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2019-04-08 STMA Arena Board AgendaSTMA ARENA BOARD AGENDA MONDAY, APRIL 8, 2019 ALBERTVILLE CITY HALL 6:00 PM 1.CALL TO ORDER – ROLL CALL 2.ADOPT AGENDA 3. APPROVAL OF THE MINUTES OF MARCH 11, 2019(pgs.1-2) 4.FINANCE REPORTS a)Approve the Marchlist of claims as presented in the amount of $40,698.80 and March report (pgs.3-7) 5. ARENA MANAGER a) Monthly report (pg. 8) b) ATM Agreement (pgs. 9-14) c) Old Sheet Water Treatment Discussion (pg. 15) 6. OLD BUSINESS a) 2019 Preliminary Budget Discussion #3 (pgs. 16-17) 7. NEW BUSINESS 8. YOUTH HOCKEY ASSOCIATION 9.ADJOURN P:\\Arena\\2019 STMA Ice Arena\\2019 Arena Agendas\\2019-04-08\\040819 STMA Agenda.doc ST. MICHAEL-ALBERTVILLE ICE ARENA BOARD MINUTES March 11, 2019 6:00 p.m. Present: Chairman Kevin Kaseland membersLarry Sorensen, Tim Lewis, John Vetsch, Kari Dwinnell, Aaron Cocking and Keith Wettschreck. Also present: City Administrator Adam Nafstad and City Finance Director Tina Lannes. The meeting was called to order at 6:00 p.m. by Chairman Kasel. Set Agenda Members Cocking/Dwinnell moved to set the agenda as presented. All voted aye. Approval of Minutes MembersVetsch/Wettschreck moved to approve the minutes of the February 11, 2019 BoardMeeting with name correction amendments.All voted aye. Finance Reports Lannes reported the electric bill was $12,000. Member Vetsch asked what the gas bill was expected to be. Lannes mentioned that since the last bill was a catch up on an under estimated usage we would know more what the gas bill will be like next month. The board discussed the projected utilities again based on the utility bills. Members Sorensen/Wettschreck moved to approve the February list of claims totaling $25,847.91 and the February Financial Report as presented.All voted aye. Arena Manager’s Report Nafstad reported that there was nothing out of the usual for the month and have called in about a rd handful of roof leaks. Nafstad mentioned that the Knight to Remember event is set for the 23 and that the Ice is out in the old rink. In addition it was noted that they began running the refrigeration lines to connect the old rink. Old Business Lannes informed the board that the electricity on the preliminary budget was reduced by $105,000 from the conversations with Xcel Energy and removing the second meter. In addition, staff reduced the gas number by $18,000 after the same discussions with CenterPoint Energy. The draft budget is still showing a net loss of $64,000.Nafstad believes that there should be some energy savings on connecting the two rinks, but with the utilities it is an estimate. There was discussion on the revised draft budget with utilities, rates and the budget shortfall. The items discussed was how to look at covering the shortfall with increasing prime rate to $220 per hour, summer rate to $155 per hour and game rate to $245 per hour. In addition, the board discussed the issues of since these budget numbers are truly and estimate on which we only have a couple months of operation on that they are volatile, especially with the utilities, and caution to raise rates too much too early. Without raising the rates or reducing some expenses to balance the budget the remaining shortfall would, according to the contract, be covered by the three entities. The discussion of the board found it difficult to go back to the entities to not only subsidize capital but also operations. There was discussion on available hours and if the budget shows all hours sold. Nafstad went through the hours and during prime season all the hours are taken but there are a lot of hours available in the off-season and during school hours. In the end the board needs the school board representatives go back and discuss the game rate, the rest of the board should go back to their respective entities and discuss the subsidizing. Staff was directed to look at what the surrounding arenas are planning on havingfor rates 2019-2020 season. There was also discussion on keeping the concessions open more, as much as possible. STMA Arena Board Mtg 04/08/19 Page 1 STMA Ice Arena March 11, 2019 Minutes Page 2 NewBusiness Lannes presented the tort liability coverage