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2017-03-13 STMA Ice Arena Board Packet STMA STMA ARENA BOARDAGENDA MONDAY,MARCH 13, 2017 ALBERTVILLE CITY HALL 6:00PM 1.CALL TO ORDER –ROLL CALL 2.ADOPT AGENDA 3.APPROVAL OF THE MINUTES OF FEBRUARY 13,2017 (pgs.1-2) 4.FINANCE REPORTS a)Approve the Februarylist of claims as presented in the amount of $17,763.14and Februaryreport (pgs.3-6) 5.ARENA MANAGER a)Monthlyreport(pg.7) 6.OLD BUSINESS a)Draft Preliminary 2017 Budget (pg.8) 7.NEW BUSINESS 8.YOUTH HOCKEY ASSOCIATION 9.ADJOURN M:\\Public Data\\Arena\\2017 STMA Ice Arena\\2017 Ice Arena Agendas\\2017-03-13\\031317 STMA Agenda.doc ST. MICHAEL-ALBERTVILLE ICE ARENA BOARD MINUTES February 13, 2017 6:00 p.m. Present: Chairman Walter Hudson and members Kari Dwinnell, John Vetsch, Jeff Lindquist, Kevin Kasel and Keith Wettschreck. Also present: City Administrator Adam Nafstad,City Finance Director Tina Lannes, Arena Manager Grant Fitch, and St. Michael City Administrator Steve Bot. The meeting was called to order at 6:00 p.m. by Chairman Walter Hudson. Set Agenda moved Members Vetsch/Lindquist to set the agenda as presented. All voted aye. Approval of Minutes moved MembersKasel/Wettschreck to approve the minutes of the January 9, 2017 Board Meeting as presented. All voted aye. Vetsch abstained. Finance Reports moved Members Lindquist/Kasel to approve the Januarylist of claims totaling $43,224.02 and the January Financial Report as presented. All voted aye. Arena Manager’s Report Fitch reported on ice rates around the area of other rinks for informational purposes in preparations of budget discussions. In addition they discussed hour’srented verses hours available and the difference between the rates. Fitch updated the Board regarding the possibility of allowing lacrosse to place turf in the arena during the spring/summer months, but as of now there will not be turf available for spring lacrosse they are going to keep it in Delano. Homegrown still wants to rent the hours even without the turf. New Business The board discussed the possible items to consider with the referendum passing for the second sheet of ice. Member Kasel wants the Board to consider how we keep the original sheet of ice fundedfor capital moving forward and believes deprecation of the original rink needs to be covered. In addition Kasel mentioned that future budgets may need to include separate rental rates for each sheet and consideration of how the revenues are split to keep funding future capital needs of the original sheet because it is a long term asset and it needs to be kept and maintained. Lindquist agreed and brought into the discussion the partnership of the three entities. In addition Lindquist brought up that the operations agreement will change and discussion should be starting and mentioned that the School along with the two cities has been having discussions on the topic. Nafstad updated the Board on recent staff discussions and informed the Board that the School District is taking the lead on a draft operations agreement for the entities to consider. The Board had general discussion on different options for operations with the second sheet. The consensus of the Arena Board was to have staff from all three entities work together on a draft agreement. Lannes went over the first draft 2017 budget and pointed out that revenues were higher than expected for 2016 and the expenses for gas and electric were lower than expected. The draft budget presented with no increase in rates and a decrease in electric and gas. The budget is very similar to 2016 and staff is just looking for direction from the Board for future discussion and adoption. Lannes stated no action was required at this time. Chairman Hudson asked if there would be any impact from the secondsheet for the 2017 budget. Lannes stated that if the staff at the arena needed to be increase before 2018 due to the second sheet there would need to be an amendment to the 