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#2 Discuss/possible action on proposed renovations to Ice Skating CenterCITY MANAGER DEPARTMENT MEMORANDUM February 9, 2011 TO: City Council FROM: Eric J. Levitt, City Manager SUBJECT: Discussion/possible action on proposed renovations to Janesville Ice Skating Center. Summary / Background In 2008, the City performed some preliminary evaluations of issues and possible deficiencies at the ice rink. During the spring of 2009, the City experienced several small failures and one large failure of the ice cooling system. In addition, there have been some continual structural concerns with the facility including the roof. Temporary repairs have been completed over the last year while a review of the current ice rink status has been on-going. A group of Janesville residents began developing a proposal to form a partnership with the City of Janesville to build a new rink rather than renovate the current rink. The proposed rink was proposed in several sites. The proposed partnership evolved over the summer 2009. The proposal on October 262009 had the following elements:  The building and one sheet of ice would cost approximately $4 million (not including land).  The expansion to a second sheet of ice would cost approximately an additional $1 million.  The City is requested to commit an initial $2 million and an additional $500,000 when funds are raised for a second sheet of ice.  The proposal projected the City to close its current $85,000 actual subsidy to a $0 operational subsidy when 2 sheets of ice are operational.  The proposal discusses the expansion of users at the current rink over the last year  The City Manager indicated to the group that due to concerns with competitive bidding, it would be his recommendation that if the City had ownership and responsibility for the operations of the facility that he believes that it would be best to competitively bid the project management and construction. The City Council in October approved $2 million in public funds for a one-sheet ice rink and up to $2.5 million in public funds for a two-sheet ice rink if private funds were raised to complete the facility. It was also approved to place the rink on the South side after discussion on location. The City currently has $2 million available for the rehabilitation of the current rink, the construction of a new rink or other eligible uses. The City contracted with an outside firm, Rink Management Services Corporation, during the Spring 2010 for approximately $10,000 to do an overview evaluation of the current rink and the plans to construct a new rink. Typically to perform an intensive study of the current rink and evaluate the feasibility of a new facility would cost between $30,000 and $60,000. However, the City Manager believed that an abbreviated study for under $10,000 would provide enough valid information to provide a more informed decision. The Janesville Ice Rink Evaluation Committee reviewed the recommendation of the outside consultant and then evaluated potential increased revenue sources. This report is attached. The City Council extended the deadline for the private group to come forward with $1.5 million in matching funds to December 31, 2010 (which was estimated to be 75% of the required matching funds). After receiving confirmation that the outside group was unable to come up with the matching funds, the City Manager requested that Engineering provide the City Council with 3 estimates based on three levels of improvements to the ice center. Those estimates are attached. These estimates are based on estimates in construction on a general guideline of improvements. City Manager Recommendation: I recommend that the City Council move forward with renovating the current ice rink. I will lay out the elements of my recommendation. 1. My first recommendation is that the City Council provide direction on which level of improvements that the City Council would prefer that we move forward with. a. The basic option would improve the operations of the facility and ice, but would not enhance any of the amenities. This is a basic improvement and is the intended improvement discussed approximately 2 years ago. It would be less than $1.5 million and would leave $500,000 for property acquisition. Looking toward the future, this level of improvement would be best if you plan to build a new facility in the next 10 years. b. The Intermediate option. Would provide enhancements that would benefit the direct users of the facilities, but would either require outside funding assistance or reduce the amount available of 2 existing funds for property acquisition and construction of the fire facility. c. The Long-term option would be best utilized if you plan to continue to utilize the facility out 10 to 20 years. This option would likely use the entire $2 million and may require additional borrowing. 2. I would recommend that the City Council provide clear direction. One bid out the basic option, but recommended direction would be to provide for alternative bids on the other two options to evaluate pricing . If you do follow this recommendation, I recommend that you clearly communicate what your preference is related to funding so that when we work with the user groups on design issues, there is a clear understanding of the parameters. 3. I believe the first step after your decision would be for the City to hire a firm to design the improvements and then establish a user group committee appointed by the City Manager to work with the City on the design. The Ice Center Advisory Group’s mission is to discuss issues related to operations and not the design of a new facility. 4. The City would anticipate construction in 2012. There may be areas that would need repair attention in the interim, but this would be more cost effective for instance than putting in the mechanicals this year and then having to relocate them next year based on a different design. 5. Finally, my objective is to time the construction for the time period between mid-April 2012 and September 1, 2012. If additional time is needed, my goal is to have work that effects the ice surface occur during that time period in order to have activity on the ice in September 2012. 3 Potential Revenue Gain ______________________________________________________ Projected Revenues 2010 Increase for 2 sheets Projected Totals Public Totals $34,000 $31,000 $65,000 Program Totals $33,000 $ 4,000 $37,000 Youth Hockey $84,000 $65,000 $149,000 Janesville Jets $27,000 $8,000 $35,000 Ice Rentals $58,000 ---0--- $58,000 Figure Skating $12,000 $68,000 $80,000 Concession $5,000 $2,000 $7,000 Bluebirds/Fury H.S. ---0--- $25,000 $25,000 Pro Shop $1,000 $500 $1,500 $254,000 $457,500 DEPARTMENT OF PUBLIC WORKS MEMORANDUM February 3, 2011 TO: Eric Levitt, City Manager FROM: Mike Payne, Engineering Manager SUBJECT: Conceptual Ice Center Renovation Budget Ranges Carl Weber and I worked with Angus Young Associates to define three options for renovating the existing Ice Center facility. The following summarizes three options accompanied by a range of costs:  Basic Option ($1,000,000 to $1,300,000) Mechanical and structural improvements including repair or o replacement of the following components: Ice making system  Roof  Fire suppression system  Lights over ice surface  Boiler  Dehumidification system  South block wall  Fire doors  Miscellaneous mechanical and structural components   Intermediate Option ($1,305,000 to $1,715,000) Basic Improvement items o Building expansion to relocate mechanical room and zamboni area o Renovation of existing mechanical and zamboni areas to create o additional locker room space including restroom/shower facilities  Long Term Option ($2,365,000 to $3,035,000) Basic Improvement items o Intermediate Improvement items o Expanded seating o Expanded parking for increased capacity o Expanded restroom facilities to meet code for increased capacity o Expanded program and storage space o Attachments: conceptual plans for all three options \\petey\cojhome\agenda review\approved agenda items\2011\02-14-2011\ice arena renovations - attach 2.doc