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Home My WebLink About06-28-2021 Council Packet EXPANDED AGENDA CITY COUNCIL AGENDA Monday, June 28, 2021 C IT AE&-JO F * * * * INJAKES6:30 p.m. (Scheduled to be broadcast on Channel 16) City Council:Mayor Rafferty, Councilmembers Cavegn,Lyden,Ruhland and Stoesz City Administrator: Sarah Cotton COUNCIL WORK SESSION, 6:00 P.M. Community Room (not televised) 1. Review Regular Agenda CITY COUNCIL MEETING, 6:30 P.M. ➢ Call to Order and Roll Call - Councilmembers Stoesz,Lyden, Cavegn, Ruhland and Mayor Rafferty were present ➢ Pledge of Allegiance ➢ Open Mike/Public Comment (in person or received in writing prior to meeting) There were no comments. ➢ Setting the Agenda: Addition or Deletion of Agenda Items The agenda was approved as presented. PROCLAMATION Proclamation of Appreciation for the Lino Lakes Public Safety Department 1. CONSENT AGENDA A) June 28, 2021 (Check No. 114517 through 114593) in the Amount of $488,881.61 B) Consider Approval of June 7, 2021 Work Session Minutes C) Consider Approval of June 14, 2021 Council Meeting Minutes D) Consider Approval of June 7, 2021 Special Council Minutes E) Consider Approval of June 14, 2021 Work Session Minutes F) Consider Resolution No. 21-61 Approving Site Improvement Performance Agreement for Otter Crossing G) Consider Resolution No. 21-66, Approving Common Interest Agreement, DNR Water Appropriation Permit Amendment Appeal Action Taken: Motion by Ruhland, seconded by Lyden, to approve Consent Agenda Items 1A through 1M as presented,was adopted Council Agenda -2- June 28, 2021 2. FINANCE DEPARTMENT REPORT No report 3. ADMINISTRATION DEPARTMENT REPORT A) Consider Resolution No 21-62, Accepting Recreation and Aquatics Center Feasibility Study, ISG, Michael Grochala Action Taken: Motion by Ruhland, seconded by Stoesz,to approve Resolution No. 21-62 as presented,was adopted B) Consider 2nd Reading of Ordinance No. 06-21, Adjusting the Salaries of the Mayor and Councilmembers, Sarah Cotton Action Taken: Motion by Lyden, seconded by Cavegn, to approve the second reading and adoption of Ordinance No. 06-21 as presented,was adopted C) Consider Approval of Amendment#4 to Lease Agreement with NCCC, LLC (New Creations Child Care), Sarah Cotton Action Taken: Motion by Lyden, seconded by Stoesz, to approve the amendment to the lease agreement as presented,was adopted D) Consider Resolution No. 21-64, Authorizing Execution of Amendment No. 1 to the License Agreement with the State of Minnesota for the Lino Lakes COVID-19 Vaccine Site, Sarah Cotton Action Taken: Motion by Ruhland, seconded by Cavegn, to approve Resolution No. 21-64 as presented,was adopted E) Consider Appointment of Police Officer, Meg Sawyer Action Taken: Motion by Cavegn, seconded by Ruhland,to approve the appointment of Yecheng Eric Hen as recommended,was adopted 4. PUBLIC SAFETY DEPARTMENT REPORT A) Consider Acceptance of Donated Gift Cards, John Swenson Action Taken: Motion by Cavegn, seconded by Ruhland,to approve the acceptance of donated cards as presented,was adopted 5. PUBLIC SERVICES DEPARTMENT REPORT No report 6. COMMUNITY DEVELOPMENT REPORT A) Consider Resolution No. 21-65, Approve Change Order No. 1, 2021 Street Improvement Project, Diane Hankee Action Taken: Motion by Lyden, seconded by Stoesz, to approve Resolution No. 21-65 as presented,was adopted Council Agenda -3- June 28, 2021 7. UNFINISHED BUSINESS None 8. NEW BUSINESS None Adjournment Motion to adjourn by Ruhland, seconded by Cavegn, at 8:05 p.m.,was adopted Following adjournment of the regular meeting, the City Council will reconvene for a closed meeting for the purpose of completing the City Administrator's performance evaluation. Community Calendar—A Look Ahead June 28,2021 through July 12,2021 # Wednesday,June 30 6:30 pm,Council Chambers Environmental Board Thursday,July 1 8:00 am, Community Room EDAC Tuesday,July 6 6:00 pm,Community Room Council Work Session Wednesday,July 7 6:30 pm,Council Chambers Park Board Monday,July 12 6:00 pm,Community Room Council Work Session Monday,July 12 6:30 pm,Council Chambers City Council Meeting Updateed 612512021 CITY COUNCIL AGENDA = Monday, June 28, 2021 C I T Y O F INCj KE 6:30 P.M. (Scheduled to be broadcast on Channel 16) City Council:Mayor Rafferty, Councilmembers Cavegn,Lyden,Ruhland and Stoesz City Administrator: Sarah Cotton COUNCIL WORK SESSION, 6:00 P.M. Community Room (not televised) 1. Review Regular Agenda CITY COUNCIL MEETING, 6:30 P.M. ➢ Call to Order and Roll Call ➢ Pledge of Allegiance ➢ Open Mike/Public Comment (in person or received in writing prior to meeting) ➢ Setting the Agenda: Addition or deletion of agenda items PROCLAMATION Proclamation of Appreciation for the Lino Lakes Public Safety Department 1. CONSENT AGENDA A) June 28, 2021 (Check No. 114517 through 114593) in the Amount of $488,881.61 B) Consider Approval of June 7, 2021 Work Session Minutes C) Consider Approval of June 14, 2021 Council Meeting Minutes D) Consider Approval of June 7, 2021 Special Council Minutes E) Consider Approval of June 14, 2021 Work Session Minutes F) Consider Resolution No. 21-61 Approving Site Improvement Performance Agreement for Otter Crossing G) Consider Resolution No. 21-66, Approving Common Interest Agreement, DNR Water Appropriation Permit Amendment Appeal 2. FINANCE DEPARTMENT REPORT No report 3. ADMINISTRATION DEPARTMENT REPORT A) Consider Resolution No 21-62, Accepting Recreation and Aquatics Center Feasibility Study, ISG, Michael Grochala Council Agenda -2- June 28, 2021 B) Consider 2nd Reading of Ordinance No. 06-21, Adjusting the Salaries of the Mayor and Councilmembers, Sarah Cotton *Council may vote to dispense with the full reading of the ordinance *Roll call vote is required for adoption of the ordinance C) Consider Approval of Amendment#4 to Lease Agreement with NCCC, LLC (New Creations Child Care), Sarah Cotton D) Consider Resolution No. 21-64, Authorizing Execution of Amendment No. 1 to the License Agreement with the State of Minnesota for the Lino Lakes COVID- 19 Vaccine Site, Sarah Cotton