8. - 11. ICESR 03-14-2009MEMORANDUM
TO: Ice Arena Commission, Members
FROM: Rich Czech, Arena Manager
DATE: April 9, 2009
SUBJECT: Agenda Memo -April 14, 2009
5. 2008 Financial update
Attached for your review is the budget information for the years 2005 - 2009. Tim
Simon, the city's finance director, will be at the meeting to discuss the 2008 final
numbers as well as the current budget and any other questions the Commission may have
regarding future budgets or Capital improvements.
6. Energy Efficiency and Conservation Block Grant
As part of Federal stimulus package plan, the federal government allocated 3.2 billion
dollars nation wide to cities for energy conservation projects. The program is still
evolving and the criteria for grants are still being developed. Since the program is just
emerging, we do not know when we will be informed if any of our submitted projects
will be awarded any funding. If they do consider any of projects for grants, we will
have to provide more detailed information about the project (s).
The Arena (City) has submitted four energy saving projects to the state's energy
saving program. The follow projects were submitted;
1) New boilers for hot water for the Zamboni and the in floor heating
2) Dehumidifier/ heating system for the Arena
3) New Lighting System in Olympic Rink
4) Low emissive ceiling (vapor barrier) in Olympic rink
7. Lighting Replacement for Olympic Rink
Whether we receive a grant from the state to install light fixtures in the Olympic rink,
the project is slated in the 2010 C.I.P. (Capital Improvement Plan). Even with a three
year payback on the project, the project may be delayed if the Local Government
Assist (L.G.A.) from the state is reduced substantially.
8. Renovating the Barn's Roof
In March, we had a structural engineer inspect the supports for the roof of the barn.
We felt that with the roof being over thirty years old and the fact that it has been
leaking for years, the roofs support beams should be inspected for corrosion that may
cause it to fail. Attached for your review are the reports from the structural engineer.
As noted, the beams have mainly surface rust with some areas having more than
others, none of the beams are in need of replacement. According to the structural
engineer, the rust has more to do with the humidity in the building caused by the ice
sheet, than the roof leaking. There are areas of the roof that leak, but there was no
noticeable change in the rust pattern to the roof where the roof was leaking and where
it wasn't. As noted by the structural engineer, further corrosion will result in the load
capacity of the roof to diminish within five to ten years if nothing is done to take care
of the corrosion issue.
When the addition is built to the Arena, the Barn will not be in compliance with
existing codes. To bring the Barn up to current codes it will be expensive and may
not be possible without some major remodeling. City staff discussed this issue and
questioned whether it would be more practical to tear down the outsides walls and
roof and rebuild around the existing rink rather than trying to bring the existing
building up to code and putting an overlay over the existing roof that may fail in five
to ten years.
The $100,000.00 we have slated for a new roof could be used to patch the leaks in the
existing roof, with the remaining amount of the money being used towards the
purchase of a desiccant dehumidifier that would help remove the humidity from the
Barn. The dehumidifier would be sized to expand with the expansion of the Barn
when it is completed. This is one of the projects that we have submitted information
to the Center of Energy Environment for a grant for, so hopefully we get awarded a
grant for the project and the money, after repairing the roof, could be used for other
projects within the city.
9. High School Alumni Hockey Game.
Over the last month a committee has been formed to organize a High School Alumni
Hockey game this summer. The game is schedule to be played Thursday July 23`d at
7:00 p.m. The committee is made up from people in Youth Hockey, Boy's Blue Line
Club, the Girls Booster Club, and the Arena staff. We are soliciting players from the
beginning of the hockey program to either play in the game or just to show up for the
fun. The funds raised by the event will be used for locker rooms for the Boy's and
Girls High School hockey teams.
10. Ice Rates
Last April the Commission raised the ice rates from $165.00 an hour to $170.00 an
hour. Typically the commission has not increased ice rates two years in a row. With
the economy being the way it is and the fact that ice rates were increased last year, I
do not recommend that we increase rates at this time.
There still may be an opportunity to generate extra revenue through ice sales by
selling ice time to the Becker/Big Lake Youth Hockey Association as well as to the
Becker/Big Lake High School Hockey team. Becker/Big Lake Youth Hockey has
been looking for two hours of consistent ice time for their Mite program. The ice
time that would be used would be on weekends somewhere between 9:00 a. m. and
1:00 p.m. The Becker/Big Lake High School Team may be looking for some practice
ice time during the week and to host a few of their games either on weekdays or
weekends. They are currently skating at the Monticello Arena between 10:00 p.m. -
and 10:30 p.m. Between the two Arena's they are hoping to get earlier ice times so
that their players can get home before midnight.
