IRONWOOD TOWNSHIP, MI - Tuesday, August 26, 2008 - A regular meeting of the Pat O'Donnell Civic Center Board was held on Friday, August 22, 2008, at 12:00 PM, in the Civic Center lobby. Present for the meeting were the following Board members: Chairman Scott Stephens; George Goerig; Dan Collins; John Kasieta; Center Manager Jimmy Sain; John Lorenson; Tom Laabs; and Chuck Lotzer. Jeff Haukala was excused. Representing the media for this event were Lou Bonagura, IronwoodInfo.com, and yours truly.

Friday's meeting was upbeat. The Board was obviously pleased by the results of the August 08, 2008 Election, where the voters of Ironwood elected to keep the Center open by over a two to one margin. It was quite apparent the the Board's mission is clear -- now, more than ever, they are determined to make the Center financially independent.

Matters discussed at Friday's meeting included:

• The WJMS/WIMI Fall Sport & Recreation Show - The WJMS/WIMI Fall Sport & Recreation Show is set for Saturday, September 13th at the Civic Center. According to Center Manager Jimmy Sain, Joe Rimkus from the station is doing a great job bringing together a wide variety of vendors from throughout the region. The show will also feature interesting demonstrations, entertainment, activities and information. According to Sain, food and beer concession will be available on the grounds. Sain told the Board that the Center needs to focus on generating additional income from these events, beyond the concessions.
• Beer Sales - According to Sain, a one-day beer license application has been completed and submitted to accommodate the event. He told the Board that the college was contacted regarding the sale of beer during the show, and they were supportive. The Board discussed the unique situation they are under regarding the license. Since the property is in the township, the Gogebic County Sheriffs Department (GCSD) maintains the peace outside of the building. Since the building is the property of the City, however, the Ironwood Public Safety Department (IPSD) is in charge of what happens inside. Sain told the Board that he will contact both the GCSD and the IPSD to make sure that everything is done properly.
• Raffles & Drawings - George Goerig told the Board that a Michigan state lottery license was required for a 50/50 raffle and any major prize drawings. He asked if the "Friends of the Civic Center" ever registered as a non-profit in Michigan, because only non-profit organizations are allowed to hold raffles. Goerig told the Board that he has all of the paperwork needed to file for a non-profit, as well as the forms to establish the raffles and drawings. Lou Bonagura offered to assist the Center by having his non-profit host the raffle.
• Vendors & Demonstrations - Sain told the Board that the radio station was in charge of all the vendors and demonstrations, however, they were willing to allow the Center some latitude if they had anything the Center wished to vend or demonstrate. The station would like final approval, however. Tom Laabs said he would like to know what kind of turn-out is to be expected for the show. The Board asked Jim Sain to set up a meeting with the radio station and notify the members when the meeting has been scheduled.
• Additional Meetings - The Board decided to hold special meetings prior to the sports show and the start of skating season. Several important issues will be coming up, and the Board believed it is best to meet more often until things settle down a bit. A special meeting was scheduled on Tuesday, September 09, 2008 at 4:30 PM. Sain said he would notify all members and the media.
• Capital Improvements - Several capital improvements were discussed.
• Ceiling - The lobby ceiling has been painted. The new paint is a big improvement.
• Floor - An estimate from Dave Osier of under $6,000 for new carpeting was supplied to the Civic Center Board. Jeff Haukala previously told the Board that donations were available. The Board decided to table the issue until the September 09, 2008 meeting. This will give the Center a chance to see about the donation and check on the bid and the financials.
• Building Maintenance - John Lorenson prepared a list of building maintenance issues that needed to be addressed. The board briefly examined and discussed the list. Lorenson had divided the list into items he felt should be done PRIOR to the Fall Sports Show (September 13, 2008) and things that should be done PRIOR to ice-up (October 17, 2008).
• Group Ice Rates for Upcoming Season - Manager Sain told he Board that the Civic Center hourly ice-time group rates are currently in the "same ballpark" as other community facilities. Last year's rate was $103/hour. Other communities ranged from $100/hour to $125/hour.
• 3% Increase With Rebate - Chairman Stephens mentioned that the last discussion on the topic centered on a possible 3% rate increase with a possible rebate for clubs that exceed their previous year's usage. Laabs reminded the Board that this is a "business decision." "If you're losing money, as a business, you'll need to raise your rates!"
• John Kasieta said, "There are really two ways to go about this! You can either raise the rates or you've got to bring in more people!" Kasieta said he favors offering more to the customers than increasing the rates.
• Goerig pointed out the operating costs have increased substantially. Energy costs are skyrocketing.
• Stephens cautioned that raising the rates too high might result in a decrease in sales.
• Laabs suggested that clubs that bring in new events (tournaments, etc.) or find ways to increase ice-time should receive rebates.
• New Group Rate Established - The Board agreed to increase the hourly rate from $103 to$115/hour.
• Open Skating Rates - The current open skating rate is $3.00. Tom Laabs suggested to the Board that a special "resident" rate be available to residents of Ironwood. He reasoned that the rate should be lower because residents (taxpayers) of Ironwood pay a millage to support the Center. Several options were discussed by the Board.
