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HomeMy WebLinkAbout04.08.15 Parks and Rec Packet City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us Farmington Parks and Recreation Commission Wednesday, April 8, 2015 7:00 p.m. City Hall Council Chambers Agenda I. Call Meeting to Order II. Approve Meeting Agenda III. Approve Meeting Minutes A.March 11, 2015 Meeting Minutes IV. Presentations A.2014-2015 Ice Season Report V. Business Items A.Commission Member Group Photo B.Rambling River Center Severe Weather Program Cancellation and Building Closing Policy C.Recreational Facilities Task Force Representation VI. Discussion Items A.2015 Commission Work Plan Review B.2016 Park Improvement Project(s) C.Arena Financial Plan VII. Commission Roundtable A.Commission Roundtable VIII. Staff Report/Updates A.Community Survey IX. Meeting Agenda Topics A.May 13, 2015 Agenda Topics X. Adjournment "The Farmington Parks and Recreation Advisory Commission's mission is to advise and make recommendations to the Farmington City Council concerning the comprehensive planning of the City parks, trails, open space, recreation facilities and recreation programs." City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO:Farmington Parks and Recreation Commission Members FROM:Randy Distad, Parks and Recreation Director SUBJECT:March 11, 2015 Meeting Minutes DATE:April 8, 2015 BACKGROUND Attached are the draft March 11, 2015 meeting minutes. Commission members are being asked to approve the minutes. ATTACHMENTS: Type Description Exhibit March 11, 2015 Draft Meeting Minutes DRAFT Farmington Parks and Recreation Advisory Commission Minutes from the March 11, 2015 Regular Meeting Members Present: Chad Elliott, David McMillen, and Rob Carpentier Members Absent: Mike Haley and Gene Spars Other’s Present: Parks and Recreation Director Randy Distad I. Call Meeting To Order Chair McMillen called the meeting to order at 7:00 p.m. Quorum was present. III. Approval of March 11, 2015 Meeting Agenda Moved by Elliott and seconded by Carpentier to approve the meeting agenda. All persons in favor (APIF). Motion carried. III. Approval of February 11, 2015 Meeting Minutes Moved by Elliott and seconded by Carpentier to approve the February 11, 2015 regular meeting minutes. APIF. Motion carried. IV. Presentations None V. Business Items A. Election of Officers Chair McMillen asked for nominations for the Commission’s Chair position. Carpentier moved to nominate McMillen for the Chair postion and the nomination was seconded by Elliott. McMillen asked for nominations for the Chair position. There were no more nominations made. Moved by Elliott and seconded by Carpentier to close nominations for the Chair position. APIF. Motion carried. On a 3-0 vote, McMillen was elected to be the Chair of the Commission until next year’s election. McMillen asked for nominations for the Commission’s Vice-Chair position. McMillen moved to nominate Haley for the Vice-Chair position and Elliott seconded the nomination. McMillen asked for nominations for the Vice-Chair position. Carpentier moved to nominate himself for the position and Elliott seconded the nomination. McMillen asked for nominations of the Vice-Chair position. There were no more nominations. Moved by Elliott to close nomination and seconded by Carpentier. APIF. Motion carried. On a 3-0 vote, Carpentier was elected to be the Vice-Chair of the Commission until next year’s election. B. Fair Hills Park Shelter Selection Distad shared the proposals received. He stated that staff is recommending to purchase a shelter from St. Croix Recreation Fun Playground, Inc because the proposal submitted offered the largest shelter when compared to other proposals. McMillen asked about ornamentation for the shelter. Distad shared that the construction budget for the shelter was $30,000.00 and that vendors were asked to submit a price for optional ornamentation. If the Commission agreed with staff’s recommendation on who to purchase the shelter from, the additional cost for the ornamentation would be $ , which would leave the project over budget. By consensus, Commission members decided not to purchase ornamentation for the shelter. Carpentier asked what the warranty is for each of the shelters. Distad shared the shelter proposal submitted by St. Croix Recreation Fun Playground, Inc. has a 10 year warranty but that the other proposals did not identify a warranty. Commission members agreed by consensus that in the future, city shelter specifications should include language that requires vendors to include warranty information in their proposal. Moved by Elliott and seconded by Carpentier to recommend to the City Council the approval of the purchase of the shelter from St. Croix Recreation Fun Playground, Inc. APIF. Motion carried. The Commission by consensus agreed that staff should be responsible to pick the shelter colors but that the colors picked should be similar to the playground equipment colors. C. Commission Member Group Photo Because not all of the Commission members were able to attend the meeting, Commission members by consensus agreed to table the group photo until the April 8, 2015 meeting. VI. Discussion Items A. 2015 Park and Recreation Commission Work Plan Review Chair McMillen reviewed the 2015 work plan and identified items completed since the last Commission meeting. B. 2016 Park Improvement Project(s) Distad shared that in the Park Improvement Fund’s 2015-2019 Capital Improvement Plan, a new building in North Creek should be constructed that would contain a warming house with restrooms and shelter overhang. He informed Commission members that this project was identified to be completed in 2015 but that the City Council was uncomfortable spending the money to construct this building given the balance left in the Park Improvement Fund and this project was deferred until 2016. He asked if the Commission would like to recommend the project to be funded in 2016. Commission members by consensus felt that no formal recommendation for 2016 projects should be made but instead it should continue to be discussed and that the community survey may provide some direction on what projects the community feels should be focused on. C. 2015-2016 Winter Outdoor Recreation Event Distad informed Commission members that staff completed an evaluation of the Smores and More event that was held on Sunday, 1, 2015. Because this program was held on the same day as the Super Bowl, staff will be moving the event to a different weekend and a lot of the same games and activities would be offered during the 2016 event. McMillen asked if hot chocolate could be offered a few times during the outdoor skating season. Distad stated that it could be arranged. Elliott felt an event should be held in Whitetail Woods Regional Park that could be identified for Farmington residents. McMillen suggested that perhaps a bus could be used to transport children and adults, so that transportation would not be a barrier to participation. Distad stated he felt city staff could reach out to Dakota County Parks staff about possibly trying to jointly offer this event at Whitetail Woods Regional Park. D. Recreational Facilities Task Force Commission members by consensus agreed this item should be tabled to the April 8, 2015 meeting so all Commission members were present when possible representation could be discussed and selected. McMillen stated he thought Spars might be interested in serving on the Task Force and Elliott agreed with him. McMillen asked if anyone else might be interested. Carpentier stated that he too would be interested in serving on the Task Force. Distad stated that perhaps there could be two Commission members on the Task Force. VII. Commission Roundtable Elliott: Asked when the park clean-up day event will be held. Distad shared that the Pond and Park Clean-Up Day event will be held on Saturday, April 25th from 9:00-11:00 a.m. Carpentier: Did not have anything to share. McMillen: Thanked Rambling River Center staff and maintenance staff for the painting that was recently completed in the Rambling River Center hallways. Stated that it looks nice and should help hide scuff marks on the walls. VIII. Staff Report A. Community Survey Distad shared with Commission members the draft version of a community survey that will be completed this spring. He reviewed the survey and shared that all of the questions that the Commission had identified to be included in the survey, were in the survey. He shared that it is likely the survey will be completed from mid-April to mid-May and results would be known in late May. B. City Council Retreat Distad shared information about the March 6, 2015 City Council strategic planning session. He shared that Department Heads met with Council for two hours and presented items/projects each Department will be working on in 2015 and what issues are being faced by each Department. He informed Commission members that the City Council then took this information and for the last two hours of the strategic planning session met by themselves to come up with strategic plan priorities to be worked on during the next year. He made Commission members aware the Council will publicly review and approve a strategic plan at one of its future meetings. IX. April 8, 2015 Meeting Agenda Items The following items were identified by Commission members for its December 10, 2014 meeting agenda: 1. Presentation of Arena’s 2014-2015 ice season report 2. Commission member group photo 3. 2016 park improvement project(s) discussion 4. Recreational Facilities Task Force representation 5. Arena Financial Plan X. Adjournment Moved by Elliott and seconded by Carpentier to adjourn the meeting. APIF. Motion carried. The meeting was adjourned at 8:18 p.m. Respectfully Submitted, Randy Distad Parks and Recreation Director and Recording Secretary City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO:Farmington Parks and Recreation Commission Members FROM:Randy Distad, Parks and Recreation Director SUBJECT:2014-2015 Ice Season Report DATE:April 8, 2015 BACKGROUND Included in the packet is information about the 2014-2015 ice season at Schmitz-Maki Arena. Jeremy Pire, Parks and Facilities Supervisor will be in attendance to review the information and answer any questions the Commission may have about the past ice season. ATTACHMENTS: Type Description Exhibit 2011-2015 ice season rental hours Exhibit 2014-2015 Participation Report 2010-11 PRIME RATE $200 SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBUARY MARCH TOTAL FYHA HOURS RENTED 0 158.25 142 101.5 140 120.25 112.5 774.5 REVENUE $0.00 $31,425.00 $28,200.00 $20,600.00 $27,800.00 $23,950.00 $22,400.00 $154,375.00 HIGH SCHOOL HOURS RENTED 0 0 58.75 84.75 85 53 0 281.5 REVENUE $0.00 $0.00 $13,150.00 $25,700.00 $21,250.00 $12,720.00 $0.00 $72,820.00 SENIOR MEN HOURS RENTED 0 0 3 4 4 4 3 18 REVENUE $0.00 $0.00 $600.00 $800.00 $800.00 $800.00 $600.00 $3,600.00 SKATE CLUB HOURS RENTED 0 10.5 13.5 8 13.5 10.5 9 65 REVENUE $0.00 $2,100.00 $2,700.00 $1,600.00 $2,700.00 $2,100.00 $1,800.00 $13,000.00 MISC. HOURS RENTED 3 14 4 5 0 1 0 27 REVENUE $450.00 $2,350.00 $600.00 $750.00 $0.00 $150.00 $0.00 $4,300.00 TOTAL HOURS RENTED 3 182.75 221.25 203.25 242.5 188.75 124.5 1166 REVENUE $450.00 $35,875.00 $45,250.00 $49,450.00 $52,550.00 $39,720.00 $24,800.00 $248,095.00 2011-12 PRIME RATE $200 SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBUARY MARCH TOTAL FYHA HOURS RENTED 0 158.25 132.75 110.25 133.75 128.25 95 758.25 REVENUE $0.00 $31,500.00 $26,300.00 $21,850.00 $26,550.00 $25,450.00 $18,900.00 $150,550.00 HIGH SCHOOL HOURS RENTED 0 2.25 69.75 95.75 90.5 40 0 298.25 REVENUE $0.00 $450.00 $14,222.50 $22,420.00 $19,550.00 $8,570.00 $0.00 $65,212.50 SENIOR MEN HOURS RENTED 0 0 4 4 4 5 3 20 REVENUE $0.00 $0.00 $800.00 $800.00 $800.00 $1,000.00 $600.00 $4,000.00 SKATE CLUB HOURS RENTED 0 10 10 7 11 9 6 53 REVENUE $0.00 $2,000.00 $2,000.00 $1,500.00 $2,200.00 $1,800.00 $1,200.00 $10,700.00 MISC. HOURS RENTED 7 10 9 3 0 0 1 30 REVENUE $1,400.00 $1,350.00 $1,300.00 $600.00 $0.00 $0.00 $200.00 $4,850.00 TOTAL HOURS RENTED 7 180.5 225.5 220 239.25 182.25 105 1159.5 REVENUE $1,400.00 $35,300.00 $44,622.50 $47,170.00 $49,100.00 $36,820.00 $20,900.00 $235,312.50 2012-13 PRIME RATE $205 SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBUARY MARCH TOTAL FYHA HOURS RENTED 19.5 166 148.75 130.5 138.5 140.25 98.5 842 REVENUE $3,997.50 $33,727.50 $30,067.50 $26,161.25 $28,007.50 $28,751.25 $20,192.50 $170,905.00 HIGH SCHOOL HOURS RENTED 0 6 61.5 103.5 84.5 34.75 0 290.25 REVENUE $0.00 $1,230.00 $12,542.50 $24,119.38 $18,892.50 $7,699.69 $0.00 $64,484.07 SENIOR MEN HOURS RENTED 0 0 4 4 5 4 2 19 REVENUE $0.00 $0.00 $600.00 $600.00 $800.00 $600.00 $300.00 $2,900.00 SKATE CLUB HOURS RENTED 0 0 0 0 0 0 0 0 REVENUE $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 MISC. HOURS RENTED 4.5 14 3 4 0 2 5 32.5 REVENUE $675.00 $2,100.00 $450.00 $750.00 $0.00 $300.00 $700.00 $4,975.00 TOTAL HOURS RENTED 24 186 217.25 242 228 181 105.5 1183.75 REVENUE $4,672.50 $37,057.50 $43,660.00 $51,630.63 $47,700.00 $37,350.94 $21,192.50 $243,264.07 2013-14 PRIME RATE $210 SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBUARY MARCH TOTAL FYHA HOURS RENTED 30 140 133.25 119.75 132.25 139.75 93.5 788.5 REVENUE $6,300.00 $29,400.00 $27,982.50 $25,147.50 $27,717.50 $29,347.50 $19,552.50 $165,447.50 HIGH SCHOOL HOURS RENTED 0 8 74 103.25 83.25 42.25 0 310.75 REVENUE $0.00 $1,680.00 $16,859.39 $25,335.64 $19,259.70 $9,517.82 $0.00 $72,652.55 SENIOR MEN HOURS RENTED 0 0 4 2 5 4 3 18 REVENUE $0.00 $0.00 $620.00 $310.00 $775.00 $620.00 $465.00 $2,790.00 MISC. HOURS RENTED 4 10 0 4 2 0 5 25 REVENUE $620.00 $1,510.00 $0.00 $670.00 $420.00 $0.00 $775.00 $3,995.00 TOTAL HOURS RENTED 34 158 211.25 229 222.5 186 101.5 1142.25 REVENUE $6,920.00 $32,590.00 $45,461.89 $51,463.14 $48,172.20 $39,485.32 $20,792.50 $244,885.05 2014-15 PRIME RATE $210 SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBURARY MARCH TOTAL FYHA HOURS RENTED 18 100 119.75 94.25 115.25 97.25 67.75 612.25 REVENUE $3,780.00 $21,000.00 $25,147.50 $19,372.50 $24,202.50 $20,422.50 $14,227.50 $128,152.50 HIGH SCHOOL HOURS RENTED 0 11.5 75 125.5 105 44.75 0 361.75 REVENUE $0.00 $2,415.00 $15,893.76 $31,202.20 $23,115.96 $10,230.32 $0.00 $82,857.24 SENIOR MEN HOURS RENTED 0 0 4 3 4 4 2.75 17.75 REVENUE $0.00 $0.00 $620.00 $465.00 $620.00 $620.00 $426.25 $2,751.25 MISC. HOURS RENTED 22 22 4 5 0 2 3 58 REVENUE $3,410.00 $3,410.00 $620.00 $775.00 $0.00 $310.00 $465.00 $8,990.00 TOTAL HOURS RENTED 40 133.5 202.75 227.75 224.25 148 73.5 1049.75 REVENUE $7,190.00 $26,825.00 $42,281.26 $51,814.70 $47,938.46 $31,582.82 $15,118.75 $222,750.99 2010-11 2011-12 2012-13 2013-14 2014-15 FYHA FYHA FYHA FYHA FYHA FYHA HOURS RENTED 774.5 758.25 842 788.5 612.25 REVENUE $154,375.00 $150,550.00 $170,905.00 $165,447.50 $128,152.50 HIGH SCHOOL HIGH SCHOOL HIGH SCHOOL HIGH SCHOOL HIGH SCHOOL HIGH SCHOOL HOURS RENTED 281.5 298.25 290.25 310.75 361.75 REVENUE $72,820.00 $65,212.50 $64,484.07 $72,652.55 $82,857.24 SENIOR MEN SENIOR MEN SENIOR MEN SENIOR MEN SENIOR MEN SENIOR MEN HOURS RENTED 18 20 19 18 17.75 REVENUE $3,600.00 $4,000.00 $2,900.00 $2,790.00 $2,751.25 SKATE CLUB SKATE CLUB SKATE CLUB SKATE CLUB SKATE CLUB SKATE CLUB HOURS RENTED 65 53 0 0 0 REVENUE $13,000.00 $10,700.00 $0.00 $0.00 $0.00 MISC. MISC. MISC. MISC. MISC. MISC. HOURS RENTED 27 30 32.5 25 58 REVENUE $4,300.00 $4,850.00 $4,975.00 $3,995.00 $8,990.00 TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL HOURS RENTED 1166 1159.5 1183.75 1142.25 1049.75 REVENUE $248,095.00 $235,312.50 $243,264.07 $244,885.05 $222,750.99 2014-2015 Ice Season Participation Report Item Number of Participants Miscellaneous Information Open Skate 1,234 Halloween Skate 200 Skaters donated 143 pounds of food to the Farmington Food Shelf Skate with Santa 160 Skaters donated 205 pounds of food and $51.00 to the Farmington Food Shelf Spring Skate Festival 73 There were 53 different events. Increased 20 skaters from the 2014 event Fall Learn to Skate 146 Winter Learn to Skate 103 Skate Rentals 260 pairs rented Youth Open Hockey 81 City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO:Farmington