The ice time for their practice could come from the 9:20 p.m. / 9:40 p.m. hours during
the week or from the time slots when either one of the Elk River High School teams
are playing away. Their games would take two hours to play, if we would get five of
their home games (half) it would amount to ten hours of ice time. For these ten hours
of ice we would generate about an additional $600.00 in revenue from contracting the
ice for a high school game rather than selling it per hour and would increase sales in
the concession stand. This may lead to Elk River Youth Hockey using some later ice
during the week when there is an extra game schedule, however I believe the impact
on the Association would be minimum.
11. Zamboni Advertising
We have an advertiser for the second Zamboni, Global Mechanical. We agreed on a
five year contract worth $2,700.00 each year for the advertising on the Zamboni as
well for an ad on the boards. The agreement has the company paying for the
production and the installation of the advertising vinyl, while the cost for the
transportation of the Zamboni to and from the installer of the vinyl will be split by
both parties. The contract will begin in 2010 and will run through 2014.
12. Staff Updates
A. Dry Floor Events
Flip the Switch Concert /Wrestling April 18tH
Elk River Arena Craft and Home Business Show Saturday May 2°d
Jose Cole Circus Monday May 11th
Go Fish "Kids Consignment Sales May 16th and 17th
B. Clinics /leagues /Skating Academy /Annual Ice Show
Attached for your review is a graph outlining the enrollment for the Break Away
Hockey League. The spring session has sustained over 400 participants over the
years, while the fall league has leveled off to about 200 participants. Typically the
fall session participation will be lower due to the fact that in the spring a lot of the
spring sports have not started, while in the fall the fall sports are still in session
resulting in less participation in the fall session.
Attached for your review is a graph outlining the number of participants that
registered in our skating programs over the last few years. As you can see, the
number of participates have not fluctuated a whole lot, which is a very good
considering the state of the economy.
The Annual Skating Show will take place Friday May 15th and Saturday May 16th for
two exciting shows. The number of participation in the show has remained above 80
participants, a little lower than last year. This year's theme is, "Some Enchanted
Evening."
C. Projects and summer repairs.
With budget cuts backs taking place, we will be concentrating more on repairing what we
have rather than installing new items. Two of the compressors will get their top ends
rebuilt (one on each ice plant). The lobby and hallways will receive a new coat of paint
before the start of the regular season. We will be taking out the ice in the Olympic rink,
this is typically done every three to four years to repair the boards and give the ice sheet
new life.
March 3, 2009
Rich Czech
Arena Manager
1000 School Street
Elk River, MN 55330
Re: Elk River Skating Facility -Phase One, Structural Report
Dear Rich,
LINDAU
COMPANIES, INC.
PROFESSIONAL ENGINEERS
1074 OLn Hwv 35
HUDSON, WI 54016
(715) 386-4444 OFFICE
(715)386-1441 FAx
Per your direction we visited the "Barn" ice skating facility on February 25, 2009 to
visually review the condition of the roof structure over the west ice rink in an effort to
locate deteriorated structure for documentation in this report. The scope of our work was
to determine if there is a reason for concern thus dictating a more encompassing
investigation. This report will also note our proposed fee for future involvement in this
investigation.
Upon the completion of the next phase of the project Lindau Companies, Inc. will issue a
final report noting our findings, opinions, and recommendations. It is possible that
construction documents will be required for moving forward with our recommendations.
Our review, observations, and opinions relate solely to the building structure and not to
non-structural items such as architecture, egress, mechanical and plumbing systems, or
environmental considerations. In the case that we note non-structural issues within this
letter it is for the sole purpose of noting the need for the review of these items by a
professional trained in that discipline.
Overview and Conclusion:
Within the "Barn" we located several steel structural members and non-structural steel
that had corroded. Although this corrosion may be classified as "surface rust" with no
scaled or expanded steel being discovered we are concerned that our limited review was
not adequate for determining the extent of the corrosion.
Factors associated with the corroded members suggest that the corrosion is due to
condensation or wind blowing rain through the roof deck at the building peak and not a
leaking roof deck. Condensation was noted on the underside of the galvanized steel roof
deck and water marks on the underside of steel beams.
Additional observations/investigations are recommended as follows:
1) Further examination of the roof, including thermal imaging, by
roofing and building envelope expert for leakage.
2) Review of additional areas exposed for determining the extent of
corroded steel.
3) Testing of dark grey areas as noted in pictures.
