CR 95-81 Proposed Increas to Pavilion Hourly Ice Rental Rates
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e April 26, 1995 o P K \ '" Council Report: 95-81
PROPOSED INCREASE TO PAVILION
HOURLY ICE RENTAL RATES
Proposed Action.
Staff recommends adoption of the following motion: "Adopt Resolution No. 95-36
increasing the Pavilion Hourly Ice Rental and Open Skate Rates beginning June 1. 1995".
Overview.
The initial Pavilion hourly ice rental and open skating rate were established on October
16, 1990. These rates were based on projected expenses of operation, projected hours
to be sold, and prevailing rates of surrounding communities. Since the Pavilion opened
in 1990 there has been no increase in open skating rates and one price increase, on
May 1, 1992, of the ice rental rate. After 3 seasons of operation since the last hourly
. price increase, and a review of surrounding facility rates, staff recommends an increase
in rates to help budget revenues meet or exceed expenses.
Primary Issue to Consider.
0 Should the ice rental rates be increased?
Supporting Information.
0 Detailed background
0 Rate comparison of other city owned arenas
0 Analysis of issue
0 Resolution No. 95-36
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. Detailed Background.
The proposed rate increase will go into effect on June 1, 1995, and the rate increase
proposed is a follows:
Current Rate Proposed Rate
Prime Time Hours $95.00 $105.00
Non-Prime Time Hours $85.00 $ 95.00
Open Skate $ 1.50 per person $ 2.00 per person
Other ice arena facilities in the west metro area attempt to keep rate increases limited to
every other year. Our Pavilion has not had an increase in three seasons now. By
increasing the hourly rate by $10.00, at this time, we should at least be able to limit
increases to every other year.
All rental rates must meet the approval of the Park Board and City Council as stated in
section 2.10 of Legislative Policy #5-E Pavilion (Ice Arena) operation. The Hopkins Park
Board approved the rate increases on February 27, 1995.
Rate Comparison of Other City Owned Arenas
e 94-95 95-96
Hopkins Pavilion $ 95.00 $105.00
Eden Prairie $105.00 $107.50
Edina (Braemar) $100.00 $10S.00
Blake $105.00 $110.00 Decision pending
Brooklyn Park $110.00 $11S,OO Decision pending
New Hope $110.00 $110.00
Minnetonka $ 90.00 $ 90.00
Bloomington $115.00 $115.00
Metro Average $101.00 $107.00
The City will be able to increase its hourly ice rental rate and still have a rental rate that is
slightly less expensive than surrounding communities.
Analysis of Issue
0 Should the hourly ice rental rate be increased?
The purpose of the rate increase is to help revenues meet or exceed expenses in the
. Pavilion budget. The proposed rate is slightly lower than rates charged by surrounding
e communities, thus a fair market rate. Therefore, it is reasonable and necessary to
increase the rental rates.
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e CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 95-36
HOPKINS PAVILION (ICE ARENA)
HOURLY ICE RENTAL RATES
WHEREAS, the City of Hopkins has established Legislative Policy #5-E,
Pavilion (Ice Arena) Operation, Section 3.05 and 3.06; Rates for hourly ice rentals and
open skate, and,
WHEREAS, the rates for prime time and non-prime time ice and open skate
will be determined by recommendation from the Pavilion staff and Park Board and
approved by the City Council, and,
WHEREAS, an adjustment of the 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 ice rental rates and open skate rate
effective June 1, 1995, and,
BE IT FURTHER RESOLVED, that the hourly ice rental rates, and open skate
rates, in the Hopkins Pavilion are set as follows:
Prime Time Hours $105.00jhour
Non-Prime Time Hours $ 95.00jhour
Open Skate $ 2.00jperson
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 June 1, 1995,
Adopted by the City Council of the City of Hopkins this day of I 1995.
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By
Charles Redepenning, Mayor
ATTEST:
. City Clerk