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7.1. SR 12-02-2013 City of Elk=, Request for Action River To Item Number Mayor and City Council 7.1 Agenda Section Meeting Date Prepared by General Business December 2, 2013 Michael Hecker, Parks and Recreation Director Item Description Reviewed by Agreement and Donation to Install Athletic Field Cal Portner, City Administrator Lighting at Oak Knoll Athletic Field Complex Reviewed by Tim Simon, Finance Director Action Requested • Adopt by motion an agreement between the City of Elk River and the Elk River Youth Football Association and the Elk River Youth Lacrosse Association to donate $73,000 to install athletic field lighting at the Oak Knoll Athletic Complex. • Adopt by motion a resolution acknowledging the $73,000 in contributions from the Elk River Youth Football Association and the Elk River Youth Lacrosse Association. • Adopt by motion a budget amendment to reallocate a 2013 budgeted transfer from the Municipal Liquor Store fund to the Ice Arena and to amend to the Park Improvement fund in the amount of$92,000 Background/Discussion The project to install athletic field lighting for football and lacrosse has been a discussion item for staff and the Parks and Recreation Commission for the past six months. The Elk River Youth Football Association and the Elk River Youth Lacrosse Association have joined efforts to donate $73,000 to the city for the installation of athletic field lighting. The donation makes up 54.1% of the estimated project cost. Both organizations have stressed the need in Elk River for an additional field with lights. The city currently has one field with lights at YAC (Youth Athletic Complex). The project was reviewed at the November 4, 2013, City Council work session. The total cost for the project to install athletic field lighting at the Oak Knoll Athletic Complex field #10 in 2014 is estimated at $135,000. This includes electrical and irrigation upgrades needed to develop an improved lighted field at Oak Knoll. The attached agreement and resolution were reviewed by City Attorney Peter Beck. City Council explored some funding options at the November 4 work session and consensus was to use a budgeted transfer from the Municipal Liquor Store fund to the Ice Arena that will not be needed in 2013, and amend the transfer to the park improvement fund for the funding gap between the cost and the donations. The funding gap in 2014 will be $92,000. Next steps: Staff will solicit bids and quotes and will be bringing back this project for City Council approval early in 2014. P a w E A E U s r NaA f RE] Financial Impact The estimated project cost to install athletic lighting is $135,000. The city will receive a total of$43,000 in donations in 2014, so the total cost to the city minus the donations by July 1, 2014,will be $92,000. This is the amount requested for City Council action to amend the Park Improvement Fund. The remaining $30,000 in donations as set up in the attached agreement from 2015 to 2017 will go back to the liquor store fund as they are received. The net final contribution from the liquor store enterprise fund will be $62,000 after all donations are received. Attachments • Oak Knoll Athletic Field Lighting Agreement • Resolution Acknowledging Contributions • Oak Knoll Athletic Complex Site Plan N:\Public Bodies\Agenda Packets\12-02-2013\Final\x7.1 sr Oak Knoll athletic lights.docx Oak Knoll Field Lighting Agreement THIS AGREEMENT ("Agreement") made this 2nd day of December, 2013, by and between the CITY OF ELK RIVER, a Minnesota municipal corporation ("City"), the Elk River Youth Football Association, a Minnesota nonprofit corporation, and the Elk River Youth Lacrosse Association, a Minnesota nonprofit corporation (the "Associations"). RECITALS A. The City owns and operates the athletic fields at the Oak Knoll Athletic Complex. B. The Associations have asked the City to install athletic field lighting for field #10 at the Oak Knoll Athletic Complex. C. Without a substantial financial contribution by the Associations, the City would be unable and unwilling to install athletic field lighting at the Oak Knoll Athletic Complex. D. The City is relying upon this Agreement to install athletic field lighting for field #10 at the Oak Knoll Athletic Complex. NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1. INITIAL CONTRIBUTION. The Associations shall pay the City $33,000 as an initial contribution towards the City's costs to install athletic field lighting at the Oak Knoll Athletic Complex at the time of execution of this Agreement. 2. SUBSEQUENT CONTRIBUTIONS. The Associations shall make an additional contribution to the cost of installing athletic field lighting at Oak Knoll in the amount of $40,000. The additional contributions shall be paid to the City in four (4) annual payments, the first payment to be made on July 1, 2014, and the final three (3) payments to be made on July 1, 2015, 2016 and 2017. 3. FIELD TIME COMMITMENT. The Associations shall have the same priority rights to use of the lighted athletic field #10 at Oak Knoll Athletic Complex as other users pursuant to then-applicable City Policies, including the City's field allocation policies. Failure of either Association to make its initial contribution and all additional contributions as provided in the Agreement shall be cause for the City to deny that Association field time on field #10 at the Oak Knoll Athletic Complex. CITY OF ELK RIVER ELK RIVER YOUTH FOOTBALL ASSOCIATION BY: BY: John J. Dietz,Mayor Its AND AND Tina Allard, City Clerk Its ELK RIVER YOUTH LACROSSE ASSOCIATION BY: Its AND Its 2 City of Elk River Resolution 13- A Resolution of the City of Elk River Acknowledging Contributions WHEREAS, the City of Elk River is grateful to all civic groups, organizations, and individuals for their contributions to the community;and WHEREAS, the City of Elk River has an agreement to accept$73,000 in total donations from the Elk River Youth Football Association and the Elk River Youth Lacrosse Association with the intent that it be used by the Parks and Recreation Department for the installation of athletic field lighting at the Oak Knoll Athletic Complex;and WHEREAS, the Elk River Youth Football Association has agreed to their portion of the donation at$45,000,by making an initial contribution of$25,000 and subsequent contributions of$5,000 for four years from July 1, 2014, to 2017; and WHEREAS, the Elk River Youth Lacrosse Association has agreed to their potion of the donation at$28,000, making an initial contribution of$8,000 and subsequent contributions of$5,000 for four years from July 1, 2014 to 2017. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River,Minnesota, to accept the donations, acknowledges the support and commends the Elk River Youth Football Association and the Elk River Youth Lacrosse Association for their donations. Passed and adopted this 2nd day of December 2013. John J. Dietz,Mayor ATTEST: Tina Allard, City Clerk P O w E R E U 9 1 1`4 U Oak Knoll Athletic Complex AK.* I�Ap r .S II �t a{ � ,i 9 it q -