Agenda Item No
CITY OF YUCAIPA
AGENDA REPORT
TO: Honorable Mayor and City Council
FROM: Megan Wolfe, Director of Community Services -Wvj
FOR: City Council Meeting of February 28, 2022
SUBJECT: 2021 Uptown Ice Rink Wrap -Up
RECOMMENDATION:
That City Council:
1. Receive and file the wrap-up report for the 2021 Ice Rink; and I
2. Provide direction, as appropriate, for the 2022 holiday season temporary Ice Rink and direct staff to include the expenditures and revenues in the draft Fiscal Year 2022/2023 Budget.
BACKGROUND:
On September 13, 2021, City Council:
1. Authorized the City Manager to execute an agreement with Rhythm Tech Production for the rental of a 3,200 sq. ft. ice rink for an amount not to exceed $80,000; and
2. Authorized City staff to offer a variety of activities at the ice-skating rink from November 27, 2021 to January 3, 2022; and
3. Approved an ice rink expenditure budget in the amount of $145,400 and a revenue budget in the amount of $105,400; and
4. Authorized a budget transfer in an amount not to exceed $40,000 from the General Fund Contingency Expense Account to the Community Services Special Events Budget.
DISCUSSION:
The Ice Rink opened on November 27, 2021 and closed on January 2, 2022. The rink provided ice skating sessions six days a week, which included different schedules and prices:
• Tuesday -Thursday 4:30 p.m. - 10:00 p.m.
o Ages 3-11: $10.00
o Ages 12+: $15.00
o Under 3 — Free with paying adult
• Friday -Sunday from 12:00 p.m. - 10:00 p.m.
o Ages 3-11: $15.00
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o Ages 12+: $20.00
o Under 3 — Free with paying adult
The schedules included multiple one-hour skate sessions and allowed up to 50 skaters on the ice per session. The approximate total number of customers served from opening to close was 5,000.
Staff saw an increase in total number of customers every week, with the last two weekends selling out almost every session.
In addition to skate sessions, the Ice Rink offered private parties on Mondays. The rental included access to the ice rink for two hours for up to 100 skaters, six fire pits, and access to a covered tent with tables and chairs. There were five private parties available for sale, of which three were sold.
However, due to the surge in COVID-19 cases during December, one party asked for a refund.
Birthday/skate party packages were also available for purchase Friday — Sunday. The package cost $375 and included a one-hour skate session for up to 20 skaters, access to a covered tent, tables, and chairs for up to 20 guests for 2.5 hours. There was a total of 45 birthday/skate party packages for sale of which 20 were sold. Again, due to COVID-19, four parties asked for and received a refund. Fire pits were offered Tuesday — Thursday for $50.00 and Friday — Sunday for $75.00. The time slots for the Fire pits were 4:30 p.m., 6:00 p.m. and 9:00 p.m. Each fire pit rental included private use of a fire pit for up to six people for 1.5 hours. There was a total of 482 opportunities to rent a fire pit of which 85 were rented. A total of four refunds were given due to rain and/or COVID-19.
Staff originally planned to sell hot chocolate and snacks at the ice rink; however, staff was able to secure The Gingerbread Shop as a food vendor instead. The Gingerbread Shop has been in business for over 50 years and is locally owned. The shop is normally located at the Mission Inn during the holiday season, but because of COVID-19, the Mission Inn was closed to vendors. The Gingerbread Shop offered fresh cookies, cinnamon rolls, coffee, and hot chocolate during Ice Rink hours. The City received 10% of the gross profits from the Gingerbread Shop. The Ice Rink and its amenities were well received by the community, customers, and uptown businesses.
Although the rink was successful in the eyes of the participants, there were several issues that occurred throughout the process. Most of the issues were because of the vendor that provided the ice rink. The biggest issue was the size of the ice rink. The ice rink was supposed to measure 40ft by 80ft. However, the vendor stated that due to the material on the ground (gravel), they could only make the ice rink 40ft by 50ft. This was a decrease of 1,200 sq ft. The decrease in size changed the total capacity from 100 skaters to 50 skaters, which had a negative effect on revenue. Staff worked with the vendor and received a $5,000 credit towards the total cost of the rink.
Additionally, the vendor provided staff with an estimate of $8,000 to power the generator for the duration of the event, stating the generator would have to be fueled once or twice per week. The generator was refueled every other day, which resulted in a cost of $15,876.
Since the opening of the Ice Rink, staff has visited three other rinks and has learned a great deal about operating an ice rink. If City Council approves an Ice Rink for the Fiscal Year 2022/2023, staff will begin to build an operational and marketing plan, seek sponsors, market the Ice Rink and provide infrastructure improvements to the site location.
FISCAL IMPACT:
The Fiscal Year 2021-2022 Adopted Budget (Budget) includes Ice Rink revenues in the amount of $105,400 and expenses in the amount of $145,500, for a net fiscal impact to the General Fund of $40,000. The actual revenue generated from the event was $92,810 and actual expenditures totaled $143,120 for a net cost of $50,310. The net cost provided an unfavorable variance in the amount of $10,310. City Council approved the transfer of the net revenue remaining balance of $5,726 from Winterfest (which experienced a favorable variance of $5,726 compared to the original budget for the event) to the Ice Rink expenditure budget. The remaining difference in the amount of $4,584 will be covered by other savings within the Community Services Special Events Budget.
Attachment: Ice Rink Budget
Approved by:
f
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2021 Ice Rink Budget
ESTIMATED
Revenues: 01-8500-7227-06-4795
ACTUAL DIFFERENCE
Ticket Sales
$
100,000
$
82,520
Concessions
5,400
1,165
Fire Pit Rental
-
5,125
Sponsorships
-
4,000 _
Total Revenues
$
105,400
$
92,810
Expenditures: 01-8500-7227-00-5220
Ice Rink Rental
$
80,000
$
74,398
Staff
33,000
10,500
Uniforms
963
Rentals/Misc/Porta Potty
3,083
Gas
8,500
24,374
Tent
9,000
15,876
DJ
3,000
Decor
Security 1 1pm-lam each night
9,100
10,192
Marketing/Advertising
1,000
3,734 _
Expenditures
$
143,600
$
143,120 $
Contingency
$
1,800
Total Expenditures
$
145,400
$
143,120
Financial Impact
$
(40,000)
# $
(50,310) $
Winterfest transfer
$
-
$
5,726
Net Financial Impact
$
(40,000)
($44,584)
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-$12,590
480
(10,310)
($4,584)