4. ICESR 05-15-1997 - Laserfiche WebLink

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1 REVISED PROPOSAL BY SUB-COMMITTEE Below is the documentation for the changes we have made to the numbers on the previous page. The first full year of • operation has been delayed until the 1996-96 season. The two years shown is the partial season of 1995-96 where the Arena is estimated to be in operation by November 15, 1995, and the full season estimates ending May 31, 1997. Assumptions were that the years following would have a similar cost percentage adjustments as shown in the Feasibility study. • REVENUES: The hourly rates to be charged for ice time is as follows: ICE RENTAL: 1995-96 • 1996-97 1997-98 NON- NON- NON- PRIME PRIME PRIME PRIME PRIME PRIME Sept-March: Rink 1 $100 S85 $105 S90 S110 S90 Rink 2 $115 S85 • SI20 S90 5125 S90 • April-August: $100 S85 S85 • 1 " School Day Hours: S 50 S 50 S 50 . • The Feasibility Study stated a rate of S100 for 1995-96 and 5105 for 1996-97. This rate will be used for the • present smaller rink but the New Olympic rate will be 5115 and S120 for the 1995-96 and 1996-97 seasons. As the study stated Anoka,being our closest ice sales competitor,rate was 5115 for 1995-96 for their new sheet. The Elk River Youth Hockey Board has taken the position in the past several years that we need to charge an hourly ice rental rate that will cover our building expenses and the above rates help us achieve this goal. We would propose that the Associations renting large amounts of ice time rent a share of both ice sheets in their contracts. The average cost to them would then be S107.50 per hour for the 1995-96 season. The Feasibility study has Elk River School District 728 with a contract of $26,400 in 1994-95 and S27;000 in•1995-96. We took that as a separate line item because of a change in contract agreement beginning in 1994-95. The contract is now on an hourly basis at the going rate per hour. The estimate is 240 hours multiplied by the rate of both sheets divided by 2. For they • will be shaming both sheets of ice. The hourly rental agreement with the Elk River School District has allowed the Ice Arena to sell additional hours,at a lower rate, during the daytime for preschool skating lessons and Elk River - • School gym classes or special events. The 1995-96 season identified ice rental hours is 2982 hours(2564 prime, 259 non-prime). The red flag here is that if we cannot guarentee that the facility will be open November 15; 1995 this will affect the contracts with St.Michael,Monticello and Osseo. The attached letters show there interest in renting ice from our facitlity. • They need to finalize where they will be practicing and holding games very soon probably sometime in March. This total dollar figure comes to 5312,720 of which we deducted the Elk River School District amount of$25,800 because it exist on a separate line. The attached spreadsheet verifies these numbers. The 1996-97 season we identified the same number of contracts as well as some July/August rental of hours that we are presently working on. Specificly a Diane Ness Power Skating,Puck Handling/Shooting, Paul Ostby Goalie Clinics. There is about 400 to 500 miscellaneous hours stated on the attached spreadsheet to• verify these numbers. The total dollar amount is$364,653 with 3360 hours (2922 prime and 261 non-prime) shown. Of this about 400 Hours need to be identified yet. Also there is approximately 40 hours a month during the prime season available that will most likely be rented. Elk River Youth Hockey will have a much better estimate of increased hours because of increased number of teams by the fall of 1995. There is a good chance that 2-3 teams will be added for the season of 1995-96 and probably 1-2 more in the season of 1996-97. The ERYHA Board has committed in their minutes of 2/27/95 to purchase a minimum 1055 hours for 1995-96 season and .depending on adding teams an additional 100 hours are possible. The 1996-97 committment was for 1150 hours with an estimated 1%increase each year.. • • •