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The internal source of funds for this $50,000 expenditure is <br /> recommended to be the city self-insurance fund. If this money is <br /> needed for self-insurance purposes before the ice arena investment is <br /> recaptured, then staff will present the Council with different options. <br /> In addition to the expenditure noted above, the city also committed <br /> $50,000 toward the ice arena project. This city expenditure was going <br /> to be the last contribution to the project and would only be made if <br /> needed. It is clear at this point that all $50,000 from the city will be <br /> needed. It is recommended that the source of funds for the city <br /> contribution to the project be 50 percent from the city capital projects <br /> reserve and 50 percent from the city equipment/infrastructure reserve <br /> that is undesignated. <br /> The project is on schedule and it is still anticipated that ice skating <br /> will be taking place in the new arena by January 13, 1997...The <br /> weather is trying to cooperate so that the bituminous surface can be <br /> installed at the parking lot, but it is getting close to the end of the <br /> black topping season. We are hoping that the weather will continue to <br /> cooperate as we would all like to have blacktop to drive on this winter <br /> rather than Class 5...The ice arena rink equipment is being installed <br /> in the next two weeks and no major problems have been <br /> identified...The contingency budget for construction changes with this <br /> project is under $90,000. This is less than 3.4 percent of the project. <br /> This is a very small contingency amount and is close to being <br /> exhausted at this time. A lot of the expenditures out of the <br /> contingency budget have been for "value added" items and not true <br /> construction contingency expenses. For example, we have done some <br /> additional parking lot improvements per the request of the School <br /> District, added a third pumper to the ice machine ($6,000), added some <br /> piping in order to facilitate the heating of the arena ($5,600), and <br /> added another row of bleachers ($2,500) to accommodate more <br /> spectators. Things of this nature are not related to construction <br /> contingencies but are value added additions to the project. About 50% <br /> of the contingency fund has been spent on value added items and the <br /> other 50% has been spent on true contingency items. At this point we <br /> are hoping that Youth Hockey will help in financing some of these <br /> value added additions but the city may go slightly over budget in order <br /> to ensure that the facility is complete and is user friendly. It would be <br /> a shame to spend $2.65 million on a project and have people complain <br /> because an extra $20,000 or so was not spent to accommodate the <br /> skaters and viewing public. I will know more about the project <br /> finances and keep the Council updated in the next few weeks. <br /> council\iceiss.doc <br /> • <br />