HomeMy WebLinkAboutSP February 20, 2004
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1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER,MN.US
Special City Council Workshop
Miscellaneous Items
Friday, February 20,2004
Conference Room A & B
1. Call to Order - 4:00 p.m.
2. Community Center Issues
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3. Other Business
4. Adjournment
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CITY OF
NDOVE
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1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
TO:
Mayor and Council Members
FROM: John Erar, City Administrator
SUBJECT: Community Center Issues
DATE: February 20,2004
INTRODUCTION
The City Council has scheduled a special meeting to discuss capital campaign issues associated
with the Andover YMCA Community Center. To assist Council with their discussions, I have
attached information referencing the capital campaign in both the original resolution of joint
partnership principles and values and the memorandum of understanding between the City and
the YMCA, which effectively has served as a blue print for our partnership with the YMCA and
the creation of a lease agreement.
DISCUSSION
o In review, there is an additional issue that the Council should discuss associated with the sharing
of concession revenue with the YMCA. On January 7, 2004, the Council met to discuss a
number of issues associated with the Community Center. I have attached a copy of the meeting
agenda and the minutes from that meeting. It was discussed at this meeting that the YMCA's
desire to expand the aquatic center was dependent on their ability to share in concession
revenues. At that time, a percentage split had not yet been determined by the Council and the
YMCA. However, subsequent to this meeting, the YMCA did ask the architect to begin work on
the expanded aquatic facility, with a two-slide orientation. On February 3, 2004, the Council
approved the cost allocation percentages for the construction costs of the facility, but did not take
action on the concept of sharing concession revenue with the YMCA.
If the Council is seriously considering not allowing the YMCA to share in the concession
proceeds, then staff needs to contact the architect immediately and have them revert back to the
original aquatic "one-slide" scenario. Council may recall that the YMCA will be incurring an
additional $505,000 in expansion costs, and have offered to split the costs of constructing the
concession/equipment and wholly assume the cost of the table area exclusively servicing the
aquatics center. This issue needs to be resolved immediately.
Staff also had the opportunity to discuss the capital campaign issue with YMCA CEO Harold
Mezile, Tom LaSalle, their chief project representative and YMCA Senior Vice President Robie
Wayne, all of whom insist that the campaign target and sharing of the campaign proceeds had
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been discussed from the very beginning of the partnership. I will share the rest of their comments
with Council at the meeting if so requested.
ACTION REOUIRED
For Council consideration and action as appropriate.
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YMCA of Metropolitan Minneapolis
Association Services
30 South Ninth Street
QinneapoliS, MN 55402
2-371-8700 .
fax: 612-371-8716
Harold Mezile,Jr.
President & CEO
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YMCA
We build strong kids,
strong fanrilies, strong commooities.
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CITY Of ANDOVER
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February 9, 2004
John Erar
City of Andover
Andover City Hall
1685 Crosstown Blvd.NW
Andover, MN 55305
Dear John,
The Metropolitan YMCA Board of Directors has reviewed the various financial options available
for our portion of the Andover Community Center. In addition, they have reviewed the proposed
allocation of construction costs, fundraising and concession net revenue at 48.26% YMCA and
51.74% City.
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We understand the pressure the City is under to begin construction prior to meeting the fundraising
goal of $3.5 million. As we have stated in prior conversations, early construction does not benefit
the YMCA and, in fact, the resulting completion date currently contemplated is at the worst possible
time of the year for the YMCA and will present a very severe financial challenge for us.
Furthermore, the YMCA's rent, based on the most current financial projections, exceeds the
maximum level the Board originally approved and challenges the YMCA's success.
We have been advised by Dain and Ehlers that fixed rate financing will significantly expedite the
financing process and enable the City to meet its desired construction start date..The YMCA's lease
payment will be based on the financing schedule that anticipates the use of fundraising proceeds and
will be fixed prior to the start of construction. The YMCA is prepared to proceed at this time with
fixed rate financing and enable the City to meet its desired construction start date, provided that in
the event the fundraising goal has not been achieved at the time of construction start, the City agrees
to be solely responsible for any resulting negative financial impacts to the YMCA and the City.
Fundraising contributions must be first applied to the YMCA share in accordance with the financing
schedule and any shortfall would be the City's responsibility. No additional financial burden would
be the YMCA's. The YMCA will continue to assist the City in fundraising after the start of
construction to attempt to eliminate any shortfall existing at the start of construction.
If the City prefers, we are prepared to delay the start of construction until thefundraising goal is
met. However, if the City chooses to proceed, we are hopeful that this proposal will give the City
the ability to start construction prior to achieving the fundraising goal in order to meet the
construction schedule required for the Ice Arena.
O$~
Harold Mezile
A AFFI~~nt and CEO
. ACTION
,.""i, EMPLOYER
CITY OF ANDOVER
1685 CROSSTOWN BOULEVARD N.W. 0 ANDOVER, MINNESOTA 55304 01)63) 755-5100
FAX "lJ63) 755-8923 0 WWW.CI.ANDOVER-MN.US
TO:
Mayor and Councilmembers
FROM:
John F. Erar, City Administrator
SUBJECT:
DATE:
Consider Joint Resolution on City/YMCA Partnership Principles and Values
December 17, 2002
INTRODUCTION
At a special City Council meeting held on December 11, 2002, the Council reviewed and discussed a
number of action items associated with the proposed Community Center project. Of the items
listed, Council directed staff to bring the Joint Resolution on City/YMCA Partnership Principles to
the December 17, 2002 Council meeting for adoption.
DISCUSSION
o Attached, please find the final draft version of the Joint Resolution that has been discussed with
YMCA CEO Harold Mezille and several of his key staff. Any changes to this resolution at this point
would necessitate corresponding approval from Mr. Mezille and the YMCA Board of Directors
resulting in possible in delays of the final adoption of the resolution. The resolution was originally
presented to Council on November 13, 2002, but was tabled by the Council until the YMCA
Community Survey Report was completed.
Points of strong interest expressed by Mr. Mezille and other YMCA staff during the review and
development of the joint resolution were related to 1) the design, construction and quality of the
facility in terms of long-term durability, attractiveness and utilization; 2) that the project be based on
sound financial principles; 3) stressed the importance of completing the capital campaign prior to
construction of the facility or any part thereof; 4) the issue of maintaining partnership principles
based on openness, communication, sensitivity to each entities respective position, along with their
ability to manage their portion of the facility as they determine to be in the best interests of their
customers and the YMCA.
Staff has reviewed this resolution with the City Attorney.
ACTION REQUIRED
Consider adoption of the attached Joint Resolution on Partnership Principles and Values Between
the City of Andover and the YMCA of Metropolitan Minneapolis.
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hn . Erar
itjr Administrator
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CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MlNNESOTA
RESOLUTION NO. 182-02
A RESOLUTION ESTABLISIDNG COMMUNITY CENTER
PARTNERSHIP PRINCIPLES AND VALUES BETWEEN THE
CITY OF ANDOVER AND THE YMCA OF METROPOLITAN
MINNEAPOLIS
WHEREAS, it is the mission of the YMCA to develop the whole person - spirit, mind and body through
character developing programs that build strong kids, strong families and strong communities;
WHEREAS, it is the intent of the City of Andover to provide a multi-purpose community facility that
offers a variety of community-based recreational, educational, social and athletic activities and programs.
WHEREAS, it is the desire of the YMCA of Metropolitan Minneapolis and the City of Andover to develop
a community center in the City of Andover housing a field house/gymnasium, aquatics center, and ice
arena;
WHEREAS, the YMCA is committed to taking a leadership role in developing a community center in the
City of Andover.
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NOW, TIIEREFORE, BE IT RESOLVED BY TIIE BOARD OF DIRECTORS OF TIIE YMCA AND
TIIE CITY COUNCIL OF TIIE CITY OF ANDOVER:
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I) That the YMCA and the City of Andover establish a partnership for the purpose of developing,
constructing and managing a community center to be located in the City of Andover;
2) That the design, development, construction and operation of such facility be based on the
following principles and values:
a. That the facility be constructed in a cost-effective, aesthetically pleasing and attractive
manner consistent with values that incorporate high quality workmanship, durability of
design and material, a reasonable level of attractiveness, usability and efficiency;
b. That the facility design team will include staffrepresentation from the YMCA to consider
. YMCA operational needs and incorporate appropriate design characteristics;
c. Sound financial principles based on user fees, capital campaign fundraising, and other
sources of funding deemed appropriate to support the construction and operation of the
facility;
d. That the operation of the facility be conducted in a business-like manner with the intent
of supporting facility operations primarily through public and private use, with minimal
public subsidy;
e. Partnership principles will be based on a commitment of mutual respect, open
communication and appreciation in the meeting the needs of both the City of Andover
and the YMCA of Metropolitan Mirmeapolis; and
---j@ That the YMCA's facility lease commitment shall be dependent on meeting established
fundraising targets prior to construction beginning on the facility
3) That, within available resources, the YMCA will endeavor to accommodate all who wish to
participate in YMCA programs and services.
