3~,OOD ' 29,935
2,005 4,D00 ' 3,847
2,600 2,500
1,328 2,8001 2,190
342,984 643,7D0 i! 633,339
127,536 235,450 > 221,771
136,845 233,200'. 219,338
6, 597 17,OD0 12,682
324 2,400 < 808
28,486 59 650'; 39,370
X99 788 545.700 is 493,970
2004 2003 2002
Ice Rental
Recreation Programs
Admissions
Sign Rental
Dry Floor Events
Concession Rent
Vending
Skate Sharpening
Building Rent
Other Mdse Sales/Misc.
TOTAL
EXPENDITURES
Personal Service
Other Operating Expenditures
Vending Mdse for Resale
Other Mdse for Resale
Recreation Programs
TOTAL
CONCESSIONS
Sales
Less: Product & Supplies
Salaries
Net Profit
OPERATING INCOME (LOSS)
Capital Outlay
Building Debt
NET INCOME (LOSS)
Other Income
Interest Income
Sale of Fixed Assets
Contributions/Rebates
Admission Surcharge
Transfers In
Capital Outlay
Eliminate Deficit (General Fund)
Building Project
Change in Fund Balance
39,274 75,000 ' 27,101
10,617 3#,000 ` 23,749
11,730 22,5D0 ! 8,696
16 927. ;21,5D0" (5,344
60,123 119,500 !' 134,024
_ .' 70,290
201,820 198,650' 198,660
141.697) (79 450} (134,925
Actual
Actual
376,127 314,601 336,876
106, 089 118, 029 137, 785
47,270 28,921 39,561
17,572 17,367 19,766
12, 339 15,124 17,886
21,500 21,500 21,500
29,370 30,471 31,034
3,939 4,311 5,074
3,709 1,893 3,679
617.914 552,217 613,162
200,721
218, 030
14, 852
1,101
40,667
184,639
237,259
13, 984
395
44, 823
189, 099
171,659
15, 253
2,356
54,724
475.371
481,100
433,091
142,542 71,118 180,071
447,630 - 10,879
200,215 201,485 202,470
383
6, 849 1,400 11, 000 24, 960 10,000
8,384 9,098 7,365 11,503
66,703 6,678 6,342
- .:79,.150:. 66,302 39,260 108,730 21,554
464,537
(134,848) 0: .7,863 18,592 17,365 16,503
8!2/2006
I~rr, ~ 5
Elk River Ice Arena
Elk River High School Boys Games
02-Dec-06 Sat E.R.A. Olympic
Vs Brainerd 1:00 / 3:00 pm
14-Dec-06 Thu E.R.A. Olympic
Vs Park Center
30-Dec-06 Sat E.R.A. Olympic
Vs Armsrtong Youth Ni ght
09-Jan-07 Tue E.R.A. Olympic
Vs Moundsview
11-Jan-07 Thu E.R.A. Olympic
Vs Osseo
13-Jan-07 Sat E.R.A. Olympic
Vs Andover
16-Jan-07 Tue E.R.A. The Barn
Junior Varsity Vs Champli n Park
16-Jan-07 Tue E.R.A. Olympic
Varsity Vs Champlin Park
20-Jan-07 Sat E.R.A. Olympic
Vs Maple Grove
25-Jan-07 Thu E.R.A. Olympic
Vs Centennial
27-Jan-07 Sat E.R.A. Olympic
Vs Coon Rapids
10-Feb-07 Sat E.R.A. Olympic
Vs Blaine
15-Feb-07 Thu E.R.A. Olympic
Vs Anoka
Elk River Ice Arena
Elk River High School Girls Games
Vs Andover
OS-Dec-06 Tue E.R.A. Olympic
Vs Centennial
09-Dec-06 Sat E.R.A. Olympic
Vs Maple Grove
16-Dec-06 Sat E.R.A. Olympic
Vs Coon Rapids
21-Dec-06 Thu E.R.A. Olympic
Vs Wayzata
02-Jan-07 Tue E.R.A. Olympic
Vs Saint Cloud Tech
04-Jan-07 Thu E.R.A. Olympic
Vs Blaine
16-Jan-07 Tue E.R.A. The Barn
Junior Varsity Vs Anoka 3:30 / 5:30 pm
16-Jan-07 Tue E.R.A. Olympic
Vs Anoka
18-Jan-07 Thu E.R.A. Olympic
Vs Brainerd
30-Jan-07 Tue E.R.A. Olympic
Vs Park Center
03-Feb-07 Sat E.R.A. Olympic
Vs Champlin Park
All game times are 5:30 Junior Varsity / 7:30 pm Varsity unless noted
Elk River Ice Arena
Rogers Boys Games
OS-Dec-06 Tue E.R.A. The Barn
Vs Saint Michael
08-Dec-06 Fri E.R.A. Olympic
Vs Cambridge
12-Dec-06 Tue E.R.A. Olympic
Vs Tartan
19-Dec-06 Tue E.R.A. Olympic
Vs Princeton
21-Dec-06 Thu E.R.A. The Barn
Vs Monticello Stars
09-Jan-07 Tue E.R.A. The Barn
Vs Hopkins
20-Jan-07 Sat E.R.A. The Barn
