4.5. SR 10-28-1996r'ity of
iver
ITEM 4.5.a~d
MEMORANDUM
FROM:
DATE:
SUBJECT:
Mayor & City Council
Pat Klaers, City Admir~trator
October 28, 1996 Y~
Ice Arena Issues
Be
Commission Resolution
Attached for your consideration is a resolution identifying the two
dates, times, and locations when the Ice Arena Commission will meet.
The Ice Arena Commission ordinance that the Council adopted on
October 21 stated that the meeting dates, times, and locations would
be established by City Council resolution. It is recommended that the
City Council approve this attached resolution.
Public Representation on the Commission
The Ice Arena Commission ordinance calls for two members from the
general public to sit on the Commission. At this time it is appropriate
for the City Council to authorize the advertisement of this Commission
vacancy. If the city accepts applications until mid to late November,
then the Council should be able to hold interviews and make
appointments to the Commission by the end of November.
City Council Representation on the Commission
The Ice Arena Commission ordinance calls for one City Council
member to sit on the seven member Commission as a voting member.
It is appropriate for the City Council to discuss its representation on
this Commission and to make this appointment.
Project Finances
The city committed to financing $50,000 of the ice arena project with
the understanding that over a short period of time Youth Hockey
would repay the city for this up front investment. While the city
cannot technically loan organizations money, we do have full
confidence that this city investment into the project will be recaptured.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
The internal source of funds for this $50,000 expenditure is
recommended to be the city self-insurance fund. If this money is
needed for self-insurance purposes before the ice arena investment is
recaptured, then staff will present the Council with different options.
In addition to the expenditure noted above, the city also committed
$50,000 toward the ice arena project. This city expenditure was going
to be the last contribution to the project and would only be made if
needed. It is clear at this point that all $50,000 from the city will be
needed. It is recommended that the source of funds for the city
contribution to the project be 50 percent from the city capital projects
reserve and 50 percent from the city equipment/infrastructure reserve
that is undesignated.
The project is on schedule and it is still anticipated that ice skating
will be taking place in the new arena by January 13, 1997...The
weather is trying to cooperate so that the bituminous surface can be
installed at the parking lot, but it is getting close to the end of the
black topping season. We are hoping that the weather will continue to
cooperate as we would all like to have blacktop to drive on this winter
rather than Class 5...The ice arena rink equipment is being installed
in the next two weeks and no major problems have been
identified...The contingency budget for construction changes with this
project is under $90,000. This is less than 3.4 percent of the project.
This is a very small contingency amount and is close to being
exhausted at this time. A lot of the expenditures out of the
contingency budget have been for "value added" items and not true
construction contingency expenses. For example, we have done some
additional parking lot improvements per the request of the School
District, added a third pumper to the ice machine ($6,000), added some
piping in order to facilitate the heating of the arena ($5,600), and
added another row of bleachers ($2,500) to accommodate more
spectators. Things of this nature are not related to construction
contingencies but are value added additions to the project. About 50%
of the contingency fund has been spent on value added items and the
other 50% has been spent on true contingency items. At this point we
are hoping that Youth Hockey will help in financing some of these
value added additions but the city may go slightly over budget in order
to ensure that the facility is complete and is user friendly. It would be
a shame to spend $2.65 million on a project and have people complain
because an extra $20,000 or so was not spent to accommodate the
skaters and viewing public. I will know more about the project
finances and keep the Council updated in the next few weeks.
council\iceiss.doc
RESOLUTION 96-
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION ESTABLISHING THE ICE ARENA COMMISSION
MEETINGS
WHEREAS,
the Elk River City Council has discussed the need to
estabhsh an advisory committee related to the operation
and management of the Elk River Ice Arena facihties; and
WHEREAS,
the Elk River City Council has adopted Ordinance 96-
which calls for the creation of the Elk River Ice Arena
Commission; and
WHEREAS,
the meeting section of this ordinance calls for the City
Council to estabhsh by resolution the two meeting dates,
times and locations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Elk River that the Elk River Ice Arena Commission shall
meet on the first Tuesday of April, 6:00 p.m. at City
Hall and the first Tuesday of August, 6:00 p.m. at
City Hall, with additional meetings being held at the
call of the Chair or at the request of two other
Commissioners.
Passed and adopted by the Elk River City Council on
,1996.
ATTEST:
Henry A. Duitsman, Mayor
Sandra A. Thackeray, City Clerk
s:XdocumentXresoluti\96 -icemt.doc