E) Consider Appointment of Police Officer, Meg Sawyer 4. PUBLIC SAFETY DEPARTMENT REPORT A) Consider Acceptance of Donated Gift Cards, John Swenson 5. PUBLIC SERVICES DEPARTMENT REPORT No report 6. COMMUNITY DEVELOPMENT REPORT A) Consider Resolution No. 21-65, Approve Change Order No. 1, 2021 Street Improvement Project, Diane Hankee 7. UNFINISHED BUSINESS None 8. NEW BUSINESS None Adjournment Following adjournment of the regular meeting, the City Council will reconvene for a closed meeting for the purpose of completing the City Administrator's performance evaluation. Community Calendar—A Look Ahead June 28,2021 through July 12, 2021 ,i� Wednesday,June 30 6:30 pm, Council Chambers Environmental Board ,1k Thursday, July 1 8:00 am, Community Room EDAC ,1k Tuesday,July 6 6:00 pm, Community Room Council Work Session ,4- Wednesday,July 7 6:30 pm, Council Chambers Park Board Monday,July 12 6:00 pm, Community Room Council Work Session Monday, July 12 6:30 pm, Council Chambers City Council Meeting LIN01"AU, PROCLAMATION OF APPRECIATION FOR THE LINO LAKES PUBLIC SAFETY DEPARTMENT WHEREAS, each and every day the men and women of the Lino Lakes Public Safety Department answer the call to serve and protect our community, while embodying the courage to act selflessly and bravely in the face of danger; and WHEREAS, the professionals of the Lino Lakes Public Safety Department go above and beyond to proactively solve problems and engage with the public through community education initiatives and events; and WHEREAS, the professionals of the Lino Lakes Public Safety Department performed admirably during the COVID-19 pandemic and periods of social unrest; and WHEREAS, today and every day it is fitting to honor police and fire personnel who put their own lives on the line to protect the lives of others. NOW THEREFORE, BE IT RESOLVED that I, Rob Rafferty, Mayor of the City of Lino Lakes, do hereby proclaim for and on behalf of the City of Lino Lakes, Minnesota sincere appreciation and gratitude to the professionals of the Lino Lakes Public Safety Department, which includes Police and Fire, and ask that all citizens join me in giving these dedicated professionals the support and appreciation they deserve. IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of Lino Lakes to be affixed on June 28th, 2021. Rob Rafferty, Mayor Attest: Julie Bartell, City Clerk a4 YYH CITY OF JINCAKES Expenditures June 28, 2021 Check #114517 to #114593 $48801.61 Accounts Payable Check Detail rr User: katie.christofferson C i Tf �+: Printed: 06/23/2021 - 11:12AM LNCJI ICE Check Number Check Date Check Description Amount 13-AFLAC 101-000-2040-000 114517 06/28/2021 Inv 120475 June Insurance Premiums 232.74 114517 Total: 232.74 13-AFLAC Total: 232.74 1595-Allied Oil&Supply,Inc. 114518 06/28/2021 Inv 557226-00 55 gallons diesel exhaust fluid 130.00 114518 Total: 130.00 1595-Allied Oil&Supply,Inc.Total: 130.00 42-Anoka County Property Records&Taxation 114519 06/28/2021 Inv 21-34690 Easement-374 Sioux Lookout 184.00 Inv 21-36959 Quit Claim Deed,Norton-Oaks of Lino L 184.00 Inv 21-38987 Resolution-23 Century TrailDriveway V 92.00 114519 Total: 460.00 42-Anoka County Property Records&'Taxation Total: 460.00 53-Aspen Equipment Company 114520 06/28/2021 Inv 10228914 Plow,Mount,Blade,Trip Springs,Deflec 8,256.00 114520 Total: 8,256.00 53-Aspen Equipment Company Total: 8,256.00 54-Aspen Mills,Inc. 114521 06/28/2021 Inv 275267 Dept Expense-Body Armor carrier 849.00 114521 Total: 849.00 54-Aspen Mills,Inc.Total: 849.00 AP-Check Detail(6/23/2021-11:12 AM) Page 1 Check Number Check Date Check Description Amount 60-Avon Business Forms&Promotions 114522 06/28/2021 Inv 3644 500 Correction Notices 231.96 114522 Total: 231.96 60-Avon Business Forms&Promotions Total: 231.96 85-Bluetarp Financial,Inc. 114523 06/28/2021 Inv 326595 Trailer Lights#702 21.98 114523 Total: 21.98 85-Bluetarp Financial,Inc.Total: 21.98 1030-CCP Industries 114524 06/28/2021 Inv IN02776106 Seasonal Employee Uniforms 642.30 114524 Total: 642.30 1030-CCP Industries Total: 642.30 123-Chain of Lakes Rotary Club 114525 06/28/2021 Inv 2021-2022 Chain of Lakes Rotary Club Membership Du 480.00 114525 Total: 480.00 123-Chain of Lakes Rotary Club Total: 480.00 1670-Concrete Coatings of Minnesota 114526 06/28/2021 Inv 1436 PD Locker Room Remodel 6,412.50 114526 Total: 6,412.50 1670-Concrete Coatings of Minnesota Total: 6,412.50 1278-Core&Main LP 114527 06/28/2021 Inv 0250512 Water main repair supplies 4,770.65 Inv 0260996 Water main repair supplies 1,927.59 114527 Total: 6,698.24 1278-Core&Main LP Total: 6,698.24 AP-Check Detail(6/23/2021-11:12 AM) Page 2 Check Number Check Date Check Description Amount 157-Crown Marking,Inc. 114528 06/28/2021 Inv OE-82276 Name Plates-M.Eng and W.Kusterman 37.09 114528 Total: 37.09 157-Crown Marking,Inc.Total: 37.09 1757-Davis,Phillip 114529 06/28/2021 Inv 6/15/2021 Organic Site Tours 60.20 114529 Total: 60.20 1757-Davis,Phillip Total: 60.20 1768-Dickhudt,Gene 114530 06/28/2021 Inv 6/9/2021 Smart Irrigation Controller Return 50.88 114530 Total: 50.88 1768-Dickhudt,Gene Total: 50.88 1635-Dusty's Drain Cleaning 114531 06/28/2021 Inv D21-062 Excavated hole at curbstop-6498 12th A 3,250.00 114531 Total: 3,250.00 1635-Dusty's Drain Cleaning Total: 3,250.00 192-Emergency Apparatus Maintenance 114532 06/28/2021 Inv 118938 Repairs to#611 1,093.05 114532 Total: 1,093.05 192-Emergency Apparatus Maintenance Total: 1,093.05 202-Evenson,Neil 101-416-4331-000 114533 06/28/2021 Inv Q22021 2nd Qtr 2021 Stipend 150.00 114533 Total: 150.00 202-Evenson,Neil Total: 150.00 204-Factory Motor Parts Company 114534 06/28/2021 AP-Check Detail(6/23/2021-11:12 AM) Page 3 Check Number Check Date Check Description Amount Inv 159-050209 Battery Core Return -27.80 Inv 159-050660 Starter Assembly#308 91.75 Inv 159-050815 Rear brake caliper guide pins#399 19.36 Inv 159-051257 Brake Caliper#382 380.20 Inv 1-6946481 Oxygen sensor#303 69.92 Inv 1-6955936 Police SUV Brake Rotors 341.04 114534 Total: 874.47 204-Factory Motor Parts Company Total: 874.47 1302-Fire Instruction Rescue