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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 /> <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 /> <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 /> <br />council\iceiss.doc <br /> <br /> <br />