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10.2. SR 02-05-2018Request for Action To Item Number Mayor and City Council 10.2 Agenda Section Meeting Date Prepared by Work Session February 5, 2018 Michael Hecker, Parks and Recreation Director Item Description Reviewed by Parks and Recreation Proposed Fees Cal Portner, City Administrator Reviewed by Action Requested Discussion. Background/Discussion Parks and recreation staff have been researching and reviewing fees for the past several months to meet the growing demands of expanding programs and facilities, including the new ice arena. Staff views fees as a method of continuing and expanding the ability to provide quality park and recreation services at a level that is fair and equitable to participants and nonparticipants in the City of Elk River. During our analysis, we found in the area of youth athletics that youth baseball and softball have been paying the city for several years some revenue for the use of ballfields, while the other youth sports organizations have not been paying any fees for the use of the city's athletic fields. Our objective in the area of youth sports has become to make fees more equitable for all youth sports in meeting the costs of maintaining athletic fields. Our objective with the new ice arena is to base fees on facility comparisons, market rates and room configurations, similar to the methodology that was completed in the 2016 community center feasibility study. Staff will make a presentation and discuss with City Council proposed fees for youth athletics, Activity Center memberships and the new ice arena. They are based on some or all of the following variables: ■ Comparison Surveys ■ History and Frequency of Usage ■ Market Rates ■ Service Levels ■ Operating Costs ■ Room configurations and capacity (room rentals) Financial Impact It is recommended the new proposed fee structure become effective January of 2019. It is also recommended that revenues from the new fees be applied directly to the expenses of providing the program or facility. Attachments N/A A IR ,nd Recreation Discussion February 5, 2018 ►iew Fees �S ■ Senior Activity Center Membership Fees ■ Ice Arena Facility Fees Fees and Revenues Discussion ■ Comparison Surveys ■ History and Frequency ■ Market Rates (Offices and Room Rentals) ■ Service Levels ■ Operating Costs ■ Configurations and Room Capacity Lacrosse Football Soccer irrent Fees 'Id Rentals Lights Softball Tournaments Baseball Tournaments Fee $15/field $15/field $0 $0 $0 $0 $80 $80 2017 Total � $4,905 ' $1,755 ' $0 $0 OM $0 $0 $640 $1,600 r I A Comparison Survey - Fields >ize/Use Otsego 27 timeslots full day Ballfield Soccer 4 x 4 —non irrigated Soccer 4 x 4 — irrigated Soccer full size Baseball Mon-Thurs Field game Baseball Sat -Sun Field game Cost $55/day resident $65/day non-resident $75 flat fee per field $75/ seasonal field assign $50/ seasonal field assign $70/ seasonal field assign $100/seasonal field assign $50/field per day $50/field per day $100/field per day $100/field per day City Field Size/Use New Hope Rogers Baseball/Softball Football/Lacrosse/Soccer Baseball/Softball/Football/Soccer Additional striping Use of lights, including practice Baseball Mon-Thurs Field game Baseball Sat -Sun Field game ISD 728 Plymouth Baseball/Softball Artificial Turf Lights Zimmerman Ballfields Softball Cost No charge for field or prepping $75/seasonal field set up fee $100/seasonal field set up fee $35/field $50 per field per request $20 per field per day $50/field per day $50/field per day $100/field per day $100/field per day $3/participant. Submit