and in the past the STMA Arena Board has waived the limits in the past up toour current coverage. Annually, the tort liability coverage option to waive or not waive the limits has to be decided. The board discussed the coverage options. Members Sorensen/Vetsch moved to waive the monetary limits on tort liability to the extent of the liability coverage obtained from LMCIT. All voted aye. Adjourn Members Vetsch/Dwinnell moved to adjourn at approximately 6:59 p.m. All voted aye. Attest: _________________________________ Tina L. Lannes, City Finance Director STMA Arena Board Mtg 04/08/19 Page 2 STMA Ice Arena Budget to Actual March2019 (Cash Basis) 2019 YTD 2019 Prelim March 2019 2019 Actual % of BudgetActualYTD 3/31/19Budget Income 45.19% Ice Rental$536,000.00 $161,691.67 $242,241.67 62.59% Concessions$55,000.00 $4,114.25 $34,423.75 Other Revenues (Advertising/LMC/Ins 3.40% Claims)$20,000.00 $27.00 $680.42 15.60% Vending$2,000.00 $0.00 $312.00 72.06% Open Skate/Hockey, etc.$7,000.00 $2,710.00 $5,044.00 0.00% Interest$1,600.00 $0.00 $0.00 Misc. Revenue$400.00 $28.00 $193.00 Total Income 45.48% $622,000.00 $168,570.92 $282,894.84 Expenses 25.25% Salaries, Wages, Taxes & Benefits$309,784.00 $25,047.62 $78,209.60 16.59% Supplies (Office, Misc.)$1,500.00 $0.00 $248.81 62.79% Supplies (Concession)$17,600.00 $1,581.31 $11,050.18 62.44% Fuel, Misc.$1,200.00 $367.76 $749.32 45.61% Professional Services$24,000.00 $7,276.38 $10,947.19 68.29% Sales Tax $4,508.00 $1,097.65 $3,078.32 24.12% Telephone$1,700.00 $147.23 $410.08 15.67% Electric$155,000.00 $12,144.92 $24,289.84 23.34% Gas$60,000.00 $6,630.44 $14,005.45 26.47% Water $30,000.00 $5,558.98 $7,941.71 33.89% Refuse$2,500.00 $481.15 $847.13 75.94% Insurance$20,000.00 $14,375.00 $15,187.00 0.00% Education and Training$1,500.00 $0.00 $0.00 25.00% Administration $13,019.76 $1,084.98 $3,254.94 70.47% Misc.$3,035.00 $630.76 $2,138.76 5.72% Repair Maintenance –Machinery$11,000.00 $0.00 $629.67 19.56% Repair Maintenance –Building$30,000.00 $3,182.69 $5,867.06 Total Operating Expenses$686,346.76 $79,606.87 $178,855.06 26.06% Net Income/Loss ($64,346.76)$88,964.05 $104,039.78 STMA Arena Board Mtg 04/08/19 Page 3 STMA ICE ARENA CASH BALANCES AND RECEIVABLES March 31, 2019 Cash Balance Operations Cash Balance Operations 1/1/19 $80,695 Add Revenues (collectedin 2019)$282,895 Less Expenses $(178,855) Est. Cash Balance Operations 3/31/19$184,735 Accounts Receivable (invoiced) Operations March 31, 2019 - $1,020 Cash Balance Dedicated Capital Improvement Fund Arena Owner Dedicated Cap. Imp. Fund Beginning Balance 1/1/19$156,581 Furniture ($10,798) Balance 3/31/19 $145,783 STMA Arena Board Mtg 04/08/19 Page 4 STMA Ice Arena Vendor Check Detail Register CITY OF ALBERTVILLE March 2019 Check AmtInvoiceComment Paid Chk# 007163E3/4/2019 RANDYS ENVIRONMENTAL SERVICES E 810-00000-384 Refuse/Garbage Disposal$481.15MARCH 2019Arena Trash Removal Paid Chk# 007166E3/4/2019 WATSON COMPANY E 810-00000-252 Food/Concessions For Resale$842.26896274Arena Concessions Paid Chk# 007216E3/12/2019 COMDATA ARENA E 810-00000-252 Food/Concessions For Resale$170.51Arena Concessions Paid Chk# 007218E3/12/2019 FERRELLGAS E 810-00000-212 Motor Fuels$69.091104929554Propane E 810-00000-212 Motor Fuels$134.891105061401Propane E 810-00000-212 Motor Fuels$92.091105194702Propane E 810-00000-212 Motor Fuels$71.691105324869Propane Paid Chk# 007220E3/12/2019 RUSSELL SECURITY RESOURCE INC. E 810-00000-405 Repair/Maint - Buildings$80.00A34214Arena Varsity Locker Room,mortise cylinder Paid Chk# 007221E3/20/2019 BCBS OF MINNESOTA E 810-00000-130 Employer Paid Ins (GENERAL)$3,190.5019030103797Emp Health Ins E 810-00000-130 Employer Paid Ins (GENERAL)$722.0019030103797Emp Health Ins Paid Chk# 007222E3/18/2019 ABDO, EICK & MEYERS, LLP E 810-00000-301 Auditing and Acctg Services$2,056.58410955Professional Audit/Accounting Services Paid Chk# 007227E3/18/2019 DAN DEHMER LANDSCAPING INC E 810-00000-300 Professional Srvs (GENERAL)$4,643.008245Arena snowplowing per contract E 810-00000-300 Professional Srvs (GENERAL)$142.508261Arena remove ice Paid Chk# 007233E3/18/2019 WATSON COMPANY E 810-00000-252 Food/Concessions For Resale$568.54896619Arena concession Paid Chk# 