Parks and Recreation Commission Members FROM:Randy Distad, Parks and Recreation Director SUBJECT:Commission Member Group Photo DATE:April 8, 2015 BACKGROUND Assuming that everyone is able to attend the meeting, staff would like to take a group photo of Commission members and then post it on the city’s website. This is in keeping with past tradition. Please come to the meeting photo-ready!! City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO:Farmington Parks and Recreation Commission Members FROM:Randy Distad, Parks and Recreation Director SUBJECT:Rambling River Center Severe Weather Program Cancellation and Building Closing Policy DATE:April 8, 2015 BACKGROUND Included in your packet is a Rambling River Center Program Cancellation and Building Closing Policy (Policy) that the Rambling River Center Advisory Board developed and is recommending to be approved by the Commission. Included with the Policy is a map of the building showing the locations where people should go in the event there is severe weather. The Commission is being asked to review the Policy and map and then formally make a recommendation to the City Council that it should approve the Policy and map. ATTACHMENTS: Type Description Exhibit Policy Exhibit Severe Weather Shelter Map Rambling River Center Weather Policy for Building Closing and Program Cancellation Purpose The purpose of this policy is to identify when the Rambling River Center building will be closed and/or when programs will be cancelled due to extreme weather conditions. Definitions The following definitions are being used to clarify key words in the Policy: Severe Weather – Any type of weather leading to extreme and dangerous conditions. This includes the following two weather scenarios: Heat • Warm/hot temperatures combined with high humidity to create a dangerous heat index • Atmospheric conditions that may produce a severe thunderstorm capable of high winds, hail, heavy rain and/or a tornado Cold • Low temperatures that may produce freezing rain • Extremely low temperatures that may also be combined with wind that creates a dangerous wind chill factor that may cause frostbite and hypothermia in 15 minutes or less • Snow that may create unsafe conditions • Snow combined with wind that may create a blizzard condition Policy It shall be the policy of the City of Farmington that the Rambling River Center building may close and/or cancel programs due to severe weather. The following severe weather conditions will warrant the closing and/or cancellation of programs at the Rambling River Center: • If other city buildings are closed, then the Rambling River Center will be closed and all programs will be cancelled and will be rescheduled to a different date if possible • If a trip is planned and there is a wind chill advisory issued by the National Weather Service during the time the trip will be occurring, then the trip will be cancelled and if possible rescheduled to a different date • If there is a heat advisory issued by the National Weather Service, then any outdoor programs/events scheduled during the heat advisory will be cancelled and if possible rescheduled to a different date In addition to cancelling programs and/or closing the building due to severe weather, programs and/or the building may be impacted by severe weather while the building is open and programs are being held. In this scenario, the following action will be taken: If a severe thunderstorm and/or tornado warning is given by Dakota County, all programs/activities inside the Rambling River Center building will cease and all participants will be required to move immediately to the following storm shelter areas in the building: • Interior restrooms (not banquet room restrooms) • Janitorial storage room • Anchor Bank room • Storage rooms (old jail cells) by train club area A map is shown on the next page that identifies where the storm shelter areas are located in the building. While the city cannot force people to enter the storm shelter areas, everything will be done to convince participants to remain in the building and move to the storm shelter areas rather than leave the building. If a person decides to leave the building on their own, staff will not impede them from leaving, but the city will not be responsible for what happens to the person once they leave the building. Once inside the shelter areas, people are not allowed to leave. Staff will monitor the severe weather conditions to determine when it is safe for people to leave the storm shelter areas. Storage Room Anchor Bank Activity Room Storage Room Storage Room Coffee Nook Women’s Restroom Men’s Restroom Women’s Restroom Mechanical Room Garage Train Room Arts & Crafts Room Nicolai Board Room Office Red Slipper Room Weber Room Empire Room Jerry Ristow Library Office Front Desk Oak Street Entrance Jack & Bev McKnight Fitness Center Copy Room Kitchenette Banquet Room Storage Room Farmington Rotary Room Co a t Ro o m Men’s Rest- room StorageStorage Rambling River Center Severe Weather Shelter Locations Map City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO:Farmington Parks and Recreation Commission Members FROM:Randy Distad, Parks and Recreation Director SUBJECT:Recreational Facilities Task Force Representation DATE:April 8, 2015 BACKGROUND The 2015 Work Plan identifies the Commission identifying at least one of its members serving on a Recreational Facilities Task Force (Task Force). The Commission is being asked to discuss several questions related to a potential future Task Force including: what kind of representation should the Commission have? • which Commission member(s) may be interested in serving? • what should the Commission’s role be? • While the outcome of the community survey will likely be the driving force behind creating the Task Force, Commission members at the March 11, 2015 meeting felt it should discuss and select representation from the Commission during this meeting. Commission members felt that it was important to have this decision made sooner rather than later, so if the Task Force is formed, Commission representation will already be known. Formal action should be taken to approve the selection of Commission representation on the Task Force should it come to fruition. City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO:Farmington Parks and Recreation Commission Members FROM:Randy Distad, Parks and Recreation Director SUBJECT:2015 Commission Work Plan Review DATE:April 8, 2015 BACKGROUND The Work Plan has been updated since the last Commission meeting. Commission members should come to the meeting to review the attached updated work plan and discuss other work plan items it would like to work on at future meetings. ATTACHMENTS: Type Description Exhibit 2015 Work Plan FARMINGTON PARK AND RECREATION COMMISSION 2015 WORK PLAN Goal #1: Meet with the City Council at least once in 2015. Objectives: 1. By April 1st, the Commission will have identified a date to meet with the City Council either in a workshop setting, or for a parks tour and will identify possible agenda topics for discussion during the meeting. Status: Completed. Have identified a parks and facilities tour on August 12, 2015 with the City Council. 2. By September 1st, the Commission will have held a workshop with the City Council, or a parks tour and discussed during the workshop the agenda topics identified. Goal #2: Develop and prioritize a list of 2016 improvement projects for parks, trails and recreational facilities. Objectives: 1. By April 1st, the Commission will have discussed and identified a list of 2016 improvement projects to be completed in park, trails and recreational facilities. 2. By May 1st, the Commission will have discussed and identify possible funding sources for the 2016 improvement projects. 3. By July 1st, the Commission will have met with the City Council to discuss the 2016 improvement projects and how the project(s) may be funded. 4. By September 15th, at least one of the projects recommended for funding in 2016 will be included in the approved 2016 preliminary budget. Goal #3: Continue to build and strengthen relationships with Empire Township’s Park and Recreation Commission (ETPRC). Objectives: 1. By July 1st, discuss and determine a date to have a joint meeting with ETPRC. 2. By October 1st, a date will have been set to have a joint meeting with ETPRC. 3. By November 1st, discuss and formulate a list of discussion topics for a joint meeting agenda with ETPRC. 4. By December 1st, a meeting will have been held with ETPRC. Goal #4: Participate in a Recreational Facilities Task Force. Objectives: 1. By April 1st, the Commission will have identified one of its members to be involved with a Recreational Facilities Task Force. 2. By May 1st, the Commission will have worked with City staff to identify possible youth sports organizations to be involved in a Recreational Facilities Task Force. 3. By November 1st, the Recreational Facilities Task Force will have presented its report to the Commission. 4. By December 31st, the Commission will have reviewed the recommendation made by the Recreational Facilities Task Force and forwarded a recommendation about recreational facilities to the City Council Goal #5: Participate in developing a long-term financial plan for the Schmitz-Maki Arena . Objectives: 1. By March 1st, the Commission will have been presented with financial information about Schmitz-Maki Arena’s operating expenses and revenues and capital improvements from 2009 through 2013. 2. By June 1st, the Commission will have reviewed a Schmitz-Maki Arena projected five year financial plan for the years 2017 through 2021 that will include operating expenses and revenues and capital improvements. 3. By December 31st, the Commission will have finalized and recommended to the City Council a five year financial plan for Schmitz-Maki Arena that includes operating expenses and revenues and capital improvements and is based on an at least break-even operating budget. Goal #6: Work with Parks and Recreation Department staff to explore possible expansion of new winter outdoor recreation opportunities through collaboration with other organizations. Objectives: 1. By April1st, Commission members will have discussed at least one possible outdoor recreational special event that the Parks and Recreation Department could offer to the community during the winter. Status: Completed. Commission members discussed at its March 11, 2015 meeting to offer a Smores and More event at the Rambling River Park outdoor rinks, but on a different date and to see if the Dakota County Parks Department would be interested in partnering on a Farmington Day being held at Whitetail Woods Regional Park. 2. By August 1st, the Commission will have finalized one possible prioritized outdoor recreational special event to be offered to the community during the winter of 2015-2016. Goal #7: Review and select a new picnic shelter for construction in 2015 for Fair Hills Park. Objectives: 1. By February 1st, the Commission will have approved RFP specifications for a new picnic shelter. Status: Completed. Commission selected shelter design at its January 14, 2015 meeting. 2. By March 15th, the Commission will have reviewed picnic shelter proposals and made a recommendation to the City Council on the purchase and construction of a new picnic shelter. Status: Completed. At its March 11, 2015 meeting Commission members recommended to the City Council that a shelter be purchased from and installed by St. Croix Recreation Company, Inc. in Fair Hills Park. 3. By April 15th, the City Council will have approved the purchase and construction of a new picnic shelter. 4. By September 30th, installation of a new picnic shelter in Fair Hills Park will have occurred. Goal #8: Participate in the development of a strategic plan for the Parks and Recreation Department. Objectives: 1. By April 1st, the Commission will have brainstormed ideas for items to include in a three to five year strategic plan. 2. By July 1st, the Commission will have identified the most important items to include in a three to five year strategic plan. 3. By September 1st, the Commission will have reviewed and possibly revised a draft three to five year strategic plan. 4. By December 31st, the Commission will have approved and forwarded to the City Council a recommended three to five year Parks and Recreation strategic plan. Goal #9: Be involved in the development of a community survey instrument’s questions that relate to Parks and Recreation. Objectives: 1. By March 1st, Commission members will have had an opportunity to provide input on questions related to parks and recreation that could be included in the resident survey instrument before it is drafted. Status: Commission members provided a list of possible park and recreation related questions to include in a community survey. 2. By May 1st, Commission members will have reviewed a draft resident survey instrument and provide feedback to staff about the Park and Recreation related questions. Status: Completed. The Commission reviewed at its March 11, 2015 meeting a draft survey instrument and provided feedback to staff on revisions to be made to the park and recreation related questions that were in the survey. 3. By September 1st, Commission members will be presented with the results of the resident survey especially the questions that relate to Parks and Recreation. Goal #10: Receive periodic presentations from each of the Parks and Recreation professional staff members about programs, parks, facilities and trails. Objectives: 1. By March 1st, the Commission will have received a presentation by professional staff members of the Department’s 2014 Annual Report. Status: Completed. 2014 Annual Report given by staff at the February 11, 2015 meeting. 2. By May 1st, Commission members will have received a presentation from staff on the results of the Schmitz- Maki Arena’s season. 3. By August 1st, Commission members will have received a presentation from staff on the first half operations of the Rambling River Center. 4. By October 1st, Commission members will have received a presentation from staff on the results of the summer programs offered. 5. By October 1st, Commission members will have received a presentation from staff about the outdoor pool season. 6. By November 1st, Commission members will have received a presentation from staff about the summer ice season. 7. By November 1st, the Commission will have received a presentation from staff about maintenance and improvements to parks and trails Goal #11: Explore the lighting of parks and/or trails through solar lighting methods. Objectives: 1. By May 1st, the Commission will have explored styles and estimated costs of installing solar lights in parks and along trails. 2. By July 1st, the Commission will have identified a specific style of solar lights for parks and trails. 3. By October 1st, the Commission will have identified and prioritized at least three park and trail areas for lighting including spacing and location within the three parks. 