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2018-02-12 STMA Arena Agenda Packet STMA STMA ARENA BOARDAGENDA MONDAY,FEBRUARY 12, 2018 ALBERTVILLE CITY HALL 6:00PM 1.CALL TO ORDER –ROLL CALL 2.ADOPT AGENDA 3.APPROVAL OF THE MINUTES OF JANUARY 8, 2018 (pgs.1-2) 4.FINANCE REPORTS a)Approve the Januarylist of claims as presented in the amount of$5,842.04and Januaryreport (pgs.3-5) 5.ARENA MANAGER a)Monthlyreport(pg.6) b)Resurfacer Purchase (pg.7) 6.OLD BUSINESS 7.NEW BUSINESS a)Tort Liability Waiver(pgs. 8-9) b)2018 Preliminary Budget (Discussion)(pg. 10) 8.YOUTH HOCKEY ASSOCIATION 9.ADJOURN P:\\Arena\\2018 STMA Ice Arena\\2018 Ice Arena Agendas\\2018-02-12\\021218 STMA Agenda.doc ST. MICHAEL-ALBERTVILLE ICE ARENA BOARD MINUTES JANUARY 8, 2018 6:00 p.m. Present: Chairman Walter Hudson and members Kari Dwinnell, Jeff Lindquist, Keith Wettschreck, Kevin Kasel, John Vetsch, Gayle Weber and Jeff Lindquist. Also present: City Administrator Adam Nafstad, STMA Arena Manager Grant Fitch and Josh Opiola from STMA Youth Hockey Association. The meeting was called to order at 6:00 p.m. by Chairman Walter Hudson. Set Agenda Prior to setting the agenda Chairman Hudson asked if they board needed to select a new chairman or if it was every two years. Nafstad mentioned, if the board was still comfortable with the practice, it has been every two years. moved Members Weber/Wettschreck to set the agenda as presented. All voted aye. Approval of Minutes moved Members Dwinnell/Kasel to approve the minutes of the December 11, 2017 Board Meeting as presented. Members Vetsch and Weber abstained. All voted aye. Finance Reports Prior to the meeting Member Wettschreck emailed some questions about the packet information. The following are the questions that member Wettschreck submitted as well as the responses from Nafstad in Lannes’s absence. 1.DEC 17 Ice Rentals Actuals are listed as 0.00. When will we know that? No ice rental fees were collected as of 12/31/17 for December. November was billed on th December 4 that is the receivables amount in the packet; we have not seen payment yet but should in the next week. December ice time is billed in January. Ice time is billed a month after use. 2.What caused Salaries, Wages, Taxes and Benefits to be over by 5.52% ($6968.28) for 2017? Salaries and wages are over for 2017 for the part-time staff. We estimated the amount of help needed, but more hours were used by part-time staff than projected. 3.What caused Professional Services to be over by 57.68% ($8,651.48) for 2017? The $8,600.48 over in professional services included $4,000 in legal for joint powers agreement. Then there is $2,300 in ice painting and $2,500 in scraper and knives. Nafstad mentioned the final year end will be presented with the annual audit and should close out the year under budget for expenses. moved Members Vetsch/Wettschreck to approve the December list of claims totaling $19,739.72 and the December Financial Report as presented. All voted aye. STMA Arena Board Mtg 02/12/18 Page 1 STMA Ice Arena January 8, 2018 Minutes Page 2 Arena Manager’s Report Fitch reported on the resurfacer he is still getting quotes and should have them for the board for approval next meeting and would receive the resurfacer by November which will work. Nafstad mentioned they are looking at both Zamboni and Olympia brand resurfacers, but with either brand staff recommends an electric machine to get away from the potential air quality issues. There was discussion on the differences in the machines and also the difference in electric verses propane. Fitch summarized the monthly hours and the hours over holiday break. moved Members Vetsch/Wettschreck to approve the December Arena Managers report. All voted aye. Old Business Nafstad address the additional questions emailed by Member Wettschreck. Regarding Arena Board Documents -the documents are on the City of Albertville Website under Ice Arena. It is current through 2016, but staff will make sure