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Soldotna staff recommend $5.3M refrigeration replacement for ice arena; present bond, investment and tax funding options
Summary
After an engineering study, staff recommended replacing the ice-arena refrigeration system with an indirect flooded ammonia system at an estimated $5.3 million, and outlined funding options including a draw on investments, a general-obligation bond, or a larger $9 million full-rehabilitation option.
City staff presented a recommendation to the council to replace the Soldotna Regional Sports Complex ice-arena refrigeration plant and outlined timelines, cost estimates and funding options.
“The recommended…indirect flooded ammonia based refrigeration system…The estimated cost is $5,300,000,” the presenter (Speaker 2) said, citing the B32 engineering study and staff review and recommending that the city plan and budget for the replacement to manage costs and minimize disruption.
Joel/Director Todd (Speaker 7), who spoke to technical details, said the immediate focus is the refrigeration plant and that replacing only the plant would preserve the current rink size and visible components: “If we just focused on the plant itself… the size would stay the same.” Staff noted the refrigeration system is old and replacement would improve reliability and operational performance.
Staff explained procurement and construction work flows and estimated the earliest realistic start would be roughly a year out if funding and design work proceed on schedule. Project lead staff pointed to comparable work at other Alaskan facilities and said lead times for recommended equipment are not unusually long.
Energy and operating-cost implications were discussed: staff estimated the recommended system would be about 10–15% more efficient than the existing R-22 indirect systems and would use lower-cost refrigerant, producing some operating savings over time.
On funding, staff presented three principal options: draw down investment-account principal (which they warned would reduce future earnings), issue a general-obligation bond (staff estimated annual debt-service ranges depending on term), or pursue a full, immediate rehabilitation estimated at about $9,000,000 with higher annual debt implications. Staff emphasized a balanced approach that preserves investment principle and avoids overreliance on a single funding source.
Council members asked about ancillary costs and risks — notably the condition of the rink floor and possible humidity-control requirements. Staff said they are monitoring humidity, noted a supplemental study exists on dehumidification options (ranging from a modest ~$300,000 plug-in solution to a much more expensive rooftop system), and cautioned that replacing the refrigeration could reveal additional needs, such as floor repairs, once construction begins.
No formal action was taken at the work session; staff recommended proceeding with immediate, smaller-scope repairs already appropriated and continuing planning for the refrigeration replacement while presenting funding scenarios for council consideration at future meetings.