4) That no one will be denied access to YMCA programs or services based solely on an inability to
pay.
5) That the YMCA and the City of Andover will develop a special membership incentive for
residents of the City of Andover.
6) That the City of Andover will underwrite the capital costs of the entire facility, with the YMCA
agreeing to a lease period sufficient to cover the period of debt repayment underwriting the
cons1ruction oftb.e facility. The City and YMCA will negotiate the terms and conditions of the
lease agreement separately regarding issues of mutual concern.
7) That the City of Andover and YMCA will jointly direct and manage all functions and services
provided in the facility through a separate joint use agreement;
8) That a Community Board, appointed as outlined in YMCA Bylaws and Constitution, will be
developed to support YMCA activities;
9) That the City of Andover and the YMCA will jointly participate in a Capital Campaign
fundraising effort in which the name of the YMCA can be used to solicit funding for the facility.
10) That a five (5) member Community Cep.ter Advisory Board will be established by the City of
Andover to oversee the facility and advise the City Council Members will be appointed by the
Andover City Council, which will include (I) one permanent seat for YMCA representation.
Adopted by the City Council of the City of Andover this 171h day of December. 1002.
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CITY OF ANDOVER
tI~.. -
Harold Mezile .~
President & CEO
YMCA of Metropolitan Minneapolis
Attest:
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Victoria Volk, City Clerk
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MEMORANDUM OF UNDERSTANDING
This Memorandwn of Understanding (this "Memorandum") is made as of the /7-tL
day of ~ .2003, by and between Young Men's Christian
Association of Metropolitan Minneapolis, a Minnesota not-for-profit corporation ("YMCA"),
and the City of Andover ("City").
RECITALS
A. City owns certain real property (the "Site") located to the north of the existing city
hall (Exhibit A) that it is contributing to the project.
B. City intends to design, construct, finance, and own a facility that incorporates
reasonable architectural appeal, quality building materials and durable finishes in
partnership with the YMCA.
C. Such facility must meet the programming needs of the YMCA and must be adequate
to house a field house, an aquatic center/water park, a fitness center, and an ice arena,
including all infrastructure necessary to support such a facility (Exhibit B).
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D. YMCA intends to qperate a full-service YMCA including typical member programs
and youth' services associated with an aquatic center, a fitness center, limited use of a
field house, and other program spaces shared with the City (Exhibit C).
E. City and YMCA desire to jointly enter into a lease agreement for program space
appropriate in design and adequate in size to operate programs and services
customary to a suburban YMCA.
F. YMCA intends to use memberships that entitle members to services as a part of the
membership fee and access to additional programs on a fee basis. The YMCA
intends to offer a package of services and programs similar to other suburban
YMCAs and provide a discounted membership structure for Andover residents.
G. City and YMCA desire to enter into a lease agreement whereby the YMCA provides
certain management services for YMCA portion of the facilities that includes
operation, maintenance, and all related staffing.
H. City and YMCA have agreed that City and/or its assigns shall be solely responsible
for the management, operation, capital improvements, and maintenance of the City
components.
I. City and YMCA agree to share certain portions of the facility, including but not
limited to the entrance, lobbies, conference space, multi-purpose space, field house,
locker rooms, administrative and building service support areas.
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J Capital improvements will be agreed upon jointly by the City and YMCA and will be
financed by the City, with those portions of the capital improvements attributable
June 4, 2003
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Final Version
exclusively to YMCA operations and programs and the portion of spaces shared with
the City attributable to the YMCA will be underwritten by the YMCA through the
Lease Agreement. 0
K. This Memorandum is dependent on both the City and the YMCA's ability to finance
and service the debt required to construct a facility adequate to meet the programming
needs of both entities and provide cash flow adequate to operate, staff, maintain and
make capital improvements to the facility and provide the services and programs
intended.
NOW, THEREFORE, the parties hereto do hereby agree to the following terms and conditions:
1. The City and the YMCA will enter into a lease agreement for program spaces to
be used exclusively by the YMCA and that in the YMCA's experience meets its
needs and are adequate in size and design to operate a full service suburban
YMCA in accordance with the following terms and conditions:
A. Lease Term. The initial term of the lease shall be equivalent to the initial
term of the fmancing and all subsequent refmancing and/or extensions of
outstanding debt in support of the facility.
B. Lease Agreement Principles. The City and the YMCA agree that the
YMCA shall be a tenant for the life of the facility subject to the following
conditions:
i) The initial lease agreement and any extensions will be based on the
cost of capital improvements, maintenance expenses, and other
expenses attributable to YMCA operations.
ii) The facility must meet the program needs of the YMCA members.
iii) The YMCA must continue to meet its financial obligations to the
facility.
.iv) The term of the initial lease and all extensions will be based on and
equivalent to the time required to amortize the cost of the
improvements.
v) The City agrees that it will not construct competing facilities, will
not provide competing recreational programs or services or in any
way preclude the YMCA from operating customary programs and
servIces
vi) The YMCA must be in compliance with all terms and conditions
of the lease agreement.
vii) The YMCA must contribute proportionately to its share of
maintaining the facility and related supporting infrastructure to be
determined on an annual basis.
viii) The YMCA must be in compliance with all applicable City
building and fire codes.
ix) The YMCA agrees to work collaboratively with the City to address
customer programming needs and service concerns.
June 4, 2003
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Final Version
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2. Common Area Maintenance Principles.
A.
Exterior maintenance of grounds and parking facilities will be provided by
the City. These services will include maintaining all landscaped areas,
and maintenance of all parking areas and will be proportionately expensed
betWeen the City and YMCA on an annual basis.
B. Certain areas of the building will be shared by all users. These
areas include entrances, lobby spaces, elevator, stairs and corridors.
These areas, to be designated and agreed upon by the City and the YMCA,
will be defined as common areas and the expense of maintaining and
improving these areas will be shared through a common area maintenance
agreement.
3. Risk Management Principles.
A. City will provide casualty and liability insurance customary for such a
facility. The insurance policy will include the YMCA as a named insured.
B. YMCA will provide casualty and liability insurance customary for such a
facility. The insurance policy will include the City as a named insured.
4.
. Capital Campaign Proceeds and Allocations.
The City and the YMCA have jointly undertaken a capital campaign to raise
funds for the community center. All revenues and expenses generated from the
capital campaign will accrue to the benefit of the facility and will be allocated
against construction costs in proportion to the exclusive and shared uses of the
facility by both parties. Subsequent to the completion of the initial capital
campaign, the YMCA will continue to raise money for financial assistance to
members, non-revenue programs, capital improvements and other needs identified
by the YMCA.
5.
YMCA Facility Financing Principles.
It is understood that the YMCA agrees to underwrite its proportionate share of
capital construction costs attributable to YMCA programs and services through a
formal lease agreement to be negotiated prior to the issuance of City bonds and
approved by the Andover City Council and YMCA of Metropolitan Minneapolis.
This document represents a framework of principles expressing the current understanding
between both parties and does not constitute a legally binding agreement. The parties agree to
utilize the principles expressed in this document as a framework for all subsequent legally
binding documents between the City and YMCA.
June 4, 2003
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Final Version
By:
L
F. rar
6~ /J~~!nr-
C . f Administrative Officer
YMCA OFMETROPOL~ MINNEAPOLIS
By: ~ ~;l
Har~Mezile, Jr.
Its: ~
President & CEO
f:\495\Memo of Understanding YMCA
June 4, 2003
6/3/2003
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Final Version
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1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
TO:
Mayor and Council Members
FROM: John Erar, City Administrator
SUBJECT: Andover/YMCA CommUnity Center - Project Issues
DATE: January 23,2004
INTRODUCTION
Several issues have been raised with YMCA staff and project representatives over the course of
the last several weeks, including a tentative cost split allocation between the City and the YMCA
(this will need Council approval), along with changes to the project bidding structure and award
dates that will allow the architect and construction manager to meet the October 4, 2004 Ice.
Arena opening schedule. In addition, staff continues to work on advancing project financirig
scenarios with the YMCA and fiscal adviser, Ehlers and Associates and a tentative agreement
has been discussed on concession revenue sharing with the YMCA. Many of the. issues have
been tentatively resolved, but staffwill need Council approval to move these items forward.
DISCUSSION
The following is a summary of some of the important issues that Council will need to address
over the next several weeks. Resolution of these issues is critical to advancing the project in
accordance :with Council expectations.