4. By December 31st, the Commission will approve a final solar lighting plan that will be included in the five year Capital Improvement Plan for parks and trails and beginning with the 2017 budget a request will be made to start funding the solar lighting program. City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO:Farmington Parks and Recreation Commission Members FROM:Randy Distad, Parks and Recreation Director SUBJECT:2016 Park Improvement Project(s) DATE:April 8, 2015 BACKGROUND At the March 11, 2015 meeting, Commission members reviewed the Park Improvement Fund’s 2015- 2019 Capital Improvement Plan (CIP) projects. At the meeting Commission members felt that the community survey may provide some direction on what projects are considered a higher priority for residents. The Commission should continue to discuss a list of possible projects to complete in 2016 as well as have a discussion about updating the CIP projects for the years 2016-2020. This is a discussion item only and no action is being requested. City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO:Farmington Parks and Recreation Commission Members FROM:Randy Distad, Parks and Recreation Director SUBJECT:Arena Financial Plan DATE:April 8, 2015 BACKGROUND I was able to research and find a couple of examples of an Arena business plan that the cities of Park City, Utah and Cottage Grove, Minnesota developed and I have included a copy of each in your packet. I would like to have the Commission review and discuss these plans during the meeting and provide direction to staff about an approach to take with developing a 3-5 year plan for the Schmitz-Maki Arena. This is a discussion item only and no action is being requested. ATTACHMENTS: Type Description Exhibit Park City Arena Business Plan Exhibit Cottage Grove Arena Business Plan Title Page PARK CITY ICE ARENA BUSINESS PLAN BUSINESS PLAN Developed by: Jon Pistey, Operations Manager Jason Glidden, Business Development Manager 2013-2014 PURPOSE STATEMENT This document details specific strategies that the Park City Ice Arena will follow in order to ensure it provides high quality programming and exceptional customer service to its guests. It serves primarily as accountability and management tool to ensure that staff is progressing towards achieving the Community Vision by taking measurable action steps. Secondarily, it clarifies how day-to-day taxpayer funded operations ultimately bring about the desired outcomes identified by the community and its representatives. TABLE OF CONTENTS The Community Vision for the Ice Arena – p.1 The Community Vision Council Priorities & Desired Outcomes Ice Arena Mission Who Is the Ice Arena Team? Strategies & Action Steps – p.3 Provide a Variety of High Quality Recreational Opportunities Focus on Efficient Use of Resources Provide Exceptional Customer Service Utilize Facility as Economic Development Tool Resources – p.9 Human Capital Technology Contract Services Appendices – p.11 Operating Program Bids Key Policies Capital Project Requests Performance Measures | 1 | Ice Arena Business Plan COMMUNITY VISION In 2009 the City conducted a series of interviews, surveys, open houses, etc., to better understand the Community Vision or the way residents see Park City, what they value, and what they want local government to focus on. We learned that our mandate is to Keep Park City “Park City”. The boxes at right show what the community has identified as the Core Values that make Park City “Park City”. The availability of recreational facilities and programs help to bring people together and preserve the Sense of Community and Small Town charm that is vital to our success. Also, the high quality of our services and our facility are a big part of the exceptional resident benefits enjoyed by the permanent population and are an integral part of the recreational opportunities enjoyed by our visitors and second homeowners. COUNCIL PRIORITIES & DESIRED OUTCOMES In the PC 2030 long range strategic plan, the City Council identified four priority areas upon which the City must focus its efforts in order to achieve the Community Vision and Keep Park City “Park City”. The Ice Arena is critical to three of those four priorities, namely: World-Class, Multi-Seasonal Resort Community An Inclusive Community of Diverse Economic & Cultural Opportunities Responsive, Cutting-Edge & Effective Government Within each priority area, a set of Desired Outcomes shows what we intend to accomplish. This document puts forth the specific strategies and action steps we’ll use to bring about these Desired Outcomes. The Community’s Vision for the Ice Arena Sense of Community Small Town Natural Setting Historic Character Community Core Values Community Vision Council Priorities Desired Outcomes Strategies  Operating Programs  Capital Projects  Policies | 2 | Ice Arena Business Plan The Park City Ice Arena strives to provide a world class recreational facility that inspires a fun, healthy and sustainable community. WHO IS THE ICE ARENA MANAGEMENT TEAM? Jason Glidden – Business Development Manager Jon Pistey – Operations Manager Chanz Skeffington – Operations Assistant Debbie Modrovsky – Hockey Director Erika Roberts – Skating Director Amanda Noel – Front Desk Supervisor Business Development Manager Skating Director Instructors Hockey Director Instructors Front Desk Supervisor Cashiers Skate Guards Operations Manager Operations Assistant Building Maintenance Coordinator Supervisors | 3 | Ice Arena Business Plan To ensure that our strategies are accomplishing the Community Vision, each strategy can be linked to one or more Desired Outcomes within a Council Priority Area. The Council Priorities represent the City Council’s broad strategy for achieving the Community Vision. Keeping Park City “PARK CITY” SENSE OF COMMUNITY | NATURAL SETTING | SMALL TOWN | HISTORIC CHARACTER World Class, Multi-Seasonal Resort Destination  Accessible and world-class recreational facilities, parks and programs  Balance between tourism and local quality of life  Varied and extensive event offerings  Accessibility during peak seasonal times  Multi-seasonal destination for recreational opportunities  Internationally recognized & respected brand  Every City employee is an ambassador of first-class service An Inclusive Community of Diverse Economic & Cultural Opportunities  Skilled, educated workforce  Entire population utilizes community amenities  Community gathering spaces and places Responsive, Cutting-Edge & Effective Government  Fiscally and legally sound  Engaged, capable workforce  Well-maintained assets and infrastructure Ice Arena Strategies I. Provide a Variety of High Quality Recreational Opportunities II. Focus on Efficient Use of Resources III. Provide Exceptional Customer Service IV. Utilize Facility as Economic Development Tool Strategies & Action Steps PL A N DO PL A N DO COMMUNITY VISION COUNCIL PRIORITIES STRATEGIES | 4 | Ice Arena Business Plan Steps taken under this strategy are crafted to bring about the following desired outcomes identified by the City Council as critical to the Community Vision of Keeping Park City “Park City”:  Accessible and world-class recreational facilities, parks and programs  Accessibility during peak seasonal times  Entire population utilizes community amenities  Community gathering spaces and places  Fiscally and legally sound Current Policy Direction: The Arena will place its primary focus on developing public skating programs by engaging the regional population base and providing a variety of ice programs. Action Step (Priority) Deliverable Who’s Responsible By When Operating Programs Youth Programming Adult Programming Get Out and Play Plan logistics of providing safe instruction for 80 skaters Skating Director November, 2012 Dryland Training Develop a dryland training program that meets the needs of Hockey players and speed skaters Skating Director November, 2013 Minority Outreach Programming Work with the PC School District to identify and invite multicultural youth who want to learn to skate and/or play ice hockey. Hockey Director November, 2013 Therapeutic Skating Program Develop a Skating program tailored to disabled participants Skating Director November, 2013 Adult Sized Hockey Rental Equipment Purchase adult sized hockey equipment for rental to beginner hockey players Hockey Director July, 2013 Strategic Partners: Internal: Park City Recreation External: Youth Winter Sports Alliance, National Ability Center, hockey equipment provider TBD | 5 | Ice Arena Business Plan Critical Success Factors: The success of these programs lies in successfully partnering with th YWSA, NAC and minority groups in the commuity as well as getting buy-in from speedskating and youth hockey for the benefits of dryland training for their athletes. We will also need to find a partner from whom we can purchase adult-sized hockey equipment at a reasonable cost. | 6 | Ice Arena Business Plan Steps taken under this strategy are crafted to bring about the following desired outcomes identified by the City Council as critical to the Community Vision of Keeping Park City “Park City”:  Skilled, educated workforce  Fiscally and legally sound  Engaged, capable workforce  Well-maintained assets and infrastructure Current Policy Direction: The Ice Arena will focus on efficient operations, appropriate and measured capital expenditures, to ensure an appropriate cost recovery level. Action Step (Priority) Deliverable Who’s Responsible By When Operating Programs Operations Utilize Lobby More Effectively Rearrange layout of lobby, purchase new furniture and set up to be more welcoming and comfortable Front Desk Supervisor November, 2012 Implement the Use of “Tablets” for Operations Staff Purchase tablets/software, train staff and have staff use tablets to improve operational efficiency Building Maintenance Coordinator January, 2013 Complete Operations Training Videos Develop and produce training videos for operations staff to improve standardization and efficiency of training process Operations Assistant October, 2012 Renovate the “Concessions” Room Remove walls and plumbing from the room, determine best use of space and outfit for that function Building Maintenance Supervisor August 2013 Capital Projects Operations Replace Rubber Flooring Throughout Facility Design Layout, Issue Bids and Choose Vendor to Operations Manager July 2013 | 7 | Ice Arena Business Plan Provide/Install Flooring Strategic Partners: Internal: IT Department, Building Department Critical Success Factors: The availabiliy of funding will have an impact on our ability to complete these action steps. Funding is budgeted in the Capital Replacement Reserve Fund for the flooring project, but it may be scaled back if prices are too high to replace all flooring. The concession room renovation will depend on our final determination of the best use for that space, if we have funds in our operating budget, or if we will need to request CIP funds. Implementing tablets will require Wi-Fi access throughout the building as well as a testing period to determine whether it is a good solution for our needs. | 8 | Ice Arena Business Plan Steps taken under this strategy are crafted to bring about the following desired outcomes identified by the City Council as critical to the Community Vision of Keeping Park City “Park City”:  Accessible and world-class recreational facilities, parks and programs  Balance between tourism and local quality of life  Varied and extensive event offerings  Accessibility during peak seasonal times  Multi-seasonal destination for recreational opportunities  Internationally recognized & respected brand  Every City employee is an ambassador of first-class service  Skilled, educated workforce  Well-maintained assets and infrastructure Current Policy Direction: The Ice Arena will strive to provide an exceptional experience to all visitors to the facility Strategic Partners: Internal: City Council, Interim CM, IT Department. Legal Department Action Step (Priority) Deliverable Who’s Responsible By When Operating Programs Operations Provide Wi-Fi Access for Our Guests Installation of Wi-Fi equipment, landing page agreement, public access Arena Operations Manager November 2012 Increase Rentable Equipment Locker Inventory Purchase and install lockers in the east hallway Building Maintenance Coordinator August, 2013 Capital Projects Operations Replace Existing Arena Management Software Replacement of Class Software Front Desk Supervisor July 2013 Policies Operations Determine Policy Direction for Arena Scheduling Revenue and Usage Comparisons/Projections, Staff Report, Council Meeting Operations Manager March, 2013 | 9 | Ice Arena Business Plan External: Software Vendor (TBD), Locker Vendor, All-West Communications Critical Success Factors: Our ability to provide Wi-Fi for our guests will rely on the IT and Legal Departments development of a landing page that they feel relieves the city of any liability or responsibility for the content accessed through the network connection provided by All-West Communications. Replacing arena management software will depend on the availability of funds. Reworking or changing policy direction will depend on how Council would like the facility to operate, as a business or as a community facility. | 10 | Ice Arena Business Plan Steps taken under this strategy are crafted to bring about the following desired outcomes identified by the City Council as critical to the Community Vision of Keeping Park City “Park City”:  Varied and extensive event offerings  Internationally recognized & respected brand  Accessible and world-class recreational facilities, parks and programs  Current Policy Direction: Consistent with Park City’s goal to operate as a world-class multi- season destination resort community, the Arena will serve as an economic development tool. Strategic Partners: Internal: Recreation Department, Legal Dept., HR, Interim CM, New CM External: Park City Chamber of Commerce, Rec Advisory Board Critical Success Factors: The success of the sales and marketing plan will hinge on whether or not the compensation plan is accepted by HR, Legal and the ICM. We will also need ot be chosen as the site for the Kick-Off by providing the best proposal to the chamber for consideration. The Recreation Master Plan will be a long process that we do not anticipate will be completed this year; it will require many meetings with the Recreation department and the Rec. Advisory Board. Action Step (Priority) Deliverable Who’s Responsible By When Operating Programs Economic Development Implement Sales and Marketing Plan Compensation Plan, price list, recruit for PT sales position Operations Manager November, 2012 Host Chamber Kick-Off Event Plan and Host the Winter 2013 Chamber Kick-off Event Front Desk Supervisor November 2013 Recreation Master Plan Work with RAB, Recreation Dept. to Produce a Recreation Master Plan for Park City Operations Manager, Business Development Manager December 2012 | 11 | Ice Arena Business Plan | 12 | Ice Arena Business Plan The following narrative provides a brief description regarding how major resources will be managed in order to successfully carry out the strategies and action steps outlined in this document. Specific resource requirements, such as number of positions or budget for office supplies, are not discussed here. For that level of detail, please see the program bids and capital requests in the appendix of this document. HUMAN CAPITAL The Ice Arena employs 5 full-time staff and between 20 and 25 part-time staff members. All Full-time staff participate in a peer review process with goals developed to align with the department’s goals in the biennial plans. Part-time staff all have yearly reviews as well with opportunity for lump merit increases and raises based on performance. Staff also have the opportunity to participate in Arena-run programs at a highly reduced rate. TECHNOLOGY We currently utilize a facility management software called Class, but the Front Desk Supervisor is in the process of researching software solutions that will streamline and improve our customer service. Operations staff is currently working with IT to identify solutions that will improve record keeping ability and communication with service providers. Once the building has Wi-Fi capability, we will begin testing different options and choose the best for our needs. Providing public Wi-Fi service will also address our largest customer complaint. CONTRACT SERVICES The Ice Arena uses contract services for the maintenance and repair of specialized equipment such as the refrigeration and HVAC systems. Maintenance of these systems, beyond routine greasing and belt tightening requires special certifications. All minor facility repairs are performed in-house. CAPITAL REPLACEMENT The Ice Arena has a Capital Replacement Reserve Fund which is funded by a yearly contribution of $50K from the Basin Special Recreation District. This fund is used for replacement and repair of major capital equipment, without which we would not be able to support our programs. Program Resources | 13 | Ice Arena Business Plan Appendices | 14 | Ice Arena Business Plan Program: Ice Youth Programs Department: ICE FACILITY A variety of rink-run, on- and off-ice