all items are up to date through 2017. As far as the agreements they have not been on the website in the past, but would add additional public documents as needed. The current advertising agreement was handed out to the board as it would not be put online. The current agreement will be discussed with the second sheet of ice. Nafstad also passed out a draft CIP to the board for replacement planning. There was a short discussion on the items on the plan. There was discussion on new demands on ice for when the second sheet is running and keeping ice in both sheets year round. Some of the items brought up were curling, sled hockey and . broomball. We are looking into possibilities for additional ice rentals, stated Nafstad Youth Hockey Association Opiola updated the board and there really is not an update since December is more of a quite time for them. Currently the number once question is status on the new rink and any updates. Member Lindquist mentioned that the School District’s website has good information on the second sheet. Opiola mentioned there will be additional teams added next year. Kasel on behalf of the board welcomed Member Weber back. Adjourn moved Members Kasel/Wettschreck to adjourn at approximately 6:27 p.m. All voted aye. Attest: _________________________________ Tina L. Lannes, City Finance Director STMA Arena Board Mtg 02/12/18 Page 2 Cash Basis STMA Ice ArenaBudget to Actual December2018 () Prelim 2018 2018 Actual 2018 YTD Annual January YTD % of Budget2018 Actual01/31/18Budget Income Ice Rental$413,896.25 $0.00 $0.00 0.00% Concessions$36,857.15 $8,498.00 $8,498.00 23.06% Other Revenues (Advertising/LMC/Ins Claims)$13,000.00 $0.00 $0.00 0.00% Vending$1,100.00 $440.00 $440.00 40.00% Open Skate/Hockey, etc.$5,000.00 $185.00 $185.00 3.70% Interest$1,000.00 $0.00 $0.00 0.00% Misc. Revenue$1,600.00 $116.00 $116.00 Total Income1.96% $472,453.40 $9,239.00 $9,239.00 Expenses Salaries, Wages, Taxes & Benefits$238,932.91 $14,320.68 $14,320.68 5.99% Supplies (Office, Misc.)$1,500.00 $0.00 $0.00 0.00% Supplies (Concession)$15,400.00 $483.20 $483.20 3.14% Fuel, Misc.$1,800.00 $0.00 $0.00 0.00% Professional Services$26,000.00 $1,000.71 $1,000.71 3.85% Sales Tax$2,500.00 $0.00$0.00 0.00% Telephone$1,500.00 $106.05 $106.05 7.07% Electric$75,000.00 $27.95 $27.95 0.04% Gas$20,000.00 $0.00 $0.00 0.00% Water$25,000.00 $3,401.93 $3,401.93 13.61% Refuse$3,000.00 $498.45 $498.45 16.62% Insurance$12,000.00 $2,254.00 $2,254.00 18.78% Administration$14,625.00 $1,218.75 $1,218.75 8.33% Misc.$2,585.00 $0.00 $0.00 0.00% Repair Maintenance –Machinery$11,000.00 $0.00 $0.00 0.00% Repair Maintenance– Building$30,000.00 $32.18 $32.18 0.11% Total Operating Expenses$481,942.91 $23,343.90 $23,343.90 4.84% Net Income/Loss($9,489.51)($14,104.90)($14,104.90) STMA Arena Board Mtg 02/12/18 Page 3 STMAICE ARENA CASH BALANCES AND RECEIVABLES January 31, 2018 Cash Balance Operations Cash Balance Operations 1/1/18$165,461 Add Revenues (collected in 2018)$ 9,239 Less Expenses$ 23,344 Est. Cash Balance Operations 1/31/18$151,356 Accounts Receivable (invoiced) Operations January 31, 2018 - $58,350.00 Cash Balance Dedicated Capital Improvement Fund Arena Owner Dedicated Cap. Imp. Fund Beginning Balance 1/1/18$156,018 Balance 1/31/18$156,018 STMA Arena Board Mtg 02/12/18 Page 4 STMA Ice Arena Vendor Check Detail Register January 2018 Check AmtInvoiceComment Paid Chk# 006012E1/10/2018RANDYS ENVIRONMENTAL SERVICES E 810-00000-384 Refuse/Garbage Disposal$498.45ARENA JAN 18STMA Arena Garbage Paid Chk# 006013E1/10/2018WRIGHT-HENNEPIN COOP ELECTRIC E 810-00000-381 Electric Utilities$27.95ARENA FEB STMA Arena Fire Panel Monitor Feb 18 Paid Chk# 006014E1/16/2018ABDO, EICK & MEYERS, LLP E 810-00000-301 Auditing and Acctg Services$660.00393172Prof Audit/Acctg Services Paid Chk# 006019E1/16/2018WATSON COMPANY E 810-00000-252 Food/Concessions For Resale$483.20884069STMA Arena Concessions Paid Chk# 037380 1/10/2018BCBS OF MINNESOTA E 810-00000-130 Employer Paid