007237E3/18/2019 COURI & RUPPE, P.L.L.P. E 810-00000-304 Legal Fees$42.50Arena February 2019 Paid Chk# 007239E3/20/2019 MN DEPARTMENT OF REVENUE E 810-00000-315 Sales Tax$1,097.65Arena Sales Tax Paid Chk# 007241E3/21/2019 WRIGHT-HENNEPIN COOP ELECTRIC E 810-00000-381 Electric Utilities$10.74Arena Elevator Monitoring 3/31/19 E 810-00000-381 Electric Utilities$27.95Arena Fire Panel Monitoring 4/30/19 Paid Chk# 007253E3/2/2019 SIGNAPAY E 810-00000-300 Professional Srvs (GENERAL)$143.57Arena CC Fees Paid Chk# 038710 3/4/2019 CJ S LINEN SERVICE E 810-00000-399 Miscellaneous$27.503614655 new bar towels Paid Chk# 038717 3/4/2019 METLIFE-GROUP BENEFITS E 810-00000-130 Employer Paid Ins (GENERAL)$463.0002192019Emp Life, Dental, Stdis, Vision STMA Arena Board Mtg 04/08/19 Page 5 STMA Ice Arena Vendor Check Detail Register CITY OF ALBERTVILLE March 2019 Check AmtInvoiceComment Paid Chk# 038722 3/12/2019 ACE OF ALBERTVILLE - ARENA E 810-00000-405 Repair/Maint - Buildings$9.73106547/1swivel single pulley,fasteners E 810-00000-405 Repair/Maint - Buildings$24.99106561/1ice melt 40# pail E 810-00000-405 Repair/Maint - Buildings$11.981066575/140# extra course crystals E 810-00000-405 Repair/Maint - Buildings$30.56106658/1409 cleaner,pine sol E 810-00000-405 Repair/Maint - Buildings$62.91106750/140# system saver pellets E 810-00000-405 Repair/Maint - Buildings$11.99106791/1pine sol E 810-00000-405 Repair/Maint - Buildings$2.49106826/1tape mount tabs E 810-00000-405 Repair/Maint - Buildings$7.97106836/1stencil,neon paperboard arrow Paid Chk# 038727 3/12/2019 CHARTER COMM-ARENA E 810-00000-321 Telephone$32.1901315380224Arena cable 8352305160131538 Paid Chk# 038729 3/12/2019 JORSON &CARLSON INC E 810-00000-300 Professional Srvs (GENERAL)$61.190572928ice scraper knives cleaned sharpened & honed Paid Chk# 038733 3/12/2019 P.E.R.A E 810-00000-121 PERA$433.25Jeffrey Swenson Employer Paid 10/28/18-11/23/18 Paid Chk# 038740 3/18/2019 BANYON DATA SYSTEMS E 810-00000-300 Professional Srvs (GENERAL)$97.14158518UB,Fund & Payroll Support Paid Chk# 038741 3/18/2019 CENTERPOINT ENERGY E 810-00000-383 Gas Utilities$6,630.445898 Lachman Avenue NE 5390131-0 Paid Chk# 038744 3/18/2019 CULLIGAN E 810-00000-405 Repair/Maint - Buildings$21.00101X3229490DI Carbon Standby Rental Service 3/1/19-3/31/19 Paid Chk# 038749 3/18/2019 JORSON & CARLSON INC E 810-00000-300 Professional Srvs (GENERAL)$89.900574571Ice Scraper knives cleaned sharpened & honed Paid Chk# 038750 3/18/2019 LEAGUE OF MN CITIES INS TRUST E 810-00000-360 Insurance (GENERAL)$14,375.00Arena Insurance Premium 10003286 Paid Chk# 038755 3/18/2019 SCR, INC - ST. CLOUD E 810-00000-405 Repair/Maint - Buildings$740.00C003346Arena Monthly Blanket Billing E 810-00000-405 Repair/Maint - Buildings$1,906.13W40663Arena compressor room heat not working Paid Chk# 038756 3/18/2019 STEP SAVER INC E 810-00000-405 Repair/Maint - Buildings$49.14126231Arena bulk salt Paid Chk# 038765 3/21/2019 CHARTER COMM - CH E 810-00000-321 Telephone$115.0401317020302Arena Voice 8352305160131702 Paid Chk# 038769 3/21/2019 PREMIUM WATERS INC E 810-00000-405 Repair/Maint - Buildings$124.00802827-02-19water delivery Paid Chk# 038773 3/25/2019 XCEL ENERGY E 810-00000-381 Electric Utilities$321.05629528861Arena 5898 Lachman Avenue NE 51-5873315-4 2/6/19- 3/10/19 STMA Arena Board Mtg 04/08/19 Page 6 STMA Ice Arena Vendor Check Detail Register CITY OF ALBERTVILLE March 2019 Check AmtInvoiceComment Paid Chk# 038774 3/28/2019 METLIFE-GROUP BENEFITS E 810-00000-130 Employer Paid Ins (GENERAL)$463.00Emp Life,Dental,Stdis,Vision 810 STMA ARENA$40,698.80 STMA Arena Board Mtg 04/08/19 Page 7 MANAGER’ GENERAL UPDATE th Date:April 8, 2019 To: STMA Arena Board From: Grant Fitch, STMA Arena Manager ARH-M RENA ENTAL OURSARCH NamePrime-time Off-peak Youth Hockey52 hours Adult Hockey 0 hours High School Boys/Girls 0 hours Public Skating/OH 84 hours Private rentals 15 hours Learn to Skate 0 hours ________________________________________________________________________ Total hours 151 (2 sheets) Total hours 2018 81 (1 sheet) Mighty Ducks Grant – The School District has received the $250,000 from the State. K2R Event – Event went well and approximately 500 people attend. Refrigeration