Cost Allocation Split between the YMCA and City of Andover
City staff and YMCA representatives, with the assistance of Brian Recker from RJM.
Construction Management, have reached a point in these specific negotiations where Council
approval will be necessary. Mr. Recker has submitted a report, attached. that describes the
allocation on the basis of specific use, cost per square foot pricing and percentage of shared
common space. Mr. Recker indicates that he feels these percentages are a fair and reasonable
allocation of cost between the City and YMCA, based upon the respective intended uses of the
facility. .
Through. these discussions, staff and YMCA representatives have tentatively agreed upon an
allocation apportionment of 51.74% for the City and 48.26% for the YMCA. This allocation
percentages falls within the original estimates provided to the Council several months ago by
Finance Director Dickinson. These numbers, if approved by the Council, will also need to be
approved by the YMCA leadership and will be used in the le~e agreement being prepared by the
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City Attorney and staff in various sections of the lease document. The Council will be asked to
approve this allocation cost percentages at their February 3, 2004 Council meeting.
Pre-Cast and Steel Bid Packages
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As Council members are aware, bids for pre-cast and steel have been received and were
generally favorable in terms of budget estimates provided by the Construction Manager. The low
bid for pre-cast concrete was received from Hanson Pipe and Products at a cost of $1,315,973;
approximately $105,000 under CM budget estimates. The low bid for structural steel, joists and
decking was received from Five Star Welding at a cost of $570,000; approximately $50,000
under CM budget estimates. Together, these numbers represent approximately $155,000 in
positive budget expenditure variances. However, it is important to recognize that this represents
a small percentage of the total bid packages yet to be issued and awarded.
Consequently, these initial budget savings at this very early stage in the bidding process could
easily evaporate in light of other bids, which may come in over .CM budget estimates.
Conversely, it certainly is a positive indicator of the competitive market forces vying for project
work. Compliments to the architect and construction manager for their good work in preparing
bid documents and project estimating.
Council will recall that these bids were issued to allow the City to get into the ordering queue for
steel and pre-cast and represents a fmancial cost commitment associated with shop drawings.
The cost of shop. drawings for pre-cast and steel is $80,000, should we cancel the two contracts.
This is our. cost liability for the cancellation of these two contracts. These bids will need to be
awarded on Febniary 3, 2004 for that specific purpose. Please recall that this award is not to ~
actually award the bids for steel and pre-cast, but to bring the City into the ordering line for steel ""W
and pre-cast fabrication.
March 16,2004 will be the date in which Council must either award the bid for steel and pre-
cast for fabrication to meet the Ice Arena opening date or suspend existing project deadlines and
revise previously established deadlines. This date is final, and there can be no extensions if the
City is to meet the project deadline to open the Ice Arena for October 4,2004. The architect and
construction manager have both indicated that this date isariabsolutemiiSt fororderingtliesteel
and pre-cast to allow the project to move forward on schedule.
Bid Package Scheduling
Council may recall that the original structure of the bid packages included the steel and precast
as Bid Package #1 arid the rest of the Building, including site work as Bid Package #2. This has
changed for a couple of reasons. First, to allow the architect an additional two weeks of time to
complete the final detailing of the building package and secondly, to allow additional time for
contractor mobilization on the site and provide the project team with an additional time cushion
to meet the October 4, 2004 deadline for the Ice Arena. Consequently, Bid Package 2 has been
split between the Site Work and the Building Package. Bid Package 2 will now include Site
Work only and Bid Package 3 will include all bid packages associated with the construction of
the Building.
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Dates for the authorization, issuance, opening and award of Bid Package 1, 2 and 3 are as
follows:
No. Council Bid Action Description Date
1 Council Award of Bid Package 1 Shop Drawings for Steel February 3, 2004
. and Pre-Cast
2 Council Authorization to Advertise for Site Work including February 3, 2004
Bid Package 2 earthwork, paving,
landscaping, utilities, .-
relocation activities
3* Council A ward of Bid Package 1 Ordering Steel and Pre- March 16, 2004
Cast
4* Council A ward of Bid Package 2 Site Work March 16, 2004
5 Council Authorization to Advertise for Building Package March 2, 2004
Bid Package 3 .
6 Council Award of Bid Package 3 Building Package March 30, 2004
*March 16,2004 is a critical bid date as it represents a significant fmancial commitment to
project on the part of the City Council. .
Concession Revenue Sharing
As Council is aware, staff has had tentative negotiations with the YMCA on concession revenue
sharing. This issue was specifically discussed by the YMCA as a central issue regarding their
willingness and ability to proceed with the aquatic center expansion.. Staff was directed to pursue
further discussions with the YMCA on an appropriate revenue split at the special Council
Meeting of January 7, 2004. Again, the YMCA has agreed to pay for all costs associated with the
exclusive concession seating for YMCA members, and proportionate costs of the concession
construction and equipment purchase. Mr. LaSalle and I have discussed this issue at length and
. have come to a tentative agreement that the revenue split should be bas~d on the same allocation
offacility cost sharing outlined in RJM's attached memo.
That is the YMCA and City proposed revenue sharing percentages would be split 51.74% to the
City and 48.26% to the YMCA after all expenses and cost of goods. are deducted from
concession operations. If the Concession does not generate a positive cash flow, we will split
losses along the same proportionate basis. Depending upon how the concession is operated,
either through self-operation or leasing, we would share in the cost of beginning operations.
This proposed agreement needs to be approved by the Council in order to incorporate this
understanding in the lease agreement. I would ask that the Council consider this issue at the
February 3, 2004 Council meeting.
Lease Agreement
City staff and the City Attorney are working on the first draft of the lease agreement. As this
document will be a form of negotiation with YMCA representatives, and will include sections on
maintenance, debt service, landlord and tenant responsibilities, and an array of other legal and 0
contractual obligations, it will take some time to prepare and negotiate.
As Council has indicated an interest in expediting this agreement to coincide with major facility
decisions and bond issuance, staff is requesting that Council members submit a list of their
concerns and points that they would like to see addressed in the document. Please submit your
comments to Bill Hawkins, Jim Dickinson or my office for review and discussion as soon as
possible. To avoid lengthy and protracted discussions on legal issues associated with the lease
agreement, your comments in advance will help facilitate preparation of this important document
by the City Attorney.
It is imperative that if this document is to be prepared in a timely manner, in keeping with
Council expectations, .your comments and ideas need to be communicated in advance before we
bring a draft document to the YMCA for opening negotiations and approval.
ACTION REQUIRED
For Council information and action in accordance with the above-mentioned schedule.
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Cc: Craig Kronholro, RJM Construction
Brian Recker, RJM Construction
Ted Rozeboom, RMA Architects
Bill Hawkins, City Attorney
Jim Dickinson, FjD-ance Director
Tom LaSalle, LaSalle Group
Harold Mezile Jr., YMCA CEO/President
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1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
TO:
Mayor and Council Members
FROM: John Erar, City Administrator
SUBJECT: Approve Andover-YMCA Community Center Construction Cost. Allocation
Percentage Formula
DATE: February 3, 2004
INTRODUCTION
The City Council is requested to consider approving the cost allocation percentage splits for the
Andover-YMCA Community Center project. RJM Construction representatives will be in
attendance at the Council meeting to respond to any questions Council members may have
regarding the cost allocation methodology.
DISCUSSION
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City staff and YMCA representatives, with the assistance of Brian Recker from RJM
Construction Management, have reached a point in our specific negotiations where Council
approval will be necessary. :Mr. Recker has submitted a report, attached, that describes the
allocation on the basis of specific use, cost per square foot pricing andpercenfageof shared
common space. Mr. Recker indicates that he feels these percentages are a fair and reasonable
allocation of cost between the City and YMCA, based upon the respective intended uses of the
facility. Mr. LaSalle has been negotiating for the YMCA in the cost allocation split and he also
concurs with the methodology and outcome ofRJM's allocation review.
lbrough these discussions, staff and YMCA representatives have tentatively agreed upon an
allocation apportionment of 51.74% for the City and 48.26% for the YMCA. This allocation
percentages falls within the original estimates provided to the Council several months ago by
Finance Director Dickinson. These numbers, if approved by the Council, will also need to be
approved by the YMCA leadership and will be used in the lease agreement being prepared by the
City Attorney and staff in various sections of the lease document.
BUDGET IMP ACT
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The percentage allocation provides that the construction cost of the facility for the YMCA,
including the aquatic expansion, is estimated at $8,205, 873. This number represents 48.26% of a
total project cost of $17,005,000, not including the High School team rooms which will be paid
for by the Anoka-Hennepin School District and is an added budgetary cost. The YMCA portion
of the facility cost will be underwritten by a 3D-year lease agreement that will run concurrently
. with the term of the bonded debt service. The lease document is currently being drafted by the o.
