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2024-01-08 STMA Arena Board Minutes ST. MICHAEL-ALBERTVILLE ARENA BOARD REGULAR MEETING MINUTES January 8, 2024 - 6pm Council Chambers Albertville City Hall 1. Call to Order Chairman Cocking called the meeting to order at 6:00 pm. 2. Roll Call Present: Chairman Cocking, Members Gleason, Wettschreck, Dwinnell (arrived at 6:01pm), Lewis, Weber and Zagorski. Absent: None. Also Present: City Administrator Nafstad, Finance Clerk Moseng, STMA Arena Manager Fitch, Megan Esterberg for STMA Youth Hockey, Rick Aulwas Buildings & Grounds for STMA School District. 3. Adopt Agenda Nafstad stated there was one correction to Agenda. The Finance Report is correct in the packet, but the Agenda has the incorrect amount listed. The amount for the List of Claims should be listed as $69,131.89. Chairman Cocking asked for any additional changes. Nafstad stated there were none. MOTION made by Member Zagorski, seconded by Member Gleason to adopt the Agenda as presented. Ayes: Cocking, Gleason, Wettschreck, Dwinnell, Lewis, Weber and Zagorski. Nays: None. Absent: None. The motion carried. 4. Approval of Minutes MOTION made by Member Lewis, seconded by Member Wettschreck to approve the minutes of the December 11, 2023 Board Meeting Minutes as presented. Ayes: Cocking, Gleason, Wettschreck, Dwinnell, Lewis, Weber and Zagorski. Nays: None. Absent: None. The motion carried. 5. Finance Reports Mr. Nafstad reported that there was nothing out of the ordinary to report. He pointed out the report is not the year end balances as all of the December accounts payable invoices have not yet been received from the vendors. He did mention that the receivable is included in the December year to date. Ice Rental appears about $20,00 over the budget projection, concession is approximately $10,000 over projected. Nafstad stated it appears the arena will finish out the year in the black and the February packet will reflect similar numbers. All in all, the Arena had a successful year. STMA Arena Board January 8, 2024 Minutes Page 2 Chairman Cocking asked about the projected net income. Nafstad stated that the funds will remain in the General Fund. Nafstad noted when the general fund exceeds what is necessary for operations, general funds can be transferred to capital funds. Requested by Chairman Cocking to approve December 2023 List of Claims and Financial Reports as presented. Member Weber made the MOTION, seconded by Member Lewis. Ayes: Cocking, Gleason, Wettschreck, Dwinnell, Lewis, Weber and Zagorski. Nays: None. Absent: None. The motion carried. 6. Arena Manager’s Report Mr. Fitch reported the hours sold were right on projection. He clarified usage stats for STMA Youth Hockey. The report shows time blocked including resurfacing time, so when you see the minus sixty (60) that is removing the resurfacing time from their amount blocked/billed. Member Dwinnell asked for clarification on the resurfacing time within the blocks sold to STMA Youth Hockey. Fitch reported that STMA Youth Hockey buys a block of time, which includes the resurfacing of the ice. He does not charge STMA Youth Hockey for the resurfacing therefore it needs to be removed from their ice time sold. He is working with Finnley Software to have those resurfacing hours removed from their Usage Stats Report because STMA Youth Hockey is the only group that schedules their own blocks of ice time. It is more of a software issue than ice time sold. Ice Rates are given to the board early this year, typically they aren’t given until February or March. He pointed out the 2023-2024 Season is actual from the MIAMA Actual report. Most rinks are looking at a $5-10 increase. During the February meeting, the Board will be looking at a draft budget and will review the rates at that time. Fitch commented that Open Skate was well attended over the holiday. With no ice outdoors, he estimates they had about 20 kids use the arena. Fitch reported that the scoreboard has been ordered and should arrive end of February. He is working with the school on the lift for install. Fitch commented that he did have a STMA Youth Hockey donation check banner made and is now displayed in the lobby. He again thanked STMA Youth Hockey for the donation. 