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2022-05-09 STMA Arena Board MinutesST. MICHAEL-ALBERTVILLE ICE ARENA BOARD MINUTES May 9, 2022 6:00 p.m. Present: Chairman Larry Sorensen and members, Keith Wettschreck, Walter Hudson, Kari Dwinnell, Ryan Gleason, Aaron Cocking and Tim Lewis. Also present: City Administrator Adam Nafstad, City Finance Director Tina Lannes, STMA Arena Manager Grant Fitch, School/Ground Director Jason Bichler, Megan Esterberg and Jack Rowan STMA Youth Hockey Association. The meeting was called to order at 6:00 p.m. by Chairman Sorensen. Set Agenda Members Cocking/Dwinnell moved to set the agenda as presented. All voted aye. 2021 Audit Presentation – ABDO, Tyler See Tyler See from ABDO presented the 2021 STMA Ice Arena Financial Statement Audit. Members Dwinnell/Gleason moved to adopt the 2021 STMA Ice Arena report as presented. All voted aye. Approval of Minutes Members Hudson/Gleason moved to approve the minutes of the April 11, 2022 Board Meeting as presented. All voted aye. Finance Reports Lannes presented the finance reports. Members Cocking/Lewis moved to approve the April list of claims totaling $33,449.98 and the April Financial Report as presented. All voted aye. Arena Manager’s Report Fitch informed the board that staff received an additional quote for the repair/replacement of the Compressor showing that SCR is the low quote for replacement in the amount of $15,639.28. There was discussion on the difference large difference between quotes and the warranty period. Fitch reported that the usage for April was a little below the budgeted projection due to a high school group returning thirty hours of ice time they we unable to use. In addition, Fitch, mentioned coming up is a tournament and the summer camps including FIT that has booked two-hundred hours. Members Cocking/Gleason moved to approve SCR quote in the amount of $15,639.28 to replace refrigeration compressor. All voted aye. New Business Nafstad informed the board that STMA Youth Hockey Association is requesting an amended lease for the dryland space to allow subleasing. During the discussion the issues of insurance, taxes and non- profit status were addressed. STMA Youth Hockey has acquired an insurance provider for the off season and taxes would not be a factor as with the non-profit status the sublease would not be for profit. Megan Esterberg reported that the exchange of money for the sublease would not occur because they are a non-profit there would be an exchange of services instead. There was discussion on the value of the exchange services and what benefits could the Ice Arena itself see. There was mention STMA May 9, 2022 Minutes Page 2 by Youth Hockey Association members Megan Esterberg and Jack Rowan that the potential of increase ice rental could occur if they are allowed to sublease to groups such as MAP, FIT and MEGA. They also mentioned that there is a potential for growth and expansion with these groups for ice rental if the dryland space was available for use. Fitch stated that FIT has two hundred hours reserved for their program which has filled up already. Member Wettschreck asked how much STMA Youth Hockey Association put into building out the space prior to equipment. Nafstad stated the amount was around $350,000. The board continued discussion on the requested amendment to the lease agreement which states that STMA Youth Hockey Association cannot sublease without the STMA Arena Boards prior written consent. The STMA Arena Board questioned when, if approved, would they see the signed agreement back from STMA Youth Hockey Association and how to hold off use of the space until the signed agreement is returned to the City of Albertville. Megan Esterberg stated, if approved, it would go to their board meeting this evening for approval and signature. Nafstad informed the board that the City of Albertville will not approved a Certificate of Occupancy until the executed agreement is returned to the City. Member Lewis asked if there was a way to limit the length of sublease if this agreement is approved referencing the agreement if for ten years. Nafstad suggested adding language to limit the sublet. Members Hudson/Dwinnell moved to approve the requested amended lease agreement for the dryland space with amended language to in effect limit STMA Youth Associations ability to sublet for no more than one-year increments. All voted aye. Nafstad presented the request of some users to use a small portion of the parking lot behind the arena for dryland activities. Nafstad informed the board that there would be a general understanding for such groups and activities with conditions and would require prior authorization for such uses. There was discussion on location, uses and agreements to facilitate the requests for use of parking lot space. The STMA Arena Board directed staff to prepare an agreement to allow the use of parking lot space for organizations requesting the activities. Adjourn Members Sorenson/Cocking moved to adjourn at 7:16 p.m. All voted aye. Attest: _________________________________ Tina L. Lannes, City Finance Director