Selectmen vote to "highly recommend" Stoneham Youth Hockey as choice for arena management post
Published on September 24th, 2003
STONEHAM, MA - Despite an acknowledged need to get a management firm up and running at the Stoneham Arena "as soon as possible", Town Administrator Dave Berry has pulled off his initial choice of FMC (Facility Management Corporation) and decided to "think about it a little more."
Berry circulated a Town Hall memo on Friday, September 19, announcing that he had chosen FMC over the three other candidates (Stoneham Youth Hockey, Hockey Institute and Wright Hockey) because "FMC clearly excels in both categories that are of most importance to the Town: experience and financial soundness and capability."
Apparently, the board members of Stoneham Youth Hockey did not share Berry's enthusiasm for the FMC choice, and came out in force to Tuesday night's Board of Selectmen meeting. Berry and the Selectmen listened to three of the Arena Management candidates present their cases, and then, in a motion sponsored by Selectman Bob Sweeney, "highly recommended that the town choose the Stoneham Youth Hockey proposal" over Berry's choice of FMC.
Berry was non-committal about the choice after the meeting, and "wanted a little time" to digest the information.
According to Stoneham Youth Hockey (SYH) spokesperson Charlie Houghton, the town should have given the local group the first shot.
"I remember 32 years ago, I was attending my first Stoneham Town Meeting when we approved the Stoneham Arena," said Houghton, his voice failing him and his eyes welling with tears during an emotional presentation. "I know three people who were involved with the group that designed and built the arena that aren't with us anymore, and they would be rolling over in their graves...if they even knew for a minute that the arena was being turned over to another group besides the people of Stoneham."
"That's why we called it Stoneham Arena, because it's ours," added Houghton.
The Selectmen voted by a 4-1 margin to recommend the Stoneham Youth Hockey proposal, with Selectman and Arena Oversight Committee member Charlie Smith voting against the recommendation.
"I had to take emotion out of the decision," said Smith, standing firm in the face of a fairly hostile crowd. "I made the decision that I think was in the best interest of the town. I did the job that I was asked to do."
Smith also suggested that SYH learn from FMC over the next three years in a "training-type program", and perhaps they would take over the arena three years from now.
The actual bids for the Arena were all within the same range as FMC came in with a three year total proposal of $195,000, SYH proposed $202,500 and Wright Hockey offered $215,000 over three years.
For Berry, the finances and resources behind FMC made it difficult to turn them away. According to Berry's memo, FMC, a for-profit company, has been incorporated for 11 years and manages 19 area ice rinks including the Ice Palace in Burlington and Tully Forum in Chelmsford, has $4.5 million in total assets, $1.9 million in cash assets, $1.3 million in credit, and a $93,358 capital improvement plan, and also plans to contribute $9,358 over three years to community investments.
"It's resources far surpass those of the other three proposals, and its experience far surpasses those of the others," wrote Berry. "The difference between FMC and other proposers is so significant that would take a substantial price difference to overcome the FMC proposal."
According to the RFP contract, the winning proposal will undergo a six month probation period after taking over the arena, and will have to renew the contract after three years.
Houghton came to address the Selectmen on behalf of SYH, and indicated that StonehamBank has approved a $100,000 line of credit for the group.
According to Houghton, SYH has had their eyes on managing the arena for several years.
"I remember when (former Town Administrator) Jeff Nutting was still here, and had talked about going through the RFP process for the arena," said Houghton. "So we started saving for a rainy day in anticipation of this."
According to Berry's memo, SYH has $134,315 in cash and/or assets, but Berry, along with Selectman Anthony Kennedy, questioned whether SYH had the resources to battle unforeseen financial disasters.
"I don't know that SYH has the resources if several things happen at once at the arena," said Berry.
Kennedy directly addressed the topic, and asked Houghton "what would happen if SYH needed more than the $100,000 line of credit to fix problems at the arena?"
"Then we'd go back and ask for more," said Houghton. "The local banks are very good about helping local people."
Houghton added that the SYH would set up a model similar to the Stoneham Cable Access Corporation with a volunteer Board of Directors, and would hire a qualified manager.
"We weren't going to go the lengths of interviewing candidates before our proposal was accepted," said Houghton. "But we would be able to go with an experienced and knowledgeable manager."
According to FMC spokesperson Rob McBride and Houghton, there were discussions between the two hockey entities working together. FMC had offered SYH the chance to run the concession stand at a lease price of $500 per month.
Houghton questioned whether SYH would take any financial benefit after doling out the monthly rent for the snack stand.
"There's got to be some way that both groups can come together and form some sort of mutually beneficial partnership," said Finance and Advisory Board member and Arena Oversight Committee Chairman Eric Rubin.
Selectman Cosmo Ciccarello was disillusioned with the whole process, and maintained that the Selectmen should have been consulted before Berry made his final decision.
"I think we should have had some say," said Ciccarello. "I've always been someone who thinks we should always look out for the people in this town. I see a town like Reading making $150,000 at their ice rink, and I think it's a shame that the town can't manage the rink properly."
When asked if he thought Berry might end up changing his mind, Ciccarello seemed a bit frustrated.
"I know what I would do if I were him," said the seven-term Selectman. "But I'm not him."
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