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2025-03-18 STMA Arena Board Minutes l �� . Mac I b�rtv� Small"rouuin living.Big<aity Life. ST. MICHAEL-ALBERTVILLE ARENA BOARD REGULAR MEETING MINUTES March 18, 2025-6pm Council Chambers Albertville City Hall Present: Chairman Cocking, Members Gleason, Joe Hagerty (sitting in for Keith Wettschreck) Lewis, Weber and Hayden. Absent: Wettschreck and Steffens. Also Present: City Administrator Nafstad, Finance Clerk Moseng, STMA Arena Manager Fitch, Adam Frost for STMA Youth Hockey, Rick Aulwes Buildings & Grounds for STMA School District& Dr. Ann-Marie Foucault STMA Superintendent of Schools. 1. Call to Order Chairman Cocking called the meeting to order at 6:00 pm. 2. Adopt Agenda MOTION made by Member Weber, seconded by Member Lewis to adopt the Agenda as presented. Ayes: Gleason, Hagerty, Cocking, Lewis, Weber and Hayden. Nays: None. Absent: Wettschreck and Steffens. The motion carried. 3. Approval of Minutes MOTION made by Member Gleason, seconded by Member Hayden to approve the February 10, 2025 Arena Board Meeting Minutes as presented. Ayes: Gleason, Hagerty, Cocking, Lewis, Weber and Hayden. Nays: None. Absent: Wettschreck and Steffens. The motion carried. 4. Finance Reports Requested by Chairman Cocking to approve February 2025 Finance Report and Payment of Claims as presented. Member Gleason made the MOTION, seconded by Member Weber. Ayes: Gleason, Hagerty, Cocking, Lewis, Weber and Hayden. Nays: None. Absent: Wettschreck and Steffens. The motion carried. 5. Arena Manager's Report Mr. Fitch reported this will be the last busy month of the season. He stated the state tournament went well, nice weather, and lots of new people within the community. There was mention of a mis-type in the report within the Spring Maintenance Report/Rubber Matting Replacement should read `waiting to see if the tariffs happen, what the increase in pricing will be' Mr. Fitch reported that they are keeping an eye on them currently, it would be nice to purchase and install this coming Fall before getting into the busy season. He is going to STMA Arena Board March 18,2025 Minutes Page 2 circle-back to the vendor for additional details and pricing. Information will be brought back to the Board at a later meeting. 6. Old Business Preliminary 2025 Budget and Rates: Mr. Nafstad presented a modified 2025 Draft Budget to the Board. It has been modified to account for some advertising changes that will be discussed later and an updated insurance cost. He stated to offset the increase in expenses, the revenue for ice sales were increased. Mr. Nafstad stated he discussed with Mr. Fitch and he is comfortable with the hour sales based off what we have seen already this Spring. This draft budget does not reflect a rate increase for ice sales. Mr. Nafstad clarified that he did deduct$10,000 in advertising revenue in the revised draft budget based on conversations with the School. Member Lewis asked if we have planned for a positive net income as part of the budget process in previous years. The positive net income has traditionally come from managing the expenses and driving ice sales. Mr. Nafstad agreed and stated the Arena has shown a profit for the last several years. Member Gleason and Chairman Cocking questioned the loss in ad revenue and expressed concern with some of the future capital expenses. It was also noted that the Arena has a finite amount of ice to sell and during the off-season, most of the desirable ice times are generally sold and STMA Youth Hockey and High School Hockey hold almost all of the prime hours. Member Hayden asked for clarification on the Ice Rental Revenue listed on the budget. He asked if there were more teams involved this year. Mr. Nafstad stated the Arena had a record-high ice sale for the year and that the proposed budget is based on last year's number and the Spring ice thus far. Mr. Nafstad also commented that online sales are contributing to additional ice revenues. MOTION made by Member Weber, seconded by Member Hayden to approve the 2025 Preliminary Budget and Ice Rates (with no ice rate change) as presented. Ayes: Gleason, Cocking, Lewis, Weber and Hayden. Nays: None. Absent: Wettschreck and Steffens. The motion carried. 7. New Business Blue (New) Rink Advertising—Discussion Mr. Nafstad reported historically there has been an advertising contract with STMA Youth Hockey for advertising for $20,000/year for exclusive advertising rights in Gold and Blue Rinks with the exception of scoreboard advertising. Dr. Ann-Marie Foucault addressed the Board regarding a meeting the School District held with STMA Youth Hockey Association on February 24, 2025 regarding restructuring the current advertising agreement. The School District wants to work with STMA Youth Hockey Association and presented them with three (3) different options —trying to create a win-win for taxpayers and challenges within the school district budget: Option (1)pay School District STMA Arena Board March 18,2025 Minutes Page 3 $25,000 in addition to the fee paid to the Arena Board. Option (2)pay the School District $20,000 with recommendation to the Board that STMA Youth Hockey would pay the Arena Board $10,000. Option (3)the School District would take back all of the advertising for the Blue Rink. It was decided that STMA Youth Hockey Association would wait until after their April 101h meeting, with their new Board Members in place to vote. Arena Board Member Lewis commented that allowing STMA Youth Hockey Association to pay $10,000 to the Arena Board for advertising in the Gold Rink, the Arena Board should keep the ice rental rates the same for the coming year. The School District is trying to mitigate a loss as much as they are trying to drive a win. Mr. Lewis commented there is not a good-ending out of this, but asked how do we come up with an answer. Adam Frost with STMA Youth Hockey commented that the main goal is to keep the kids excited to play hockey at the high school level and succeed. He stated that this year they donated $12,000 to the boys and girls programs from funds they received from advertising. They also created and paid for the College Wall that is now within the blue rink. They were using advertising funds to supplement the boys and girls programs making their programs function on their own budgets. The Arena Board would have to amend the current advertising contract and give STMA Youth Hockey Association due notice of the change. The School Board will be discussing the issue and report back to the Arena Board. Capital Improvement Plan Mr. Nafstad answered questions regarding current account balances. He stated a cash balance of 35% of the budget is required; however, for cash-flow purposes, the Arena needs to carry approximately 50% of the current year's budget so we're not using Albertville funds to cash- flow the Arena. Nafstad noted some purchases planned in 2025 will quickly reduce the Arena's capital and operations budgets. The Capital Improvement Plan for the Gold Rink is 20 years of projected projects. The plan estimates the need and timing for certain improvements or replacements. In 2025, the plan includes cleaning and sealing the exterior wall, matting, and replacement of the 2002 Olympia resurfacer. Based on current balances, we're in a relatively good position for the next 5-years. 8. Youth Hockey Association Adam Frost wanted to thank Grant and the rest of the team at the Arena. STMA Youth Hockey had the pleasure of hosting the 15UB State Tournament at the Arena over the weekend. They had teams from Thief River Falls all the way to Mankato come into town over the weekend and received many comments on how wonderful and clean the facility and staff were. 9. Announcements and/or Upcoming Meetings Monday, April 14, 2025 STMA Arena Board, 6pm (Gleason, Cocking may not be available) 10. Adjournment STMA Arena Board March 18,2025 Minutes Page 4 MOTION made by Member Gleason, seconded by Chairman Cocking to adjourn at 7:05 pm. Ayes: Gleason, Hagerty, Cocking, Lewis, Weber and Hayden. Nays: None. Absent: Wettschreck and Steffens. The motion carried. Respectfully submitted, Kristie Moseng, Finance Clerk