Education 114535 06/28/2021 Inv 5073 Multiple Fire Training Courses 4,770.00 114535 Total: 4,770.00 1302-Fire Instruction Rescue Education Total: 4,770.00 UB*00089-FREDERICK,LUKE&JANELLE 114536 06/28/2021 Inv Refund Check 015807-000,6443 LAKOTA TR 101.99 114536 Total: 101.99 UB*00089-FREDERICK,LUKE&JANELLE Total: 101.99 UB*00087-GILBERTSON,MATTHEW&MARIE 114537 06/28/2021 Inv Refund Check 016955-000,53 ELM ST 88.47 114537 Total: 88.47 UB*00087-GILBERTSON,MATTHEW&MARIE Total: 98.47 902-Goodcr,Clark J. 101-450-4331-000 114538 06/28/2021 Inv Q22021 2nd Qtr 2021 Stipend 150.00 114538 Total: 150.00 902-Gooder,Clark J.Total: 150.00 1230-Hamann,Nathan 114539 06/28/2021 Inv 5/28/2021 Training Expense Reimbursement-Bag Fee 460.29 114539 Total: 460.29 1230-Hamann,Nathan Total: 460.29 AP-Check Detail(6/23/2021-11:12 AM) Page 4 Check Number Check Date Check Description Amount 1222-Haworth,Abby 101-450-4331-000 114540 06/28/2021 Inv Q22021 2nd Qtr 2021 Stipend 150.00 114540 Total: 150.00 1222-Haworth,Abby Total: 150.00 297-Huelman,Patrick H. 101-450-4331-000 114541 06/28/2021 Inv Q22021 2nd Qtr 2021 Stipend 200.00 114541 Total: 200.00 297-Huelman,Patrick H.Total: 200.00 298-Hugo Equipment Company 114542 06/28/2021 Inv 165698 Semi Chisel Chain 35.98 Inv 167935 Screw and gasket 13.97 114542 Total: 49.95 298-Hugo Equipment Company Total: 49.95 304-Hydraulics Plus&Consulting 114543 06/28/2021 Inv 14220 Auger motor rebuild#210 597.75 114543 Total: 597.75 304-Hydraulics Plus&Consulting Total: 597.75 306-Image Printing&Graphics,Inc 114544 06/28/2021 Inv 158904 Qty 300-Water Restriction Door Hangers 77.50 114544 Total: 77.50 306-Image Printing&Graphics,Inc Total: 77.50 1177-Innovative Office Solutions LLC 114545 06/28/2021 Inv SUM-061516 Pens,Toner,Batteries.,Duster,Lanyard 376.90 114545 Total: 376.90 1177-Innovative Office Solutions LLC Total: 376.90 AP-Check Detail(6/23/2021-11:12 AM) Page 5 Check Number Check Date Check Description Amount 326-Jensen,Richard 101-450-4331-000 114546 06/28/2021 Inv Q22021 2nd Qtr 2021 Stipend 75.00 114546 Total: 75.00 326-Jensen,Richard Total: 75.00 UB*00090-KAISER,MICHAEL&ESTER 114547 06/28/2021 Inv Refund Check 015252-000,6510 HOKAH DR 5.29 114547 Total: 5.29 UB*00090-KAISER,MICHAEL&ESTER Total: 5.29 1745-Kusterman,William 114548 06/28/2021 Inv Q22021 2nd Qtr 2021 Stipend 150.00 114548 Total: 150.00 1745-Kusterman,William Total: 150.00 356-Laden,Perry 101-416-4331-000 114549 06/28/2021 Inv Q22021 2nd Qtr 2021 Stipend 225.00 114549 Total: 225.00 356-Laden,Perry Total: 225.00 1708-Landbridge Ecological 114550 06/28/2021 Inv 370 Preserve Conservation Area Work 11,200.00 114550 Total: 11,200.00 1708-Landbridge Ecological Total: 11,200.00 359-Landform 114551 06/28/2021 Inv 31732 Zoning Ordinance and Map Update 3,795.50 114551 Total: 3,795.50 359-Landform Total: 3,795.50 370-League of MN Cities Insurance Trust 114552 06/28/2021 AP-Check Detail(6/23/2021-11:12 AM) Page 6 Check Number Check Date Check Description Amount Inv 2020-2021P&C-2 Property&Casualty Ins-RecFacility 3,793.00 114552 Total: 3,793.00 370-League of MN Cities Insurance Trust Total: 3,793.00 UB*00088-LEVOIR,JAMES 114553 06/28/2021 Inv Refund Check 005145-000,7269 HEATHER C 15.96 114553 Total: 15.96 UB*00088-LEVOIR,JAMES Total: 15.96 418-Menards-Forest Lake 114554 06/28/2021 Inv 63832 PD Locker Room Remodel-Shower head rep 77.52 Inv 64141 Irrigation Repair Supplies 49.94 114554 Total: 127.46 418-Menards-Forest Lake Total: 127.46 423-Met Council Environmental Services 602-495-4405-000 114555 06/28/2021 Inv 0001125457 July Waste Water Services 82,374.02 114555 Total: 82,374.02 423-Met Council Environmental Services Total: 82,374.02 421-Metro Sales Incorporated 114556 06/28/2021 Inv INV 1827033 Copier Maintenance Contract Ricoh/MP 405 36.00 114556 Total: 36.00 421-Metro Sales Incorporated Total: 36.00 477-NAC Mechanical&Electrical 114557 06/28/2021 Inv 184642 Annual RPZ Maintenance Invoice 2,170.00 114557 Total: 2,170.00 477-NAC Mechanical&Electrical Total: 2,170.00 490-Nordlund,John 101-450-4331-000 114558 06/28/2021 Inv Q22021 2nd Qtr 2021 Stipend 150.00 AP-Check Detail(6/23/2021-11:12 AM) Page 7 Check Number Check Date Check Description Amount 114558 Total: 150.00 490-Nordlund,John Total: 150.00 1766-North Star Towing&Service Center Inc 114559 06/28/2021 Inv 78590 Towing-Flat Tire#392 125.00 114559 Total: 125.00 1766-North Star Towing&Service Center Inc Total: 125.00 508-Optum 114560 06/28/2021 Inv 10199057074 May Retiree&Cobra Fees 90.00 114560 Total: 90.00 508-Optum Total: 90.00 509-O'Reilly Automotive Stores 114561 06/28/2021 Inv 5914-158891 Oil Filters 30.11 Inv 5914-159179 Super glue 5.38 Inv 5914-160110 Hi-Power Belt#409 33.24 Inv 5914-160213 Oil Filters 45.36 Inv 5914-160346 Oil Filters#256 62.53 Inv 5914-161802 Brake Fluid 17.98 114561 Total: 194.60 509-O'Reilly Automotive Stores Total: 194.60 1509-Pace Systems,Inc. 114562 06/28/2021 Inv IN00036742 Pace Scheduler Software 2,400.00 114562 Total: 2,400.00 1509-Pace Systems,Inc.Total: 2,400.00 1225-Paulson,Mathew 114563 06/28/2021 Inv 5/28/2021 Hotels for Training 982.71 114563 Total: 982.71 1225-Paulson,Mathew Total: 982.71 AP-Check Detail(6/23/2021-11:12 AM) Page 8 Check Number Check Date Check Description Amount 532-Philip's Tree Care 114564 06/28/2021 Inv 12938 Fertilizer&broadleaf weed control 879.41 114564 Total: 879.41 532-Philip's Tree Care Total: 879.41 546-Pomp's Tire Service,Inc. 114565 06/28/2021 Inv 150143035 20 Police SUV Tires 2,853.00 Inv 150143189 Mount and balance 6 new tires#256 2,088.12 Inv 980080597 Tires#135 965.76 114565 Total: 5,906.88 546-Pomp's Tire Service,Inc.Total: 5,906.88 1632-Prairie Restorations,Inc. 114566 06/28/2021 Inv 28455 Site Spray-Final Spray 632.51 114566 Total: 632.51 1632-Prairie Restorations,Inc.Total: 632.51 551-Premium Waters,Inc. 101-432-4410-500 114567 06/28/2021 Inv 318146474 5-Kandiyohi 5 gallon water 39.74 114567 Total: 39.74 551-Premium Waters,Inc.Total: 39.74 552-Press Publications,Inc. 114568 06/28/2021 Inv 704334 Council work session change of meeting t 30.72 114568 Total: 30.72 552-Press