CR 11-050 Proposed increase to Pavilion Hourly Ice Rental Rates•
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June 2, 2011
Proposed Action.
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Council Report 2011-050
PROPOSED INCREASE TO PAVILION
HOURLY ICE RENTAL RATES
Staff recommends adoption of the following motion "Adopt Resolution No. 2011-028 increasing
the Pavilion Prime and Non -Prime Hourly Ice Rental Rates effective September 1, 2011 ".
Overview.
The Pavilion hourly ice rental rates are annually reviewed and increased based upon projected
operational expenses, projected hours to be sold, and a market analysis. The last ice rental rate
increase was September 1, 2009. After reviewing ice rental rates, prime time hours and the
demand for ice rental hours of surrounding arenas, staff recommends a $5.00 increase to the
prime hour ice rate and a $5.00 increase to the non prime hour ice rate to help budget revenues
meet or exceed expenses.
Primary Issue to Consider.
• Should the prime and non -prime ice rental rates be increased?
Supporting Information.
Detailed background
• Rate comparisons with other arenas or similar facilities
• Analysis of issue
• Resolution No. 2011-028
9 U
Don Olson, Pavilion Manager
Financial Impact: $6,000 Annual Increase To Revenues Budgeted: Yes
Source: Pavilion Enterprise Fund Related Documents (CIP, ERP, etc.):
Notes:
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Detailed Background.
The rate increases will help revenues meet expenses in the Pavilion budget; expenses that
increase each year as the facility gets older and operational costs increase. In order to stay
competitive with other arenas with our prime and non -prime ice rental rates staff now feels the
market will only allow a $5.00 increase to both ice rates. The Pavilion's non -prime rate is lower
than most arenas to increase usage of non -prime hours.
The proposed rate increase is as follows:
Current Rate Proposed Rate
Prime Time Hours $180.00 $185.00
Non -Prime Hours $125.00 $130.00
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 has been presented the proposed rate
increases and supports the increases.
PRIME HOURLY ICE RATE COMPARISON OF SURROUNDING ARENAS
2011-2012
Prime Non -Prime
$180.00
2010-2011
$195.00
Prime
Non -Priv
Plymouth
$180.00
$180.00
Eden Prairie
$190.00
$155.00
Edina
$185.00
$135.00
Bloomington
$180.00
$120.00
New Hope
$191.00
$165.00
Minnetonka
$180.00
$180.00
Chaska
$190.00
$145.00
2011-2012
Prime Non -Prime
$180.00
$180.00
$195.00
$155.00
$190.00
$140.00
$180.00
$120.00
$197.00
$170.00
$180.00
$180.00
$195.00
$145.00
The City will be able to increase the prime ice rental rate and still be comparable to other arenas
on high demand prime hours. Non -prime rate is intentionally lower to attract users to low
demand non -prime hours. Ice rental user groups are aware of the proposed changes and have
not voiced any concerns about the increase.
Analysis of Issue.
• Should the prime and non -prime ice rental rate increase?
The purpose of the rate increases is to help revenues meet or exceed expenses in the Pavilion
budget. The proposed prime rate of $185.00/hr is comparable to west metro average. Staff feels
that the market will bear both rate increases. Ice rates are reviewed annually and are adjusted
at that time to what staff feels is appropriate and comparable to other facilities.
City of Hopkins
Hennepin County, Minnesota
Resolution No. 2011-028
Hourly Ice Rate for Prime and Non -prime Hours at the Hopkins Pavilion
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 and non -prime 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 and non -prime ice rental rates effective August 31, 2011, and,
BE IT FURTHER RESOLVED, that the hourly prime and non -prime ice rental rates in the
Hopkins Pavilion is set as follows:
Prime Time Ice Rental Rate: $185.00/hr
• Non -Prime Time Ice Rental Rate: $130.00/hr
BE IT FURTHER RESOLVED, that the effective date of these new rates be in force in
connection with all billing rendered hereunder from and after September 1, 2011.
Adopted by the City Council of the City of Hopkins this _ day of 2011.
Attest:
Deborah L. Sperling, City Clerk
•
Gene Maxwell, Mayor