at beginning of season $31/hour, $127/day $52/hour, $216/day $30/hour $250 damage deposit per field $75/day (daylight hours) $100 /day including night with lights Mens $400 / Womens $325 Baseball $150/season Oak Knoll Athletic Complex Annual Operating Costs Activity Staff Hours Frequency Rate Salary Total Materials Rate Equipment Equipment Rate/Hour Equipment Total Total Expenditures Mowing FTE 4 29 $35 $4,088- - 4010 Wide Area Mower $15 $1,740 $5,828 Trimming Seasonal 4 29 $10 $1,160- - 3/4Ton Truck, Weed Whips $121 $1,392 $2,552 Garbage Seasonal 1 29 $10 $290 Bags/Pick-up $250 3/4Ton Tru ckw/Lift $10 $290 $830 Infield Maintenance FTE 51 29 $35 $5,110 Aglime $1,500 Tractor $15 $2,175 $8,785 Field Striping FTE 6 29 $35 $6,132 Paint $11,000 3/4Ton Truck, Cromer/Chalker $15 $2,610 $19,742 Top Dressing FTE 16 1 $35 $564 Soil $2,000 Tractor $15 $240 $2,804 Seeding FTE 16 2 $35 $1,128 Seed $1,500 Tractor $15 $480 $3,108 Playing Field Edging FTE 16 3 $35 $1,692 - lEdger $5 $240 $1,932 Herbicide Application FTE 41 8 $35 $1,128 Herbicide $1,000 Tractor $15 $480 $2,608 Fertilizer Application FTE 6 4 $35 $846 Fertilizer $2,500 Tractor $15 $360 $3,706 Infield Lip Removal FTE 30 1 $35 $1,057 Sod $500 Sod Cutter $2 $60 $1,617 Irrigation Start-up FTE 4 1 $35 $141 Parts $250 3/4Ton Tru ckw/Lift $10 $40 $431 Portable Toilets Contract - - - - 1 Units $1,1201- - - $1,120 Utilities - - - - - Water/Electric $9,000- - - $9,000 Miscellaneous Maintenance FTE 20 1 $35 $7051 Materials $400 3/4Ton Truck $10 $200 $1,305 Miscellaneous Maintenance Total ISeasonal 1 201 1 $10 $2001- $24,239 - 13/4 Ton Truck $33,0200 1 $10 $200 $10,507 $400 $65,766 Youth Athletic Complex Annual Operating Costs Activity Staff Hours Frequency Rate a ary Total Materials Rate Equipment Equipment Equipmento Rate/Hour a Total Expenditures Mowing FTE 5 58 $35 $10,220- - 4010 Wide Area Mower $15 $4,350 $14,570 Trimming Seasonal 6 29 $10 $1,740- - 3/4Ton Truck, Weed Whips $12 $2,088 $3,828 Garbage Seasonal 1 29 $10 $290 Bags/Pick-up $500 3/4 Ton Truck w/Lift $10 $290 $1,080 Infield Maintenance FTE 10 29 $35 $10,220 Aglime $3,000 Tractor $15 $4,350 $17,570 Field Striping FTE 3 29 $35 $3,066 Paint $2,000 3/4Ton Truck, Cromer/Chalker $15 $1,305 $6,371 Top Dressing FTE 16 1 $35 $564 Soil $2,000 Tractor $15 $240 $2,804 Seeding FTE 16 2 $35 $1,128 Seed $1,500 Tractor $15 $480 $3,108 Playing Field Edging FTE 16 3 $35 $1,6921- - Edger $5 $240 $1,932 Herbicide Application FTE 4 8 $35 $1,128 Herbicide $1,000 Tractor $15 $480 $2,608 Fertilizer Application FTE 6 4 $35 $846 Fertilizer $2,500 Tractor $15 $360 $3,706 Infield Lip Removal FTE 60 1 $35 $2,114 Sod $1,000 Sod Cutter $2 $120 $3,234 Road/Parking Lot Grading FTE 4 4 $35 $564- lGrader $45 $720 $1,284 Irrigation Start-up FTE 81 1 $35 $2821 Parts $250 3/4 Ton Truck w/Lift $10 $80 $612 Portable Toilets Contract - - - - 5 Units $4,480- - - $4,480 Utilities - - - - - Water/Electric $12,000- - - $12,000 Administration FTE - - - $9,779 - - - - - $9,779 Miscellaneous Maintenance FTE 20 1 $35 $705 Materials $1,000 3/4Ton Truck $10 $200 $1,905 Miscellaneous Maintenance Total Iseasonal 1 201 1 $10 1 $2001- $44,535 - 3/4Ton Truck $31,230 1 $10 $200 $15,5031 $400 $91,268 Miscellaneous Maintenance includes activities such as vandelism repair, maintenance to concession stand, fence maintenance and repairs, tree trimming, lighting repairs, etc. Materials for miscellaneous maintenance includes items such as replacement parts forfacilities (bases, pads forgoal posts, etc.), paint for concession stand, grafitti remover, replacement signs, etc. Equipment Rates are approved