Investigation:
The building complex consists of several interconnected structures. Our investigation
was limited to the roof of the pre-engineered metal building making up the west half of
the facility. Building structure in this area appeared to consist of a steel roof supported
by steel roof purlins and girders. Almost the entire roof structure was finished with foam
insulation and a light fibrous material that could be sound insulation, fireproofing or both.
In order to access the steel structure the finishes had to be removed in that area. These
materials should be replaced by you.
Once the finishes were removed the steel could be visually inspected for corrosion.
Observations•
Corrosion of interior roofing members and non-structural items.
Throughout the roof structure areas of corrosion were noted on the roof purlins and
bracing members. Although in some cases no evidence corrosion was noted on the
finishes typically corroded areas were made evident by a discoloration of the finishes
and/or water marks. Because these water marks did not travel long distances and
appeared to dry without significant dripping we believe the presence of water is due to
condensation and not a leaking roof.
Although the areas uncovered were not severely corroded to the point of scaling or
expanding steel the corrosion was severe enough to warrant a better understanding of the
issue. Several areas throughout the roof structure had evidence of moisture being present
at some time and should be examined but due to the limited amount of time budgeted for
this initial investigation our findings are limited.
These pictures are of the roof structure. Please note that the date on these pictures is
incorrect. The date of our investigation was February 25th. Corrosion is the brown
color within the grey color of steel within the area of removed insulation. Insulation is a
variation of light reddish-brown to yellow and the light gray color encompassing most of
the pictures is the fibrous finish. The dark gray area in the right hand picture could be
where the roof is allowing vapor to escape and/or an area where moisture collects. If
vapor is escaping through the insulation condensation may be the result and thus the
cause of the corrosion. Continued exposure to moisture may further the corrosion and
result in the significant deterioration of structure.
Above are more pictures of corroded structural steel. Although not significantly corroded
these purlins may be indicative of steel throughout the roof structure. Continued
exposure to moisture may further the corrosion and result in significantly deteriorated
roof structure.
Above are pictures ofnon-structural electrical conduit. The extent and severity of
corrosion on these non-structural items should be evaluated by a qualified electrician. In
many cases the usefulness of a building is not related solely to the condition of the
structure.
The picture on the left is of the most seriously corroded structural member discovered
and the reason for my recommendation for further investigation. It is a roof purlin near
to where it bears on a roof girder. Although the corrosion had not scaled or expanded the
steel it is severe enough to warrant further investigation. The discoloration on the beam
noted in the picture on the right and pictures below is the only evidence of the corroded
purlin and this evidence is throughout the west half of the building.
Again these pictures show a slight discoloration that could be indicative a corroded
structural steel.
On previous page water marks appear to stop before traveling a significant distance
suggesting that condensation may be the cause.
Above a bracing member displays surface corrosion
Above pictures are of the steel roof girders that support the roof purlins. Corrosion
appears to be limited to the roof purins with no evidence of corroded roof girders being
discovered at the time of our visit.
Corrosion of galvanized steel roof deck
Corroded roof deck was located on the outside of the building roof. An investigation of
the underside of the decking in these areas did not reveal any corrosion. This issue
should be remedied prior to the re-roofing of the facility. Because the corrosion is
primarily limited to complete deck panels these could be replaced with the surrounding
corroded areas being painted with a galvanic paint. Painting of the entire area may also
be an option but more research should be conducted to assure the correct method of
repair is specified.
The above pictures note the extent of corrosion on the roof exterior and some previously
patched roof deck.
Sagging Insulation and Condensation
Mostly found at the south end of the roof structure sagging insulation could be the result
of condensation caused by voids in the vapor retarding system possibly exacerbated by
investigation.
Above are pictures of failed ridge sealant and for lack of a better term a dislodged ridge
dam. This could be the cause of some of the water infiltration. Almost all of the
caulking sealing the ridge dams has failed.
Above pictures show the sagging insulation and an area of finishes removed for our
These pictures show the sagging insulation and condensate on the roof deck.
Condensation can been seen as light colored dots in the shadowed areas of both pictures.
These pictures are of the interface between the finished spaces at the south end of the
building and the roof deck. Both areas are potential voids in the vapor barrier.
Surprisingly no corrosion was noted at the south end of the building where the worst
condensation was discovered. In the picture to the right a darker grey area is again
located in the area of the sagging insulation.
Additional Observations or Investigations
Additional observations/investigations are recommended as follows;
1) Further examination of the roof should be performed by a building
envelope specialist to
A) Further examination of the roof for leakage, possibly during
a steady rain or through spray testing, for determining the
source of the moisture causing corrosion in various areas.