Connection – Work is in progress and expected to be complete by May 15. Resurfacer – Delivery is set for next Thursday. Projected Ice Rates: 2019-20 Season 2018-19 Season 2017-18 Season Rogers A=$205/B=$155 A=$200/B=$150 A=$195/B=$150 Monticello A=$205/B=$155 A=$200/B=$150 A=$195/B=$150 Buffalo A=$205/B=$160 A=$199/B=$155 A=$197/B=$155 Elk River A=$210/B=$155 A=$200/B=$150 A=$195/B=$145 Delano A=$215/B=$185 A=$210/B=$180 A=$205/$175 Maple Grove A=$215/B=$175 A=$205/B=$170 A=$200/B=$165 Plymouth A=$220/B=$185 A=$215/B=$180 A=$210 PrincetonA=$215 A=$210 A=$205 STMA TBD A=$200/B=$130 A=$195/B=$130 STMA Arena Board Mtg 04/08/19 Page 8 ATM Agreement Date:April 4, 2019 To:STMA Arena Board From: Grant Fitch, Arena Manager For your consideration, attached is an agreement to have an ATM with an advertisement kiosk placed in the main lobby of the new arena. This agreement wouldgenerate a minimum of $4,200, annually. If the agreement is desirable by the Board, we will create Exhibit A showing the ATM located under the stairway in the main lobby. We do currently have an ATM in the old lobby, which we plan to keep. Exhibit B, which is the kiosk ad, will look like the pictures below: STMA Arena Board Mtg 04/08/19 Page 9 ATM LOCATION AGREEMENT This Agreement is made and entered into effective __________________, 2019 between Infinit Technologies, LLC ("Infinit") and STMA Arena Board ("Arena"). 1.Equipment: Arena agrees that Infinit may own, install, operate and maintain an ATM on Arena's premiseslocated at 5898 Lachman Avenue NE, Albertville, Minnesota, in the approximate location shown on the attached Exhibit A. Arena shall provide such space for the ATM as necessary to enable customers to have access to the ATM and for maintenance and servicing of the ATM. In installing and maintaining the ATM, Infinit shall not put holes in the walls or floors or otherwise modify the building structure in any way without written permission from the Arena. The Arena may require Infinit (at Infinit’s expense) to move the ATM to another location in the building if it determines it needs the location shown on Exhibit A for other purposes. 2.Kiosk: Infinit shall be permitted to display an advertising kiosk similar to that shown on the attached Exhibit B. Said kiosk shall be displayed in a location to be determined by the Arena. All ads displayed on the kiosk shall comply with School District policies. 3.Availability: Arena agrees that the ATM shall at all times remain available for use by Arena's customers during Arena's normal business hours for the term of this Agreement. Infinit reserves the right to schedule reasonable downtime to accomplish necessary maintenance or system improvements. 4.Transaction Surcharges: Infinit and Arena agree that a surcharge of $2.50 per transaction will be imposed on all transactions on the ATM. A surcharged transaction is defined as any cash withdrawal made from a cardholder's account on which a surcharge is collected. Infinit reserves the right to increase or decrease the amount of the transaction surcharge provided such increase or decrease is directly related to an increase or decrease of costs incurred by Infinit to provide transaction processing service. The cardholder's bank may impose an additional fee. Infinit will pay Arena 60% of the amount of each surcharge Infinit collects. Such payments shall be made to the Arena monthly, within 30 days of the end of the month in which such transaction surcharges were incurred. 5.Minimum Monthly Charges: In the event the transaction surcharges set forth in paragraph 4 above are less than $350 in any month, Infinit shall pay the Arena the difference between such transaction surcharges due under paragraph 4 above and a STMA Arena Board Mtg 04/08/19 Page 10 $350 minimum monthly charge. This minimum monthly charge shall be prorated on a daily basis for any month in which the ATM is on the site for less than the full month. All such minimum monthly charges shall be paid in accordance with the timeline set forth in paragraph 4 above. 