programs in which youths can participate. Description: Council Goal: Recreation, Open Space, and Trails Desired Provide accessibility to premier recreational activities/facilities to the local community at an affordable cost Outcome: Section 1: Scope Current LOS: This program includes the following rink-run activities: Learn to Skate, Learn to Play Hockey, youth drop-in hockey, off-ice training, Learn to Skate and figure skating camps. Learn to Skate and Learn to Play Hockey are both offered as six week long classes, and the ice is often divided to accommodate both classes at the same time. Youth drop-in hockey is offered throughout the year, generally during school vacations, on holidays, and when the Ice Miners youth hockey organization is not in season. Off-ice training is offered on Monday afternoon and Saturday morning for figure skaters, and skating camps are held during long holiday school breaks and during summer vacation. Except for youth drop-in hockey, all programs have an instruction/development component with rink staff providing most of the instruction. The exception is during skating camps, when nutritionists, yoga instructors or other specialists are brought in as guest instructors. Proposed LOS: No change in level of service. Section 2: Proposed Amount/FTEs Expenditures Current FY12 Proposed FY13 Proposed FY14 Is this the same level of service? Or is it reduced or enhanced LOS? Personnel $61,136 $56,275 $56,275 Materials $25,007 $25,010 $25,010 Same LOS Equipment Replacement (if applicable) Subtotal $86,144 $81,285 $81,285 Revenues Ice Fees $76,816 $79,442 $86,924 (if applicable) Net Tota l $9,327 $1,842 -$5,639 FTEs FTR 0.34 0.29 0.29 PTNB 0.80 0.76 0.76 Tota l 1.14 1.05 1.05 Results 130. | 15 | Ice Arena Business Plan Team Score 75 Section 3: Qualifications for Meeting Criteria in Outcome Area Provide accessibility to premier recreational activities/facilities to the local community at an affordable cost. Healthy, active community. Section 4: Cost Savings/Innovation/Collaboration Using highly trained rink staff to instruct youth classes. Splitting the ice sheet to allow teaching skating and hockey classes simultaneously to maximize revenue by allowing more participants on the ice. Section 5: Consequences of Funding Proposal at Lower Level Funding at a lower level will result in lower-quality instruction and the loss of participants due to dissatisfaction with the quality of instruction and lack of skill development. Section 6: Performance Measures Cost recovery level: 95% Satisfaction level: 90% | 16 | Ice Arena Business Plan Program: Ice Adult Programs Department: ICE FACILITY Provide a variety of on ice adult programs to residents of Summit and Wasatch County Description: Council Goal: Recreation, Open Space, and Trails Desired Healthy active community Outcome: Section 1: Scope Current LOS: The Park City Ice Arena offers a number of adult programs on a weekly basis including: Adult Co-Ed Hockey, Lunch Bunch (Adult Learn-To-Skate), Adult Coached Drop-In Hockey, and Adult Drop-In Hockey. The Drop-In Curling program was taken over by the Park City Curling Club as a way to raise funds for the club's operations. Adult Co-Ed Hockey has four seasons (Winter, Spring, Summer, and Fall) and games are played four nights a week. The league has three levels (AB, BC, and CD) to accommodate the various skill levels of the participants. The Coached Drop-In Hockey takes place once a week on Wednesday mornings. Drop-In Hockey is consistently scheduled at least three times a week, with additional sessions being offered when the schedule allows. The Lunch Bunch takes place every Wednesday and allows for adults to have a skating lesson at a time when kids are not on the ice. It is a great way for adults to socialize and to learn how to skate. Proposed LOS: No change in level of service. Section 2: Proposed Amount/FTEs Expenditure s Current FY12 Proposed FY13 Proposed FY14 Is this the same level of service? Or is it reduced or enhanced LOS? Personnel $57,649 $48,110 $48,110 Materials $50,064 $51,703 $51,378 Same LOS Equipment Replacement (if applicable) Subtotal $107,712 $99,813 $99,488 Revenue s Ice Fees $134,006 $139,819 $147,528 (if applicable) Net Tota l -$26,293 -$40,006 -$48,040 FTEs FTR | 17 | Ice Arena Business Plan 0.42 0.32 0.32 PTNB 0.47 0.47 0.47 Tota l 0.89 0.79 0.79 Results Team Score 13 3 Section 3: Qualifications for Meeting Criteria in Outcome Area Provide accessibility to premier recreational activities/facilities to the local community at an affordable cost. Healthy, active community. Section 4: Cost Savings/Innovation/Collaboration Innovation: The ice arena strives to incorporate technology into our adult programs. Marketing and communication of programs is done primarily through the rink's website and e-mail blasts. Adult League standings and player statistics are now available on the adult hockey landing page on the ice rink's website. This is an additional feature of the league that has enhanced the service level with minimal increase in costs. Section 5: Consequences of Funding Proposal at Lower Level If funding levels are below what is proposed, then restrictions will be placed on adult programs that will limit the amount of participants to each program. This will include restricting the number of teams in our adult leagues, which may potentially prevent adult players from participating in the league. In addition, revenues from these programs would be reduced. Section 6: Performance Measures Three performance measures have been identified for adult programs. Number of teams in the adult hockey leagues (18), cost recovery of adult programs (100%), and participant satisfaction (90%). | 18 | Ice Arena Business Plan Program: Ice Programs Department: ICE FACILITY Provides a variety of on-ice programs for both youths and adults in Summit and Wasatch Counties. Description: Council Goal: Recreation, Open Space, and Trails Desired Provide accessibility to premier recreational activities/facilities to the local community at an affordable cost Outcome: Section 1: Scope Current LOS: The ice arena provides a variety of public programs to both residents and non- residents of Summit and Wasatch Counties. These programs include Open Public Skating, Cheap Skates, Drop-In Speed Skating, Stick & Puck, and Freestyle (figure skating) sessions. The ice rink hosts Open Public Skating/Cheap Skates seven days a week. The majority of these program times are in the afternoon with the exception of Friday and Saturday nights when the junior A hockey team is out of town. Drop-In Speed Skating takes place once a week on Sunday afternoons. Stick & Puck sessions are regularly scheduled on Saturday afternoons along with additional sessions scheduled during school vacation weeks. Freestyle sessions (Figure Skating) are scheduled five times a week. Normally the session is scheduled in the early morning time slot from 6am to 9am. Proposed LOS: No change in level of service. Section 2: Proposed Amount/FTEs Expenditure s Current FY12 Proposed FY13 Proposed FY14 Is this the same level of service? Or is it reduced or enhanced LOS? Personnel $138,083 $138,485 $138,485 Materials $83,051 $68,863 $69,678 Same LOS Equipment Replacement (if applicabl e) Subtotal $221,134 $207,348 $208,163 Reven ues Ice Fees $76,596 $80,823 $88,063 (if applicable) Net Total $144,538 $126,525 $120,100 FTEs FTR 1.20 1.20 1.20 PTNB 1.20 1.21 1.21 Total Results Team 11 | 19 | Ice Arena Business Plan 2.40 2.41 2.41 Score 7 Section 3: Qualifications for Meeting Criteria in Outcome Area The rink strives to provide quality programing at an affordable cost to the participants. Section 4: Cost Savings/Innovation/Collaboration Innovation: The ice arena strives to incorporate technology into our ice programs. Marketing and communication of programs is done primarily through the rink's website, social media, and e-mail blasts. This has allowed for a reduction in marketing costs. Staff continues to cross evaluate program numbers and ice schedule to ensure that program participation numbers are at a level to reach cost recovery goals. Section 5: Consequences of Funding Proposal at Lower Level If funding levels are below what is proposed, then the ice arena will have to limit the amount of programs offered as well as eliminate certain programs due to lack of staff resources. This would also reduce the amount of revenue received through these programs. Section 6: Performance Measures Two performance measures have been identified for ice programs. Cost recovery of ice programs (75%) and participant satisfaction (90%). | 20 | Ice Arena Business Plan Program: Operations Department: ICE FACILITY Provides basic support for operation of the ice arena, regardless of the activity currently being hosted. Descripti on: Council Goal: Recreation, Open Space, and Trails Desired Provide accessibility to premier recreational activities/facilities to the local community at an affordable cost Outcome : Section 1: Scope Current LOS: This program provides the basic backbone for keeping the ice rink functioning when not supporting specific programs or activities. Functions within operations are: providing basic utility service for lights, water, sewer and HVAC as well as maintenance and supplies for related infrastructure, i.e. belts, hoses, oil, wiring, plumbing supplies, hardware, staff time and specialized service providers whether contract or hourly; providing staff and supplies for building cleaning and maintenance; snow removal; operation and maintenance of the refrigeration plant; ice maintenance and related equipment, supplies and staff time. Other operational costs specific to other rink program bids are reflected in those bids. Proposed LOS: The slightly enhanced level of service is due to increased hours of operation. Section 2: Proposed Amount/FTEs Expendit ures Current FY12 Proposed FY13 Proposed FY14 Is this the same level of service? Or is it reduced or enhanced LOS? Personne l $232,058 $236,717 $236,717 Materials $97,528 $98,125 $98,125 Enhanced LOS Equipment Replacement (if applicable) Subtotal $329,585 $334,842 $334,842 Revenue s Ice Fees $215,088 $219,770 $228,918 (if applicable) Net Total $114,497 $115,072 $105,924 FTEs FTR 2.59 2.64 2.64 PTNB 1.33 1.33 1.33 | 21 | Ice Arena Business Plan Total 3.92 3.97 3.97 Results Team Score 12 6 Section 3: Qualifications for Meeting Criteria in Outcome Area Provide accessibility to premier recreational activities/facilities to the local community at an affordable cost. Preserve the Park City brand. Environmental Stewardship. Healthy, active community. Develop Park City as a year-round destination recreation location. Section 4: Cost Savings/Innovation/Collaboration Cost Savings: The ice rink is saving operational costs through the use of a new electric ice resurface which reduces the cost per ice cut, as well as its innovative technologies: laser controlled ice depth will maintain a level ice sheet within less build up, requiring the use of less water, less energy to run the refrigeration plant and less staff and ice time devoted to ice maintenance. The last factor will increase revenue potential and allow staff to devote more time to cleaning and building maintenance and repairs. Section 5: Consequences of Funding Proposal at Lower Level Funding the option at a lower level will result in lower levels of cleaning and maintenance, and a degradation of the ice quality due to running the plant at higher temps to reduce energy consumption. Section 6: Performance Measures Building Cleanliness Ratings: 90% good/excellent Ice Quality Ratings: 90% good/excellent | 22 | Ice Arena Business Plan Program: Retail Department: ICE FACILITY Revenue sources not directly derived from use of the ice sheet. Description : Council Goal: Recreation, Open Space, and Trails Desired Healthy active community Outcome: Section 1: Scope Current LOS: Retail Services encompasses advertising, concessions, skate sharpening and repair, and the sale of a small selection of figure skating and hockey essentials, as well as figure skate sales as ordered. The ice arena does not spend money on concessions as the service is contracted to a vendor, but we do receive a share of the revenue from food, beverage and video games. Staff time is shared between ordering and selling merchandise, fitting, ordering and mounting skates, and selling and installing/removing advertising in the ice arena. ROI on general retail of figure skating and hockey merchandise is $1.47 for every dollar spent. ROI for figure skate sales is $1.98 for every dollar spent. Over the past two years, figure skate sales have increased dramatically with the growth of the figure skating club and the improvement of skaters' skill level, which necessitates the purchase of more expensive skates. Proposed LOS: This accounts for the majority of the proposed budget increase, which is offset by a reduction in the natural gas budget line. With ice time being full, retail holds the largest revenue growth potential for the next few years, especially in figure skates, hockey equipment/skates, and advertising sales. We do not propose increases to the budget to increase hockey or advertising-related revenue at this time. Section 2: Proposed Amount/FTEs Expenditur es Current FY12 Proposed FY13 Proposed FY14 Is this the same level of service? Or is it reduced or enhanced LOS? Personnel $18,557 $28,744 $28,744 Materials $2,051 $22,031 $24,031 Enhanced LOS Equipment Replacement (if applicable) Subtotal $20,608 $50,775 $52,775 Revenue s Ice Fees $74,432 $80,353 $86,413 (if applicable) Net Total -$53,824 -$29,577 -$33,638 FTEs FTR 0.17 0.27 0.27 | 23 | Ice Arena Business Plan PTNB 0.13 0.18 0.18 Total 0.30 0.45 0.45 Results Team Score: 117.7 5 Section 3: Qualifications for Meeting Criteria in Outcome Area Provide accessibility to premier recreational activities/facilities to the local community at an affordable cost. Healthy, active community Section 4: Cost Savings/Innovation/Collaboration We save costs by only ordering skates when needed and by not having a stock of skates on hand, which would require a large initial capital outlay. Section 5: Consequences of Funding Proposal at Lower Level Funding at a lower level would decrease revenues and increase the ice arena subsidy. Customer service would suffer and our skating population would not be happy. Section 6: Performance Measures Skate service satisfaction: 85% Retail Selection Satisfaction: 50% Cost Recovery: 150% | 24 | Ice Arena Business Plan Program: Special Events Department: ICE FACILITY Host special events that will aid in economic development in addition to providing entertainment for local residence. Description: Council Goal: World-Class Multi-Seasonal Resort Community Desired Balance tourism & local quality of life Outcome: Section 1: Scope The Park City Ice Arena hosts a number of special events throughout the year. A number of these events bring economic benefit to the community by bringing both participants and spectators from outside of Park City. The Ice Arena hosts several hockey events (Rocky Mountain Shoot Out - Youth, Gold Digger - Women’s, Luc Robitaille Celebrity Shoot Out - Charity Game, Best of Utah - Senior Men’s, and Muddy Puck - Co-Ed Adult. The ice arena is home to the annual Curling Elevated Bonspiel in April. In addition the ice arena helps to put on a number of community events for local residents and clubs. These events include Christmas at the Ice Arena, Learn to Skate Open Houses and this year and 10 Year Olympic Celebration Event. The Figure Skating Club of Park City hosts two skating shows (Christmas Show & Spring Show) at the ice arena. In the summer the rink stays busy hosting weekly camps. These include Rocky Mountain Hockey School, Park City Hockey Experience Camp, and Figure Skating Camp. The Park City Ice Arena is the home of two men’s hockey teams (Pioneers and Moose). Each team host games with teams from around the western United States. Section 2: Proposed Amount/FTEs Expenditure s Current FY12 Proposed FY13 Proposed FY14 Is this the same level of service? Or is it reduced or enhanced LOS? Personnel $27,314 $27,502 $27,502 Materials $2,940 $2,319 $2,319 Same LOS Ongoing CIP (if applicable) Subtotal $30,253 $29,821 $29,821 Revenues BPE Fees $208,000 $214,000 $220,000 (if applicable) Net Total -$177,747 -$184,179 -$190,179 FTEs FTR 0.28 0.28 0.28 PTNB 0.11 0.11 0.11 | 25 | Ice Arena Business Plan Total 0.39 0.39 0.39 Section 3: Qualifications for Meeting Criteria in Outcome Area Develop Park City as a year round destination recreation location, Healthy active community Section 4: Cost Savings/Innovation/Collaboration Due to limited ice along with a short summer schedule, the ice arena has become more efficient with booking camps. The Figure Skating Camp and Pioneer Camp have worked together to allow for both camps to take place on the same week. Section 5: Consequences of Funding Proposal at Lower Level If funding is cut to this program then the number of special events held would be reduced and the level of service provided to event planners would be reduced which could impact overall satisfaction. In addition, revenues from ice rentals from events would be reduced. Section 6: Performance Measures Two performance measures have been identified for Special Events. Number of events (28) and event planner satisfaction (90%). | 26 | Ice Arena Business Plan Park City Ice Arena Mission and Strategic Plan July 2010 Mission: Effectively utilize resources to provide an enjoyable recreational experience that exceeds the expectations of our guests. Goal Strategy 1 – Public Program Development. The Arena will place its primary focus on developing public skating programs by engaging the regional population base and providing a variety of ice programs. 