2017 budget and STMA Arena Board Mtg 03/13/17 Page 1 STMA Ice Arena February 13, 2017Minutes Page 2 funding would need to be addressed. Chairman Hudson asked about heating and utility expenses during construction of the new building. Nafstad stated that was a good question and he believed the contractor would be responsible for those costs. Member Wettschreck asked when the Board reviews the capital improvements budget. Lannes explained for the past few years each entity contributes $15,000 annually for capital. Nafstad stated that there is a draft plan for capital replacement but there are no replacement years noted for the items. He continued that we had a few unexpected capital improvements that depleted the fund and that the dedicated capital fund needs to be built up to a certain point before we can identify a capital improvement plan. Member Kasel inquired whether there is sufficient fund balance to cash flow operations through the summer. Nafstad stated no that the City of Albertville has temporarily funded any deficits. Lannes mentioned that after the audit if there isan excess cash balance available beyond covering annual operations,a recommendation to transfer those to capital will be brought forward to the board. Lannes presented the tort liability coverage options to the Board mentioning in the past the Board has waived the monetary limits and is recommended to do so by the insurance agent. The cost to waive the limits is about $850. The Board discussed the difference between waiving or not waiving the limits. moved Members Lindquist/Kasel to waive the monetary limits on tort liability to the extent of the limits of the liability coverage obtained from LMCIT. All voted aye. Nafstad reminded the Board that the award of the Mighty Ducks Grant is still intact and the Board needs to enter into the agreement. The agreement is currently at MASC and is being amended slightly from the last draft seen by the Board. Since the changes are minor such as completion date and Nafstad asked the Board to authorize the Chair, Walter Hudson, to execute the agreement. Chairman Hudson asked the new members if they have any questions about the grant. Kasel would like review the agreement to see the conditions of the grant before it is executed, member Wettschreck agreed. Nafstad stated he could circulate the revised agreement to the Board for any questions or comments before Chairman Hudson signs. moved Members Kasel/Lindquist to direct Arena Board Chair, Walter Hudson, the authority to execute the Mighty Ducks Grant Agreement upon adequate time for members to review and submit comment. All voted aye. Adjourn moved Members Lindquist/Kasel to adjourn at approximately 7:04 p.m. All voted aye. Attest: __________________________________ Tina L. Lannes, City Finance Director STMA Arena Board Mtg 03/13/17 Page 2 Cash Basis STMA Ice Arena Preliminary Budget to Actual February2017 () 2017 prelim February 2017 2017 prelim budget to 2017 Actual YTD % budgetdateActual02/28/17Annual Income Ice Rental$277,100.00 $99,756.00 $46,586.25 $122,826.25 44.33% Concessions$35,000.00 $17,500.00 $9,378.00 $17,508.75 50.03% Other Revenues (Advertising/LMC/Ins Claims)$12,100.00 $0.00 $0.00 $3,062.00 25.31% Vending$1,000.00 $166.67 $551.60 $650.10 65.01% Open Skate/Hockey, etc.$5,000.00 $1,000.00 $443.00 $698.00 13.96% Interest$1,000.00 $0.00 $0.00 $0.00 0.00% Misc. Revenue$1,600.00 $320.00 $60.00 $262.50 Total Income$332,800.00 $118,742.67 $57,018.85 $145,007.60 43.57% Expenses Salaries, Wages, Taxes & Benefits$126,327.50 $21,054.59 $14,251.80 $26,415.23 20.91% Supplies (Office, Misc.)$1,850.00 $308.33 $178.32 $178.32 9.64% Supplies (Concession)$15,000.00 $4,840.50 $2,841.73$3,305.56 22.04% Fuel, Misc.