Publications,Inc.Total: 30.72 1634-Quadient,Inc. 114569 06/28/2021 Inv 6/14/2021 Postage machine postage 500.00 114569 Total: 500.00 1634-Quadient,Inc.Total: 500.00 AP-Check Detail(6/23/2021-11:12 AM) Page 9 Check Number Check Date Check Description Amount 1184-Redpath and Company 114570 06/28/2021 Inv 150462702 2020 Audit 35,500.00 114570 Total: 35,500.00 1184-Redpath and Company Total: 35,500.00 1044-Reinert,Jeffrey A. 114571 06/28/2021 Inv Q22021 2nd Qtr 2021 Stipend 225.00 114571 Total: 225.00 1044-Reinert,Jeffrey A.Total: 225.00 1480-Rocking S Horse Company 801-000-2300-000 114572 06/28/2021 Inv 6/7/2021 Escrow Closure Nordstrom-Schienbein Mino 1,510.95 114572 Total: 1,510.95 1480-Rocking S Horse Company Total: 1,510.95 582-Root,Michael 101-416-4331-000 114573 06/28/2021 Inv Q22021 2nd Qtr 2021 Stipend 225.00 114573 Total: 225.00 582-Root,Michael Total: 225.00 1410-Rupp,Anderson,Squires&Waldspurger,P.A. 114574 06/28/2021 Inv 12909 Bald Eagle Addition 6,083.68 114574 Total: 6,083.68 1410-Rupp,Anderson,Squires&Waldspurger,P.A.Total: 6,083.68 632-S&P Global Ratings 114575 06/28/2021 Inv 11415957 Rating Agency Fee 9,738.00 114575 Total: 9,738.00 632-S&P Global Ratings Total: 9,738.00 1578-SBRK Finance Holdings,Inc 114576 06/28/2021 AP-Check Detail(6/23/2021-11:12 AM) Page 10 Check Number Check Date Check Description Amount Inv INV-006448 May UB Web Payments Trans Fee/Active Acc 651.00 114576 Total: 651.00 1578-SBRK Finance Holdings,Inc Total: 651.00 609-SHI International Corp 114577 06/28/2021 Inv B13595747 Microsoft Office Pro License-J Eller 365.00 114577 Total: 365.00 609-SHI International Corp Total: 365.00 1465-St.Cloud State University 114578 06/28/2021 Inv 629430-8595 Tuition-M.Paulson 595.00 114578 Total: 595.00 1465-St.Cloud State University Total: 595.00 634-Staples Business Credit 114579 06/28/2021 Inv 1635899714 Office chair-M.DeMars 232.99 114579 Total: 232.99 634-Staples Business Credit Total: 232.99 651-T.A.Schifsky and Sons,Inc. 114580 06/28/2021 Inv 17006-000-3 2021 Street Improvement Projects 184,398.25 114580 Total: 184,398.25 651-T.A.Schifsky and Sons,Inc.Total: 184,398.25 655-TASC-Client Invoices 114581 06/28/2021 Inv IN2037276 May Admin Fees 100.50 114581 Total: 100.50 655-TASC-Client Invoices Total: 100.50 659-Tessman Company 114582 06/28/2021 Inv S337149-IN Glyphosate Plus 86.62 AP-Check Detail(6/23/2021-11:12 AM) Page 11 Check Number Check Date Check Description Amount 114582 Total: 86.62 659-Tessman Company Total: 86.62 1761-T-Mobile USA Inc 114583 06/28/2021 Inv May 2021 Phone&Internet 469.14 114583 Total: 469.14 1761-T-Mobile USA Inc Total: 469.14 670-Tralle,Paul 101-416-4331-000 114584 06/28/2021 Inv Q22021 2nd Qtr 2021 Stipend 300.00 114584 Total: 300.00 670-Tralle,Paul Total: 300.00 1767-TreeBiz LLC 114585 06/28/2021 Inv 959 Arrow100-KIT,GPS Receiver,antenna,cab 3,010.00 114585 Total: 3,010.00 1767-TreeBiz LLC Total: 3,010.00 687-U.S.Bank Visa 114586 06/28/2021 Inv 6/18/2021 Urban Carry Holsters/Uniform Allowance- 27,131.99 114586 Total: 27,131.99 687-U.S.Bank Visa Total: 27,131.99 1633-Vojtech,Nathan 101-416-433 1-000 114587 06/28/2021 Inv Q22021 2nd Qtr 2021 Stipend 150.00 114587 Total: 150.00 1633-Vojtech,Nathan Total: 150.00 729-Winnick Supply,Inc. 114588 06/28/2021 Inv 430875 Supplies for toilet and sink repair 182.04 114588 Total: 182.04 AP-Check Detail(6/23/2021-11:12 AM) Page 12 Check Number Check Date Check Description Amount 729-Winnick Supply,Inc.Total: 182.04 731-Wipers&Wipes,Inc. 114589 06/28/2021 Inv OE-572975-1 Paper towels and tissues 342.93 114589 Total: 342.93 731-Wipers&Wipes,Inc.Total: 342.93 1718-Wipperfurth,Isaac 114590 06/28/2021 Inv Q22021 2nd Qtr 2021 Stipend 150.00 114590 Total: 150.00 1718-Wipperfurth,Isaac Total: 150.00 733-WSB&Associates,Inc. 114591 06/28/2021 Inv 0-002988-560-34 April Saddle Club 4th Addition 270.25 Inv R-011560-000-17 April Main Street Shoppes 2ndAddition 496.00 Inv R-012365-000-27 April Lyngblomsten Senior Housing 2,575.50 Inv R-012443-000-32 April Watermark 1st Addition 300.00 Inv R-012468-000-27 April Lino Lakes Storage 309.75 Inv R-012469-000-30 April Eastside Villas 209.50 Inv R-013084-000-28 April NE Drainage ImprovememProject 946.25 Inv R-013091-000-30 April Water Tower No.3 673.00 Inv R-013912-000-21 April Well House No.1 Rehabilitation 2,268.00 Inv R-014757-000-20 April Watermark 2nd Addition 1,100.50 Inv R-014846-000-9 April Stern Addition 492.00 Inv R-015120-000-4 April Otter Lake Road Preliminary Design 1,576.00 Inv R-015306-000-17 April Nadeau Acres 342.00 Inv R-015601-000-11 April MS4 Services 4,372.50 Inv R-015628-000-15 April Watermark 3rd Addition 2,630.00 Inv R-016201-000-9 April Laborer's Training Center 725.50 Inv R-016587-000-5 April Lino B-Otter Crossing 4,075.00 Inv R-016591-000-7 April 2021 Birch Street Watermain Improv 488.00 Inv R-017006-000-7 April 2021 Street ImprovementProjects 9,958.00 Inv R-017210-000-5 April 77th Street FeasibilityReport Ame 327.50 Inv R-017363-000-5 April Watermark 4th Addition 3,267.75 Inv R-017371-000-4 April 2021 General Engineering Services 7,400.00 Inv R-017372-000-4 April Meadow View 1,182.00 Inv R-017373-000-4 April 2021 Private Utility Permits 984.00 Inv R-017374-000-4 April School District Mapping 4,935.00 Inv R-017458-000-4 April 2021 Tower Park Site Improvements 3,238.50 Inv R-017505-000-2 April 2021 Surface Water Maintenance Pro 380.00 Inv R-017517-000-3 April Risk Assessment and Emergency Resp 390.00 Inv R-017518-000-4 April Storm Water Utility 2,205.75 Inv R-017644-000-3 April 2021 Special Economic Development 925.50 Inv R-017704-000-2 April 2021 Trail Maintenance Project 1,183.50 Inv R-017706-000-2 April 2021 Street MaintenanceProject 2,592.50 AP-Check Detail(6/23/2021-11:12 AM) Page 13 Check Number Check Date Check Description Amount Inv R-017853-000-2 April FEMA Draft Floodplain Map Review 2 643.50 Inv R-018131-000-1 April Nadeau Acres 2nd Addition 901.50 114591 Total: 64,364.75 733-WSB&Associates,Inc.Total: 64,364.75 743-Ziegler,Inc. 114592 06/28/2021 Inv 5O000384952 Oil Filter#266 19.34 Inv 5O00245302 A/C Compressor Relay#251 47.37 114592 