2 - Resource Responsibility. The Ice Arena will focus on efficient operations, appropriate and measured capital expenditures, to ensure an appropriate cost recovery level. 1A – The Arena will operate year round with a focus on public skating programs while scheduling on-ice events that compliment program development with minimal program interruption. 1B – Staff will work to develop long term master planning to address the future growth and demand for ice times. 1C – Scheduling of ice will be done to maximize revenue while providing a balanced mix of programming. 1C – Events will be limited to one per month during the peak season (October – March). Events creating significant program interruption will be limited to non-peak seasons (April – September). 1D – Staff will determine program growth, direction, ice schedule and procedures based on demand forecasts, revenue generation, and user feedback. 1E – Summit and Wasatch Counties will continue to receive resident rates in an effort to build a strong skating base to feed programs. 2A – In an effort to minimize environmental impact, arena staff will identify environmental responsible alternatives and implement when feasible. 2B – Staff will maintain a cost recovery level for ice arena operations above 65% with the subsidy not to exceed $350,000. 2C – In order to encourage responsible and competitive fees, Arena staff will consider comparable ice facilities, with focus on ski town arenas along with other similar recreational amenities in the region. 2D –Arena staff will research and implement cost effective technology that will reduce operation costs. | 27 | Ice Arena Business Plan 3- Customer Service. The Ice Arena will strive to provide an exceptional experience to all visitors to the facility. 4 –Economic Development. Consistent with Park City’s goal to operate as a world-class multi-season destination resort community, the Arena will serve as an economic development tool. 2E – Consistent with the Inter-Local Agreement between the City and Basin, Arena staff will provide a replacement schedule for capital equipment. 2F – In addition to revenue generation through user fees and concessions, Arena staff will strive to increase revenues through retail sales, grants, interior arena program advertising, and program sponsorships. 3A – In a continuous effort to encourage a healthy level of participation, Arena staff will utilize various marketing methods to communicate information regarding programs and events at the facility. 3B – All arena staff will be properly trained and educated in the policies, procedures and program information regarding the city and the ice arena. 3C – User surveys will be developed, distributed, and collected to receive feedback on programs, facility conditions, and overall satisfaction. 4A – Arena staff will work with the local community and the Park City Chamber in particular to attract recreational/educational activities and events (as described above) to the Arena. 4B – Identify opportunities for the ice arena to promote premiere athletic training opportunities for levels and abilities. 4C – Consistent with the Inter-Local Agreement between the City and Basin, Arena staff will balance tourist related revenue producing events with local programs. 4D – Arena staff will take advantage of its proximity to the onsite Fields Complex to host recreational/educational activities and events that utilize both the arena and fields. PARK CITY ICE ARENA ICE SCHEDULING POLICY Updated 5/22/2012 Ice Scheduling, General Process: 1. User Groups submit ice requests for next season (Feb). 2. Arena management team creates draft base schedules (Mar). 3. Arena staff host user group meeting and finalizes base schedule (Mar-Apr). 4. Staff enter schedule into Facility Booking software (May-July) as follows: 1. Enter known events – 1/month during November through March 2. Enter user group contracts 3. Enter ice arena run classes 4. Enter administrative programs – ice arena drop-in & public sessions (i.e. Drop- in hockey, freestyle, public skating, drop-in speed skating) 5. Book Private Ice requests when ice is available To Book Private Ice 1. Private Ice must be book a minimum of 45 days in advance if bumping an administrative program. Each administrative program will not be bumped more than one time per month (example – freestyle, drop-in’s, public skating) during the peak season, November – March. 2. To book “Available Ice” (time slots that do not have a program scheduled) if front desk and supervisory staff are available. Additions can be made for “Available Ice” with the following considerations: If ice time is determined “Available to rent”, appropriate supervisor, front-desk and any additional staffing must be confirmed prior to booking the rental. To make a request for ice, fill out a “Facility Usage Request.” Forms are available at the front desk or online at www.parkcityice.org. You may also contact Amanda, Front Desk Supervisor with requests. Requests will be responded to within 48 hours. Contacts for Ice Rentals: Private Rentals, User Groups: Amanda Noel (435-615-5706) Groups Requesting Learn to Skate Instructors: Erika Roberts (435-615-5704) Request forms can be initiated by staff and given to Amanda to input into Class. Amanda will generate all contracts from Class. Payment Guidelines  Private Rentals totaling $500 or less must be paid in full at the time of booking. Insurance must also be provided at the time of booking, or waived.  Rentals totaling more than $500 must secure a 50% deposit with the remaining balance paid prior to rental.  Birthday Parties require a $50 deposit at time of booking with remaining balance ($100 for b-day party package) due immediately following the party. Cancellations greater than 48 hours in advance will be credited or refunded for 90% of the expected cost. Cancellations within 48 hours will not be credited or refunded.  School Groups must be scheduled in advance with the Front Desk Supervisor. Front Desk Supervisor can invoice school for payment after sessions. Appropriate waivers and attendance sheets must be given to the Front Desk Supervisor.  User groups will be billed the 1st day of each month with payment due by the 30th for the next month’s ice. - A fee equal to 10% of the past due amount due will be assessed, for payments later than 30 days. This penalty will show on the next month’s invoice and will be due at the time of the invoice in which it is presented. - User Groups with past due invoices for fit the right to book future ice. - After 60 days, the User Group will not be allowed to take the ice, regardless of contract or scheduling. PCIA is permitted to reprogram or rent ice booked by an account in default. See Past Due Invoices below.  Employee Rates: Employees must follow the same rental protocol as private rentals. Employees may rent the ice for a not for profit event at the same price offered to user groups. Cancellation of Reserved Ice  User groups may cancel a specific ice session 45 days prior with no penalty. For cancellations within 45 days, PCIA encourages user group to contact other user groups to re-sell the ice. Alternatively, the User Group may return the booking responsibility to the Front Desk Supervisor who will in turn try to re book the ice. If the ice is rebooked, it is to the Front Desk Supervisor’s discretion if sufficient revenue will be generated, in which case the User Group will be credit for their ice. The Front Desk Supervisor may reprogram the ice in efforts to dead ice.  Private Rentals cancelled within 45 days of scheduled ice will forfeit 10% of rental fee.  Private Rentals cancelled within 30 days of scheduled ice will forfeit 100% of rental fee.  Rentals cancelled due to weather or building/operational issues will be refunded or credited at 100%. Past Due Accounts  User Groups or private rental clients that are 30 days past due incur a 10% late fee on the past due amount.  User Groups with past due invoices forfeit the right to book future ice.  User Groups or private rental clients that are 60 days past due forfeit their right to currently booked ice.  In such a case, PCIA may rent currently contracted ice to other parties or re- schedule the ice with rink run programs. If the account is made current, PCIA will stop renting ice reflected on the contract, but any contracted ice that is rented to another group will not be returned to you. Your contract will be modified to reflect any changes to ice you currently have scheduled. Monthly Schedules will be online 2 weeks before the month begins. Unless there is an error to the schedule, it should not change once it has been available to the public. Additions can be made to available ice with the following considerations: potential revenue and staff availability. Hourly Rates for 2011-12 Seasons User Groups $180 Locals/Nonprofit $200 Non-Residents/For Profit $260 Outside Hockey Camps $260 Broomball Equipment $25 Curling Equipment $50 Rink Dividers $25 Inputting Schedules and Calendar upkeep Master Schedule kept in the Front Desk Supervisor’s office. Amanda will make all changes to schedules, re-post schedules as changes occur, and email ice team with any changes. All schedule requests must be made in writing and given to the Front Desk Supervisor within 24 hours of the allotted time period for schedule changes or additions. Administrative scheduling will be developed by scheduling committee (Business Development Manager, Skating Director, Hockey Director and Front Desk Supervisor) and input into Class by the Front Desk Supervisor. Contracts and private rentals will be input into Class by the Front Desk Supervisor. Learn to classes will be submitted by the Skating Director and Hockey Director and inputted into Class by the Front Desk Supervisor. Request forms, internal monthly schedule and weekly public schedule will be published by the Front Desk Supervisor. Reservation forms for parties, events, and private rentals will be taken by staff and put in the Front Desk Supervisor’s mailbox. The Front Desk Supervisor is responsible for managing all scheduling requests and following up with the requesting party. Staff can look in the scheduling book to see when ice is available and be a resource to those looking to book ice. Website The Front Desk Supervisor will complete monthly schedules and distribute schedules. Schedules will be upload schedules on the parkcityice.org and posted throughout the facility. Phone Recording The Hockey Director will record the weekly public schedules by Monday afternoon (Monday through Monday). The Front Desk Supervisor will be the backup if the Hockey Director is unable to update open skate and ice hockey schedule recording. The Front Desk Supervisor is also responsible to update the phone messages when alternative greetings are appropriate (due to special events, IT issues or facility closings) Cottage Grove Ice Arena Business Plan Organization Introduction The Cottage Grove Ice Arena is a premier three ice sheet facility located along 80 th Street on the Park High School Campus. The Arena is owned and operated by the City of Cottage Grove on land leased from the South Washington County School District (ISD #833). The Ice Arena was built in 1974 and remodeled and expanded in 2008. It is the fifth largest ice arena in the state of Minnesota in terms of ice surface and is one of very few facilities to offer two official game sized rinks with permanent heated stadium seating. The Arena has a superior design model that provides customer satisfaction to not only those on the ice, but the parents, spectators and other users of the facility. Considering its size and quality features, the Cottage Grove Ice Arena is considered a premier ice hockey tournament venue within MN Hockey. Mission The mission of the Cottage Grove Ice Arena is to provide a clean, safe and well maintained recreational facility that serves the hockey and figure skating needs of the residents of Cottage Grove and surrounding communities. The arena is operated in a fiscally responsible manner. Ice Arena Team Ice Arena Manager Assistant Ice Arena Manager Maintenance Technician Clerical Assistant Skate School Director Facility Supervisors Skate School Instructors Facility Assistants/ Concession Staff /Skate Guards Custodians Staffing The Cottage Grove Ice Arena employs 3 full time staff. There is one Ice Arena Manager, one Assistant Arena Manager and one Maintenance Technician. In addition to full time staff, the Ice Arena employs up to forty part time/seasonal staff including Supervisors, Assistants, Concession Workers, Skate Guards, Skate School Instructors, and Custodians. The Ice Arena, Parks and Recreation divisions share administrative staff of a part time clerical assistant and a part time marketing coordinator intern. Each position has a unique skill set necessary for success of the employee and organization. Yet all employees are expected to work cooperatively to make a sound team delivering customer satisfaction. Specific areas of expertise include athletic facility rental, skating instruction, food handling, inventory management, skating/hockey repair, janitorial services, HVAC/ ice resurfacer and industrial refrigeration maintenance. General areas of expertise that overlap most or all positions include employee supervision, customer service, building cleaning/maintenance, first-aid, financial planning, cash-flow management, marketing and program development just to name a few. At the beginning of each season all staff is trained in Ice Arena and City policy. The primary focus is to provide the highest level of customer service through positive customer interaction, quality programs and clean, safe, well-maintained facilities. Staff are also thoroughly trained in safety and emergency procedures. Key Customers  Cottage Grove Hockey Association  Figure Skating Booster Club  MN Hockey/District 8  School District/High School  Woodbury Hockey Association  Advanced 15/16 Program  Elite/Reebok Performance Program  Exceed Hockey  Ice Edge AAA  Stride Ahead  ESP Hockey  PDP Hockey School  Minnesota Pro Development  Combat Hockey Training  Cottage Grove Area Chamber of Commerce Product and Services Current Products and Services 1. Ice Rental: Two 200ft x 85ft ice sheets/ One 120ft x 65ft 2. Dry floor rental space 3. Meeting Room rental space 4. Advertising rental space 5. Concession stand 6. Skate sharpening 7. Vending machines 8. Skate School lessons and programming 9. Public Skating sessions; Public Skating, Figure Skating Practice, Youth Open Hockey, Adult Open Hockey 10. Adult Hockey Leagues 