City Attorney, with staff input and will be presented to the YMCA in the very near future.
City staff is working with Dain Rauscher to develop a public financjng offering consistent with
the YMCA's ability to finance their portion of the building cost expense. Once this fmancing
structure is tentatively established, Finance Director Dickinson will make a separate presentation
to the Council on the proposed financing plan.
. ACTION REOUIRED
Council is respectfully requested to approve the allocation percentage split between the City and
the YMCA, at 51.74% for the City and 48.26% for the YMCA. Any savings or increases to the
construction budget and,ror use of the project contingency will be split along these same
percentage lineS.
Tom LaSalle, The LaSalle Group
Harold Mezile, Jr., YMCA President and CEO
Brian Recker,RJM Construction
Ted Rozeboom, RMA Architects
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1685 CROSSTOWN BOULEVARD N.W. . ANDOVER. MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN,US
CITY COUNCIL MEETING
JOINT COUNCIL/STAKEHOLDER MEETING
COMMUNITY CENTER WORKSHOP
COUNCIL CHAMBERS
Wednesday, January 7, 2004 - 6:30 p.m.
AGENDA
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1. Call to Order
2. Approve Agenda
3. Architectural Design Update
4. Construction Manager Update
5. Facility Security Overview (presented at Meeting)
6. Site Plan Traffic Movement Scenarios - (presented at
Meeting)
7. Concession Discussion (Attachment) -,- K f tQll.iJ.RJAicv~
. 8. Other Business Items C
a. Sunshine Park Ballfield Lighting Budget
b. Capital Campaign Update
c. YMCA Daily Pass Concept
d. Anoka-Hennepin Team Room Space
e. Ice Arena Staffing/Rental Contracts
9. Adjourn
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1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW,CI.ANDOVER.MN.US
TO:
Mayor and Council Members
FROM: John Erar, City Administrator
SUBJECT: Concession Operation Alternatives
DATE: January 7, 2004
INTRODUCTION
The City Council has been approached by the Capital Campaign to consider leasing of the
concession space as another means of raising revenues that could then be contributed to the
capital campaign effort.
DISCUSSION
Details regarding this proposed combination of privately leasing the concession space, selecting
a service provider and the contribution of "assumed" retained earnings to the. capital campaign
has generated numerous questions that need to be carefully considered, before any specific action
is taken. In discussions with the City Attorney, Finance Director and others, the following points
and questions have been identified.
. The City Attorney has indicated that the selection of a service provider cannot be based
on what a service provider mayor may not choose to contribute to a separate campaign
effort. That is there can be no appearance of any type of quid pro quo arrangement in the
vendor selection process. A service provider or contractor should be selected on the basis
of the service they are offering to provide, and not on any separate financial
considerations.
. The RFP should be reviewed by City staff and the City attorney's office and should
follow established governmental publication and selection processes with bona fide
selection criteria. Selection of a service provider is typically handled by City staf:(' when
dealing with a City-owned facility.
. If it is the intent of the City to shift the risk of operating the concession to a private party,
and generate an established level of retained earnings from the concession operation, the
City will need to provide any service provider with a guaranteed margin of operating
profit and, in exchange, recei:ve a guaranteed minimal base of fmancial return consistent
with facility financial Performas.
. The YMCA has indicated that their decision to expand the aquatics center was based on
the assumption they would be entitled to share in the revenues generated by the
concession. (see attachment) 0
o Please note that the YMCA construction cost allocations now include "bricks and
mortar" expense for the concession space and a proportionate share of the
concession equipment due to the YMCA expansion of the aquatics center.
o In addition, the YMCA will also be paying for direct access for aquatics users,
which includes a seating area that exclusively serves aquatics members.
o With respect to private leasing, and the "assumption" that the YMCA would be
sharing in the revenues, the YMCA would have to give their consent on how any
retained earnings would be directed. City staffhas not had any direct negotiations
with the YMCA on this issue, but had understood that the YMCA would be
seeking some type of revenue sharing arrangement.
. The Finance Director is working on preparing an updated fmancial analysis that includes
the expanded aquatics space by the YMCA. This analysis will be available at the
meeting, but according to Jim Dickinson, will be difficult to calculate with any great
degree of precision due to the uncertainty of customer counts, operating hours, and food
category sales. More information will be needed.
. As noted previously by City staff, concession sales were designated as a revenue stream
to help support facility operations. Diverting any portion of the retained earnings to the
capital campaign will consequently result in reduced operating revenues for operations
and potentially increase public subsidization of the community center.
. From a campaign timing perspective, as the concession will be in operation only after the
conclusion of the capital campaign, and theoretically any possible proceeds will be
generated only afterwards, how will these dollars be counted towards the campaign goal 0
in today's context. Similarly, given the nature ofrevenues generated from the concession
and the need to update equipment in the concession after a certain period of time, where
would the nioney come from if retained "earnings are diverted to the campaign. In
addition, how long would this type of campaign arrangement last?
These talking points and questions are respectfully submitted for Council consideration. Given
the importance of addressing other key project issues this evening, the subject of concession
leasing could be addressed at a later time, after City staff and the YMCA have had some
additional time to research these issues.
ACTION REOUIRED
. For Council consideration.
Bill Hawkins, City Attorney
"
YMCA of Metropolitan Minneapolis
30 South Ninth Street
Minneapolis, MN 55402
~-371-8700
, 612-371-8716
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YMCA
We build strong kids,
strong fumilies, strang communities.
December 24, 2003
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CtTY OF AtlLlu.i:.1t
Harold Mezile,jr.
President & CEO
Mr. John Erar
City of Andover
1685 Crosstown Blvd N.W.
Andover, MN 55304
Dear John:
As per your request regarding the position of the YMCA stance on the
concessions at the AndoverNMCA Community Center, I offer the
following:
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1. The YMCA proposed to expand the aquatic area and allow our
members access to the concession area based upon the city and the
YMCA sharing in the concession revenue. We have been working on
the assumption that this would based on the cost and usage of the
facility.
2. In addition, we have also agreed not to compete by constructing our
own concession stand. We felt during the discussions that a separate
concession stand in the YMCA would hurt both the Community Center
and the YMCA.
3. These issues were to be negotiated between Tom LaSalle and
yourself. Tom also made these comments and issues public during a
City Council meeting earlier.
John, we are not experts in this area but our board has members
available who can assist in the direction of managing the concessions
including Maureen Bausch, Vice President of Business Development for
the Mall of America and Matt Majka, Senior Vice President, Business
Operations for the Minnesota Wild. We believe that all alternatives
should be explored in the methods of operating the concessions
including self operating, leasing, and others before a decision is made.
I hope this letter assists you in this matter.
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Sincerely,
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Harold Mezile, Jr. t7 "
President & CEO
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JOINT ANDOVER CITY COUNCIVSTAKEHOLDER MEETING - JANUARY 7, 2004
COMMUNITY CENTER WORKSHOP
MINUTES
The Joint Meeting of the Andover City Council and Stakeholders was called to order by Mayor Mike
Gamache, January 7, 2004, 6:35 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW,
Andover, Minnesota.
Councilmembers present:
Councilmember absent:
Also present:
Don Jacobson, Mike Knight, Ken Orttel, Julie Trude
None
John Erar, City Administrator
City Finance Director, Jim Dickinson
Park and Recreation Commissioner, Dan Maslowski
YMCA Representative, Anita Lancello
Craig Kronholm, RJM
Victor Pechaty, Architect
Greg Shuster, Architect
Darren Lazan, Capital Campaign
Bill Brossman, YMCA
Gail Essen, Pro-Tech Design, Inc.
David Berkowitz, City Engineer
Joe Samuel, RLK
Tom Durand, School District #11
Others
APPROVE AGENDA
Councilmember Jacobson requested the discussion about the lease agreement be moved up to item
6a. and move item 7 before item 6.
Motion by Jacobson, Seconded by Trude, to approve the Agenda as amended. Motion carried
unanimously.
ARCHITECTURAL DESIGN UPDATE
Mr. Victor Pechaty, architect, stated the two primary exterior materials used on the project would be
brick and architectural pre-cast. He showed examples of what they are considering. He noted the
brick matches City Hall and the pre-cast would be a lighter version. There are two kinds of
architectural pre-cast used on the building. He summarized where the pre-cast and brick would be
Special Andover City Council Workshop Meeting
Minutes - January 7, 2004
Page 2
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used on the building. They tried to create a texture that works with the sunlight and shadows. He
stated they hope to create a "rolling horizon" effect.
