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�- DRAF� for Roseu7le CI� Council -- --1�t Reading, June 13,2005 • The Task Force purposely did not address the short term financial need for the chiller repair. o It was deemed out of scope as the Task Force did not want to exhaust its time in addressing this short term need, and not have time to truly understand the long term need and the financial options to address it Business Model Findings (Details in Business Model Section) o Conservative Projection outlined has identified approaches totaling $60,000 to address the $100,000 operational cost shortfall o Of the remaining $40,000 -- $10,000 is for the "Aggressive Skate Par�"; $30,000 is for community use, and would be considered a city contribution to the "Public Good" o Optimistic Projection outlined has identified approaches totaling $176,500 — which well-exceeds the $100,000 operational cost shortfall o There are several, realistic approaches to achieve the annual capitalization cost target of $150,000, though it requires leadership, vigilance and diligence of the City Council and city staff o There are $45,000 in "soft dollars" that facility usage provides for public benefit o There are 100,000 "recreation occasions" at the RSC Oval, and thus the city contribution per recreation occasion: $1 o Events at the oval provide subsequent and significant economic impact to Roseville merchants o Mothballing the Oval will only reduce the operating deficit of the RSC by an estimated $25�$54K per year due to the elimination of costs related to the Oval. There would still be at least an estimated $50-$75K shortfall (assuming no reductions in revenues at the remaining facilities due to a loss of critical mass of recreation activities) o Demolition of the Oval would incur a one-time cost of $250,000 (possibly more if hazardouswaste disposal is required) C. Task Force Recommendations R-1: Pursue chiller repairs and other repairs as described in reports developed by the Technical Task Force . It is a unique facility and a valued asset ($3 million) . There are compelling approaches for addressing operating and expected capitalizationldepreciation costs R 2: For Addressing the annual $100,000 Operating Costs Shortfall • Pursue operating efficiencies learned from the season of natural ice — Target: $SK • Raise User Fees — Target Increase: $25K . Raise Public SkatingFees $1 to a fee of $5 —Target Increase: ��2.5K . Increase number of participants through low cost user group and RVA marketing efforts, theme nights (�.g. "New Brighton Night"), sponsor nights (e.g.: "93-X at the Oval") etc. . Pursue special, annual opening event —Target: Net $5K . Pursue expected, improvements to Oval Banquet facility operations —Target: Net $3.5K . Friends of the Oval contribution— Target: $SK . Consider the summer "Aggressive Skate Park" a city contribution of $l OK . Obtain Roseville Visitors Association funding for Roseville Glows utilities: $SK Oval Task Force Final Report Page 3 of 29