11. Pro Shop 12. Birthday parties 13. Spectator Events; High School Hockey Games, Hockey Tournaments, Ice Show, Figure Skating Competitions Future Products and Services for Consideration 1. Skate rental 2. Indoor turf 3. Hockey programs within Skating School 4. Combined hockey and recreation summer camp Customer Analysis The Cottage Grove Ice Arena has a broad range of customers. The facility has hundreds of thousands of customer entries into the facility each year. Although there is no real way to detail “actual facility entries” the simplified matrix provided below provides some insight as to the volume of traffic the arena generates on any given year. The matrix is based on a prime season (Oct-Mar) and non-prime season (Apr-Sep). The matrix presumes prime season ice usage of 5 hours per weekday per ice sheet and 24 hours per weekend per ice sheet. Non- prime season ice usage is calculated at 4 hours per weekday per ice sheet and 8 hours per weekend per ice sheet. Average use per hour in the prime season is 60 skaters/spectators whereas the non-prime season averages 30. These averages were chosen based on a summation of usage analysis of practices, games, tournaments, public skating and more. As an example, practices may have as few as 25 skaters/spectators on the ice whereas a game or tournament may have as many as a thousand for a single event. It is believed the average use per hour means out the peaks and valleys. Prime Season Weekday Volume 117,000 Weekend Volume 112,320 Non-Prime Season Weekday Volume 31,200 Weekend Volume 12,480 Miscellaneous Dry Floor Events 3,000 Park/Rec Office 1,200 Total Usage Estimate 277,200 Each of these customers has different usage needs and expectations of the facility. Below is a description of the different customers the arena must be cognizant of in order to take advantage of the constant opportunity to produce revenue through the ability to meet customer needs of this large audience. Youth Hockey Programs – Range in age from 2 to 18 years. Play as part of local hockey association, local and regional AAA programs, regional teams and more. These players expect a quality sheet of ice, clean locker rooms and facilities, off-ice training areas, pro shop gear, skate sharpening, food service and a fun playing environment. The primary tenant of the facility is the Cottage Grove Hockey Association. There are over 30 Cottage Grove Hockey Association teams who will play up to 80 practices and 30 games at home each season (varies depending on age and competition level). Each game brings in an additional team of skaters, parents, siblings and spectators typically from outside the community. AAA programs and other regional youth programs utilizing the arena varies from season to season. High School Hockey Teams – Local and regional high school hockey teams who play as part of the MN State High School League. The primary high school hockey tenants at the Cottage Grove Ice Arena are Park Boys, Park Girls and East Ridge Boys teams. These customers expect high quality ice sheets and playing areas, a great game day experience, varsity locker room, clean restrooms/showering facilities, off-ice training areas, meeting room space, pro shop supplies, concessions and security of their facilities. A typical high school team has a junior varsity and varsity program totaling 6 high school teams calling Cottage Grove Ice Arena home. Each team will practice approximately 75 hours per year and play 10 -12 home games per year at the arena. Figure Skaters – Figure skaters come as participants of the Cottage Grove Skating School and from the surrounding areas. The Cottage Grove Skating School averages approximately 50 active figure skaters in its skating school program. These skaters are dedicated to the sport and expect a quality ice sheet, ample program offerings, access to practice ice time, lounging areas, clean locker rooms/facilities, quality sound system, meeting space and off -ice training areas. Figure skaters are also drawn from outside the community for programs /events such as Figure Skating Practice, private lessons, clinics, camps, ice show and competitions. Skating Lesson Participants – Each skating school session averages approximately 135 registrations. These customers expect a welcoming environment (particularly first-timers), quality skating instruction, exercise, skill progression and most importantly fun. The skating lesson participants are often staff’s first opportunity to build life-time customers and create a positive “word of mouth” campaign for arena services. Spectators – With each and every skater or hockey player that utilizes the Ice Arena, there is a group of people excited to watch them play, perform or compete. For the average youth hockey game, 100 spectators will be in the bleachers chee ring the players on. These spectators are parents, siblings, grandparents, aunts/uncles, friends, neighbors, scouts, future coaches and local hockey fans. They come to support the home team and they come to support the visiting team. High school hockey and premier tournament events can draw several hundred to even a thousand spectators in a single event. These spectators expect a welcoming lobby, great site lines of the game/event, quality sound system, comfortable conditions (temperature, seats, etc.), lounging areas, clean restrooms/facility, quality concession stand and parking. Spectators can also be found at the Business Expo, Circus, ceremonies and other non-ice events. It’s important to note that most spectators are visiting because of a programmed event that is bringing them to the facility. Advertising or additional marketing rarely results in additional “draw” beyond the community borders. Adult User Groups - Adult groups use the ice arena to play hockey, broomball, boot hockey or for recreational skating. These groups have little spectator support and are more concerned about getting a fun playing and fitness experience while bonding with friends. They expect a quality sheet of ice and clean locker rooms at a fair price. These customers are willing to drive a little bit further to save money on ice time. Off-Season Hockey Groups – These groups consist of AAA programs, camps, clinics and others who purchase ice from April through September. These groups expect first and foremost a staff team that will work with their scheduling needs and provide competitive pricing. These groups will move their business to another arena if customer service or price points don’t meet their needs. Once scheduled, these groups expect a quality ice sheet, quality locker rooms, clean facilities, off-ice training opportunities and flexible payment options. Some of the off-season tournaments played at the arena are the largest draws of the season in regards to teams and spectators. Securing large contracts with these groups each year is critical to the arena business as customer demand is limited during these periods of usage. Public Session Skaters – These skaters utilize the ice arena for general public skating, figure skating practice, adult open hockey, youth open hockey and more. They are not necessarily dedicated to any particular sport or program, but still enjoy these on-ice activities. These customers look for accommodating, consistent and regular public session schedules, fair pricing, a welcoming environment, and a safe and fun skating experience. If these skaters are having fun they may become repeat customers, sign up for a program, bring a friend or watch a hockey game. It’s important for the Ice Arena to not forget this group of customers as they often slide in and out of the arena without much staff contact. Others Customers: Referees, minor officials, volunteers, coaches, passerbys, scouts, dryfloor event users/spectators, meeting room renters, event coordinators, event vendors, advertisers, program staff/administrators, team owners, league staff, school programs and more. Lease Agreements When the Ice Arena was expanded in 2008, two long-term lease agreements were developed to assure a static level of ice rental revenue for arena operations. The agreements were made separately between the City and Cottage Grove Hockey Association and the City and South Washington County Schools. It’s important to note that neither group was required to invest cash into the $7.5 million ice arena expansion project. Rather, the City requested that each group commit to utilizing the ice arena as stated in a signed agreement. Cottage Grove Hockey Association The 20-year lease agreement with the Cottage Grove Hockey Association (youth hockey volunteer organization) requires 2,000 of ice rental on the two large sheets of ice (small sheet of ice equivalent is 0.5). Prior to the expanded arena, CGHA had utilized approximately 1,500 hours of ice between Cottage Grove and surrounding communities. However, by expanding the arena, it was agreed that CGHA would have the ability to grow its program by providing more ice time closer to home. Further, teams would utilize more ice and the association would be able to offer additional programs, tournaments and events to meet the requirements of this contract. This agreement was seen as a “win-win” in that the association did not need to fundraise initial capital for the project, thus eliminating the burden on one group of volunteers for the benefit of generations of ice arena users. The City benefited by settling on an agreement for ice utilization from its primary tenant so it could budget and plan for operations. The City also raised the ice rental rate from $150 to $200 per hour. The association to date averages about 1,750 hours of ice usage through their programs alone and are able to “sublet” the remaining 250 hours to other youth hockey programs. The goal was and is for CGHA to grow its participation numbers to a point where they need all 2,000 hours or more. Unfortunately, due to an economic recession soon after the arena expansion, growth of the sport has been minimal in Cottage Grove. With the community population steady and parents having to choose whether they can afford hockey, the numbers were fairly stagnant for the first four post-construction years. To compensate, the association has had to work more with outside groups to purchase ice they otherwise cannot use themselves to attain the 2,000 hour threshold of the contract. More recently, 2013 has shown an increase in CGHA program participants and CGHA also instituted a summer/fall development program in an attempt to increase participation in the sport and utilization of the arena. These are steps in the right direction as growth of the sport needs to be the primary focus. By growing the sport, meeting the lease agreement becomes an after-thought. The City needs to be cognizant of that issue as a driving force for both CGHA and Ice Arena success. There is a breaking point where increasing ice rental prices will limit the Association’s ability to offer affordable programs to the community. South Washington County School District The City also signed a 20-year lease agreement with the South Washington County School District. This lease agreement essentially set ice rental commitment for the school district at 450 hours per year (not including game events). This agreement is mutually beneficial in that the arena’s second largest customer is guaranteed the ice necessary to run its programs and the arena has a firm agreement utilization and a revenue source. This lease agreement is similar in nature to the agreement between the school and the City of Woodbury and thus is held to strictly to assure equity in playing time across school district lines. Vendors The Ice Arena utilizes vendor agreements to leverage the use of product and equipment to be used for resale. Vendors include Coca-Cola, Grand Prix Vending, Viking, Zoom Media and All Over Media. Coca-Cola and Viking supply beverage and concession related equipment that assists in the sales of their products. As such, the arena does not need to invest into cold be verage vending, coolers, coffee, slushy or hot cocoa machines. These machines have a high capital cost and are quite often expensive to maintain. By entering into an agreement with each vendor the Arena is able to negotiate a fair price for product, receive utilization of their equipment and retain independence from additional capital investment and maintenance of equipment. The Arena is then able to sell product through the use of these machines thus maximizing profit margins on products sold (as opposed to a vending service contract option). These contracts are diligently reviewed every 5 years. Similarly, Grand Prix vending provides the coin operated machines for trinkits, small candy and video games. Grand Prix takes complete responsibility for the supply and cash flow management functions. 25% of all revenue is given back to the arena for a net return to the ice arena of approximately $2,500 per year. Staff has reviewed the option of purchasing and filling its own machines but the initial investment and the inability for staff to monitor current trends in this industry would make it difficult to increase profitability. Zoom Media and All Over Media provide electronic and restroom adverti sing within the facility. All ads are sold on a local, regional and national level. 15% of gross sales is returned to the Ice Arena for ads sold. Net revenue to the arena for these advertisement sales is approximately $1,000 per year. Marketing and Pricing Marketing Plan Marketing of Ice Arena services is a top priority for management staff. Staff ut ilizes multiple marketing streams. However the Ice Arena’s target audience has a very particular background thus marketing efforts need to be focused to those with the most immediate benefit to the arena business. Advertisement dollars should be focused within the Cottage Grove area as it is rarely an efficient use of resources attempting to draw new customers from surrounding communities given the saturation of Ice Arena’s in the Twin Cities metro area. With most Ice Arena’s providing similar services in each surrounding community, the cost of pulling a customer from outside the community would be exponentially m ore expensive than what it would take to gain a new customer within our own community. Consider that drawing a customer from outside the community will likely need to come in the form of radio, television or direct mailings which in nature are expensive advertising features. Advertising within the community offers much more efficient options for finding the target audience. As such, the primary marketing streams utilized by the Arena include: - Direct mailings; postcards, mailings to current and past customers - Email blasts; to current customer database for events and promotions - Social media; Facebook - City’s website - Rinkfinder.com - Wallboards within the Ice Arena - Electronic readers within Ice Arena - 80th street marquee sign - City Newsletter - Recreation Program Brochures - Annual Reports - Bulletin Newspaper - Video segments on local cable, online, Youtube and Facebook - Promotional Events; Bring a Friend Skating Day, Hockey Day, Skate with the Wolfpack, Birthday Parties - Strawberry Fest parade - Customer Referrals To aid in developing the Arena’s marketing plan, a Marketing Coordinator Intern was hired in 2013. This position should give arena staff an outsiders perspective on improving the businesses marketing efforts. Pricing Plan Resale Products All resale product is sold with a profit margin goal of 50-100%. Resale products include concession, vending and pro shop items. If a product does not meet the profit margin goal, staff must diligently assess if the item is a necessity to the customer that need be supplied. One example may be the healthy food options provided in the concession stand or equipment repair kits. There should be very few, if any, products in this category that do not meet the profit margin goal. Services Services account for approximately 85% of net operating revenues. So the pricing structure must be very competitive with comparable services in the Ice Arena, Recreation and Leisure Services industries. The Ice Arena not only competes with