Councilmember Trude asked if there would be any type of treatment in the event graffiti would be
put on the building at some point in the future. Mr. Pechaty stated the concrete panels are a lot more
porous than stone and he did not think they had any kind of treatment for these types of panels, but
he would research this.
Mr. Pechaty stated they want to use a metallic gray paint as a contrasting color in the thin detailed
elements. He noted the metal panels would be a progressively lighter version of a warm gray, so to
the naked eye, it would give the fayade a little depth.
Councilmember Knight suggested not having glass windows all the way to the groUnd. Mr. Pechaty
replied the windows would start 18 inches off the ground.
Councilmember Trude asked if the entrance would be clear glass with wooden colwnns on the
inside. Mr. Pechaty replied that was correct; the columns and ceilmg in the main street would be
Douglas Fir.
Mr. Pechaty stated the floor would be dark, charcoal gray. He stated the color would be all of the
way through the floor.
o
Councilmember Knight asked if custodial issues had been taken into consideration with respect to
the floor. Mr.Pechaty replied the floor would be basically maintenance free, however, he noted that
the floor might be slippery when wet and therefore he recommended throw rugs be put down when
necessary. He stated maintenance personnel do not like the no slip finishes because they are difficult
to clean.
Councilmember Trude asked if there would be any maintenance to the wooden columns. Mr.
Pechaty replied there would be a clear lacquer put on the columns, but no further maintenance would
need to be done.
Mr. Erar suggested wrapping the wooden colwnn nearest the hockey area in Plexiglas to protect it
from hockey bags and sticks.
Mr. Pechaty stated the int~rior would have burnished concrete block, which is a slightly lighter hue
than what was in City Hall. Councilmember Trude asked if it was possible to also have another
color for the concrete block in addition to the sample he showed.
Mr. Pechaty stated there would be very little solid concrete block walls; most of the areas would be 0
glass. He stated a wood slatted system would also be used in the ceiling to warm up the space.
Councilmember Jacobson asked what the R factor in the roof is. Mr. Shuster replied it would be
approximately R25.
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Special Andover City Council Workshop Meeting
Minutes - January 7, 2004
Page 3
CONSTRUCTION MANAGER UPDATE
Mr. KronhoIm stated they are proceeding with bid package 1. He stated the rest of the team is
working on the specifications, which would be released on Monday. He indicated the bids for bid
package I are out and were published and it would bid on January 22. Bid package 2 will go out on
February 19, and they have tentatively scheduled a bid date for March 9. He noted the goal was to be
in the ground no later than April 1. He stated they want to get the footing and foundation package
going immediately, so as soon as the concrete is cured back, they would like setting the pre-cast and
at the same time they want to do the site utilities.
CounciImember Jacobson asked how many other large projects are out there. Mr. KronhoIm stated
they are still within the budget and they are ahead of the only large project that was being proposed.
Councilmember Knight asked how the site would be secured. Mr. KronhoIm stated they would have
to look at this and it depends on the egress issues, which may necessitate cutting in a temporary door. .
He stated they would come up with a plan to keep people out of the construction area.
Councilmember Ortiel asked if the bids are on a unit cost, or an entire bid package. Mr. KronhoIm
replied it is a bid package and not on unit cost.
CounciImember Trude asked if they would need to schedule a special meeting once the bids are in to
accept them. Mr. Erar replied they should probably schedule a special Council meeting once the bids
were reviewed.
Mr. KronhoIm noted there was no requirement to take the lowest bid~ He stated while they hoped to
break ground in March. it is more realistic that it would be the first week in April with the setting of
panels in the second week of April. He stated the contractors would be given very specific dates.
CounciImember Trude asked if they were doing site prep in house. Mr. Erar replied it would be done
in house.
FACILITY SECURITY OVERVIEW
Gail Essen stated essentially the security system is comprised of three major components, intrusion
security, cameras, and a card access system. She stated there are separate security systems for the
YMCA and the Community Center. She noted. the cameras within the YMCA would only be
monitored within the YMCA. . She indicated to save costs, the cameras would be connected to the
same video recorder and the intrusion system for both facilities would be on the same system. She
stated the card access system would have two accesses, one at the YMCA and one at the Community
Center.
Special Andover City Council Workshop Meeting
Minutes - January 7, 2004
Page 4
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Councilmember Trude asked if the security system would be monitored off-site in the event of an
intrusion. Ms. Essen replied it would be monitored off-site.
Councilmember Trude stated she wanted security access on all of the doors, including the delivery
access doors.
Councilmember Trude asked if the security system would also be a fire system. Mr. Erar noted the
fire system is a separate system that is not tied into the security system and the fIre system would
meet all State codes.
Councilmember Jacobson asked if there would be monitoring of the parking lot. Mr. Erar replied
there would not be monitoring of the parking lots because it would be necessary to install high cost
cameras, which give a false sense of security.
Mr. Kronholm stated the lighting in the parking lot would be adequate to ensure safety. He noted
they did not want the lights to be too bright, which would encourage people to loiter and not too low,
which could affect safety.
Ms. Lancello stated at their Northtown facility, the police requested the parking lot cameras be 0
removed because of the poor quality of the images.
Councilmember Trude asked how long the security tapes would be held. Ms. Essen replied they
would be held for two weeks;
Councilmember Jacobson agreed that all exterior doors be alarmed. He asked ifit is possible to have
the cameras monitored on-line. Ms. Essen replied it is possible.
Mr. Erar asked if Council wanted to retain Pro- Tec Design, Inc. services to install the security
system.
Councilmember Orttel asked if they had to put the security system out for bids. Mr. Erar replied the
cost estimate was below the threshold; therefore it is not necessary to put this out for bids.
Mr. Berkowitz asked how breakable the glass being proposed is. Mr. Kronholm replied the glass is
the same type of glass that is installed in schools and it is very difficult to break. He also noted with
the glass being 18 inches off the ground the height would also make it more difficult to break.
Councilmember Orttel asked staff to verify that they are not required to go out for public bid for this
type of a service.
Motion by Jacobson, Seconded by Orttel, to approve Gail Essen of Pro- Tec Design. Inc. to work 0
with staff and be the provider of choice for the security system for an amount not to exceed
$50,000.00. Motion carried unanimously. .
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Special Andover City Council Workshop Meeting
Minutes - January 7, 2004
Page 5
CONCESSION DISCUSSION
Mr. Erar noted that the Council has been approached by the Capital Campaign to consider leasing of
the concession space as another means of raising revenues that could then be contributed to the
capital campaign effort. He explained that details regarding this proposal are a combination of
privately leasing the concession space, selecting a service provider, and the contribution of
"assumed" retained earnings to the capital campaign has generated numerous questions that need to
be carefully considered before any specific action is taken. He presented the "talking points" as
outlined in his memorandum.
~
Mr. Dickinson stated he had spoken with other Cities about their concession operations. He stated
the City would be looking at approximately $25,000.00 net income without the aquatics facility. If
they added an aquatics aspect with two slides, they would be looking at another $40,000.00 to
$45,000.00netincome. He believed this was the baseline the Council was looking for.
Councilmember Knight asked how many Cities have dual operations. Mr. Dickinson replied most of
the Cities ran the concession stands themselves. However, Maple Grove gave associations the
option to work the concession stands without pay to obtain ice time on the rink. He recommended
the Center be vented for a grill for possible future use. Right now, they would be looking at hot
dogs, pizza, pop, popcorn, etc. to start out.
Mr. Dickinson noted they would recommend part-time staffing paying $7.50 to $11.00 per hour. He
indicated there would be approximately 100 hours per week to cover for hours of operation. He did
not believe the concession stand would be open when the facility opened and that it could take six to
12 rrionths to get it up and running fully.
Councilmerober Jacobson stated it was his understanding two slides would serve their purposes and
there was no discussion on this. Mr. Erar stated it was the YMCA's understanding that they could
share in the concession revenues at a certain percentage.
t-
Mr. Kronholm remembered from a previous meeting that by adding to the aquatic center, there
would be a solid wall where the concession stand was being proposed and this would be an exclusive
YMCA concession.
Mr. Brossman stated in part with the expansion of the aquatic center was a step ahead of the
concession revenue. He indicated right now they had to guess as to how much revenue would come
from a concession stand. He noted the addition to the aquatics facility was a substantive addition for
the YMCA and any revenue from the concession stand was to help defray the cost of this expanded
facility. He did not believe the YMCA would have an interest in the expanded aquatics facility if
they could not share in the concession revenue.
Special Andover City Council Workshop Meeting
Minutes - January 7, 2004
Page 6
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Councilmember Knight asked what type of revenue share the YMCA is proposing. Mr. Brossman
replied they are not prepared to talk numbers tonight and this could be a discussion for a future
meeting.
Mr. Brossman believed this would be a good partnership because the YMCA's business is fairly
consistent, while the community center would have highs and lows in business. .