6.Installation: Infinit agrees to install the ATM in the location shown on the attached Exhibit Aat Infinit’s expense. The ATM and all cash in the ATM shall be and remain the sole property of Infinit. The Arena shall execute and deliver upon request documentation to put third parties on notice of Infinit's interest in the ATM. 7.Maintenance/Repair: Infinit will arrange for necessary servicing and repair of the ATM at Infinit’s expense. Infinit shall maintain the ATM in good working order at all times. In the event of any ATM failure, damage or other problem requiring repair, replacement, adjustment, or maintenance, Arena shall notify Infinit or a person designated by Infinit within twenty-four (24) hours of first becoming aware of such failure or problem. Infinit shall use its best efforts to remedy such failure or problem within one business day. Infinit or its representatives shall at all times during Arena business hours have the right to enter into and upon the premises for the purpose of inspecting, repairing, maintaining or upgrading the ATM. Arena shall maintain the space surrounding the ATM in a safe, neat and orderly condition. Infinit will be responsible for any damage, loss, or theft of the ATM, and Infinit shall be responsible for obtaining and paying for any insurance on the ATM. 8.Data, Electrical: Arena shall, at its expense, provide and maintain wireless access to the internet for the ATM to communicate with and one power outlet (110V) within 6 feet of the ATM site. 9.Property Ownership or Lease Terms: Arena represents and warrants that it is the owner of the premises or that it has the right to control the premises during the term of this Agreement. Infinit represents that it owns the ATM and has the right to operate the ATM. 10.Equipment Relocation or Removal: In the event Arena permanently ceases operations on the premises, Arena shall notify Infinit not less than thirty (30) days prior to any such event. In such event, Infinite shall promptly remove the ATM equipment and this Agreement shall expire. 2 STMA Arena Board Mtg 04/08/19 Page 11 11.Cardholder Reimbursements: In the event any transaction is disputed by a cardholder or financial institution, the processor will notify Infinit of such dispute. Transaction disputes are handled by the networks and the data processor. Infinit will assist the network in resolving any dispute oradjustment if necessary. Arena agrees that it shall not reimburse any customer for any disputed cash amount unless Infinit has specifically authorized such reimbursement in writing. 12.Term & Termination: This Agreement shall remain in effect for a term of one year, and shall automatically renew every year for an additional one year term unless either party notifies the other party at least 60 days before expiration of such term that such party is terminating the Agreement upon the expiration of the then current term. Either party may terminate this Agreement, effective thirty (30)days after giving written notice of intent to terminate, upon the occurrence of a material breach provided that such breach continues for (30) days after written notice of such breach. All notices hereunder shall be in writing and shall be deemed given upon personal delivery or upon deposit in the United States mail, certified postage fully prepaid, return receipt requested, addressed to Infinit and Arena at their respective addresses as listed below. 13.Disclaimer: Except as specifically provided in this Agreement, Infinit understands and agrees that Arena makes no warranty expressed, implied or statutory as to any matter whatsoever. In no event shall Arena be responsible for any lost profits or direct, incidental, consequential, special or indirect damages that Infinit may incur in placing and operating its ATM on the premises. Arena’s sole liability to Infinit hereunder, except as otherwise provided, shall be to remedy any breach of this Agreement in a timely manner. 14.Indemnification and Hold Harmless: Infinit agrees to hold the Arena harmless from any claims (other than violations of this Agreement byArena) that Infinite may make against the Arena, and agrees to indemnify and defend Arena from any claims arising from or related to this Agreement. 