rates based on MN DNR and MN DOT rate schedule; include type of equipment, fuel, maintenance, insurance and replacement. Administration includes Park Director, Park Superintendent, and Recreation Staff time for scheduling and oversight. A Field Rental Rates Discussion percentage of operating costs do we want to recover? iior Activity Center tional Memberships [embership Resident — Individual Resident — Couple Non resident — Individual Non resident —Couple 2017 Total Memberships Cost per Year $22 $33 $28 $42 457 Year End 2017 Based on participants registered for programs (does not count drop-in participants) Who's Using the Activity Center? ■ Elk River Residents 75% ■ Otsego Residents 7% a Rogers Residents 3% ■ Big Lake Residents 3% ■ Ramsey Residents 2.5°% Zimmerman Residents 1.5% Princeton Residents 1% Other 7% Comparison Survey - Senior Center Membership Structures City Fee Structure Monticello $15/individual $25/couple Rogers No membership Coon Rapids No membership Maple Grove No membership. $10/year to participate in ongoing groups Faribault Mandatory to participate: $30 /individual $50/couple Scholarships offered Anoka No membership Location(s) Located within community center; city operated Two locations; city operated Attached to city hall; city operated 501c3 with city financial assistance. Possibly one program with service level similar to Elk River. Dedicated senior only building; city operated Blaine No membership Dedicated senior only building; city operated City Fee Structure St. Michael No membership White Bear Membership required for ongoing Lake group activities Lakeville Membership optional Residents: $20/ea , $35/couple Non -res: $25/ea, $40/couple Annual program fees for groups in addition to membership fees: $5/yr members /$10yr non Stillwater No membership. Ask for a `buck for the house' when patrons come for groups Apple Valley Winona Location(s) / Operated By City operated, attached to city hall School district operated No membership, option $15/yr per City operated person Optional membership City operated West St. Paul Optional membership School district operated expenses iior Activity Center 8 Budget $30,000 $249,600* * does not include building maintenance services iior Activity Center erating Budget Ranges ),000 Surveyed: Andover, Anoka, Champlin, Chanhassan, Chaska, Forest Lake, Hastings, Lino Lakes, Prior Lake, Ramsey, Rosemount, Savage and Stillwater. Senior Activity Center Membership Fee 0 0 iscussion What percentage of operating costs do we want to recover? r I A Elk River Ice Arena Rink Hours 2016 LCtlVity gime High school games Recreation programs Paid time programs Hours Revenue 3J59 $540,150 244 $27466 377 $73,865 954 $2809 Comparison Survey - Ice Rental Rates City ntal Agreement rive r ears Deginning 2017 Purchase Minimum 1,400 Hours/Year Rogers Anoka Cottage Grove Plymouth Elk River Ice Rental Rates Year 1 and 2 - $215/Hour Year 3 and 4 - $220/Hour Year 5- $220/Hour 2017 - $195/Hour 2017 - $195/Hour 2017 - $205/Hour 2017 - $210/Hour 2017 - $195/Hour REVENUES Ice Rental Recreation Programs Admissions Sign Rental Dry Floor Events Vending Skate Sharpening Building Rent Interest Income Other Mdse Sales/Misc. TOTAL EXPENDITURES Personal Service Other Operating Expenditures (1) Vending Mdse for Resale Other Mdse for Resale Recreation Programs TOTAL Concessions: Sales Less: Product & Supplies Salaries Net Profit OPERATING INCOME (LOSS) Capital Outlay NET INCOME (LOSS) Other Income Sale of Assets Contri butions/ Rebates Beginning Fund Balance Ending Fund Balance Notes: Elk River Ice Arena Revenue and Expenditure Summary