Councilmember Jacobson stated it was his understanding that the City was payirig entirely for the
concession area. Mr. Erar replied this was what was going to happen before the expansion of the
aquatic center. With the expansion of the aquatic center, the YMCA now has an interest in sharing
in the cost of the concession area, as well as the concession revenue. He stated they do not have
information at this time as to what the split would be.
Councilmember Jacobson was concerned that this seemed to have appeared out of the blue and he
was not aware of this proposal.
Councilmember Trude stated she also did not realize the YMCA was interested in assisting with the
paying of the concession area. Mr. Erar replied this has been tentatively discussed and if they want
to share in the revenues, they need to contribute to the operation also. 0
Councilmember Knight aske<iif staffhad looked at a lease proposal instead. Mr. Dickinson replied
they had not looked at .this option, but could look at this in the future.
Councilmember Trude stated she did not believe it would hurt to look at possibly leasing the
concession out. She pointed out this might give them a better idea if their revenue projections are
realistic.
*
Mr. Erar noted the concession area was not meant to be a fundraiser, but to help defray the cost of
the aquatic center.
Mayor Gamache believed this was a premature discussion because the YMCA's facility would not
be up and running until 2005. Mr. Dickinson believed they need to decide if they want to do a
sharing operation with the YMCA.
Councilmember Knight noted with the food business there was a learning curve and it was difficult
to project actual figures right now.
*
Councilmember Orttel stated he did not believe the private vendor would be interested in a
$40,000.00 concession stand. Mr. Erar indicated sta:ff's research showed that most of these types of
concessions were run by the Cities.
o
Mr. Brossman stated it would benefit the Council to learn as much from the other Cities as possible
regarding their concession operations. They should do this before they go out for any RFPs. He
stated it is his interest tonight to determiueif there is any interest in revenue sharing, but it is
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Special Andover City Council Workshop Meeting
Minutes - January 7, 2004
Page 7
?f
premature to come up with any numbers at this time. He indicated, however, that the City nor the
YMCA were experienced in the food operations business, and therefore, they should look at and
explore all options. This could be very successful, but it could also fail and it is important to look at
all of the pros and cons. He stated the YMCA is interested in pursuing what is best for the project.
He noted the shared operation of the concession would not come near to reimbursing the cost of the
expanded aquatic center, so this is not their main interest.
Mr. Lazan stated there are outside vendors who would be interested in leasing the concession space.
He noted there are public vendors who had offered to help design the facility and assist in choosing
the product to be sold. He indicated it is possible for a public vendor to overstock both inventory
and staff, which would provide a better product at a lower cost to the consumer. He believed an RFP
was a much better operation and asked Council for the opportunity to present a proposal at their next
meeting.
Mr. Erar stated in-kind donations would not be considered if they went out for an RFP. The issues
still need to be worked out between the City and the YMCA. He stated an RFQ made more sense
than an RFP and they might want to look at the RFQ option.
Councilmember Trude asked if there would be a full-time service operator to run the concessions.
Mr. Dickinson stated whoever operated the ice arena would also be in charge ofthe concessions, so
that person would need food concession experience.
Mayor Gamache asked staff to work with Mr. Lazan on looking at the RFQ option and bring a
presentation back at a future meeting.
SITE PLAN TRAFFIC MOVEMENT SCENARIOS
Mr. Pechaty stated there are a couple of outstanding issues they are trying to resolve. The one
change that is common to all of the schemes is the east parking lot. He stated .the island would be
eliminated so the parking on the two sides of the buildings would be symmetrical. He noted by
doing this, they netted some additional parking stalls at no additional cost. He asked if there should
be an addition of a circulation road to complete a road entirely around the building. He summarized
the three scenarios. He noted with scenario 3, the parking lot would be connected to the City Hall
parking lot, which would make the access from the City Hall Parking lot a right in and right out only
onto Crosstown. He noted this was a County requirement. Scenario 2 would add a road to the south
of the building, which would not connect to the City Hall parking lot and therefore would not affect
the City hall parking lot access in or out. He stated with this additional road, there would be an
additional increase to the budget and it posed challenges for stormwater retention. He also noted this
road would be a one- way road. Scenario 1 would also add a road to the south of the building, which
would not be connected to the City Hall Parking lot, but this road would be a two-way road.
Mr. Berkowitz noted the road to the south would be marked as a no parking zone.
Special Andover City Council Workshop Meeting
Minutes - January 7, 2004
Page 8
o
Mr. Brossman stated there are a lot of constraints on this site and they want equal access to the
building. He stated they are not opposed to a south road being added. However, one of the concerns
would be the impact of a future expansion to the aquatic center. He suggested this road be an
expansion road, instead of a street in case it needed to be vacated at some point in the future if they
should decide to expand the aquatic center.
Mr. Erar indicated the YMCA was looking for a vacation option of this road noting that the YMCA
would need access to Hanson Boulevard if the road would be vacated in the future.
Councilmember Trude asked if they could split off the Community Center land from the City Hall
and therefore the County would be required to give the Center a separate access. Councilmember
Orttel believed the County could deny access onto a County Road.
Mr. Dickinson stated the banks and underwriters would be concerned regarding any type of land
transfer.
Mr. Berkowitz stated staff had talked to the County in the past about constructing a frontage road
along Crosstown.
Councilmember Knight noted a road to the south would add a lot of traffic along Tower Drive. Mr.
Berkowitz replied there would be the need for some improvements made to Tower Drive if that
proposal was accepted.
o
Mr. Erar stated the message the administrative level needed was in order to stay on schedule the staff
had to know which scenario the Council wanted. He stated this was the single most important issue
on the agenda and they did not have the luxury of time to debate this with the County.
Councilmember Jacobson asked if they did not connect the City Hall parking lot to this development,
how did that affect the parking count. Mr. Erar replied as long as the City Hall was made available
for parking, it would be counted as part of the parking count He noted there would be a sidewalk
connecting the two parking lots and as long as people had the ability to get to the Community Center,
it would meet code.
Councilmember Jacobson asked how much the road would cost. Mr. Erar replied it is achievable in
the current budget.
Mayor Gamache asked Mr. Brossman which scenario the YMCA would be agreeable to. Mr.
Brossman replied he liked scenario number 1.
The remainder of the Council agreed scenario one was the best option;
"
Councilmember Knight expressed concern that Tower Drive would be a bottleneck with this scenario
and requested stafflook at this concern.
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Special Andover City Council Workshop Meeting
Minutes - January 7, 2004
Page 9
LEASE AGREEMENT
Councilmember Jacobson understood that the City would have to commit by the end of this month
for millions of dollars in materials and he was concemed that they did not have a lease agreement
with the YMCA in place. He is uncomfortable not having a written lease agreement and asked
where the City is in the negotiations.
Mr. Erar replied he had submitted a Letter of Understanding to the City Attorney. and the City
Attorney has prepared a draft lease document which would be presented to the YMCA. He noted
timing was very important, but he did not believe a fInal lease agreement would be available by the
end of the month. It is possible to have a preliminary lease agreement in place by the end of the
month if this is what Council wants. .
Councilmember Jacobson stated he wants at least something in writing which would protect both
sides. He noted technically right now, the YMCA could walk away from this project which would
leave the City with a substantial investment. He asked if there was something less than a lease they
could have by the end of the month.
Mr. Erar replied if the Council said they want something more fIrmed up legally, they could sit down
with the YMCA to see what could be done. He would advocate attempting to move this forward as
soon as possible, but there are still a lot of blanks that need to be fIlled in and he was not sure those
blanks could be fIlled in by the end of the month.
Councilmember Jacobson asked if the YMCA had any concerns regarding this. Mr. Brossman stated
he appreciated his concerns and they are open to participating in a discussion. He stated they are
proceeding in good faith and had put a lot of time and effort into this project, but he believed a Letter
of Understanding was a good starting basis. He stated once a draft of a Lease is created, the YMCA
would review it quickly.
Councilmember Jacobson stated he did not mind a lease being signed in June or July, but he wants
something in writing now that if this project failed to go through, that the money expended so far
would be split with the YMCA, so the City would not be held responsible for the entire cost.
Mr. Dickinson indicated before the City could go out for bonding it would be necessary that
everything be in place legally.
Mr. Lazan asked staff to solidify the deadline dates and inquired what exactly was expected with
respect to the campaign. He wanted to make sure the campaign was there for the City, but they need
confirmation as to what was expected. Councilmember Jacobson stated it was his opinion that the
day they needed to pay the money was the day he needed to know what was raised through the
campaign. He stated at this time he did not know ifhe was going to support this project, unless they
have the funds to support it.
