CR2003-106 Pavilion Hourly ice rate-increase
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July 29, 2003
if CITY OF '1
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HOPKINS i
Council Report 2003-106
PROPOSED INCREASE TO PAVILION
HOURLY ICE RENTAL PRIME RATE
Proposed Action.
Staff recommends adoption of the following motion "Adopt Resolution No. 2003-59 increasina
the Pavilion Prime Hourlv Ice Rental Rate effective September 1. 2003".
Overview.
The Pavilion prime hourly ice rental rate has been increased every 2 years based upon
projected operational expenses and projected hours to be sold. The last ice rental rate increase
was September 1, 2001. After reviewing ice rental rates, prime time hours and the demand for
ice rental hours of surrounding arenas, staff recommends an increase to the' Prime Hour Ice
Rate to help budget revenues to meet or exceed expenses.
Primary Issue to Consider.
· Should the prime ice rental rate be increased?
Supportina Information.
. Detailed background
. Rate comparisons with other arenas or similar facilities
· Analysis of issue
. Resolution No. 2003-59
a~
Don Olson, Pavilion Manager
Financial Impact: $13,000 Annual Increase To Revenues Budgeted: Yes
Source: Pavilion Enterprise Fund Related Documents (CIP, ERP, etc.): 2003 Pavilion Budget
Notes:
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Detailed Backaround.
In the past, ice rental increases have been in increments of $10.00, increasing every two years.
The last increase was on September 1, 2001. The rate increase will bring the rate up to the
average prime rate of surrounding arenas. The rate increase will help revenues meet or exceed
expenses in the Pavilion budget; expenses that increase each year as the facility gets older and
operational costs increase. Non-prime ice, turf rental and dry floor hourly rental rates have no
proposed rate increase to keep rates low in order to attract users and stay competitive with
other facilities offering the same types of rentals.
The proposed rate increase is as follows:
Current Rate
$140.00
$105.00
$ 75.00
$ 55.00
Prime Time Hours
Non-Prime Hours
Turf Rental
Dry Floor Rental
Proposed Rate
$150.00
no increase
no increase
no increase
All rental rates will be determined by recommendation from the Pavilion Manager and the Park
Board and approval by the City Council as stated in section 2.10 of Legislative Policy #5-E
Pavilion (Ice Arena) operation. The Hopkins Park Board recommended the rate increase on
July 28, 2003.
PRIME HOURLY ICE RATE COMPARISON OF SURROUNDING ARENAS
Plymouth
Eden Prairie
Edina (Braemar)
Brooklyn Park
New Hope
Minnetonka
Pagel Activity Center
St. Louis Park '
Champlin
Blake
Average
02-03
$145.00
$142.50
$140.00
$155.00
$160.00
$140.00
$185.00
$135.00
$155.00
$150.00
$150.75
03-04
$145.00
$145.00
$145.00
$160.00
$160.00
$145.00
$185.00
$140.00 (decision pending)
$160.00
$150.00
$153.50
The City will be able to increase the prime ice rental rate and still be comparable to other
arenas. Ice rental user groups are aware of the proposed changes and have not voiced any
concerns about the increase.
Analvsis of Issue.
· Should the prime ice rental rate increase?
The Hopkins Park Board has reviewed this information and recommended the rate increase at
the July 28, 2003 Park Board meeting.
The purpose of the rate increase is to help revenues meet or exceed expenses in the Pavilion
budget. The proposed prime rate of $150.00/hr is at the metro average. Staff feels that the
market will bear the rate increase.
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City of Hopkins
Hennepin County, Minnesota
Resolution No. 2003-059
Hourly Ice Rates and Prime Time Hours
WHEREAS, the City of Hopkins has established Legislative Policy #5-E, Pavilion (Ice
Arena) Operation, Section 3.05; Rates for hourly ice rentals, and
WHEREAS, the rate for prime time ice rental hours will be determined by
recommendation from Pavilion staff and Park Board and approved by the City Council,
and,
WHEREAS, an adjustment of the hourly ice rental rates must be made to offset
,operational expenses, and,
WHEREAS, surrounding facilities have indicated comparable rate increases,
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins
hereby repeals the existing hourly prime ice rental rate effective September 1, 2003,
and,
BE IT FURTHER RESOLVED, that the hourly prime ice rental rate in the Hopkins
Pavilion is set as follows:
Prime Time Ice Rental Rate: $150.00/hr
BE IT FURTHER RESOLVED, that the effective date of this new rate be in force in
connection with all billing rendered hereunder from and after September 1, 2003.
Adopted by the City Council of the City of Hopkins this 6th day of August 2003.
By
Gene Maxwell, Mayor
Attest:
Terry Obermaier, City Clerk