Total: 66.71 743-Ziegler,Inc.Total: 66.71 1747-Zilka,James 114593 06/28/2021 Inv Q22021 2nd Qtr 2021 Stipend 150.00 114593 Total: 150.00 1747-Zilka,James Total: 150.00 Total: 488,881.61 AP-Check Detail(6/23/2021-11:12 AM) Page 14 City of Lino Lakes Activity Codes Code Description Code Description 401 Mayor/Council 817 Spring Fling 402 Administration 818 Winter Festival 403 Elections 819 Community Gardens 404 Cable TV 822 Family Corn Roast 405 Charter Administration 827 Gobbler Games 407 Finance 830 Adult Golf Lessons 414 Legal Consultants 835 Youth Skating Class 415 Economic Development 850 Golf Academy 416 Planning & Zoning 856 Youth Soccer 417 Engineering 857 Soccer Fundamentals 418 Community Development 860 Secret Shop 420 Police Protection 864 Preschool Playtime 421 Fire Protection 868 Little Goblins Party 422 Building Inspections 871 Flag Football 430 Streets 875 Snow Day 431 Fleet Management 876 Kite Day 432 Government Buildings 877 Rockin' in the Park 450 Parks 879 Movies in the Park 451 Recreation 890 Senior Programs 461 Environmental 462 Solid Waste Abatement 463 Forestry 494 Water 495 Sanitary Sewer 499 Other 802 Dodgeball Camp 806 Youth T-Ball 808 Youth Baseball Camp 810 Youth Playground 811 Youth Safety Camp 812 Youth Art Camps 814 Senior Programs/Book Club -� AP Checks by Account Number 6/28/2021 City Council Meeting C I T Y O F IN KES Vendor Fund/Dept Account Amount Check# Description AFLAC 101-000 101-000-2040-000 232.74 114517 June Insurance Premiums Anoka County Property Records&Taxation 101-000 101-000-2081-000 46.00 114519 Easement-374 Sioux Lookout Anoka County Property Records&Taxation 101-000 101-000-2081-000 46.00 114519 Easement-6684 Ruffed Grouse Rd Anoka County Property Records&Taxation 101-000 101-000-2081-000 46.00 114519 Easement-2027 Red Oak Ln Anoka County Property Records&Taxation 101-000 101-000-2081-000 46.00 114519 Easement-6500 Fawn Lane Anoka County Property Records&Taxation 101-000 101-000-2081-000 46.00 114519 Agreement-7284 Watermark Way U.S.Bank Visa 101-000 101-000-3730-000 -891.02 114586 U.S.Bank Rebate 101-000 Total -428.28 U.S.Bank Visa 101-401 101-401-4900-000 600.00 114586 Chipotle/Employee Appreciation Lunch 101-401 Total 600.00 Optum 101-402 101-402-4310-000 90.00 114560 May Retiree&Cobra Fees U.S.Bank Visa 101-402 101-402-4330-000 275.00 114586 MCFOA Annual Conference/Attendance L.Hogstad-Osterhues Press Publications Inc. 101-402 101-402-4340-000 30.72 114568 Council work session change of meeting time U.S.Bank Visa 101-402 101-402-4340-000 24.00 114586 Facebook/Employment Opportunity Advertising TASC-Client Invoices 101-402 101-402-4410-000 100.50 114581 May Admin Fees Chain of Lakes Rotary Club 101-402 101-402-4452-000 480.00 114525 Chain of Lakes Rotary Club Membership Dues U.S.Bank Visa 101-402 101-402-4452-000 46.00 114586 MCFOA/Annual Membership-L.Hogstad-Osterhues U.S.Bank Visa 101-402 101-402-4452-000 225.00 114586 GFOA/Annual Membership-S.Cotton 101-402 Total 1,271.22 Redpath and Company 101-407 101-407-4308-000 11,715.00 114570 2020 Audit SHI International Corp 101-407 101-407-4310-000 365.00 114577 Microsoft Office Pro License-J Eller 101-407 Total 12,080.00 Rupp Anderson Squires&Waldspurger P.A. 101-414 101-414-4301-000 1,840.00 114574 Miscellaneous Legal 101-414 Total 1,840.00 Rupp Anderson Squires&Waldspurger P.A. 101-415 101-415-4300-000 640.00 114574 Vaquero Ventures Land Sales WSB&Associates Inc. 101-415 101-415-4300-000 925.50 114591 April 2021 Special Economic Development Projects 101-415 Total 1,565.50 Rupp Anderson Squires&Waldspurger P.A. 101-416 101-416-4300-000 1,003.68 114574 Miscellaneous Legal WSB&Associates Inc. 101-416 101-416-4300-000 484.00 114591 April City Street Map WSB&Associates Inc. 101-416 101-416-4300-000 121.00 114591 April General Engineering-Saddle Club LOMR WSB&Associates Inc. 101-416 101-416-4300-000 363.00 114591 April School District Mapping Evenson Neil 101-416 101-416-4331-000 150.00 114533 2nd Qtr 2021 Stipend Laden Perry 101-416 101-416-4331-000 225.00 114549 2nd Qtr 2021 Stipend Reinert Jeffrey A. 101-416 101-416-4331-000 225.00 114571 2nd Qtr 2021 Stipend Root Michael 101-416 101-416-4331-000 225.00 114573 2nd Qtr 2021 Stipend Tralle Paul 101-416 101-416-4331-000 300.00 114584 2nd Qtr 2021 Stipend Vojtech Nathan 101-416 101-416-4331-000 150.00 114587 2nd Qtr 2021 Stipend Wipperfurth Isaac 101-416 101-416-4331-000 150.00 114590 2nd Qtr 2021 Stipend 101-416 Total 3,396.68 WSB&Associates Inc. 101-417 101-417-4300-000 76.00 114591 April Record Plan Updates Datalink WSB&Associates Inc. 101-417 101-417-4300-000 327.50 114591 April 77th Street Feasibility Report Amendment WSB&Associates Inc. 101-417 101-417-4300-000 984.00 114591 April 2021 Private Utility Permits WSB&Associates Inc. 101-417 101-417-4300-000 1,576.00 114591 April Otter Lake Road Preliminary Design/Concept Layout WSB&Associates Inc. 101-417 101-417-4410-000 5,180.00 114591 April 2021 General Engineering Services TreeBizLLC 101-417 101-417-5000-000 3,010.00 114585 Arrow100-KIT GPS Receiver antenna cables case charger hat 101-417 Total 11,153.50 WSB&Associates Inc. 101-418 101-418-4300-000 295.00 114591 April Datalink Feedback Add-On 101-418 Total 295.00 U.S.Bank Visa 101-420 101-420-4200-000 35.89 114586 Vistaprint/BusinessCards-A.Hallin U.S.Bank Visa 101-420 101-420-4200-000 112.50 114586 MN Chiefs of Police Association/Handgun Permits U.S.Bank Visa 101-420 101-420-4200-000 39.88 114586 Amazon/Camera and microphone for Investigative Tech office U.S.Bank Visa 101-420 101-420-4200-000 33.73 114586 Adobe/Redaction subscription-Investigative Tech CN#21092057 U.S.Bank Visa 101-420 101-420-4200-000 24.80 114586 Amazon/Keyboard and mouse replacement in detention facility U.S.Bank Visa 101-420 101-420-4211-000 11.15 114586 Amazon/LLPD Firearm Armoer Equipment U.S.Bank Visa 101-420 101-420-4211-000 28.50 114586 Amazon/LLPD Firearm Armoer Equipment U.S.Bank Visa 101-420 101-420-4300-000 75.00 114586 MN BCA/Tuition-A.Halverson U.S.Bank Visa 101-420 101-420-4321-000 97.09 114586 Verizon Wireless Phone&Internet U.S.Bank Visa 101-420 