Ins (GENERAL)$1,439.5018012093511Emp Health Ins Paid Chk# 0373831/10/2018CHARTER COMMUNICATIONS E 810-00000-321 Telephone$31.80131538122417STMA Arena Cable TV Paid Chk# 037409 1/16/2018ARAMARK UNIFORM SERVICES E 810-00000-405 Repair/Maint - Buildings$16.001718839778STMA Arena Mats, Mop, Laundry Bag Paid Chk# 037410 1/16/2018BANYON DATA SYSTEMS E 810-00000-300 Professional Srvs (GENERAL)$340.71156826UB, Fund, & Payroll Support Paid Chk# 037412 1/16/2018CULLIGAN E 810-00000-405 Repair/Maint - Buildings($63.82)101X30482007STMA Arena Deionization Rental E 810-00000-405 Repair/Maint - Buildings$20.00101X30583309STMA Arena Carbon Tanks Oct 17 E 810-00000-405 Repair/Maint - Buildings$20.00101X30685807STMA Arena Carbon Tanks Nov 17 E 810-00000-405 Repair/Maint - Buildings$20.00101X30785706STMA Arena Carbon Tanks Dec 17 E 810-00000-405 Repair/Maint - Buildings$20.00101X30884004STMA Arena Carbon Tanks Jan18 Paid Chk# 037444 1/18/2018CHARTER COMMUNICATIONS E 810-00000-321 Telephone$74.25131702010218STMA Arena Phone Paid Chk# 037445 1/18/2018LEAGUE OF MN CITIES INS TRUST E 810-00000-150 Workers Comp (GENERAL)$2,254.0040001973-2018STMA Arena Workers Comp Ins 810 STMA ARENA$5,842.04 STMA Arena Board Mtg 02/12/18 Page 5 MANAGER’ GENERAL UPDATE th Date: February 12, 2018 To: STMA Arena Board From: Grant Fitch, STMA Arena Manager ARH–J RENA ENTAL OURS ANUARY NamePrime-timeOff-peak Youth Hockey 183.75 hours Adult Hockey 0 hours High School Boys/Girls 69 hours Public Skating/OH 4 hours Private rentals 0 hours Learn toSkate 0 hours Total hours 256.75 hours Hours Jan 2017 241.75 hours Operations: We are reviewing costs and options to replace the netting over the boards and replace the glass at each end of the rink with taller glass. Ice Rates: For the Board’s use, tabulated below is a summary of current and past rates for local arenas. It should be noted most of the arenas surveyedalso offer a spring/summer rate averaging $155/hr. Rates for the 2018-19 season will be set with the 2018/19 Budget. Ice Rates 2018-19 Season 2017-18 Season 2016-17 Season Rogers A=$200/B=$150 A=$195/B=$150 A=$195/B=$145 Monticello A=$200/B=$150 A=$195/B=$150 A=$190/B=$145 Buffalo A=$199/B=$155 A=$197/B=$155A=$195/B=$150 Elk River A=$200/B=$150 A=$195/B=$145 A=$190/B=$145 Waconia A=$220/B$135 A=$215/B=$130A=$205/B=$130 Delano A=$210/B=$180 A=$205/B=$175A=$200/$175 Orono A=$225/B=$170 A=$220/$165 A=$220/B=$165 Maple Grove A=$205/B=$170 A=$200/B=$165 A=$195/B=$160 Plymouth A=$215/B=$180 A=$210A=$210 Sartell A=$190/B=$180 A=$185/B$175 A=$170 St Cloud MAC A=$175 A=$175/B=$170 A=$170/B=$160 Minnetonka A=$215 A=$210 A=$200 Princeton A=$210 A=$205 A=$200 Champlin A=$210 A=$205 A=$200 St Cloud NHC A=$180/B=$170 A=$175/B=$165 A=$160/B=$150 Blain Super Rink A=$205/B=$155A=$205/$155 A=$200/$150 STMA A=$195/B=$175 A=$195/B=$175 A=$195/B=$175 STMA Arena Board Mtg 02/12/18 Page 6 Purchase of New Ice Resurfacer Date: February 7, 2018 To: STMA Arena Board From: Adam Nafstad Staff has researched new ice resurfacers and would like to discuss the various options with the Board at the meeting. The two brands reviewed are the Zamboni and Olympia. The manufactures of both offer LPG and electric models. It should be noted LPG models cost considerably less; however, only the electric models are being considered given the air quality issues and testing requirements associated with the gas models. The Arena’sexisting resurfacer is a 2002 LPG Olympia. This machine has generally been very dependable and problem free. It is planned that this machine will be replaced in the next 3 to 5 years, if not sooner due to indoor air quality requirements. Purchase Options to Discuss: Olympia model Millennium-E (with stainless upgrades) Total Price = $174,595 Warranty: 2 years and includes parts, labor, travel. 5 years on batteries and 25 years on chassis. Includes and electric ice edger ($6,000 value) Planned 20 year Service Life Olympia model Millennium-E Total Price = $154,610 Warranty: 2 years and includes parts, labor, travel. 