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HomeMy WebLinkAbout08/02/2010 TENTATIVE AGENDA CITY OF SHAKOPEE ADJ. REGULAR SESSION SHAKOPEE, MINNESOTA AUGUST 2, 2010 LOCATION: Council Chambers, City Hall, 129 Holmes Street South Shakopee .Miooian Statement JPte .Mi/so of the CU* as Shakopee is to p'aaide the ap p of to aitct to fine, wax& and pea* in a ca num n.ittt with a proud p ass t, palm. bituj Atu'te, and sncate -town attnaop(cexe witfun" a naettopatitau Wing. Mayor John J. Schmitt presiding 1] Roll Call at 7:00 p.m. 2] Approval of Agenda 3] Community Center Improvements Consultants' Presentations A] Report of Park & Recreation Consultants, and Ken Vraa Consulting on Operational and Financial Considerations B] Report of Oertel Architects on Preliminary Design and Cost Impacts C] Referendum/Financial Impact on Average Home 4] City Council Discussion 5] Other Business 6] Adjourn OFFICIAL PROCEEDINGS OF THE CITY COUNCIL ADJ. REGULAR SESSION SHAKOPEE, MINNESOTA AUGUST 2, 2010 Mayor Schmitt called the meeting to order at 7:00 p.m. with Council members Steve Clay, Pamela Punt, Pat Heitzman and Matt Lehman (7:05 p.m.) present. Also present was Mark McNeill, City Administrator; Kris Wilson, Assistant City Administrator; Gregg Voxland, Finance Director; Jamie Polley, Parks, Recreation, and Natural Resources Director; and Judith S. Cox, City Clerk. Mayor Schmitt asked if there were any additions or deletions to the agenda. Mr. McNeill said there were no changes to the agenda. Punt/Heitzman moved to approve the agenda. Motion carried 4 -0. Cncl. Lehman arrived at 7:05 p.m. Jamie Polley, Parks, Recreation, and Natural Resources Director, presented Council with the Community Center Improvement Consultant presentation. Ms. Polley said that Park and Recreation Consulting, LLC and Ken Vraa Consulting, LLC will present Council with their analysis of the impacts the Community Center improvements will have on the revenues and expenditures of the depai tucent. Oertel Architects will also be presenting to Council the conceptual plan for the senior center and fitness center improvements and provide a cost estimate for the construction of the second sheet of ice, senior center and fitness center. Harvey Feldman of Park and Recreation Consulting presented Council with their findings. Mr. Feldman gave Council information and background about their credentials and the processes used in their report over the short period of time they had to prepare it. Ken Vraa of Ken Vraa Consulting presented Council the results of the financial feasibility for the Community Center improvements. Mr. Vraa discussed the project and study scope. He stated the purpose of the study has four objectives which are to assist in developing a defined set of operating and programming functions with sufficient clarity and reality upon which monetization can be determined; to recommend fees and charges for various activities; to define and expected Pro Forma of total income and expense for the various functions; and to present the collected data with sufficient clarity, depth and understanding so that the City's decision makers can be confident to move forward. Mr. Vraa outlined the guiding principles and objectives of the study. He said several meetings with staff were conducted in order to understand current programming levels and declared needs. Financial statements were reviewed, weekly ice schedules and ice usage was reviewed, Community Center membership information was analyzed and geographic location to the Community Center was studied. Official Proceedings of the August 2, 2010 Shakopee City Council Page -2- Mr. Vraa discussed with Council ice pricing, high school ice rental, high school games and association tournaments, Learn to Skate program, public skating session, skate rental and sharpening, open hockey /figure skating time. He also discussed the possibility of using the ice area during non -peak times as "dry floor" time. In his research, he did not find the need for the dry floor activities in Shakopee at this time. Mr. Vraa said in 2012 the projected revenue for the ice area with two sheets of ice would be $566,500. After deducting wages, benefits, and operating costs, there would be a net revenue of $99,350. Mr. Feldman said that the Civic Center and Senior Center revenue for 2012 is approximately $318,100. After deducting wages, benefits and, operating costs, there would be a net revenue of ($427,645). Coupled with the ice area the net revenue for all three