15.Assignment, Waiver, Entire Agreement, & Controlling Law: Infinit shall not assign or dispose of any its rights or obligations under this Agreement without the prior written consent of Arena. This Agreement is binding on the successors and permitted assignees of the parties. A waiver by either party of a breach of any provision of this Agreement shall not constitute a waiver of that party's rights to otherwise demand strict compliance with this Agreement and any and all provisions hereof. This Agreement constitutes the entire Agreement of the parties hereto. There are no other promises; representations, terms, conditions or 3 STMA Arena Board Mtg 04/08/19 Page 12 obligations other than those contained herein. This Agreement supersedes all prior communications, representations or agreements, oral or written, between the parties and shall not be modified except in writing signed by both parties. This Agreement shall be construed, interpreted and enforced in accordance with the laws of the State of Minnesota. The jurisdiction and venue for any legal proceeding to interpret or enforce this Agreement shall be in Wright County, Minnesota. IN WITNESS WHEREOF, the undersigned duly authorized representatives of the parties have executed this Agreement. Infinit LOCATION Infinit Technologies, LLC STMA Arena Board _________________ c/o Albertville City Administrator _________________ 5959 Main Avenue _________________ P.O. Box 9 Albertville, MN 55301 Infinit Technologies, LLC STMA Arena Board _________________________________ ________________________________ Name/Title: ______________________ By: Joseph J. Salaski Its: _____________________________ Date: ___________________________ Date: ____________________________ 4 STMA Arena Board Mtg 04/08/19 Page 13 EXHIBIT A Drawing showing location of ATM in building EXHIBIT B Picture of kiosk 5 STMA Arena Board Mtg 04/08/19 Page 14 Water Treatment Options Date:April 4, 2019 To:STMA Arena Board From: Grant Fitch, Arena Manager Staff would like to discuss water treatment options for the existing sheet of ice. Currently the new sheet is being resurfaced with hot water and results are very favorable. The old sheet is being resurfaced with R/O-cold water, results are not as favorable. With the building addition, both sheets of ice will be served by one mechanical room and modifications to the existing water treatment system are needed. Options to Discuss(ranked by order of operational preference) Option 1 – Use new hot water heater installas part of building addition (No Cost) The existing hot water heater was not sized to serve two sheets, which may reduce the life of the unit. This is believed to be a good first step as we move into operating two sheets and will allow for time to monitor ice quality. This may be a short term solution. Option 2 – Install new R/O and hot water heaters designed to serve both ice sheets ($52,000) The cost to serve one sheet vs two sheets is less than $5,000. This is believed to be the best system and has been recommended to us by an ice consultant. R/O systems are generally recommended when TDS of water exceeds 80 ppm. Base on water samples, TDS at the rink is 400 ppm, which is why we have R/O today. Per the ice consultant, benefits of R/O generally include reduced load on the refrigeration plant, improved ice quality (harder, faster, ice clarity), and reduced energy costs associated with heating flood water. Option 3 – Purchase water heater compatible with R/O ($15,000) Having hot water is priority over R/O and this option allows the addition of an R/O system at a later time. This option would only serve the old sheet of ice. From an operations standpoint, both systems should be on the same system. Option 4 – Move existing R/O system for $11,500 and purchase water heater (26,500) This is not a preferred option as it too only serves one sheet. STMA Arena Board Mtg 04/08/19 Page 15 2019 Preliminary Budget Date:April 4, 2019 To:STMA Arena Board From: Tina Lannes, Finance Director Attached is the latestdraft of the preliminary 2019 budget showinga loss of $33,550. This budget includes the following rate adjustments: Summer rate raised from $130 to $155 per hour Prime rate raised from $200 to $205 HS game rate raised from $240 to $245 STMA Arena Board Mtg 04/08/19 Page 16 STMA Arena Board Mtg 04/08/19 Page 17