$1,800.00 $300.00 $255.42 $255.42 14.19% Professional Services$15,000.00 $2,500.00 $1,699.54 $2,190.26 14.60% Sales Tax$4,000.00 $1,033.33 $1,179.25 $1,179.25 29.48% Telephone$1,000.00 $166.67 $101.30 $319.79 31.98% Electric$60,000.00 $7,200.00 $5,861.42 $5,889.37 9.82% Gas$15,000.00 $3,450.00 $2,881.05 $2,881.05 19.21% Water$20,000.00 $6,800.00 $2,875.77 $6,596.02 32.98% Refuse$2,400.00 $4,000.00 $424.60 $424.60 17.69% Insurance$9,000.00 $1,980.00 $0.00 $2,103.00 23.37% Administration$12,646.50 $2,107.75 $1,053.38 $2,106.76 16.66% Misc.$2,285.00 $410.00 $200.00 $1,640.00 71.77% Repair Maintenance –Machinery$10,000.00 $1,666.67 $0.00 $36.00 0.36% Repair Maintenance –Building$27,500.00 $4,583.33 $2,274.13 $2,274.13 8.27% Total Operating Expenses$323,809.00 $62,401.17 $36,077.71 $57,794.76 17.85% Net Income/Loss$8,991.00 $56,341.50 $20,941.14 $87,212.84 STMA Arena Board Mtg 03/13/17 Page 3 STMAICE ARENA CASH BALANCES AND RECEIVABLES February 28, 2017 Cash Balance Operations Cash Balance Operations 1/1/17$113,155 Add Revenues (collected in 2017)$145,008 Less Expenses$57,795 Cash Balance Operations 2/28/17$ 200,368 Accounts Receivable (invoiced) Operations February 28, 2017 - $487.50 Cash Balance Dedicated Capital Improvement Fund Arena Owner Dedicated Cap. Imp. Fund Beginning Balance 1/1/17$163,578 Bleachers-$14,006 Balance 2/28/17$149,572 STMA Arena Board Mtg 03/13/17 Page 4 STMA Ice Arena Vendor Check Detail Register February 2017 Check AmtInvoiceComment 10100 Premier Bank Paid Chk# 005146E2/6/2017ABDO, EICK & MEYERS LLP E 810-00000-301 Auditing and Acctg Services$1,221.43376675Pro Audit/Acctg Services Paid Chk# 005148E2/6/2017BUSINESS ESSENTIALS E 810-00000-200 Office Supplies (GENERAL)$47.70OE-436694-1STMA Arena Can Liners E 810-00000-200 Office Supplies (GENERAL)$130.62OE-439850-1STMA Arena Hand Soap Paid Chk# 005150E2/6/2017DAN DEHMER LANDSCAPING INC E 810-00000-300 Professional Srvs (GENERAL)$310.006646STMA Arena Jan 2017 Snowplow Paid Chk# 005162E2/6/2017RANDYS ENVIRONMENTAL SERVICES E 810-00000-384 Refuse/Garbage Disposal$424.60ARENA FEB STMA Arena Garbage Paid Chk# 005166E2/6/2017WATSON COMPANY E 810-00000-252 Food/Concessions For Resale$257.10872626STMA Arena Concessions E 810-00000-252 Food/Concessions For Resale$201.90872919STMA Arena Concessions E 810-00000-252 Food/Concessions For Resale$834.35873045STMA Arena Concessions Paid Chk# 005169E2/8/2017WRIGHT-HENNEPIN COOP ELECTRIC E 810-00000-381 Electric Utilities$27.95ARENA STMA Arena Fire Panel Monitor March 17 Paid Chk# 005170E2/21/2017ATHLETICA SPORTS SYSTEMS E 810-00000-405 Repair/Maint - Buildings$303.00406031STMA Arena Acrylic Paid Chk# 005178E2/21/2017FERRELLGAS E 810-00000-212 Motor Fuels$73.071094573751STMA Arena Propane E 810-00000-212 Motor Fuels$80.891094816106STMA Arena Propane E 810-00000-212 Motor Fuels$101.461095039926STMA Arena Propane Paid Chk# 005186E2/21/2017WATSON COMPANY E 810-00000-252 Food/Concessions For Resale$421.46873286STMA Arena Concessions E 810-00000-252 Food/Concessions For Resale$316.56873513STMA Arena Concessions Paid Chk# 036395 2/6/2017ARAMARK UNIFORM SERVICES E 810-00000-405 Repair/Maint - Buildings$16.001718624215STMA Arena Mat, Mop, Laundry Bag Paid Chk# 036397 2/6/2017ATHLETICA SPORTS SYSTEMS E 810-00000-405 Repair/Maint - Buildings$750.00406028STMA Arena Glass Paid Chk# 036400 2/6/2017CARD SERVICES(ARENA) E 810-00000-252 Food/Concessions For Resale$11.9210516STMA Arena Concessions E 810-00000-252 Food/Concessions For Resale$11.9211408STMA Arena Concessions E 810-00000-252 Food/Concessions For Resale$14.9012810STMA Arena Concessions Paid Chk# 036403 2/6/2017CULLIGAN E 810-00000-405 Repair/Maint - Buildings$20.00101X29770503STMA Arena DI Carbon Tank Rental Paid Chk# 036410 2/6/2017GREAT LAKES COCA-COLA DISTRIB E 810-00000-254 Soft Drinks/Mix For Resale$609.333605201838STMA Arena Concessions STMA Arena Board Mtg 03/13/17 Page 5 February 2017 Check AmtInvoiceComment Paid Chk#0364152/6/2017METLIFE-GROUP BENEFITS E 810-00000-130 Employer Paid Ins (GENERAL)$185.73FEB 2017Emp Life, Dental, Stdis, Vision Paid Chk# 036422 2/6/2017SCR, INC - ST. CLOUD E 810-00000-405 Repair/Maint - Buildings$660.00C000581STMA Arena Refrigeration Maint Contract