101-420-4321-000 1,787.45 114586 Verizon Wireless Phone&Internet U.S.Bank Visa 101-420 101-420-4321-000 1,787.45 114586 Verizon Wireless Phone&Internet Hamann Nathan 101-420 101-420-4330-000 460.29 114539 Training Expense Reimbursement-Bag Fee and Rental Car Paulson Mathew 101-420 101-420-4330-000 982.71 114563 Hotels for Training St.Cloud State University 101-420 101-420-4330-000 595.00 114578 Tuition-M.Paulson U.S.Bank Visa 101-420 101-420-4330-000 14.36 114586 Caribou/Meal while attending training-N.Hamann&M.Paulson Page 1 -� AP Checks by Account Number 6/28/2021 City Council Meeting C I T Y O F IN KES Vendor Fund/Dept Account Amount Check# Description U.S.Bank Visa 101-420 101-420-4330-000 10.00 114586 Chipotle/Meal while attending training-N.Hamann&M.Paulson U.S.Bank Visa 101-420 101-420-4330-000 32.00 114586 PF Changs/Meal while attending training-N.Hamann&M.Paulson U.S.Bank Visa 101-420 101-420-4330-000 23.15 114586 Shake Shack/Meal while attending training-N.Hamann&M.Paulson U.S.Bank Visa 101-420 101-420-4330-000 55.43 114586 Costco/Meal while attending training-N.Hamann&M.Paulson U.S.Bank Visa 101-420 101-420-4330-000 26.77 114586 Firehouse/Meal while attending training-N.Hamann&M.Paulson U.S.Bank Visa 101-420 101-420-4330-000 199.00 114586 Calibre Press Training/Tuition-M.Carlson U.S.Bank Visa 101-420 101-420-4330-000 -95.00 114586 Dolan Consulting/Refund Tuition-W.Owens U.S.Bank Visa 101-420 101-420-4330-000 40.00 114586 Valle Luna/Meal while attending training-N.Hamann&M.Paulson U.S.Bank Visa 101-420 101-420-4330-000 28.52 114586 Circle K/Fuel for rental vehicle during training U.S.Bank Visa 101-420 101-420-4330-000 129.00 114586 Calibre Press Training/Tuition-A.Ng U.S.Bank Visa 101-420 101-420-4330-000 19.13 114586 In N Out/Meal while attending training-N.Hamann&M.Paulson U.S.Bank Visa 101-420 101-420-4330-000 156.00 114586 Park MSP/Parking to attend training U.S.Bank Visa 101-420 101-420-4330-000 16.51 114586 Chipotle/Meal while attending training-N.Hamann&M.Paulson U.S.Bank Visa 101-420 101-420-4330-000 45.00 114586 Dolan Consulting/Tuition-K.Leibel U.S.Bank Visa 101-420 101-420-4330-000 32.45 114586 Knuckle/Meal while attending training-N.Hamann&M.Paulson Aspen Mills Inc. 101-420 101-420-4370-000 849.00 114521 Dept Expense-Body Armor carrier U.S.Bank Visa 101-420 101-420-4370-000 94.44 114586 Galls/Backorderd pants M.Carlson U.S.Bank Visa 101-420 101-420-4370-000 96.48 114586 5.11 Tactical/Uniform Allowance-1.Swenson U.S.Bank Visa 101-420 101-420-4370-000 149.95 114586 Amazon/Uniform Allowance-K.Leibel U.S.Bank Visa 101-420 101-420-4370-000 162.93 114586 Amazon/Uniform Allowance-K.Leibel U.S.Bank Visa 101-420 101-420-4370-000 141.30 114586 Urban Carry Holsters/Uniform Allowance-M.Carlson U.S.Bank Visa 101-420 101-420-4370-000 264.20 114586 5.11 Tactical/Uniform Allowance-1.Swenson U.S.Bank Visa 101-420 101-420-4370-000 89.44 114586 NeoMag/Uniform Allowance-M.Carlson Metro Sales Incorporated 101-420 101-420-4410-000 36.00 114556 Copier Maintenance Contract Ricoh/MP 40555P North Star Towing&Service Center Inc 101-420 101-420-4410-000 125.00 114559 Towing-Flat Tire#392 Pace Systems Inc. 101-420 101-420-4410-000 2,400.00 114562 Pace Scheduler Software U.S.Bank Visa 101-420 101-420-4410-000 22.49 114586 Adobe/Subscription Adobe Premier for internal video redaction U.S.Bank Visa 101-420 101-420-4410-000 -22.49 114586 Adobe/Refund for Premier Subscription 101-420 Total 11,212.50 U.S.Bank Visa 101-421 101-421-4211-000 99.80 114586 LTG Power Equipment/Trufuel WSB&Associates Inc. 101-421 101-421-4300-000 692.00 114591 April Fire Station Drive Time Map U.S.Bank Visa 101-421 101-421-4321-000 146.54 114586 Verizon Wireless Phone&Internet U.S.Bank Visa 101-421 101-421-4321-000 146.54 114586 Verizon Wireless Phone&Internet Fire Instruction Rescue Education 101-421 101-421-4330-000 4,770.00 114535 Multiple Fire Training Courses U.S.Bank Visa 101-421 101-421-4330-000 9,000.00 114586 Blue Card/Tuition-B.Finke&Fronke-MBFTE Reimburseable 101-421 Total 14,854.88 Avon Business Forms&Promotions 101-422 101-422-4200-000 231.96 114522 500 Correction Notices U.S.Bank Visa 101-422 101-422-4200-000 53.58 114586 Amazon/Phone case and chargers for prior temporary inspector T-Mobile USA Inc 101-422 101-422-4321-000 132.85 114583 Phone&Internet U.S.Bank Visa 101-422 101-422-4321-000 110.11 114586 Verizon Wireless Phone&Internet U.S.Bank Visa 101-422 101-422-4321-000 105.13 114586 Verizon Wireless Phone&Internet 101-422 Total 633.63 CCP Industries 101-430 101-430-4211-000 642.30 114524 Seasonal Employee Uniforms Hugo Equipment Company 101-430 101-430-4240-000 35.98 114542 Semi Chisel Chain U.S.Bank Visa 101-430 101-430-4240-000 162.41 114586 The Home Depot/Square impact tape measure torch medium cutter U.S.Bank Visa 101-430 101-430-4240-000 -162.41 114586 The Home Depot/Square impact tape measure torch medium cutter U.S.Bank Visa 101-430 101-430-4240-000 151.61 114586 The Home Depot/Square impact tape measure torch medium cutter T-Mobile USA Inc 101-430 101-430-4321-000 89.85 114583 Phone&Internet U.S.Bank Visa 101-430 101-430-4321-000 -36.23 114586 Verizon Wireless Phone&Internet U.S.Bank Visa 101-430 101-430-4321-000 41.51 114586 Verizon Wireless Phone&Internet 101-430 Total 925.02 U.S.Bank Visa 101-431 101-431-4211-000 302.50 114586 Holiday Station/May Carwashes U.S.Bank Visa 101-431 101-431-4212-000 76.70 114586 Bill's Superette/Non-oxy fuel U.S.Bank Visa 101-431 101-431-4212-000 12.64 114586 Bill's Superette/Non-oxy fuel#312 U.S.Bank Visa 101-431 101-431-4212-000 16.79 114586 Bill's Superette/Non-oxy fuel#312 Allied Oil&Supply Inc. 101-431 101-431-4221-000 130.00 114518 55 gallons diesel exhaust fluid Bluetarp Financial Inc. 101-431 101-431-4221-000 21.98 114523 Trailer Lights#702 Factory Motor Parts Company 101-431 101-431-4221-000 341.04 114534 Police SUV Brake Rotors Factory Motor Parts Company 101-431 101-431-4221-000 -27.80 114534 Battery Core Return Factory Motor Parts Company 101-431 101-431-4221-000 69.92 114534 Oxygen sensor#303 Factory Motor Parts Company 101-431 101-431-4221-000 