7. Old Business Low-E Ceiling Energie Innovation, Inc: Mr. Fitch commented that paperwork was submitted to Xcel for the rebates just before the holiday. He is waiting for actual rebate numbers to come back. He doesn’t want to report false information to the board, but before the rebates, Fitch feels they should be at the approximated $70,000 with no rebates. His main concern is the install timeline. Options would be in March, when STMA Youth Hockey ends, he could pull the ice and then put it right back. Or he could do it end of May before Summer camp starts, but he does need a 4-6 week lead-time for install. Regarding rebates, Fitch shared that Xcel’s preliminary rebate projection was approximately $35,000. Nafstad stated that the Xcel rebates are real, but sometimes they take a very long time to receive. Realistically it could take 1-2 years to receive STMA Arena Board January 8, 2024 Minutes Page 3 the rebates. Chairman Cocking mentioned that even if we don’t receive the rebates, we would recover the funds over the next couple of years just in energy savings. Nafstad reported that the funds would come out of the Dedicated Capital Fund. The Fund is for projects like this. The current Capital Improvement Plan (CIP) includes priorities such as low-e ceiling, replacement of the old re-surfacer and rubber matting. In discussion with Arena staff and trying to prioritize projects: the re-surfacer is critical to operations, the matting will be a slow process over time, the low-e ceiling has been on the list for a long time. Nafstad felt with the potential of the possible payback via rebate this would be a good investment for the facility to do the low-e ceiling at this time. Chairman Cocking stated he would like to apply the energy cost savings to capital reserves on future budgets. Regarding off peak usage and the ability to take the ice out in the summer, Nafstad stated the Arena is dependent on the Spring/Summer ice on the second sheet, which hasn’t always been the case. There is a higher demand for summer ice and taking out the second sheet would have a financial impact on operations. Dwinnell asked if FIT is adding hours for this season. Grant responded that they are adding approximately 1 hour added to what they did last year. Member Lewis asked if an annual utility comparison could be brought back in February 2025 to see what the numbers are. MOTION made by Member Zagorski, seconded by Dwinell to approve the Energie Innovation, Inc quote #2023-1567 for $70,790 for installation of Astro-Rink reflective insulated ceiling. Ayes: Cocking, Wettschreck, Gleason, Dwinnell, Lewis, Weber, Zagorski. Nays: None. Absent: None. The motion carried. Chairman Cocking questioned the pricing on a re-surfacer. Nafstad stated a new re-surfacer is approximately $200,000. Nafstad added rubber matting would be at least $150,000. Everything has gone up in pricing from what is currently listed on the CIP. Fitch stated that the nice thing on the rubber matting is that it could be replaced in stages throughout the building. They are managing with it currently, it is hard to scrub, but they are managing. Member Lewis asked on timing for the re-surfacer. Fitch stated maybe 1.5-2 years. Nafstad stated that the old re-surfacer is in great repair. The current machine is propane; motivation is to do without propane, air quality and reporting/testing. Cocking stated that there may not be much of a market value for resale on the current machine, therefore it may be beneficial to keep for emergency purposes. Further discussion on the re-surfacer will be brought back at a later time. 8. New Business 9. Youth Hockey Association Megan provided feedback from the Youth Hockey Association and asked the Arena Board to consider the following: cleaning of carpet and upholstery in community room, and adding window coverings in the community room. Fitch replied that he will get the carpet cleaned and Chairman Cocking asked for a couple options to be brought back to the board regarding window coverings. STMA Arena Board January 8, 2024 Minutes Page 4 10. Announcements and/or Upcoming Meetings February 12 STMA Arena Board, 6 pm 11. Adjournment MOTION made by Member Gleason, seconded by Member Wettschreck to adjourn at 6:32 pm. Ayes: Cocking, Gleason, Wettschreck, Dwinnell, Lewis, Weber and Zagorski. Nays: None. Absent: None. The motion carried. Respectfully submitted, _________________________________ Kristie Moseng, Finance Clerk