Paid Chk# 036429 2/8/2017BCBS OF MINNESOTA E 810-00000-130 Employer Paid Ins (GENERAL)$1,074.00170202316554Emp Health Ins CI261-10-0 Paid Chk# 036430 2/8/2017CENTERPOINT ENERGY E 810-00000-383 Gas Utilities$2,881.05ARENA JAN17STMA Arena 5898 Lachman Ave NE Paid Chk# 036432 2/8/2017CHARTER COMMUNICATIONS E 810-00000-321 Telephone$31.62ARENA FEB17STMA Arena Cable TV Paid Chk# 036437 2/15/2017CHARTER COMMUNICATIONS E 810-00000-321 Telephone$69.68ARENA FEB STMA Arena Telephone Paid Chk# 036440 2/21/2017ARAMARK UNIFORM SERVICES E 810-00000-405 Repair/Maint - Buildings$16.001718633253STMA Arena Mats, Mop, Laundry Bag Paid Chk# 036450 2/21/2017GREAT LAKES COCA-COLA DISTRIB E 810-00000-254 Soft Drinks/Mix For Resale$91.383605202059STMA Arena Concessions E 810-00000-254 Soft Drinks/Mix For Resale$60.923605202135STMA Arena Concessions Paid Chk# 036456 2/21/2017MECHANICAL ENERGY SYSTEMS E 810-00000-405 Repair/Maint - Buildings$473.13S22108STMA Arena Hang LED Light Paid Chk# 036457 2/21/2017MINNESOTA ICE ARENA MGRS ASSOC E 810-00000-433 Dues and Subscriptions$200.00INV 416STMA Arena 2017 Membership Dues Paid Chk# 036478 2/22/2017XCEL ENERGY E 810-00000-381 Electric Utilities$5,833.47658517348STMA Arena 5898 Lachman Ave 810 STMA ARENA $17,763.14 STMA Arena Board Mtg 03/13/17 Page 6 MANAGER’ GENERAL UPDATE th Date: March 13, 2017 To: STMA Arena Board From: Grant Fitch, STMA Arena Manager ARH–F RENA ENTAL OURS EBRUARY NamePrime-time Youth Hockey 154.25 hours Adult Hockey 0 hours High School Boys/Girls 55.25 hours Public Skating/OH 18.25 hours Private rentals 0 hours Learn toSkate 0 hours Total hours 227.75 hours Hours Feb 2016 198.25 hours Spring Maintenance: Building Clean up: Rink floor and bleachers, etc. Touch up Painting: Locker rooms, players boxes, lobby, corridor and bathrooms Scheduling 2017/18 Ice Time Rink Board cleaning: puck marks on boards and Ad panels Rink Glass Cleaning: Interior and exterior Machine maintenance Snow pit clean and repair Paint / repair: 1 set of hockey nets Bleacher repair Rubber matting Concession flooring Repair east and west end protective netting Zamboni door repair Replace 4 pieces of tempered glass Repair lobby area concrete Operations: No major repairs at this time. Mn Dept of Health Indoor Ice Arena Inspection: Air logs reported and levels checked 3 times a week. Inspection passed February 2017 Ice out: March 13, 2017 STMA Arena Board Mtg 03/13/17 Page 7 cange %h 2016 Budget to 2016 Actual 2017 Prelim from 2016 Date12/31/16Budget 02/17to 2017 Income 1.99% Ice Rental$271,700.00$287,492.50$277,100.00 0.00% Concessions$35,000.00$35,214.25$35,000.00 -16.55% Other Revenues (Advertising/LMC/Ins Claims)$14,500.00$12,100.00$12,100.00 0.00% Vending$1,000.00$1,077.25$1,000.00 -23.08% Open Skate/Hockey, etc.$6,500.00$4,729.50$5,000.00 0.00% Interest$1,000.00$0.00$1,000.00 -20.00% Misc. Revenue$2,000.00$1,586.00$1,600.00 Total Income0.33% $331,700.00$342,199.50$332,800.00 Expenses 5.26% Salaries, Wages, Taxes & Benefits$120,018.04$120,638.57$126,327.50 15.63% Supplies (Office, Misc.)$1,600.00$1,836.58$1,850.00 8.70% Supplies (Concession)$13,800.00$15,036.27$15,000.00 0.00% Fuel, Misc.$1,800.00$1,348.27$1,800.00 0.00% Professional Services$15,000.00$14,818.36$15,000.00 48.15% Sales Tax$2,700.00$4,069.47$4,000.00 11.11% Telephone$900.00$958.71$1,000.00 -10.18% Electric$66,800.00$52,969.17$60,000.00 -40.00% Gas$25,000.00$12,847.26$15,000.00 0.00% Water$20,000.00$18,286.75$20,000.00 0.00% Refuse$2,400.00$2,390.53$2,400.00 -5.95% Insurance$9,569.73$8,122.62$9,000.00 3.00% Administration$12,278.23$12,278.23$12,646.50 4.58% Misc.$2,185.00$2,235.09$2,285.00 0.00% Repair Maintenance – Machinery$10,000.00$2,872.68$10,000.00 0.00% Repair Maintenance – Building$27,500.00$22,944.51$27,500.00 Total Operating Expenses$331,701.00$293,653.07$323,809.00-2.38% Net Income/Loss($1.00)$48,546.43$8,991.00 data$/Public Data / Finance / Budget/2017 budget Arena 0217.xls STMA Arena Board Mtg 03/13/17 Page 8