B) Thermal imaging investigation of the roof structure for
locating areas of vapor transmission leaks, and moisture
storage.
2) Review of additional areas exposed for determining the extent of
corroded steel. Lindau Companies, Inc. proposes that we locate the
areas to be exposed by the skating facility staff and we will perform
the review and document our findings.
3) Dark grey areas noted in several pictures should be evaluated by a
materials lab or other specialist for determining its composition.
Contract Literature and Future Scone of Services
This letter is not intended to be used as a final report or included in construction
documents. The next phase of the investigation will result in a final report being issued
noting areas of corroded steel in greater detail. Lindau Companies, Inc can provide you
with this level of service based on the following:
• Steel within areas of concern will be exposed by you, the "Owner" for
review by Lindau Companies, Inc.
• Results of tests and evaluations not performed by Lindau Companies, Inc.
will forwarded to Lindau Companies, Inc. for incorporating in our final
report.
• Design services for non-structural elements such as, weatherproofing,
insulation, climate control, signage, and any other mechanical or
architectural items, as well as any support hardware, hangers, tie-downs,
curbs, etc. associated with these items is not included in Lindau Companies,
Inc. scope of work.
• We anticipate our work will involve one meeting at the job site. Additional
meetings can be scheduled at an hourly rate of $100.00.
• All scheduling is contingent upon cooperation and timely responses by all
parties not under the control of Lindau Companies, Inc.
• Lindau Companies, Inc. will not pursue changes or additions to the scope of
work without your consent, verbal or otherwise. Unless otherwise agreed
changes to the above scope of work will also be billed at an hourly rate of
$100.00. Depending on the circumstances and time constraints, you may not
be provided with documentation prior to Lindau Companies, Inc. pursuing
the changes or additions you have directed.
• As-built drawings, recording existing structure or conditions, are not part of
Lindau Companies, Inc.'s scope of work excepts as deemed necessary by Lindau
Companies, Inc. to convey our findings within our report. Lindau Companies, Inc
can create as-built drawings for an additional fee.
• The Owner will pay for all testing and construction services.
• Based on the evidence obtained during the investigation Lindau Companies, Inc,
will attempt to assess each structural concern and present our findings in our
report. At the Owners discretion Lindau Companies, Inc will prepare another fee
proposal for the creation of construction documents as needed for the repair of
structure.
Our proposed fee for the next phase of the investigation and formal report as noted
above is $2,550.00 and is based on hourly engineering and cad technician rates of
$100.00 and $60.00 per hour respectively. The above work efforts, unless otherwise
noted, will begin upon your acceptance of this proposal with documents being submitted
as soon as possible.
This fee proposal does not include delivery charges associated with mail, messenger or
federal express service, long distance telephone charges, travel expenses, associated
photographic film and development, or copying and printing charges that are incurred as
a result of providing our design service. These expenses will be billed as reimbursables
at our cost.
Please review the scope of work and advise us of any additions, deletions, or
modifications to our work effort. We would be pleased to revise our proposal
accordingly. If this agreement is acceptable, please sign below, and return this document
Lindau Companies, lnc. If you have any questions please feel free to call me.
I hereby certify that this plan, specification, or
report was prepared by me or under my direct
supervision and that I am a duly Licensed
Professional Engineer under the laws of the State
of Minnesota.
Sincerely,
LINDAU COMPANIES, INC.
l/V
William H. Lindau P.E. #24781 3-3-09
ACCEPTED:
Dated: City of Elk River
By
Its
LINDAU
Apri18, 2009
Rich Czech
Arena Manager
1000 School Street
Elk River, MN 55330
COMPANIES, INC.
PROFESSIONAL ENGINEERS
1074 OLn Hwv 35
HunsoN, WI 54016
(715) 386-4444 OFFICE
(715) 386-1441 Fnx
Re: Elk River Skating Facility -Phase One -SECOND VISIT, Structural Report
Dear Rich,
Per your direction we visited the "Barn" ice skating facility a second time in March of
2009 to visually review the condition of the roof structure over the west ice rink in an
effort to locate additional deteriorated structure for documentation in our report. Because
the some of the steel roof structure exposed during our first visit had corroded we
suggested a greater number of areas be exposed before formulating our opinion.
This letter should not be considered the final report but should provide our complete
opinion regarding the condition of the roof steel. As noted after our first visit Lindau
Companies, Inc. will issue a final report noting our findings, opinions, and
recommendations upon the completion of the next phase of the project.