improvements for 2012 would be a loss ($328,295), without building rent. Mr. Feldman then discussed the Civic Center service profile. He said there are three main factors driving the purchase and retention of membership at the Community Center. They are convenience, affordability and value, and quality of fitness instructors. He believes that the market niche for the Community Center is its affordability and value as a fitness center. Mr. Feldman discussed possible rate increases for Community Center memberships that would not be a burden to membership users. Mr. Feldman said the City's agreements with Shakopee Youth Athletic Association and the School District are a very important relationship to continue to foster. Mr. Feldman then discussed the Senior Center for active older adults. Mr. Feldman said that the Senior Center addition would be a service function and not a revenue generator. He said the importance of the Senior Center is critical to the success of the entire Shakopee Community Center. He said the space will address the needs of a weekday gathering place attached to a fitness facility and as a larger space for community and various private functions. Mr. Vraa addressed the performance risks if the project was to move forward. First is the unknown impact on the Shakopee Community Center membership since the YMCA opened in Prior Lake. Second is the lack of staffing levels in the Community Center/Parks and Recreations department. Third is the high energy usage with utility bills for the second sheet of ice. Proactive steps to reduce energy use should be considered whenever feasible. The design of the new addition should also consider energy conservation technology. Fourth is the need to increase rates for ice times. Last is the ice time demands have softened. Council was then given the opportunity to ask Mr. Vraa and Mr. Feldman questions regarding their report. Lehman/Clay moved to recess for a five minute break. Mayor Schmitt re- convened the meeting at 8:37 p.m. Jeff Oertel of Oertel Architects presented Council with a cost estimate and budget for the community center expansion and ice arena expansion based on the current master plan and layout of the building. Official Proceedings of the August 2, 2010 Shakopee City Council Page -3- Mr. Oertel showed Council a simplistic diagram of the master plan for the Community Center with the addition of the ice arena, senior center, additional parking and possible placement for a future aquatics center and turf building. Mr. Oertel then presented Council with project cost estimate for the ice arena. The total cost estimate is $5,870,000.00 (200 seat option, west parking lot only). There would be an additional $400,000 cost to the project if the additional 500 to 1000 seats were added; or $470,000 for the addition to house teams off of the existing ice area; or $695,000 for addition for team lockers. The total cost estimate for the Community Center renovation and Senior Center would be approximately $3,565,000, with all options, and with the addition of the ice arena the cost would be from $8,250,000 to $10,700,000 depending on any additions approved regarding the Senior Center and ice arena. Gregg Voxland, Finance Director presented Council with the Estimate Tax Impact for General Obligation Debt. Mr. Voxland showed Council a charge of the estimated tax impact for an $8,250,000 and a $10,700,000 G.O. bond issue based on sample assessed value levels. Mr. Voxland said the average assessed value of homes in Shakopee is $200,000 to $250,000. A referendum tax increase for an average home at $8.25 million would be an average of $34 to $42 per year. A referendum tax increase of an average home at $10.7 million would be an average of $44 to $55 a year. These numbers are just for the constructional costs. Operational costs are not included. Mr. McNeill said that the Community Center improvements will be back on the agenda on August 4, 2010 for consideration. Staff will need Council to give direction regarding the size of the ice facility and team rooms, banquet room in the senior facility and if there's support for commercial kitchen to support the banquet room or congregate dining. He also reminded Council that there is an August 17 deadline to put this issue up for a referendum vote on November 2, 2010. Lehman/Punt moved to adjourn to Wednesday, August 4, 2010 at 7:00 p.m. Motion carried 5 -0. Meeting adjourned at 9:32 p.m. Judith S. Cox elf7C City Clerk Kim Weckman Recording Secretary