Special Andover City C01Jncil Workshop Meeting
Minutes - January 7, 2004
Page 10
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Mr. Kronholm stated money would not need to be paid out until approximately March 15,2004.
OTHER BUSINESS ITEMS
A. Sunshine Park Ballfield Lighting Budget
. .
Mayor Gamache asked how much it would cost to light the fields. Mr. Erar replied to light all four
fields it would cost approximately $279,000.00. It would be necessary to adjust the budget to add
another $139,000.00 if they want to light all four fields. Right now, the budget would only support
two lights. He stated no decision is necessary tonight, but he wanted to make Council aware of this.
Val Holthus stated when the lights were put in at Sunshine Park, they put in low lights and she was
worried if the lights were moved into Sunshine Park, the neighborhood would be upset. She also
noted the lights might only last ten years anyway and suggested they put in new lights instead of
moving lights. Councilmember Trude replied money is an issue.
Mayor Gamache noted there are woods in this area which would block some of the light.
o
Mr. Erar stated if Council wanted staff to work on an estimate on lighting the parking lot, they could
do that. He asked if Council was interested in making it their intention to light all four fields, with
the acknowledgement that if other funding sources were not available that this would affect the park
budget.
B. Capital Campaign Update
Mr. Lazan stated he had nothing further to add as an update.
C. YMCA Daily Pass Concept
Mr. Erar stated the concept is that the YMCA is agreeable to looking at offering daily passes with
service restrictions, but they still had to work out the exact details.
Councilmember Jacobson asked if this would limit it only to Andover residents. Mr. Brossman
replied that would be the intention and he believed something could be worked out.
D. Anoka-Hennepin Team Room Space
Mr. Durand stated they have worked with the construction manager and have more realistic figures.
He noted they had one percent of the space, but had more than one percent of the cost.
o
Mr. Kronholm noted they had cut back on the size and had taken one percent of their estimates,
which would be updated at bid time.
o
o
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Special Andover City Council Workshop Meeting
Minutes - January 7, 2004
Page 11
Mr. Erar stated they have given up nothing by doing this.
Councilmember Jacobson asked if this would be a one-time payment, or would it be spread out over
time. Mr. Durand believed it would be a five-year payment plan.
E. Ice Arena Staffing / Rental Contracts
Mr. Erar stated he had received inquiries as to the cost of the ice rental. He noted this would need to
be decided 60 to 90 days before the opening date of the arena. He indicated it would be necessary to
have staff in place at least within a 60 to 90 day time frame and they would be bringing a job
description forward in the next couple of months for Council's review.
Councilmember Jacobson stated he wants it to be noted that there are residents that also want free
skating time and requested not all of the "good" times be taken by hockey games and practices.
Councilmember Knight expressed concern about having a full time person on staff 60 to 90 days
prior to the opening. Mr. Erar replied this was necessary to get a staff person up to speed and to use
their expertise for the final decisions that would need to be made.
Councilmember Trude stated she had communications with the associations regarding concerns they
had regarding the Community Center project. Mayor Gamache stated he would talk to them.
Motion by Knight, Seconded by Jacobson, to adjourn. Motion carried unanimously. The meeting
adjourned at 10:00 p.m.
Respectfully submitted,
Kathy Altman, Recording Secretary
o
o
o
~ G'l;.V r & .i:1J ~ f '\,J p:; ,.... lo.
January 20, 2004
Andover/YMCA Community Center
YM;CA Budget Project Cost Summary
Scenario 1 - YMCA Aquatics Expansion not Included
YMCA Project Costs
City of Andover Project Cost
Total Project Budget
YMCA Allocation as % of Project
City Allocation as % of Project
$7,690,639
$8,809,361 -
$16,500,000
46.61 %
53.39%
Scenario 2 - YMCA Aquatics Expansion Included
YMCA Project Costs
City of Andover Project Cost
Total Project Budget
YMCA Allocation as % of Project
City Allocation as % of Project
~ClINSTRIICTIDN
$8,205,873 (Includes total cost of YMCA Expansion)
$8,799,127 -
$17,005,000 ($16,500,000 + $505,000)
48.26%
51.74%
5455 HWY 169 PLYMOUTH MN 55442
763.383.7600
FAX 763.383.7601 BID FAX 763.553.9670
RjM IS AN EQUAl. OPPORTUNrTY ENlPLOYER
,
~
RLK
cx'"o/U-U7 .
C (!; idl c. ; '- uJ,fZ. K S ;4d P
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( KUUSISTO LTD )
~
February 1,2004
Via fax: 763-755-8923 and US Mail
Mr. John Erar
City of Andover
1685 Crosstown Boulevard
Andover, MN 55304-2612
Re: Proposal for Traffic Engineering Services
Hanson Boulevard Tax Abatement
City of Andover - Andover, MN.
Dear Mr. Erar:
~er your request, this letter presents our scope of work and estimate to conduct traffic engineering
services to determine the magnitude of present and future traffic on Hanson Boulevard that is due
to developments adjacent to this facility in Andover, MN. In particular, our scope of work will
include the following study area and tasks.
Study Area
The study area is limited to the Hanson Boulevard NW and Crosstown Boulevard NW corridors
and includes the following specific intersections;
. Hanson Boulevard NW at the Oak View Middle School North Access
. Hanson Boulevard NW at 154th Avenue NW/Oak View Middle School South Access
. Hanson BoulevardNW at Bluebird Street NW
. Hanson Boulevard NW at 150th Lane NW/Andover Elementary School Access
. Hanson Boulevard NW at Crosstown Boulevard NW
. Bluebird Street NW at Clinic Access
. Bluebird Street NW at Post Office West Access
. Bluebird Street NW at Post Office East Access
. Bluebird Street NW at Crosstown Boulevard NW
Tasks
1) Traffic Counts Estimated Fee $ 1,520
Conduct manual turning movement Counts at the following intersections to document the
existing traffic destined to Hanson Boulevard NW. These Counts will be conducted from
2;45 PM to 6:45 PM to ensure the School PM peak, and the weekday commuter peak are
accounted for.
a) Hanson Boulevard NWat the Oak View Middle School North Access
b) Hanson Boulevard NW at 154th Avenue NW/Oak View Middle School South Access
c) Hanson Boulevard NW at 150th Lane NW/Andover Elementary School Access
Offices: Hibbing . Minnetonka . Ham lake . Twin Ports
(952) 933-0972 . 6TIO Blue Circle Drive' Suite 100 . Minnetonka, MN 55343 . FAX (952) 933-TI53
Equal Opportunity Employer
.
,
Proposal for Traffic Engineering Services
Hanson Boulevard Tax Abatement - Andover, MN
February 18, 2004
Page2of3
d) Bluebird Street NW at Clinic Access
e). Bluebird Street NW at Post Office West Access
f) Bluebird Street NW at Post Office East Access
g) Bluebird Street NW at Crosstown Boulevard NW
Existing Counts conducted on behalf of the Andover Community Center project will be
utilized to document conditions at the intersections of Hanson Boulevard NW with Bluebird
Street NW and with Crosstown Boulevard NW.
2) Trip Generation Estimates . Estimated Fee $ 1,290
Trip Generation Estimates will be conducted per ITE's Trip Generation, ih Edition, to
determine the potential future traffic from parcels adjacent to Hanson Boulevard NW that will
likely use the corridor during the School PM and PM commuter peak times. It is noted that
ITE does. not identify the trip generation potential during the School PM peak times for
specific retail/commercial uses. However, ITE does pro"ide proportions of the peak hour
traffic that occur during non-peak times under the shopping center category. These will be
adopted for the purposes of this estimate. The specific parcels to be included in the estimate
are:
a) The Winslow Parcel
b) The Clock Tower Parcel
c) The Fairbanks Parcel
. d) The General BusinessIRetail Parcel south of 1 54'h Avenue NW
Further, the traffic estimated for the Andover Community Center/YMCA site will be added
into the future Hanson Boulevard NW traffic. The distribution of traffic onto Hanson .
Boulevard NW and other study area roadways will be based on existing traffic patterns in the
area.
3) Report Estimated Fee $ 730
A draft Memo-style traffic report will be authored to summarize the methodology and results
of the traffic engineering services described above. Upon receipt of comments relating to the
draft report from the City of Andover, a final memo-report will be produced
. 4) Meetings Estimated Fee $ 900
It is assumed attendance at a minimum of two (2) meetings may necessary to discuss the
implications ofthe traffic engineering results.
These services will be on an hourly basis per the attached rate sheet, Exhibit B. Our not to
exceed, without authorization, estimated fee to complete the tasks listed above is $ 4,440. It is
noted that the scope of service is limited to that described above and does not include any other
revisions resulting from the City of Andover Staff/Council or Anoka County reviews. If
revisions beyond the scope described above are necessary they can be provided under separate
contract.