Vs Chisago Lakes
27-Jan-07 Sat E.R.A. Olympic
Vs Providence
Varsity Only 3:00 pm
30-Jan-07 Tue E.R.A. The Barn
Vs Becker Big Lake
O1-Feb-07 Thu E.R.A. Olympic
Vs Minnehaha Academy
15-Feb-07 Thu E.R.A. The Barn
Vs Buffalo
Elk River Ice Arena
Rogers Girls Games
11-Nov-06 Sat E.R.A. Olympic
Vs Elk River
14-Nov-06 Tue E.R.A. The Barn
Vs Spring Lake Park
O1-Dec-06 Fri E.R.A. Olympic
Vs Litchfield
07-Dec-06 Thu E.R.A. The Barn
Vs Osseo
14-Dec-06 Thu E.R.A. The Barn
Vs Mound Westonka
16-Dec-06 Sat E.R.A. The Barn
Vs Rocori
22-Dec-06 Fri E.R.A. Olympic
Vs Princeton
11-Jan-07 Thu E.R.A. The Barn
Vs North Wright County
23-Jan-07 Tue E.R.A. The Barn
Vs Orono
27-Jan-07 Sat E.R.A. Olympic 1:OOpm / 3:00 pm
Vs Kasson / Mantorville
02-Feb-07 Fri E.R.A. Olympic
Vs Buffalo Bisons'
All game times are 5:30 Junior Varsity / 7:30 pm Varsity unless noted
~-~-~~.r ~~ ~ ~'~
• 04/05/05 -
o REGULAR SEASON:
o OFF SEASON:
ICE USAGE RATES
$153.00 PRIME
$125.00 NON-PRIME
$125.00 PRIME
$95.00 NON-PRIME
THE SPRING SEASON WILL BEGIN AFTER THE SECOND WEEKEND IN
MARCH.
• 8/03/04 -THE FOLLOWING FEES FOR 2005 FOR USE OF THE
SHOOTING AREA:
o $300.00 PER YEAR TO ALL YOUTH HOCKEY ASSOCIATIONS AND
HIGH SCHOOLS FOR UNLIMITED USE OF THE AREA;
o AND $20.00 PER HOUR FOR OTHER USERS.
IT WAS NOTED THAT ALL USERS WILL NEED TO SCHEDULE THE AREA
WITH THE ARENA SIMILAR TO HOW THEY SCHEDULE ICE TIME.
• 4/01/03 -
2003 - 2004 Ice Rates
The non-prime and summer rates remain the same and the prime rates increase
$10.00 per hour. ERYHA would be an exemption from this rate increase.
o PRIME RATES AT THE BARN AND OLYMPIC RINK AT $145 (A $10
INCREASE)
o NON-PRIME RATES AT THE BARN AND OLYMPIC RINK AT $115 (NO
CHANGE)
o SUMMER RATES AT $120 (NO CHANGE)
o ERYHA PRIME RATE REMAINS AT $135
• 8/OG/02 -
FEES FOR EXCESSIVE ICE DAMAGE INCURRED BY SKATERS AND FOR
E~iCESSIVE GARBAGE AND SPITTING IN LOCKER ROOMS:
1. ANY ICE TIME LOST FOR NECESSARY ICE REPAIRS WILL BE
CHARGED AT THE RATE THE ICE WAS RENTED AT -PLUS-
2. LABOR WILL BE CHARGED AT $20.00/HOUR WITH A 1 HOUR
MINUMUM CHARGE -PLUS-
3. RESURGACING WILL BE CHARGED AT $5.00 PER RESURGACE PER
MACHINE -PLUS-
4. IF OTHER CHARGES ARE INCURRED THEY WILL BE CHARGED
ACCORDING TO THE EXPENSES.
• 4/30/01-
2001-2002 RATE SCHEDULES
REMOVAL OF THE SECONDARY RATE SCHEDULE AND MADE ALL
NON-PRIME AT $115 PER HOUR AND ALL PRIME HOURS AT $135.
ARENA POLICIES
• 04/04/06 - BANNER POLICY: ANY BANNER HUNG IN THE ELK RIVER ICE ARENA
NEEDS TO BE ACCOMPLISHED THROUGH ON-ICE, EARNED RECOGNITION AS A RESULT
OF HEAD TO HEAD COMPETITION DURING LEAGUE, REGION, STATE, NATIONAL,
AND/OR INTERNATIONAL PLAY.
• 08/02/05 - THE OUTSIDE BANNERS ARE TO BE PLACED ON A WALL OUTSIDE THE ICE
ARENA AS DISCUSSED AND FOR KENT MADSEN TO PROCEED WITH HIS EFFORTS ON
OBTAINING PICTURES AND FUNDING FOR THE BANNERS.
• 4/05/05 - TO WITHDRAW THE WEEKDAY HOURS FROM BECKER/BIG LAKE HIGH SCHOOL
AND OFFER THEM TO ELK RIVER YOUTH HOCKEY WITH ELK RIVER YOUTH HOCKEY
HAVING FIRST RIGHT OF REFUSAL FOR THE HOURS AND IF THEY DON'T WANT THEM,
BECKER/BIG LAKE CAN PICK THEM UP.
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Arena's 2007 Summer rates
Andover $130.00 an hour
Brooklyn Park $ 130.00 an hour
Buffalo $ $140.00 an hour
Maple Grove $145.00 an hour
Plymouth $145.00 an hour
Average rate: $138.00 an hour