neighboring facilities, but it competes with other recreational and leisure 68% 11% 8% 0% 7%3% 1%0% 1%1% Ice Rental Concession Rev Admissions Pro Shop Skating School Vending Advertising Skate Sharpening Memberships Leagues activities that might be considered within a family budget. Ice rental accounts for nearly 70% of arena revenue. Pricing of ice is driven by market variations. Below is a Twin Cities market study for 2013-2014 seasonal rates. The goal of the Cottage Grove Ice Arena is to remain at or slightly below the mean rate for regional ice time. Although the Cottage Grove Ice Arena is a premier facility, it’s important that rates are competitive to entice potential clients to drive off t he main interstate system to reach our facility. On a more local level, it is important that pricing be competitive within itself to assure on-ice sports are affordable and have the ability to grow. Without continual growth, the arena will always financially struggle. Arena managers must be able to gauge the price point at which participants will find a new sport versus paying more for hockey or skating. The tables below depict the choices parents must face when considering to sign their children up for youth hockey. These are the fees of various youth athletic sports at both the recreational and competitive levels. It’s noteworthy that the hockey association uses quite a bit of their fundraising efforts to subsidize the Mite program (5-8 year olds) to get skaters involved with hopes of hooking them on the sport for life once they experience the thrill of ice hockey. Also noted is facilities provided by the City for each sport. An important difference between the ice arena and park facilities is that the ice arena is used at a much higher capacity level. The ice arena is utilized year round, up to 18 hours a day, 7 days a week. Park facilities or ball fields are typically used five months or less, rarely on weekends and usually only for a few hou rs on $0 $50 $100 $150 $200 $250 St . T h o m a s Bu r n s v i l l e La k e v i l l e Fa r m i n g t o n Wo o d b u r y Ed i n a So u t h S t P a u l In v e r G r o v e H e i g h t s Co t t a g e G r o v e Ea g a n Va d n a i s S p o r t s C e n t e r Pl y m o u t h Bl o o m i n g t o n St i l l w a t e r Ha s t i n g s Ro s e v i l l e Ta r t a n Ice Rental Rate St. Thomas Burnsville Lakeville Farmington Woodbury Edina South St Paul Inver Grove Heights Cottage Grove Eagan Vadnais Sports Center Plymouth weekday evenings. So when comparing subsidization of recreational facilities it’s important to consider utilization and how effectively those dollars are used on a daily basis. Currently, the ice arena has approximately 95% utilization capacity of prime hours (weekday evenings and weekends) for six months of the year. During the six months of off-season, utilization is estimated at 50% of rentable hours. Baseball, softball, soccer, lacrosse and football have utilization of approximately 25% of capacity for the three prime months (soccer is five months). During off-seasons, utilization is less than 5%. Youth Sports Fees: 7-8 Year Old In-House Programs Ice Hockey $175 Baseball $75 Softball $90 Basketball $90 Lacrosse $85 Soccer $95 Football $75 Youth Sports Fees: 12-13 Year Old Traveling Programs Ice Hockey $1,400 Baseball $350 Softball $315 Basketball $340 Lacrosse $190 Soccer $275 Football $125 Facilities: Ice Hockey 3 8 outdoor Baseball 26 Softball 21 Basketball 16 19 outdoor Lacrosse 1 Soccer 31 Football 3 It’s also valuable to compare service/resale pricing levels with neighboring community ice arena’s. Below are five similar facilities that are in closest proximity to Cottage Grove. Skate Rental Yes/No Price Woodbury Yes $ 2.00 South St. Paul Yes $ 2.00 Hastings Yes $ 2.50 Inver Grove Heights Yes $ 2.00 Eagan Yes $ 2.00 Cottage Grove No N/A Skate Sharpening Yes/No Price Woodbury Yes $ 4.00 South St. Paul Yes $ 5.00 Hastings Yes $ 4.00 Inver Grove Heights Yes $ 4.00 Eagan Yes $ 3.00 Cottage Grove Yes $ 4.00 Open Skate Yes/No Price Woodbury Yes $ 4.00 South St. Paul Yes $ 5.00 Hastings Yes $ 4.00 Inver Grove Heights Yes $ 4.00 Eagan Yes $ 2 child/$3 Adult Cottage Grove Yes $ 4.00 Nationwide Pricing Comparison Report It’s important to note that the ice arena industry in Minnesota is quite different than that of the rest of the nation. Beyond Minnesota’s borders most community ice arena’s are privately built and operated. However, those facilities maintain much higher price points and draw from an expanded territory because of the limited facilities in those regions. In Minnesota (“The State of Hockey”), most facilities are publicly funded in some fashion to assure youth in each community have easy access to indoor ice skating opportunities. As such, Cities, Counties, Schools and the State are typically willing to subsidize these facilities to provide these recreational services to their stakeholders. This is similar to the investments made into parks, museums, art centers, sports stadiums and more. As a result, Minnesota ice rental rates remain lower than the national average to encourage participation and maximize utilization of the governing body’s investment. Additionally, with over 210 ice arenas in the state of Minnesota, saturation certainly reduces each ice arena’s ability to draw clients from beyond community lines. Skate Rental Yes/No Price Loyd Center, Portland Oregan Yes $ 3.50 Aerodrome, Houston TX Yes $ 4.00 Boss Ice Arena, Kingston RI Yes $ 5.00 Treadwell Ice Arena, Juneau AK Yes $ 2.00 Ann Arbor Ice Cube, Ann Arbor MI Yes $ 3.00 Cottage Grove Ice Arena No N/A Open Skate Yes/No Price Loyd Center, Portland Oregan Yes $ 6.50 Aerodrome, Houston TX Yes $ 8.00 Boss Ice Arena, Kingston RI Yes $ 5.00 Treadwell Ice Arena, Juneau AK Yes $5 Adult/ $4 Child Ann Arbor Ice Cube, Ann Arbor MI Yes $4 Adult/ $3 Child Cottage Grove Ice Arena Yes $4 Hourly Ice Rate Price Loyd Center, Portland Oregan $300 Aerodrome, Houston Tx $450 Boss Ice Arena, Kingston RI $246 Treadwell Ice Arena, Juneau AK $235 Ann Arbor Ice Cube, Ann Arbor MI $290 Cottage Grove Ice Arena $200 SWOTT Analysis Strengths  High quality ice sheets  Competitive pricing  Superior spectator and lounging experiences  Updated facility which includes modern TV’s, wireless internet, meeting rooms, varsity locker rooms and more  Good working relationship with primary user groups  Home to Parks and Recreation Administration offices which maximize marketing strategies, administrative functions and customer service  Superior customer service  Dry Floor event capabilities  Own and operate Skating School  Quality maintenance programming on facility and equipment  Aid the local economy by bringing in hundreds of thousands of visitors to the ice arena each year. Many of these are visitors who may not ever travel to Cottage Grove under any other circumstance other than to play hockey or skate at the Cottage Grove Ice Arena. These people often eat, sleep and/or shop in Cottage Grove during their stay. Weaknesses  Slow recovery to economic downturns  Aging chiller system for North and South rink  Lack of a skate rental program  Limited options for effective marketing  Shared parking facilities with school that limit non-prime ice and facility usage opportunities  Lack of hotel and banquet facilities (for 350+ people) in Cottage Grove for larger tournament events Opportunities  Skate Rental Program By implementing a skate rental program, the arena would be able to expand its programs to more potential customers. A return on investment analysis is provided below based on the purchase of 25 pairs of skates and the rental of those skates at prime public skating sessions and skating lessons. 50% of Skates Rented Per Session Revenue = $6,336 Expense = $2,400 ROI = 4.5 months 25% of Skates Rented Per Session (staff projection) Revenue = $3,186 Expense = $2,400 ROI = 9 months 10% of Skates Rented Per Session Revenue = $1,584 Expense = $2,400 ROI = 18 months  Indoor Turf The lack of indoor practicing facilities for turf sports during the winter/spring months is a recurring theme for “need” across all sports. Indoor turf facilities are growing in popularity throughout the state and come in forms such as domes, field houses, warehouses and ice rinks. Most recently, development at the following facilities near Cottage Grove have attempted to support the need for indoor turf in their community; Hastings Ice Arena, Eagan Civic Arena, Inver Grove Ice Arena/Community Center, Vadnais Heights Sports Center (bubble), West St Paul Sports Center (bubble) and the Bielenberg Field House ($20M project scheduled for 2014 completion to replace bubble). The lack of indoor facilities during the winter months appears to leave Cottage Grove at a disadvantage for skill progression during off -season workouts. With a recent decline in ice usage during what would be considered “prime” indoor turf season, the City should consider indoor turf on the west rink as a viable option for increasing ice arena revenue, increasing facility usage and increasing the Ice Arena’s usage impact on residents who otherwise may never utilize the ice arena. To assure the sufficient utilization and return on investment, a five-year agreement should be negotiated with CGAA and other potential users prior to the City investing into this type of programming. The capital expense for indoor turf/netting would be approximately $115,000 with a life expectancy of 20+ years. Below is a financial forecast for the conversion from ice to turf each year from the fourth Wednesday of February through April 5. Although turf rental would likely take place after that, the weather would play a role and any additional revenue from that should not be relied upon for this particular financial forecasting exercise. Revenue Turf Rental (250 hours) $25,000 Expense Utility Savings (chiller shutdown) ($10,000) Ice Rental Revenue (opportunity loss-3yr avg) $23,000 Ice Tournament Concession (opportunity loss) $3,000 ANNUAL NET INCOME OF TURF OVER ICE $9,000 Return on investment 12.75 years This budget forecast shows the potential financial benefit. It’s also important to note that utility rates for maintaining the ice sheets are susceptible to increase and cou ld further skew the utility savings significantly in favor of turf. This is particularly true for the natural gas necessary to dehumidify and heat the arena during ice-in conditions. Further, changes in off-season programming for the sport of hockey have made a significant negative impact to the arena’s ability to sell ice during the month of March. Simply put, tournaments and ice rental during March is not as lucrative as it was just five years ago. Ice usage has shifted to later in the spring and summer. Lastly, the addition of indoor turf creates a whole new user base for the Cottage Grove Ice Arena. It’s estimated that this turf operation would more than double the amount of residents that the City currently serves by connecting with baseball, softba ll, soccer, lacrosse and many other users who otherwise may never use the Cottage Grove Ice Arena. The Ice Arena is certainly a point of pride in the community and spreading it’s offerings to more of the community is certainly a positive opportunity to co nsider.  Location The shared location with Park High School provides an advantage in coordinating school activities within the arena. The high school offers broomball as a physical education course and Crestview Elementary annually rents ice for a skating party for their fourth grade classes. These programs provide great exposure to people who otherwise may not have the opportunity to skate.  Employee Incentive Program The City of Cottage Grove offers an incentive program for the employee generation of rental and/or advertising sales. The goal of the program is to encourage employees to seek potential new clients to support the Ice Arena business and reward those individuals with a monetary return for their efforts. Threats  Ice Rental and Arena Services Rate Tipping Point: With each rate increase staff needs to identify the opportunity loss. For example, a slight increase in a skating lesson fee may deter one or more new customers from registering. One positive impact on the ice could have those skaters hooked to the sport for a lifetime; thus the opportunity loss if price deters them. Staff believes getting people through the door to experience ice sports is vital to the arena’s financial sustainability. At the same time, the Ice Arena is quite simply expensive to operate with significant personnel costs, energy costs and equipment replacement. By maintaining equipment efficiency, lean staffing, and continuing to track and fund our Capital Improvement Program, we are able to manage costs as efficiently as possible. Managing costs results in the ability for the Ice Arena to provide competitive pricing for services.  The Ice Arena needs to assure quality customer experiences on a daily basis. It’s important that every single staff member contributes to this end goal. Beyond guaranteed contracts, there is no requirement for customers to purchase this arena’s services over any other. Each year, the arena loses large ice contracts and must supplement those losses with new customer contracts. The losses come in the form of groups disbanding, groups moving to a more desirable location based on their logistical needs or in some cases even bankruptcy. So the arena needs to be in constant marketing and customer satisfaction mode to assure clients are always speaking positively of the Cottage Grove Ice Arena and its services to assure continued influx of new clientele.  The Ice Arena has an aging chiller system for the original north and south rinks. The primary refrigerant is now phased out of production due to EPA regulations. The cost of this refrigerant has already increased 100%+ since the phase out and that price will only increase until the product is phased out in its entirety by 2020. The City and Ice Arena need to develop a plan for replacement of this system within the next five years. Cost should be expected to exceed $1.5M for a standard ammonia system and $3M for geothermal. There should be opportunity for grants or utility rebates to lessen the impact of this work. Those details should be worked out as a separate study over the next year or two. The cost of a study from a certified engineering firm is estimated at $5,000 and would detail all the options for replacement and improving efficiencies. Trends  Off-ice training is becoming more of a necessity versus a luxury in the eyes of the hockey and skating community. Players and groups are looking to not only utilize the ice to hone their skills, but also looking for a place to improve strength and skills off the ice. As such, some ice arena’s are building training facilities so players can shoot pucks, weight lift and skate on treadmills to improve in their sport. In 2006 the Schwann Super Rink in Blaine underwent an expansion that added a 12,500 foot dry land training facility. The Eagan Civic Arena built a dry land facility in 2010 that offers both weight equipment and shooting stations. Several private proposals have been made to the Cottage Grove Ice Arena but none yet that have worked out financially or logistically based on facility and location constraints. The arena would like to private investors/operators to fill this need if so desired.  Summer Ice rental trends have been steadily climbing over the past five summers. This is a vital area of growth due to the increased competition for sales during these off- seasons. This is another encouraging sign of improvement from the recent economic recession.  The Skate School is susceptible to many trends. Economic downturns typically result in reduced registrations simply based on a lack of personal discretionary funds. Alternatively, the Olympic season or even a good local high school or professional hockey year can result in a surge in participation as people get excited about the sport. We continue to market the Skate School knowing that this is the feeder program for hockey, figure skating and recreational skating. As depicted in the charts below, the recession set back Skating School registrations from year 2008 to 2010. However, by offering creative Skating School packages to existing customers, the effects on net 0 100 200 300 400 500 600 700 800 900 2009 2010 2011 2012 2013 Summer Private Rental Trends Adult Hockey Dry Floor Hockey School Youth Hockey revenue were minimized. As of 2011, the Skating School is trending positively in both registrations and revenue.  