CR 99-128 Proposed Increase to Pavilion Hourly Ice Rental Rates
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0 May 4, 1999 Council Report: 99-128
PROPOSED INCREASE TO PAVILION
HOURLY ICE RENTAL RATES
Proposed Action.
Staff recommends adoption of the following motion "Adopt Resolution No. 99-060 increasinQ the
Pavilion Prime Hourlv Ice Rental Rate and chanoino the Prime Time Hours desionation effective
September 1. 1999".
Overview.
The Pavilion prime hourly 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, 1997. Prime Time Hours have not changed since the Pavilion opened in
December 1990. After reviewing ice rental rates, prime time hours and the demand for prime
ice hours of surrounding facilities, Staff recommends an increase to the Prime Hour Ice Rate
and a change in the Prime Time Hours to help budget revenues meet or exceed expenses.
Primary Issue to Consider.
0 Should the prime ice rental rate increase and a change be made in the prime time hours.
0 Supportina Information.
0 Detailed background
Rate and prime time hour comparison of other arenas
0 Analysis of issue
Resolution No. 99-060
{;l O~'i
Don Olson, Pavilion Manager
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0 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 1,1997. The increase proposed is a $15.00 increase to
the prime ice rate. The additional rate increase will bring the rate up to the average prime rate
of surrounding arenas. This rate increase will help meet or exceed expenses in the Pavilion
budget; expenses which increase each year as the facility gets older. Non-prime ice, turf, and
dry floor rental hourly 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 Proposed Rate
Prime Time Hours $115.00 $130.00
Non-Prime Hours $105.00 no increase
Turf Rental $ 65.00 no increase
Dry Floor Rental $ 55.00 no increase
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 increase on July 19, 1999.
0 The proposed change in the Prime Time Hours will go into effect on September 1,1999. The
changes are as follows:
PRIME TIME HOURS, Current: Weekdays - Hours starting at or after 4:00 p.m. until
10:15 p.m. All other hours non-prime.
: Weekends - All hours open on Saturday and Sunday.
Proposed: Weekdays - Hours starting at or after 2:00 p.m. until
10:00 p.m. All other hours non-prime.
: Weekends - Hours starting at or after 7:00 a.m. until
10:00 p.m. All other hours non prime
The current prime time hours were established October 10, 1990. At that time having a non-
prime ice rate before 4:00 p.m. was designed to attract occasional users. Since then the
demand for after school ice time has increased. Surrounding arenas have prime time rates
starting between 2:00 p.m. and 3:00 p.m. The proposed weekday prime time change to 2:00
p.m. would make rates more consistent for prime time users and generate more budget
revenue. The proposed weekend changes to prime time hours are an attempt to attract users to
non-prime hours.
The proposed changes to prime time hours affect the Legislative Policy #5-E, Pavilion (Ice
Arena) Operation; section 3.04 which addresses prime time hours.
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0 PRIME RATE COMPARISON OF SURROUNDING ARENAS
98-99 99-00
Plymouth $130.00 $130.00
Eden Prairie $135.00 $135.00
Edina (Braemar) $120.00 $120.00
Brooklyn Park $145.00 $145.00
New Hope $140.00 $140.00
Minnetonka $120.00 $120.00
Bloomington $130.00 $135.00 (decision pending)
St. Louis Park $115.00 $120.00
Chaska $125.00 $125.00
Blake $140.00 $140.00
Average $130.00 $131.00
The City will be able to increase the prime ice rental rate and still be comparable to other
arenas. The Pavilion prime ice rate will be at the average.
PRIME TIME HOUR COMPARISON OF SURROUNDING ARENAS
WEEKDAYS WEEKENDS
Plymouth 2:30-10:30 p.m. 6:30 a.m. -10:30 p.m.
Eden Prairie 2:00 - 11 :00 p.m. 6:00 a.m. - 11 :00 p.m.
Chaska 2:00 - 10:00 p.m. 8:00 a.m. -10:00 p.m.
0 Bloomington 3:00 - 10:00 p.m. 6:00 a.m. -10:00 p.m.
Brooklyn Park 2:30 - 11 :00 p.m. 7:00 a.m. - 11 :00 p.m.
Edina (Braemar) (Non prime only during school hours)
New Hope (Same rate 24 hours a day)
Minnetonka (Same rate 24 hours a day)
St. Louis Park (Same rate 24 hours a day)
Blake -------- --------
A change to the Prime Time Hours is warranted and recommended at this time. The proposed
hours are comparable to other community run arenas and will make rates uniform for all Pavilion
ice users.
Analvsis of Issue.
Should the prime ice rental rate increase and a change be made to the Prime Time Hours.
The Hopkins Park Board has reviewed this information and recommended the rate increase and
prime time hours change at the July 19, 1999 Park Board meeting.
The purpose of the rate increase is to help revenues meet or exceed expenses in the Pavilion
budget. The proposed rate ($130.00/hr) is at the metro average. The purpose of the prime time
hours change will more accurately reflect ice time that is in high demand (prime time) and also
make rates uniform for all prime time users. The proposed prime hours is keeping with
0 surrounding arenas and makes the weekend non-prime hours more attractive to the occasional
user. Staff feels that the market will bear both the rate increase and change in prime time
hours.
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0 City of Hopkins
Hennepin County, Minnesota
Resolution No. 99-060
Hourly Ice Rates and Prime Time Hours
WHEREAS, the City of Hopkins has established Legislative Policy #5-E, Pavilion (Ice
Arena) Operation, Sections 3.04 and 3.05; Prime Time Hours, and Rates for hourly ice
rentals, and
WHEREAS, the rates for prime time ice rental, and prime time 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 and prime time hours must be
made to offset operational expenses, and,
WHEREAS, surrounding facilities have indicated comparable rate increases, and prime
time hours,
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins
hereby repeals the existing hourly prime ice rental rate, and prime time hours, effective
September 1, 1999, and,
0 BE IT FURTHER RESOLVED, that the hourly prime ice rental rate, and prime time
hours, in the Hopkins Pavilion are set as follows:
Prime Time Ice Rental Rate: $130.00/hr
Prime Time Hours: Weekdays - hours starting at or after 2:00 p.m. until 10:00 p.m.,
hours starting before 2:00 p.m. and at or after 10:00
p.m. will be non prime.
Weekends - hours starting at or after 7:00 a.m. until 10:00 p.m.,
hours starting before 7:00 a.m. and at or after 10:00
p.m. will be non-prime.
BE IT FURTHER RESOLVED, that the effective date of this new rate and hours be in
force in connection with all billing rendered hereunder from and after September 1, 1999.
Adopted by the City Council of the City of Hopkins this _ day of ,1999.
By
Charles D. Redepenning, Mayor
Attest:
Terry Obermeier, City Clerk
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