For the Period Ending July 31, 2017 2017 7/31/17 2016 2016 2014 Budget Actual Actual Actual Actual 540,150 242,183 549,943 540,541 513,114 67,100 83,246 73,865 68,338 84,295 29,250 15,563 24,272 26,229 22,502 22,400 1,651 18,010 24,677 20,433 22,000 12,788 20,790 15,153 13,858 15,000 8,491 14,076 15,360 14,981 4,300 1,790 2,586 3,206 3,526 2,600 - 3,800 2,600 2,600 4,500 5,041 6,204 4,754 2,770 4,200 1 1,798 3,417 2,803 14,514 711,500 372,551 716,963 703,661 692,593 322,350 189,181 302,585 273,498 299,513 285,950 143,844 223,068 332,139 256,767 8,650 2,610 7,011 8,579 6,614 900 32 1,194 696 758 42,400 19,347 34,979 34,464 33,496 660,250 355,014 568,837 649,376 597,148 81,600 43,151 77,204 80,081 73,445 33,900 17,149 31,001 35,077 33,008 22,900 10,182 21,896 22,737 18,129 24,800 15,820 24,307 22,267 22,308 76,050 33,357 172,433 76,552 117,753 110,500 - - 127,835 52,790 (34,450)1 33,357 172,433 (51,283) 64,963 - - 27,600 - - 6,100 4,100 5,435 5,850 5,752 475,875 475,875 270,407 315,840 245,125 447,525 1 513,332 475,875 270,407 315,840 (1) 2015 Operating expenditures higher due to Olympic floor repairs and testing of refiigeration system. r I A Elk River Ice Arena Discussion 1 percentage of operating costs do we want to recover? r I A Elk River Ice Arena New Spaces )use Sheets pool Locker Rooms ■ Figure Skating Office and Room ■ Youth Hockey Office ■ Lions Club Office ■ Meeting Rooms (2ndFloor) ■ Upper Lobby ■ Party Meeting Rooms ■ Retail Space Field HI a �S 2 is 292Des'ic 292 DLSVGN 3533 E_ LAKE STRLL I MINNLAPCLI3, MN 55406 High Sch RIVER ICE ARENA 292Desic 292 DESIGN 3533 E, LAKE STREET MINNEAPOLIS, MN 55406 ._, Figure S a �S 2 I ." 292Des'ic 292 DLSVGN 3533 E_ LAKE STRLL I MINNLAPCLI3, MN 55406 Youth a �S 2 I ." 292Des'ic 292 DLSVGN 3533 E_ LAKE STRLL I MINNLAPCLI3, MN 55406 Lions Of ITY OF ELK RIVER ICE ARENA DNOOURSE LEVEL 292DE 292 DESIGN 3533 E LAKE STREET MINNEAPOLIS. MN 55406 Meetin€ ITY OF ELK RIVER ICE ARENA DNCOURSELEVEL 292DE 242 DESIGN 3533 E. LAKE STREET MINNEAPOLIS, MN 55406 Upper ITY OF ELK RIVER ICE ARENA )NCOUR5E LEVEL 292DE 242 DESIGN 3533 E. LAKE STREET MINNEAPOLIS, MN 55406 Party R RIVER ICE ARENA 292Desic 292 DESIGN 3533 E, LAKE STREET MINNEAPOLIS, MN 55406 ._, V.ciiLcl Eagan Rink 17)000sf r I A Comparison Survey - Field House arts Domes (Edina, Maple Grove, Plymouth) & Woodbury Field House Season Cost Permanent — Nov — April = $130/hour Year Round May — Oct = $75/hour March — May $100/hour — Full Field $650/day - Full Field $25,000 annual revenue Oct — April in Full fields - $350 - $380 Season Half fields - $200 Revenues $400,000 - $600,000 Field House Recommended Rates November —April: $130/ho May —October: $70/hour $130 x 1500 hours = $195,0 $70 x 300 hours = $21,000 r I A Comparison Survey - Meeting Rooms acity: 40 as classroom, 79 as banquet, 23 as square 135 half day/$160 full day Non resident $185 half day/$210 full day Cost Plymouth Resident and local 501c3s $30/hour Non resident $50/hour Becker Weekdays $40/hour Weekends $50/hour Full Room: Room (1910 sq ft) Capacity: 80 as classroom, 159 as banquet, 46 as square Shakopee kISun — Fri $75/hour aturday $100/hour Plymouth 4Aesident and local non -profits $75/hour Non resident $100/hour Meeting Rooms Recommended Rates: Half Room: Resident and local 501c3 - $40/hour Non resident - $50/hour Full Room: Resident and local 501c3 - $75/hour Non resident - $100/hour 1 -no o y ll Park Shoreview Plymouth J Comparison Survey - Party Room gyre capacity 15 Cost ,pGj1 lluar Resident $35 /hour IN resident Mon -Thur: Resident $35/2 hrs Fri -Sun: Residents $45/2 hrs Residents and local 