USA Hockey, which is the national governing body for the sport of ice hockey in the United States, reported that there were 500,579 people registered with USA Hockey during the 2010/11 season. There were 511,178 people registered during the 2011/12 season. That is a 15.6% increase between the two seasons. Minnesota numbers specifically in 2010/11 were 54,325 and in 2011/12 numbers were 54,951. That is a 1.15 % increase in participation. Those numbers are a positive trend in our industry. Technology Technology plays a vital role in operating the Ice Arena. Technology is leveraged for cash flow management, marketing of services, program registration, customer database and maintenance of building and equipment. Max Enterprise Facility Manager software is utilized for credit card service abilities, cash flow management, ice scheduling, employee time clock, and locker room assignment processes. Point of Sale software is being added in the summer of 2013. The Ice Arena, Parks and Recreation use Active.net to register customers for programs. This program is continually analyzed by both Arena and Recreation staff to assure it is the best registration software for both the customer and City. Other competing providers researched include Safari, RecNet, Max Solutions. A very attractive electronic monument entrance sign was built in 2011 for street-side advertising to vehicles on 80th street. City sponsored events, high school games, tournaments, public skating, skating lessons and recreation activities are just a few examples of the internal advertisements regularly found on the sign. 480 500 520 540 560 580 600 620 2008 2009 2010 2011 2012 Re g i s t r a t i o n s CG Skating School Registrations $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 2008 2009 2010 2011 2012 CG Skating School Revenues Social media plays an increasingly important role in promoting all Arena activities. Facebook reminders and specials done in timely fashion help to increase both revenue and participation in events and programs. This will be a growing marketing stream for the ice arena. Rinkfinder.com is a free website service provided by the Minnesota Ice Arena Managers Association. Rinkfinder is a web based service that allows customers to sear ch for available ice time at any member rink. This website offers customers the ability to search for rentable ice by date, time, facility or region. Rinkfinder is the most popular ice rental search site in Minnesota and the vast majority of non-lease/contract related rentals are derived from this website. Capital Improvements Planning The equipment used to maintain the Ice Arena is vital to operations. The equipment is very expensive to purchase and operate. It’s important that cold areas remain both cold and dry, while warming areas remain comfortable to our customer base. To provide superior service, the Ice Arena must maintain high quality equipment to eliminate any potential for downtime or less than sufficient services. The table below identifies equipment replacement needs for the next 10 years. Equipment Purchase Date Life Expectancy Replacement Date Estimated Replacement Value Office Air Conditioner 1999 15 2014 $3,500 Water Softener North/South Rinks 1999 15 2014 $6,000 Man Lift 1989 25 2014 $8,500 Trane Heater Mech Rm A 2000 15 2015 $60,000 Floor Scrubber #1 2006 10 2016 $7,000 KaiZen Restroom Cleaner 2006 10 2016 $5,000 North Rink Scoreboard 1996 20 2016 $12,000 Freon Recover Unit 2001 15 2016 $2,000 Ice Cuber 2007 10 2017 $2,000 Bituminous Sidewalk 1992 25 2017 $30,000 Skate Sharpener 2003 15 2018 $2,000 Floor Scrubber #2 2008 10 2018 $7,000 Ice Edger B 2008 10 2018 $4,000 Steel Roof 1989 30 2019 $200,000 North Rink Dasher Boards 1989 30 2019 $100,000 Evaporative Condensor N & South Rinks 2000 20 2020 $50,000 North Rink Radiant Heaters 2005 15 2020 $10,000 Compressor Motor #1 1990 30 2020 $30,000 Heat Exchanger 2000 20 2020 $10,000 Evaporative Condensor N/S Rinks 2000 20 2020 $50,000 Rubber Matting 2002 20 2022 $50,000 North Rink Sound System 2002 20 2022 $10,000 Zamboni 545 2008 15 2023 $100,000 Aaon #1 Heat/AC Unit Roof 2008 15 2023 $14,000 Aaon #2 Heat/AC Unit Roof 2008 15 2023 $41,000 Innovate #1 Heating Unit Roof 2008 15 2023 $70,000 Innovate #2 Heating Unit Mech Rm D 2008 15 2023 $70,000 Munters Dehumidifier North Rink 2008 15 2023 $120,000 Munters Dehumidifier West Rink 2008 15 2023 $120,000 Elevator Heat/AC 2008 15 2023 $7,800 It’s important to note that although this table is a means of planning equipment replacement, it’s not necessarily a clear view into future budgets. The arena is afforded the ability to carry a balance fund. So, management may schedule equipment replacement needs based on life expectancies but should the equipment not need replacement, those funds are accumulated and saved for the time it is necessary. Further, each purchase may have operational benefits or grant dollars associated with them that can all help in reducing overall costs. Currently, staff utilizes an average of $50,000 in annual capital improvements. If one year is higher than that goal, staff tries to reduce the previous or following year’s budget accordingly. It’s not a perfect science but is a good tool for managing capital improvements. In the long run, a successful ice arena business model is able to accumulate income beyond the budget and utilize that cash balance to pay down larger capital expenditures that may not be able to fit w ithin this capital improvements spending goal. Such projects would include the chiller replacement (which would likely have grant funding support as well), roof replacement and dehumidifiers. Unfortunately, the fund balance was significantly depleted after the expansion project, the 80th Street sign construction and ice resurfacer addition/replacement in recent years. The Arena must be diligent in increasing that balance to fund the larger future capital improvement projects. As a last resort, future rental rate increase, additional bond sales or interfund loans may be required to fund high expense projects. Taxpayer Subsidy The taxpayers of Cottage Grove currently subsidize ice arena debt levy for $240,000 per year. The arena is responsible for generating operational income of $270,000 to pay for operational expenses plus the remaining portion of debt service. As stated earlier in this document, the subsidization of ice arena facilities in Minnesota is considered common practice. However, the arena business model must always strive towards improved self -sufficiency. To benchmark the Cottage Grove Ice Arena’s business operations, the chart below compares operational net income/loss of the five nearest ice arena facilities. *Woodbury also has field house. Revenues accurate. Arena expenses estimated at 90% of total expenditures. Capital Improvements not included. *Woodbury has a geothermal system for all refrigeration and HVAC thus significantly decreased utility expense. Geothermal conversion funded through debt. **South St Paul submitted 2012 financials. ***IGH facility includes fitness center, pool and meeting room space. Revenue/expenses are in total, not just for arena operations. ***Eagan Civic Arena has a geothermal system. Cost for utilities for Eagan is at $137K versus Cottage Grove at $161K. ****Eagan Civic Arena has the Northern Educate Charter school that rents school and ice space throughout the school year. It’s important to note that the taxpayer subsidy does not go without reward to the residents of Cottage Grove. Beyond those that use the facility directly, the tremendous draw of people from around the metro, state and beyond aids the local economy in ways that are truly immeasurable. If the arena closed, local businesses would rely even more on local consumers for their source of revenue. The arena is also identified as a point of pride in the commu nity and should be considered a featured asset to those considering residence in the area. Ten Keys to Success at the Cottage Grove Ice Arena 1. Provide quality, competitively priced ice to the community and users of the facility. 2. Work with primary user groups to fulfill or exceed contractual obligations. 3. Hire and train passionate people for staffing who keep custome r service as a top priority. 4. Effective marketing of the facility to current and potential clients. 5. Assure a clean, maintained and well-kept facility at all times for both on-ice and off-ice guests. ($1,000,000) ($800,000) ($600,000) ($400,000) ($200,000) $0 $200,000 $400,000 2011 Net Operating Income (Loss) Net Income (Loss) 6. Fulfill label as “Premier Ice Hockey Tournament Facility” by leveraging tournament opportunities and providing unbeatable customer service at all layers of the event. 7. Consistently develop programs and/or events that encourage growth in both skating sports and spectator events. 8. Continuous development and creation of new customer streams; public skating, birthday parties, special events, Bring A Friend Skating, lessons, school events and more. 9. Attain 7% revenue growth in 2013 and 5% revenue growth through 2017. 7% growth is 2013 should come from increased ice rental, increased service rates, credit card service at concession stand and increased program participation. 10. Manage expense to not exceed revenue growth. Conclusion The Ice Arena’s primary focus is to maximize ice usage and positive customer experiences. Ice Arena staff is focused and trained in Ice Arena industry operations and thus will always most efficiently utilize its resources in the areas of selling ice and developing ice skating programs and events. However, supplemental revenue generating programs such as dry floor events, concessions, advertising and product resale all need to be identified and managed appropriately to maximize revenues. By maximizing all revenue opportunities the arena is able to maintain competitive ice rental rates and increase its’ client base. Ice Arena operations are very cyclical in nature and staff must always remain adaptable to changing trends to assure new and returning clients are walking through the door on a daily basis and enjoying their experiences. The success of the Ice Arena need be measured in customer growth, revenue growth, conservatively managed expenses and its ultimate benefit to the local economy. Data Appendix Business Plan Objective Financial Results: 2012 Actual 2013 2014 2015 2016 2017 Operating Revenues $877,500 $938,925 $985,871 $1,035,165 $1,086,923 $1,141,269 Operating Expenses $660,500 $680,315 $700,724 $721,746 $743,399 $765,701 Capital Expenditures $87,000 $50,000 $50,000 $50,000 $50,000 $50,000 Net Operating Income (Loss) $130,000 $208,610 $235,147 $263,419 $293,524 $325,569 Debt Service $509,700 $509,700 $509,700 $509,700 $509,700 $509,700 Net Income (Loss) ($379,700) ($301,090) ($274,553) ($246,281) ($216,176) ($184,131) $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 Re v e n u e Year Ice Arena Revenues Revenue 2012 Cottage Grove Ice Arena Income Statement Operating Revenues 2012 2011 2010 2009 2008 Ice Rental $596,480 $604,160 $654,480 $638,700 $465,800 Concession Sales/Rent $92,430 $94,550 $89,340 $84,330 $33,930 Admissions $66,800 $78,100 $65,040 $51,910 $42,170 Pro Shop $2,760 $2,850 $3,790 $4,710 $3,540 Skating School $59,230 $50,410 $44,880 $44,440 $48,450 Vending $23,970 $22,890 $19,250 $11,770 $7,770 Advertising $12,100 $15,470 $13,200 $14,690 $11,790 Skate Sharpening $2,280 $2,090 $2,180 $2,030 $1,260 Memberships $8,600 $10,430 $7,900 $4,580 $2,980 Leagues $10,050 $8,720 $9,180 $8,180 $6,430 Interest Income $2,771 $4,240 $6,680 $10,800 $3,400 Total Operating Revenue $877,471 $893,910 $915,920 $876,140 $627,520 Operating Expenses Total Personnel: $337,160 $313,110 $291,620 $272,590 $224,120 Full Time Salaries $156,930 $141,370 $132,210 $129,090 $101,433 PT Maintenance Salaries $68,460 $73,150 $66,780 $66,570 $60,947 PT Skating School Salaries $21,460 $21,150 $16,780 $13,940 $14,776 PT Concession Salaries $19,530 $17,800 $17,630 $14,570 $7,070 Overtime - Full Time $560 $500 $1,030 $1,000 $1,404 Overtime - Part Time $4,230 $4,360 $3,950 $3,450 $3,117 PERA $14,750 $13,250 $11,450 $10,950 $8,119 FICA $19,790 $19,000 $17,440 $17,610 $13,605 Health Insurance $27,200 $19,600 $21,400 $12,600 $11,500 Unemployment $650 -$370 $350 $410 $49 Worker's Comp $3,600 $3,300 $2,600 $2,400 $2,100 Total Commodities: $30,600 $29,910 $39,480 $41,080 $38,270 Office Supplies Cleaning Supplies Operating Supplies Motor Fuel Lubricants & Additives Clothing & Uniforms Small Tools Vehicle & Equipment Supplies Building Suplies Miscellaneous Total Contractual Services: $292,700 $302,810 $258,870 $206,730 $162,090 Professional Services Engineering Services Service Fees Communications Postage Printing Advertising Insurance Utilities Equipment Maintenance & Repair Building Maintenance & Repair Rental & Leases Dues & Subscriptions Travel/Training/Conferences Waste Removal Special Events Merchandise Sales Tax Refunds & Reimbursements Other Payments Concession/Resale Product $37,050 $20,560 Total Capital Outlay: $87,100 $60,320 $33,100 $27,070 $91,410 Building & Structure 1. New Zamboni 1. 80th St Marquee Sign 1. Freon 1. Ice Edger 1. Compressor Capacitors Furniture & Office Equipment 2. Replace LR 5/6 Furnace 2. South Dehumidifier 2. Air Compressor 2. Security Camera Machine & Equipment 3. West Rink Bleacher Heat 3. West bleacher heat 3. 48" North rink glass 3. Studio Rink Glass 4. Vending machine purch 4. Freon Leak 5. Roof heat cable 5. West bleacher heat 6. Zamboni/air quality testing 7. Furnace reconfiguration Total Operating Expenses $747,560 $706,150 $623,070 $584,520 $536,450 Net Operating Income (Loss): $129,911 $187,760 $292,850 $291,620 $91,070 Construction Bond Payment $510,000 $510,000 $510,000 $547,000 General Fund Subsidy $240,600 $240,000 $240,000 $240,000 Net Income (Loss): ($139,489) ($82,240) $22,850 ($15,380) $91,070 Concession Stand Income Statement 2007 2008 2009 2010 2011 Revenue Sales $0 $46,351 $89,707 $95,605 $94,550 Miscellaneous $0 $0 $0 $0 $0 Lease Revenue $7,200 $0 $0 $0 $0 TOTAL REVENUE $7,200 $46,351 $89,707 $95,605 $94,550 Expense Personnel $0 $8,426 $16,355 $20,000 $20,200 Product $0 $15,971 $34,812 $31,278 $33,323 Equipment Repair/Replacement $0 $892 $1,115 Sales Tax $0 $3,303 $6,392 $6,812 $6,737 TOTAL EXPENSE $0 $27,700 $58,451 $59,205 $60,260 NET INCOME (LOSS) $7,200 $18,651 $31,256 $36,400 $34,290 Skating School Income Statement 2012 2008 2009 2010 2011 2012 Income Registrations $48,450 $44,440 $44,880 $50,410 $59,230 Expenses Instructors $15,775 $14,950 $17,800 $22,150 $22,500 Ice Time: $27,000 $29,000 $29,000 $30,000 $30,000 Net Income $5,675 $490 ($1,920) ($1,740) $6,730 City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO:Farmington Parks and Recreation Commission Members FROM:Randy Distad, Parks and Recreation Director SUBJECT:Commission Roundtable DATE:April 8, 2015 BACKGROUND This is an opportunity for Commission members to share any information they would like with other Commission members and staff, or ask questions of staff. City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO:Farmington Parks and Recreation Commission Members FROM:Randy Distad, Parks and Recreation Director SUBJECT:Community Survey DATE:April 8, 2015 BACKGROUND Staff will provide information at the meeting about the community survey that will be completed this spring. City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO:Farmington Parks and Recreation Commission Members FROM:Randy Distad, Parks and Recreation Director SUBJECT:May 13, 2015 Agenda Topics DATE:April 8, 2015 BACKGROUND Items identified so far to be included on the May 13, 2015 Commission meeting agenda include: 1. Schmitz-Maki Arena Business Plan The Commission should identify other items to include on the May 13, 2015 meeting agenda.