5 years on batteries Planned 15 year Service Life Zamboni model 552AC Total Price = $148,085 Warranty: 2 years parts only Planned 15 year Service Life All above options represent top quality machines. Zamboni is believed to be the more popular of the two manufactures in Minnesota; however, Olympia is the staff recommended purchase, as it is preferred tohave both resurfacersbe the same brand (training, service, interchangeable parts, etc.). The resurfacer is a planned purchase. TheArena Boardhas sufficient capital funds designated for this purchase. STMA Arena Board Mtg 02/12/18 Page 7 Tort Liability Insurance Renewal Date: February 7, 2018 To: STMA Arena Board From: Tina Lannes, Finance Director Attached is the waiver form for review. The board can take action on one of the options listed below. 1.Motion to waive the monetary limits on tort liability to the extent of the limits of the liability coverage obtained from LMCIT. 2.Motion to NOT waive the monetary limits on tort liability The STMA Arena Board has in past years waived our monetary limits on tort liability and purchased additional coverage up to the $2,000,000 per occurrence and in aggregate. The League of Minnesota Cities Insurance Trust (LMCIT) requires and the SECTION I: LIABILITY COVERAGE WAIVER FORM states that membersobtaining liability coverage from the League of Minnesota Cities Insurance Trust must decide whether or not to waive the statutory tort limits to the extent of the coverage purchased. This decision must be made by the governing board. Entities purchasing coverage must complete and return this form to LMCIT before the effective date of the coverage. The STMA Arena Boardmust make a decision to waive or not waive the statutory limits prior to the March 1, 2018 expiration/renewal date per LMCIT requirements in order for coverage to continue beyond that date. Upon submission of this "signed and dated" Waiver Form, the LMCIT will issue an Extension of Coverage Binder effective with a 03/10/18 effective date. It usually takes more than thirty (30) days forthe LMCITto process a renewal application. The Extension of Coverage Binder assures the coverage beyond the 03/10/18 renewal date. STMA Arena Board’s Insurance Agent, Arlan Middleton, continues to recommend waiving the monetary limits on tort liability for the Arena. STMA Arena Board Mtg 02/12/18 Page 8 STMA Arena Board Mtg 02/12/18 Page 9 Un-Audited % change 2017 Actual 2018 Prelim from 2017 2017 Budget12/31/17Budget to 2018 Income Ice Rental$277,100.00$334,161.25$413,896.25 49.37% 5.31% Concessions$35,000.00$35,994.25$36,857.15 7.44% Other Revenues (Advertising/LMC/Ins Claims)$12,100.00$15,827.00$13,000.00 10.00% Vending$1,000.00$1,227.20$1,100.00 Open Skate/Hockey, etc.$5,000.00$4,415.00$5,000.00 0.00% Interest$1,000.00$0.00$1,000.00 0.00% 0.00% Misc. Revenue$1,600.00$405.50$1,600.00 Total Income$332,800.00$392,030.20$472,453.40 41.96% Expenses Salaries, Wages, Taxes & Benefits$126,327.50$133,295.78$240,032.91 90.01% -18.92% Supplies (Office, Misc.)$1,850.00$1,147.47$1,500.00 Supplies (Concession)$14,850.00$15,045.63$15,400.00 3.70% 0.00% Fuel, Misc.$1,800.00$1,532.05$1,800.00 Professional Services$15,000.00$24,467.71$22,000.00 46.67% -37.50% Sales Tax$4,000.00$1,982.00$2,500.00 50.00% Telephone$1,000.00$1,376.15$1,500.00 25.00% Electric$60,000.00$66,833.82$75,000.00 33.33% Gas$15,000.00$16,859.24$20,000.00 25.00% Water$20,000.00$20,416.65$25,000.00 25.00% Refuse$2,400.00$2,390.53$3,000.00 33.33% Insurance$9,000.00$8,122.62$12,000.00 15.64% Administration$12,646.50$12,646.50$14,625.00 Misc.$2,285.00$2,190.61$2,585.00 13.13% 10.00% Repair Maintenance – Machinery$10,000.00$7,389.10$11,000.00 9.09% Repair Maintenance – Building$27,500.00$22,073.66$30,000.00 Total Operating Expenses$323,809.00$337,769.52$477,942.9147.60% Net Income/Loss$8,991.00$54,260.68($5,489.51) data$/Public Data / Finance / Budget/2018 budget Arena 0218 STMA Arena Board Mtg 02/12/18 Page 10