• Resident/Non-Resident Rate - The Board discussed the possibility of getting other communities to contribute to a fund that would allow all open skating rates to be equal. George Goerig pointed out that other communities are legally restricted from doing such things. An option to have two different rates -- resident and non-resident -- was discussed.
• Adult/Student/Child Rate - John Lorenson suggested having a rate based on age. This is a very common practice in similar facilities. Lorenson reasoned that the difference between Adult and Student rates would offset the loss from residents/non-residents.
• Increased Concession Sales - Lorenson also suggested making up income on concessions. He said that closing the ice down for a brief "resurfacing" in the middle of the night would boost concession sales.
• Punch Pass - Laabs suggested that a punch pass system might be a good idea. Every time a skater pays for open skating, he gets a punch on his card. Once a card is filled, the skater is given a free night of skating or some other incentive.
• Sell Family Yearly Passes - Stephens suggested that a yearly family pass is a good idea. This reporter (I'm sorry, but I just can't keep my mouth shut) suggested a "the more you buy, the cheaper it gets" pass system. In my pool room we sell seven day passes. The more a person buys upfront, the cheaper each night of pool on the pass becomes. Each time a customer uses a night, the card is punched. I explained to the Board that this is a good way to develop a large cash on hand balance. The Center would have needed working capital and the best customers end up getting the best rates.
• Goerig suggested that it would be easy to establish residents and non-residents through the pass system as well.
• Stephens suggested that a pass rate be established.
• The Board discussed the issue extensively. Laabs questioned if more kids would start using the Center since the Colonial closed down. The general consensus was that volume would increase for open skating.
• Open Rates Suggested - These were the suggestions of the Board:
• The Board suggested that the regular open skating rate as $3.50.
• The Board suggested that a non-resident pass for SINGLE $35.00 and FAMILY $55.00.
• The Board suggested that a resident pass would sell for SINGLE $25.00 and FAMILY $45.00.
• The Board agreed to further study these rates, and decide how best to implement the program.
• Hiring of Part-Time Employee - The Board agreed to advertise for an assistant to help run the Center. They gave the authority to advertise to Manager Sain.
• Purchase of Additional Concession Equipment - George Goerig told the Board that Dave Janov has a hot dog rotisserie broiler; a hot pretzel machine; and a plexiglass pastry display case that he is willing to sell to the Center.
• Stephens told the Board that it is important to upgrade the Center's concessions in order to make the Center profitable.
• The Board agreed to allow Goerig the right to negotiate a deal with Janov for the three pieces of equipment previously mentioned.
• The Board also received an offer for a free rotating pizza/oven/per-slice vendor. The owner of the unit told the Board that they are welcome to have it without charge. He said the unit works well, but it needs new service buttons. The new buttons come with the machine, but they need to be installed. Goerig agreed to repair the buttons at no cost to the Center. Goerig made plans with the donor to pick up the unit at a later date.
• Some discussion regarding group concessions took place. There may be changes in the way the Center sells concessions to groups as well. This will be determined at a later date.
• This reporter asked the Board if the Center's sodas contain ice. I pointed out that the profit is in the ice and most people actually like the ice in a glass or cup of soda.
• Insurance Claim on Outside Wall - Laabs presented photos of the outside wall damage to the Board. The Board agreed to have a claim forwarded to the City Staff so that they can put a claim into their insurance. Goerig noted it is too late for the item to make Monday night's agenda, but it can be placed on the agenda for the next City Commission meeting. Laabs too more pictures of the wall to submit with the claim.
• 13" Plasma Screen Televisions - Jim Sain informed the Board that Northstar Electronics was willing to donated two 13" plasma screen televisions to the Center. Sain noted that there is no cable or satellite signal available in the building, however. The Board briefly discussed the advantages of having the televisions for sporting events, etc. as well as the disadvantages, such as the cost for commercial display. Sain noted that last spring, Mattson's was willing to give the Center the equipment for free if they purchased the DirectTV through them. Tom Laabs said that the Board needs to see where they stand financially before they commit to anything as long term as television service.
• Stephens told the Board that he feels television would increase concession sales -- especially during hockey tournaments and special events.
• The Board agreed that sports packages would probably be wise to purchase. They agreed to have the issue tabled until Sain gathered the prices and presents the issue as a formal proposal.
• Removal of Vending Machines - Laabs presented an article that showed the real cost of soda vending. According to the article, vending machines are very energy consuming. Laabs said Ontonagon saved $3,850 per year by removing their seven soda and one candy vending machines. Laabs estimates that the two soda vendors probably cost the Center $800 in electricity a year.
• Office Computer - The Center needs a working computer that is internet compatible. It was suggested that the Center approach Wal-Mart and see what they can do. Often Wal-Mart is very willing to help non-profits and community ventures as a goodwill gesture to the community. Sain told the Board he will do his best to see what Wal-Mart can do.
• Upstairs Storage and Upstairs Furnace - The Board briefly discussed the possibility of placing storage cages upstairs to store hockey equipment and uniforms. They also are kicking around options to replace the inefficient leaking furnace on the second floor.

The meeting adjourned at 1:50 PM.