19.36 114534 Rear brake caliper guide pins#399 Factory Motor Parts Company 101-431 101-431-4221-000 380.20 114534 Brake Caliper#382 Factory Motor Parts Company 101-431 101-431-4221-000 91.75 114534 Starter Assembly#308 Page 2 -� AP Checks by Account Number 6/28/2021 City Council Meeting C I T AA1 O F KES Vendor Fund/Dept Account Amount Check# Description Hydraulics Plus&Consulting 101-431 101-431-4221-000 597.75 114543 Auger motor rebuild#210 O'Reilly Automotive Stores 101-431 101-431-4221-000 17.98 114561 Brake Fluid O'Reilly Automotive Stores 101-431 101-431-4221-000 62.53 114561 Oil Filters#256 O'Reilly Automotive Stores 101-431 101-431-4221-000 33.24 114561 Hi-Power Belt#409 O'Reilly Automotive Stores 101-431 101-431-4221-000 30.11 114561 Oil Filters O'Reilly Automotive Stores 101-431 101-431-4221-000 5.38 114561 Super glue O'Reilly Automotive Stores 101-431 101-431-4221-000 45.36 114561 Oil Filters Pomp's Tire Service Inc. 101-431 101-431-4221-000 2,853.00 114565 20 Police SUV Tires Pomp's Tire Service Inc. 101-431 101-431-4221-000 965.76 114565 Tires#135 U.S.Bank Visa 101-431 101-431-4221-000 471.78 114586 Amazon/2-1/2"Pintle Mount and combination hitch for trailers U.S.Bank Visa 101-431 101-431-4221-000 388.92 114586 Nat'l Fleet Parts/3 sets of front brakes and 3 sets rear brakes U.S.Bank Visa 101-431 101-431-4221-000 450.72 114586 Amazon/6 rear brakes for 2013-2019 PD SUV's U.S.Bank Visa 101-431 101-431-4221-000 71.72 114586 Amazon/2-3/8"one way check valves for sweepers water system#252 Ziegler Inc. 101-431 101-431-4221-000 47.37 114592 A/C Compressor Relay#251 Ziegler Inc. 101-431 101-431-4221-000 19.34 114592 Oil Filter#266 U.S.Bank Visa 101-431 101-431-4240-000 105.98 114586 Amazon/2 Sprayers for applying chemicals and lubricants Pomp's Tire Service Inc. 101-431 101-431-4300-000 2,088.12 114565 Mount and balance 6 new tires#256 U.S.Bank Visa 101-431 101-431-4300-000 1.05 114586 MN DVS/Vehicle Tabs Service Fee#309 #306 #307 U.S.Bank Visa 101-431 101-431-4300-000 42.75 114586 MN DVS/Vehicle Tabs#309 #306 #307 Emergency Apparatus Maintenance 101-431 101-431-4410-000 11093.05 114532 Repairs to#611 U.S.Bank Visa 101-431 101-431-4410-000 69.99 114586 Amazon/LED Headlight for#622 101-431 Total 10,896.98 Crown Marking Inc. 101-432 101-432-4200-000 37.09 114528 Name Plates-M.Eng and W.Kusterman Innovative Office Solutions LLC 101-432 101-432-4200-000 376.90 114545 Pens Toner Batteries. Duster Lanyards Pre-Ink Stamps U.S.Bank Visa 101-432 101-432-4200-000 60.53 114586 Amazon/Ink for postage meter U.S.Bank Visa 101-432 101-432-4200-000 18.95 114586 Amazon/Sealer for postage meter U.S.Bank Visa 101-432 101-432-4200-000 13.78 114586 Amazon/Disposable face masks U.S.Bank Visa 101-432 101-432-4200-000 36.90 114586 Gumdrop Cases/Protective Case for J.Boonstra Dell Latitude U.S.Bank Visa 101-432 101-432-4200-000 -26.19 114586 Target/Return 3-ring binders U.S.Bank Visa 101-432 101-432-4211-000 18.10 114586 SiteOne/Rain Bird Wipers&Wipes Inc. 101-432 101-432-4211-000 342.93 114589 Paper towels and tissues Staples Business Credit 101-432 101-432-4211-503 232.99 114579 Office chair-M.DeMars U.S.Bank Visa 101-432 101-432-4211-503 84.70 114586 The Home Depot/Town Center Landscape U.S.Bank Visa 101-432 101-432-4211-503 272.80 114586 Gerten's/Town Center Landscape U.S.Bank Visa 101-432 101-432-4211-503 69.97 114586 Amazon/Push cart U.S.Bank Visa 101-432 101-432-4211-503 43.35 114586 The Home Depot/Rose granule soil Winnick Supply Inc. 101-432 101-432-4211-503 182.04 114588 Supplies for toilet and sink repair U.S.Bank Visa 101-432 101-432-4240-000 91.26 114586 Amazon/Dolly Quadient Inc. 101-432 101-432-4322-000 500.00 114569 Postage machine postage Premium Waters Inc. 101-432 101-432-4410-500 39.74 114567 5-Kandiyohi 5 gallon water Philip's Tree Care 101-432 101-432-4410-501 71.13 114564 Fertilizer&broadleaf weed control Philip's Tree Care 101-432 101-432-4410-502 71.13 114564 Fertilizer&broadleaf weed control Philip's Tree Care 101-432 101-432-4410-503 59.37 114564 Fertilizer&broadleaf weed control U.S.Bank Visa 101-432 101-432-4410-503 44.55 114586 Gertens/Town Center Landscape U.S.Bank Visa 101-432 101-432-4410-503 1,643.03 114586 Bachman's/Town Center Landscape U.S.Bank Visa 101-432 101-432-4410-503 -730.00 114586 Gertens/Town Center Landscape U.S.Bank Visa 101-432 101-432-4410-503 934.00 114586 Gertens/Town Center Landscape 101-432 Total 4,489.05 Hugo Equipment Company 101-450 101-450-4211-000 13.97 114542 Screw and gasket Tessman Company 101-450 101-450-4211-000 86.62 114582 Glyphosate Plus U.S.Bank Visa 101-450 101-450-4211-000 82.44 114586 Frattalone's/Hose nozzle rake garden hoe U.S.Bank Visa 101-450 101-450-4211-000 190.74 114586 SiteOne/Hunter Rotor and crimp clamp U.S.Bank Visa 101-450 101-450-4211-000 -88.48 114586 The Home Depot/Lumber return U.S.Bank Visa 101-450 101-450-4211-000 412.12 114586 The Home Depot/Paint supplies for picnic tables wasp spray U.S.Bank Visa 101-450 101-450-4211-000 19.94 114586 The Home Depot/Graffiti remover U.S.Bank Visa 101-450 101-450-4211-000 118.75 114586 The Home Depot/Primer U.S.Bank Visa 101-450 101-450-4240-000 87.98 114586 BestNest/Sheperd's Hook WSB&Associates Inc. 101-450 101-450-4300-000 1,183.50 114591 April 2021 Trail Maintenance Project WSB&Associates Inc. 101-450 101-450-4300-000 544.50 114591 April Parks&Trail Maps T-Mobile USA Inc 101-450 101-450-4321-000 50.30 114583 Phone&Internet U.S.Bank Visa 101-450 101-450-4321-000 81.52 114586 Verizon Wireless Phone&Internet U.S.Bank Visa 101-450 101-450-4321-000 -72.22 114586 Verizon Wireless Phone&Internet Gooder Clark J. 101-450 101-450-4331-000 150.00 114538 2nd Qtr 2021 Stipend Page 3 -� AP Checks by Account Number 6/28/2021 City Council Meeting C I T Y O F IN KES Vendor Fund/Dept Account Amount Check# Description Haworth Abby 101-450 101-450-4331-000 150.00 114540 2nd Qtr 2021 Stipend Huelman Patrick H. 101-450 101-450-4331-000 200.00 114541 2nd Qtr 2021 Stipend Jensen Richard 101-450 101-450-4331-000 75.00 114546 2nd Qtr 2021 Stipend Kusterman William 101-450 101-450-4331-000 150.00 