Thank you for considering RLK-Kuusisto, LTD for your traffic engineering needs. If you have
any questions regarding the scope of services listed above, please call me at 952-259-9272.
f
"
Proposal for Trqlfic Engineering Services
Hanson Boulevard Tax Abatement - Andover, MN
February 18, 2004
Page3of3
Sincerely,
~. -Kuusisto, Ltd.
V~~~.
Vernon E. SWi~V
Senior Transportation Engineer
Authorization to Proceed
City of Andove
Attachments:
Attachment A-General Conditions
Attachment B-Professional Services Rate Schedule
Cc: Joe Samuel, RLK-Kuusisto, Ltd.
David Berkowitz, City of Andover
\\RLKO I IDA T A \CORPOR -1 IMarketingIProposalslMinnetonkalAndoverIHanson Blvd\proposal 02-18-04.doc
.
RLK-KUUSISTO, LTD. - GENERAL CONDITIONS
RLK-Kuusisto, Ltd.'s (RLK) Agreement with Client is comprised of these
General Conditions; the accompanying written proposal or authorization for
services; and Attachment B - Professional Services Rate Schedule, Said
documents constitute the entire Agreement and supersede any prior
agreements or other purchase order conditions.
SECTION 1: RLK'S RESPONSIBILITIES
1.1 RLK will perfonn the services as an independent contractor, and shall not
be deemed, by virtue of this Agreement to have entered into any partnership,
j oint venture or other relationship with the Client.
1.2 RLK will use the degree of care and skill ordinarily exercised under
similar conditions by members of the engineering, surveying or landscape
architecture professions practicing in the same or similar locality. NO
OTHER WARRANTY OF ANY KIND, EXPRESS OR
IMPLIED, AT COMMON LAW OR C~ATED BY
STATUTE, IS EXTENDED, MADE OR INTENDED BY THE
PROVISION OF PROFESSIONAL SERVICES.
1.3 RLK's duties DO NOT include any responsibility or duty for
guaranteeing, warranting, directing or overseeing the Client's or the Client's
contractors work methods, safety of the job site, failure to carry out the work
in accordance with contract requirements, timeliness in perfonnance of the
work or any other aspect of construction for which the Client or any
contractor has responsibility, The providing of our services shall not relieve
others of their responsibility to you or to others.
1.4 If required as part of the services, RLK may assist Client in applying for
and obtaining pennits and approvals from governmental units with
jurisdiction over the project. However, RLK cannot be responsible for any
failure to issue, delay, or conditions imposed by such governmental units.
SECTION 2: CLIENT'S RESPONSIBILITIES
2.1 Client shall designate a person to act as the Client's representative with
respect to the services. The Client's designee shall have complete authority
to transmit instructions, receive infonnation, interpret and define the Client's
policies and decisions with respect to the services.
2.2 Client agrees to provide RLK with all known infonnation, conditions,
standards, criteria and objectives which affect the services, and RLK shall be
entitled to rely on the accuracy and completeness of such infonnation.
2.3 Client agrees to provide RLK with access to the site to complete its
services.
2.4 Client shall be responsible for infonning RLK of the presence of any
hazardous or potentially hazardous materials on the site. Under no
circumstances shall RLK be responsible for the release, handling, treatment,
storage or disposal of hazardous materials, and Client shall defend, indemnify
and hold RLK harmless for any claims from any party or governmental
authority related to the presence of hazardous materials.
SECTION 3: DOCUMENTS AND REPORTS
3.1 Documents, diagrams, sketches, surveys, running or field notes,
computer fIles, working drawings, and any other materials created or prepared
by RLK as part of its perfonnance of this Agreement are instruments of
RLK's service for use solely with respect to this project, and RLK shall retain
ownership rights. The Client may retain copies and may use such instruments
of service in connection with Client's use of the project. However, Client
agrees not to alter the instruments of service without the written pennission
ofRLK.
3.2 If Client does not make payment in full as provided in this Agreement,
RLK has no obligation to provide any instruments of service.
SECTION 4: COMPENSATION
4.1 RLK's pricing of this work is predicated upon the Client's acceptance
of the conditions and allocations of risks and responsibilities described in this
Agreement. If there is no other Agreement as to rates and fees, the Client
agrees to pay RLK' s current Hourly Rates for any work done on the Client's
behalf and all reimbursable expenses directly attributable to the project as
listed on Attachment B. An estimate or statement of probable cost is not a
firm figure unless stated as such.
4.2 Unless otherwise agreed in writing, invoices are due and payable upon
receipt. Any invoiced amOtmts outstanding after thirty days will bear interest
at the rate of 1.0% per month (12% per annum), or the maximum pennissible
by applicable law, whichever is less, from the thirtieth day following the date
of the invoice, until paid.
4~3 RLK shall be entitled to recover all attorneys' fees, dispute resolution
fees, court costs and other expenses incurred in the collection or attempted
collection of any amounts due under this Agreement. RLK shall also be
entitled to all costs and expenses incurred in enforcing any portion of this
Agreement, including reasonable attorneys' fees,
SECTION 5: RISK, DISPUTES AND DAMAGES
5.1 Except as provided for in this Agreement, neither party will be liable to
the other for special, incidental, consequential or punitive losses or damages,
including but not limited to damages resulting from delay, loss of use, loss of
profits or revenue, or cost of capital.
5.2 The fee charged by RLK is specifically based upon the services to be
perfonned and a reasonable allowance for risk and are not sufficient to
warrant RLK's assumption of any risk beyond what is set forth herein.
EXCEPT FOR LOSSES AND DAMAGES DUE TO
INTENTIONAL TORTS, THE TOTAL AMOUNT OF
LIABILITY OF RLK, SHALL BE LIMITED TO THE
AMOUNT OF THE FEE PAID BY THE CLIENT FOR THE
PROJECT OR $25,000, WHICHEVER IS GREATER.
5.3 The Client also agrees to indemnify and hold harmless RLK to the fullest
extent pennitted by applicable law against all liability, judgments, and
amounts exceeding $25,000 that were reasonably paid or incurred by RLK for
expenses, costs, attorneys fees, or settlement in any threatened, pending or
completed action, suit or proceeding, including any derivative action, on
account of any alleged acts or omissions as surveyor. The Client further
agrees to obtain insurance, if available, to cover such indemnification
obligations.
SECTION 6: MISCELLANEOUS PROVISIONS
6.1 Neither party may assign this Agreement without the written consent of
the other party, but RLK may enter into subcontracts for portions of the work
upon notice to Client.
6.2 Nothing contained in this Agreement shall create a contractual
relationship with or a cause of action in favor of any third party,
6.3 Each provision of this Agreement is intended to be severable. If any
provision of this Agreement is declared illegal or invalid for any reason, such
illegality or invalidity shall not affect the remainder of this Agreement.
6.4 Any tennination of this Agreement shall not affect any indemnification
or limitation ofliability provisions contained herein,
,
ATTACHMENT B
Professional Enl!ineerinl! Services
Principal Engineer
Sr, Professional Engineers
Professional Engineers
Project Engineers (EIT)
Sr. Engineering Technicians
Engineering Technicians
Engineering Interns
Professional Services Rate Schedule
Effective: July 1,2003 - June 30, 2004
Professional Landscape Architecture Services
Principal Landscape Architect
Landscape Architects
Landscape Designers
Landscape Architect Interns
Professional Plannin!! Services
Principal Planner
Planners
Senior Planners/Economic Development Director
Planning Interns
Professional Land Survevin!! Services
Principal Land Surveyor
Sr. Professional Land Surveyors
Professional Land Surveyors
Land Surveyors In Training
Land Survey Technicians
Land Survey Interns
2-Person Land Survey Crew
3-Person Land Survey Crew
GPS Operators
GPS Equipment Rental
Administrative Assistants
Hourlv Rates
150.00
120.00 - 140.00
85,00 - 105.00
55.00 - 80.00
85,00 - 105,00
45,00 - 75.00
40,00
Hourlv Rates
150.00
75.00 - 115.00
55.00 - 65.00
40.00
Hourlv Rates
150,00
125.00
60,00 - 75.00
40.00
Hourlv Rates
150.00
125.00
95,00 - 115.00
65,00 - 100,00
45,00 - 80.00
40.00
115.00 - 135.00
160.00 - 195.00
100,00
40,00
65.00 - 75.00
45.00
Unless otherwise stated, charges for direct costs for printing and reproduction, special fees, permits, subcontracts and other out-of-
pocket expenses will be calculated on a basis of actual cost plus fifteen (15) percent Mileage, when charged, will be billed at the
current per diem rate as authorized and allowed by the Internal Revenue Service.