5016's $30/hr Becker Weekdays: $20/hour Weekends: $25/hour Non resident $50/2 hrs Non residents $60/2 hrs Non resident $50/hr Party Rooms (500 s.f. each) Recommended Rates Resident and local 501c3: $30/hour Non resident: $50/hour ENTRY '� NSF ELEV WOMEN'S L/ Ll MENS SINKS NIS SINKS UP 290 SF 71 SF 222 SF L -1 V11 —Tr— MEN'S.. S OIL. TOILEi5 s® STORAGE m°BFm n m .n n 989SF kRENA LOBBY s 0 S MAIN OFFICE MANAG MEETING MEETING 7"F F OFFICE 49 SF 40SF I 297,F DN SHELL SPACE 2011 SF r I A Lions Park Center 2017 Rentals roup onthly Meetings Lions Club other events Elk River 5016 rentals Elk River resident rentals Non-resident rentals Quantity Total Revenue 24 16 W 1 $0 $475 $360 $3,945 $200 Total $4.,980 Comparison Survey - pper Lobby 4900 square feet: Capacity: Classroom — 208, Banquet - 406 Cost Mon — Thurs: Resident $390 / Non resident $645 (Up to 6 hours) Friday: Resident $800 / Non resident $1,105 (10am — midnight) Saturday, Holidays: Resident $1,015 / Non resident $1,330 (10am — midnight) Sundays: Resident $585 / Non resident $885 (10am — midnight) Maple Grove Mon — Thurs: Resident $375 / Non resident $475 Capacity 250 Friday: Resident $425 / Non resident $475 Saturday: Resident $750 / Non resident $800 Sunday: Resident $425 / Non resident $475 Monticello Event with alcohol - $1,100 Capacity 300 Event without alcohol - $850 Shoreview Sun — Thurs: Resident $650 / Non resident $750 Capacity 300 Friday: Resident $1,015 / Non resident $1,150 Saturday: Resident $1,300 / Non resident $1,400 T Upper Lobby Y Recommended Rates: 6,A Mon — Thurs: Resident $390 /Non resident $645 (Up to 6 hours) Friday: Resident $800 /Non resident $1,105 (10am —midnight) Saturday, Holidays: Resident $1,015 /Non resident $1,330 (10am Sundays: Resident $585 /Non resident $885 (10am —midnight) midni€ r2 :urrent Lions Club Office jD ., Lions Park Center t @ $200/month ($2.,400 annually) _ $12 per square foot. Office Space: $10-$20 per square foot is market rate depending on location and quality J Comparison Survey - Figure Skating Rooms square foot is the going rate Figure Skating Recommended Rates 621 total sq. feet in new rink @ $15.50/sq foot - —Lv-- - AFUMA . ISN STOR F.S. STOR i TEAM -6 I k yrs AW7 Ns SP I taeraa n projected revenue $802/month I OFFICE f f 2° &` e ON I REFEREE I. 'p C FIGURE SKATE {]M r I A Comparison Survey - Youth Hockey Rooms .r_;.50/square foot is the going rate Youth Hockey Recommended Rates: ■ @ $15.50/sq ft revenue projection is $360 per month. ■ Total Space is still being defined. ■ Negotiation of ice sales and meeting room spaces. J Comparison Survey - High School Locker Rooms Rental Structure Shakopee Lump sum payment from ISD 720 $125,000/ year. ISD 720 manages and receives all ticket sales revenue High School Locker Room Recommended Rates: Fee structure where ISD 728 pays a lump sum of $125,000 per year and they manage and receive all ticket sales revenue REFERME MW FIGURE SKATE OFFICE ON STORAGE TFJYAS TEAM -4 Ohl DN Pu N LIp r I A High School Locker Room Space percentage of operating costs do we want to recover? ELPV WOIBfB x �[f i < RIVER ICE ARENA REFPIGEknIIVn Ea Proposed Special ON Event Space nErEE� �- FAg P8 0 0 Project $10.,000 NMI CNS revenue in first year SfplAfiE SIICIIB LN l WtlFX6 ON ON �IfB 01 ell I o.r aF•u-z� �,� – xx u n uxs `.n.� \ Pssoc — O - OFFICE JHYM9nY b1aW.CE f m� '1 II on" SPACE 292Des'ic 292DESIGN GROUP 3533 E. LAKE STREET MINNEAPOLIS, MN 55406 Other Spaces and Other Revenues .rrent walking tracks — FREE to ■ Additional programming revenues $$ - Arena Softball, Indoor Lacrosse, Summer Camps, Ninja Warrior Challenge Courses.