It is our opinion that an adequate number of structural steel members were observed and
thus serve as a representative sample. Many of these structural steel members display
"surface rust" with no scaled or expanded steel being discovered. With this in mind we
believe that, at this time, the structure is still able to perform as it has been since its
construction with no reduction in its load carrying capacity due to corrosion. Although
we cannot predict the future we are concerned however, that if the structural steel purlins
and secondary framing are allowed to corrode further a situation may develop where the
load carrying capacity of individual members is reduced. Unfortunately we cannot
provide a time frame for this reduction without knowing the progression of the corrosion
and developing a historical account. Regardless we believe that in order for the roof
structure to have a twenty or thirty year future life span the corrosion must be addressed.
Without addressing the corrosion issue we believe the load supporting capacity of the
structure could be compromised within five or ten years. This of course is contingent
upon environmental conditions and maintenance.
It is our suggestion that the environment within the "Barn" be controlled and the roof
structure restored if the longer life span is desired. If the longer life span is not needed
we would still suggest that any exposed steel be properly prepped and painted and regular
observations scheduled. Based on our observations corrosion seems to be more evident
in areas where the finishes are thin or missing thus it may be possible to gain significant
time through regular observation and limited maintenance.
Our review, observations, and opinions relate solely to the building structure and not to
non-structural items such as architecture, egress, mechanical and plumbing systems, or
environmental considerations. In the case that we note non-structural issues within this
letter it is for the sole purpose of noting the need for the review of these items by a
professional trained in that discipline. Please refer to the Phase One Report for further
information and contact Lindau Companies, Inc. with any questions
Sincerely,
LINDAU COMPANIES, INC.
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William H. Lindau
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Elk River Ice Arena
Revenue and Expenditure Summary
For the Period Ending December 31, 2008
2009 2008 2008 2007 2006 2005 2004
Budget Budget Actual Actual Actual Actual Actual t
REVENUES
Ice Rental 432,000 420,000 424,106 423,098 410,210 403,503 376,127
Recreation Programs 154,700 139,000. 139,708 154,808 135,471 108,771 106,089
Admissions 33,000 32,500 23,354 30,407 42,556 41,018 47,270
Sign Rental 18,500 18,500 17,293 12,352 15,792 19,664 17,572
Dry Floor Events 15,000 14,000 9,034 10,933 12,002 13,662 12,339
Concession Rent - - - - - 10,750 21,500
Vending 22,000 30,000 17,212 19,151 25,407 29,935 29,370
Skate Sharpening 4,500 4,000. 4,880 4,594 3,916 3,847 3,939
Building Rent 2,600 2,600 2,600 2,600 5,200 - -
Other Mdse Sales/Misc. 2,000 3 000 2 238 t 664 1,996 2,190 3,709
TOTAL 684,300 663,800 840,523 659,607 652,550 633 339 617 914
EXPENDITURES
Personal Service 272,900 279,150 253,447 244,201 233,878 221,771 200,721
Other Operating Expenditures 261,800 265,900 288,189 256,696 236,768 219,338 218,030
Vending Mdse for Resale 13,500 15,500. 7,279 11,983 13,293 12,682 14,852
Other Mdse for Resale 1,200 1,200 1,577 637 139 808 1,101
Recreation Programs 64,600 59,550: 55,132 60,330 51,169 39 370 40 667
TOTAL 614,000 621,300: 585,624 573,847 535 247 493 970 475 371
CONCESSIONS
Sales 73,000 78,000. 86,500 71,934 71,805 27,101 -
Less: Product & Supplies 27,700 30,750 31,544 28,904 28,395 23,749 -
Salaries 22500 22500 24430 19,811 20,907 8,696 -
Net Profit 22,800 24,750 1Q528 23,219 22,503 (5,344)
OPERATING INCOME (LOSS) 93 100 67 050. 65 425 108,979 139,806 134,024 142,542
Capital Outlay 100,000 100,000 100,202 - - 70,290 447,630
Building Debt' 198,500 201,700 201,715 199,410 201,820 198,660 200,215
NET INCOME (LOSS) (205,400) (234,850). (238,492) (90,431) (62,014) (134,925) (505,303)
Other Income
Interest Income - - - - _
Sale of Fixed Assets - - - - - -
Contributions/Rebates - - 7,368 9,519 15,436 1,400 11,000
Admission Surcharge - - - - - 8,384 9,098
Transfers In
Capital Outlay 100,000 100,000 100,202 9,500 - 66,703 -
Eliminate Deficit (General Fund} 105,400 134,850 138,290 79,931 57,514 66,302 39,260
Building Project - - - - - 464,537
Change in Fund Balance 7,368 8,519 10 936 7 863 18 592
4/912009