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HomeMy WebLinkAbout03-185 i' t CITY OF LAKEVILLE RESOLUTION Date October 6, 2003 Resolution No: 03-185 Motion By Bellows Seconded By xieb • RESOLUTION ACKNOWLEDGING RECEIPT OF THE PROPOSED 2004 LAKEVILLE AME ARENA BUDGET AS SUBMITTED BY THE LAKEVILLE COMMUNITY CORPORATION AND MANDATING ADDITIONAL :REASONABLE ACTIONS WHEREAS, Section 4.1 of the Operations and Maintenance Agreement for the ice arena states, "On or before July 1 of each year, the Manager (LCC) shall provide the Owner (City) with an ice arena complex budget for the coming. year setting forth, in reasonable detail expected receipts and expenditures, including any expenditures of a capital nature, for said coming calendar year. Owner (City) shall have the right to mandate .additional reasonable actions to be undertaken by the Manager to produce additional gross revenues .and additional operation and maintenance expenses for inclusion in the budget submitted by the Manager (LCC.) "and WHEREAS, The Lakeville Community Corporation submitted the .proposed 2004 Lakeville .Ames Arena budget on September 2, 2003 a copy of which is attached hereto .and WHEREAS, the Lakeville Ames Arena Advisory Committee reviewed the proposed budget and provided comments relative to the proposed budget at its meeting on September 9, 2003 NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Lakeville, Minnesota that the City Council does hereby acknowledge receipt of the .proposed 2004 budget as submitted by the Lakeville Community Corporation on September 2, 2003 and BE IT FURTHER RESOLVED, by the City Council of the City of Lakeville, Minnesota that the City Council does hereby mandate the following additional reasonable actions be taken by the Lakeville Community Corporation to produce additional gross revenues and additional operation and maintenance expenses for inclusion in the budget submitted by the Manager (LCC). a) Ice Rental rates. Ice rental rates shall be increased $3 per hour effective November 1, 2003. The Lakeville Hockey Association (LHA) and Independent School District 1.94 (ISD 194) concur with the increase in rates. The new rates should therefore be $153/hour prime time and $120/hour non-prime time. f . b) Ice Rentai revenues. The budget as proposed by the LCC anticipates renting 378 hours of ice to ISD 194. The School District will be renting approximately 294 hours of ice in the coming year. The budgeted ice. rental revenues therefore need to be reduced by 84 hours. c) Public skating. LCC has proposed a 2004 budget of $9,600 for public skating revenues. Based on historical information, the public skating revenue estimate should be reduced to $4,200. d) Vending .machine revenues. The LCC is proposing estimated revenues of $10,700 from vending machine income in 2004. Based on the Coca Cola Agreement and historical vending machine revenues, the estimate should be increased to $14,700. e) Concession revenues. The proposed LCC budget provides no revenue. estimates from concession stand revenues. LHA President, Mr. Chris Hoins has indicated the LHA is willing to pay for a proportionate share of the utility costs to operate the concession stand (i.e. approximately $200/month). The 2004 budget is therefore to provide at a .minimum the revenues received from the LCC for operation of the concession stand. Mr. Hoins has indicated that the LHA would cede operations to another organization if such an endeavor could generate additional revenues for operation of the arena. Therefore, :the LCC is directed to contact other similar Lakeville businesses to determine whether they would be interested in operating the concession stand and hence generate. additional revenues for the arena. The City requests. the LCC to report such endeavors to the Lakeville Ames Arena Advisory Committee. and the City in a timely manner. f) Advertising. The proposed budget provides no estimated revenues for advertising revenues from dasher boards and Olympia resurfacer. Wall sign advertising is also a possible revenue source even though no signage currently exists. Therefore, based on advertising rates charged by other neighboring arenas, the 2004 arena budget is to provide a minimum of $6,800 for advertising revenues. Also, copies of all agreements, .contracts, documents and other instruments are to be .provided to the City. g) Salaries. The proposed budget provides $102,000 for full-time salaries for 2004; however, no supporting documentation was provided. The proposed budget represents a $7,816 (8.2%) increase in full-time .salaries. In the absence of a substantive response regarding the. proposed budget .fore. full-time salaries, .the proposed salary increase is considered excessive and therefore to be reduced. by $4,990. h) Health .insurance. The proposed budget provides health insurance benefits for its full time employees in the. amount of $9,000. The. City is requesting detailed information regarding proposed benefits in order to make an informed decision regarding the proposed health insurance budget.. • ) Operating supplies. The proposed budget provides operating supplies in the amount of $450 for 2004. Based on historical data, the budget should be increased to $1,900 for operating supplies. j) Print public :information. The proposed 2004 budget provides $600 for printing public information and $600 for Advertising. Since LCC representatives and staff have indicated there are no plans to print brochures or other public information the print public information budget is to be reduced by $600. k) Building maintenance. The proposed budget provides $14,400 for building maintenance. -Since no request had been provided for snowplowing, approximately :$2,000 bf the amount is to be appropriated to snowplowing. It is our understanding the LCC intends to make major improvements to the front entrance area. In order to make an informed decision regarding the proposed front entrance project and building maintenance project, the City requests. the LCC to provide detailed information. 1} Special assessments. The proposed .budget provides $2,243 for special assessments. The exact amount of the special assessments is $1,987 with the final payment to be made in 2006. m) Rink II bleachers. The: proposed a 2004 budget.. provides $12,000 ($1,000 per month} for Rink II bleachers. It is our. understanding the cost of bleachers for Rink II is approximately $25-$35,000. Also pursuant to the Operating and Management Agreement, no debt can be incurred for such projects without City approval.. The proposed budget for Rink II bleachers is therefore to be deleted until such time as the approved by the City. Approval is contingent. upon receipt of adequate 'detailed information regarding design, cost, financing and .other relative data and the recommendations of the Lakeville Ames Advisory Committe. n) Capital Reserve Fund. The proposed budget provides $24,000 for a capital reserve fund. Based on the estimated cost and useful life of a roof, resurfacer, ice refrigeration system and other components, the 2004 ice arena budget is to provide $45,000 to the capital reserve fund for future equipment replacement. APPROVED AND ADOPTED this 6th. day of October, 2003. CITY OF VIL By: / [G `V~ Robert Jo on, Mayor TTES arlene Friedges, City erk