114548 2nd Qtr 2021 Stipend Nordlund John 101-450 101-450-4331-000 150.00 114558 2nd Qtr 2021 Stipend Zilka James 101-450 101-450-4331-000 150.00 114593 2nd Qtr 2021 Stipend Anoka County Property Records&Taxation 101-450 101-450-4410-000 46.00 114519 Quit Claim Deed Roering-Oaks of Lino Lakes Anoka County Property Records&Taxation 101-450 101-450-4410-000 46.00 114519 Quit Claim Deed Norton-Oaks of Lino Lakes Anoka County Property Records&Taxation 101-450 101-450-4410-000 46.00 114519 Amendment#1 to PUD-Century Farm North 7th Addition Anoka County Property Records&Taxation 101-450 101-450-4410-000 46.00 114519 Vacation of Proceedings-Ordinance No.01-21 Philip's Tree Care 101-450 101-450-4410-000 339.80 114564 Fertilizer&broadleaf weed control WSB&Associates Inc. 101-450 101-450-5000-000 3,238.50 114591 April 2021 Tower Park Site Improvements 101-450 Total 7,498.98 T-Mobile USA Inc 101-461 101-461-4321-000 29.17 114583 Phone&Internet U.S.Bank Visa 101-461 101-461-4321-000 -2.92 114586 Verizon Wireless Phone&Internet 101-461 Total 26.25 U.S.Bank Visa 101-462 101-462-4200-000 98.89 114586 Green Paper Prod ucts/Organ is Plates(500)and forks(1000) U.S.Bank Visa 101-462 101-462-4200-000 117.56 114586 Green Light Recycling/Bulb recycling and bulb collection bin Davis Phillip 101-462 101-462-4330-000 60.20 114529 Organic Site Tours 101-462 Total 276.65 League of MN Cities Insurance Trust 202-451 202-451-4361-000 3,793.00 114552 Property&Casualty Ins-Rec Facility Philip's Tree Care 202-451 202-451-4410-000 71.13 114564 Fertilizer&broadleaf weed control 202-451 Total 3,864.13 U.S.Bank Visa 207-420 207-420-4240-000 964.12 114586 Costco/PD LED TV U.S.Bank Visa 207-420 207-420-4240-000 149.96 114586 Costco/PD Full-Motion TV Mount 207-420 Total 1,114.08 U.S.Bank Visa 211-420 211-420-4211-000 75.99 114586 Chewy.com/Argos Food 211-420 Total 75.99 Redpath and Company 301-499 301-499-4308-000 710.00 114570 2020 Audit 301-499 Total 710.00 Concrete Coatings of Minnesota 401-432 401-432-5000-000 6,412.50 114526 PD Locker Room Remodel Menards-Forest Lake 401-432 401-432-5000-000 77.52 114554 PD Locker Room Remodel-Shower head repair supplies U.S.Bank Visa 401-432 401-432-5000-000 43.92 114586 Amazon/PD Shower curtain and rings 401-432 Total 6,533.94 FREDERICK LUKE&JANELLE 406-000 406-000-2020-000 13.51 114536 Refund Check 015807-000 6443 LAKOTA TRL GILBERTSON MATTHEW&MARIE 406-000 406-000-2020-000 8.22 114537 Refund Check 016955-000 53 ELM ST LEVOIR JAMES 406-000 406-000-2020-000 1.38 114553 Refund Check 005145-000 7269 HEATHER CT 406-000 Total 23.11 WSB&Associates Inc. 406-499 406-499-4304-127 673.00 114591 April Water Tower No.3 WSB&Associates Inc. 406-499 406-499-4304-136 488.00 114591 April 2021 Birch Street Watermain Improvements Redpath and Company 406-499 406-499-4308-000 9,230.00 114570 2020 Audit 406-499 Total 10,391.00 S&P Global Ratings 421-470 421-470-6040-000 9,738.00 114575 Rating Agency Fee 421-470 Total 9,738.00 WSB&Associates Inc. 421-499 421-499-4304-137 9,958.00 114591 April 2021 Street Improvement Projects WSB&Associates Inc. 421-499 421-499-4304-140 302.50 114591 April 2021 Street Maintenance WSB&Associates Inc. 421-499 421-499-4304-140 2,592.50 114591 April 2021 Street Maintenance Project T.A.Schifsky and Sons Inc. 421-499 421-499-4400-137 184,398.25 114580 2021 Street Improvement Projects 421-499 Total 197,251.25 WSB&Associates Inc. 422-499 422-499-4304-000 643.50 114591 April FEMA Draft Floodplain Map Review 2021 WSB&Associates Inc. 422-499 422-499-4304-000 726.00 114591 April Shendandoah Storm Sewer WSB&Associates Inc. 422-499 422-499-4304-000 4,372.50 114591 April MS4 Services WSB&Associates Inc. 422-499 422-499-4304-000 2,205.75 114591 April Storm Water Utility WSB&Associates Inc. 422-499 422-499-4304-125 946.25 114591 April NE Drainage Improvement Project 422-499 Total 8,894.00 WSB&Associates Inc. 424-499 424-499-4304-000 380.00 114591 April 2021 Surface Water Maintenance Project 424-499 Total 380.00 U.S.Bank Visa 425-499 425-499-4211-138 3,412.34 114586 Pro Drinking Fountains/Water Fountain Lino Park 425-499 Total 3,412.34 Landform 484-499 484-499-4300-000 3,795.50 114551 Zoning Ordinance and Map Update 484-499 Total 3,795.50 FREDERICK LUKE&JANELLE 601-000 601-000-2020-000 1.63 114536 Refund Check 015807-000 6443 LAKOTA TRL FREDERICK LUKE&JANELLE 601-000 601-000-2020-000 11.31 114536 Refund Check 015807-000 6443 LAKOTA TRL Page 4 -� AP Checks by Account Number 6/28/2021 City Council Meeting C I T AA1 O F KES Vendor Fund/Dept Account Amount Check# Description GILBERTSON MATTHEW&MARIE 601-000 601-000-2020-000 28.05 114537 Refund Check 016955-000 53 ELM ST GILBERTSON MATTHEW&MARIE 601-000 601-000-2020-000 2.00 114537 Refund Check 016955-000 53 ELM ST LEVOIR JAMES 601-000 601-000-2020-000 0.34 114553 Refund Check 005145-000 7269 HEATHER CT LEVOIR JAMES 601-000 601-000-2020-000 6.60 114553 Refund Check 005145-000 7269 HEATHER CT Dickhudt Gene 601-000 601-000-2110-000 3.38 114530 Smart Irrigation Controller Return Dickhudt Gene 601-000 601-000-3407-000 47.50 114530 Smart Irrigation Controller Return 601-000 Total 100.81 Core&Main LP 601-494 601-494-4211-000 1,927.59 114527 Water main repair supplies Core&Main LP 601-494 601-494-4211-000 4,770.65 114527 Water main repair supplies Menards-Forest Lake 601-494 601-494-4211-000 49.94 114554 Irrigation Repair Supplies U.S.Bank Visa 601-494 601-494-4240-000 118.95 114586 The Home Depot/Hackzall Bit sets Dusty's Drain Cleaning 601-494 601-494-4300-000 3,250.00 114531 Excavated hole at curbstop-6498 12th Ave 5 Image Printing&Graphics Inc 601-494 601-494-4300-000 77.50 114544 Qty 300-Water Restriction Door Hangers NAC Mechanical&Electrical 601-494 601-494-4300-000 2,170.00 114557 Annual RPZ Maintenance Invoice Redpath and Company 601-494 601-494-4300-000 5,325.00 114570 2020Audit WSB&Associates Inc. 601-494 601-494-4304-000 390.00 114591 April Risk Assessment and Emergency Response Plan WSB&Associates Inc. 601-494 601-494-4304-000 1,110.00 114591 April 2021 General Engineering Services T-Mobile USA Inc 601-494 601-494-4321-000 83.47 114583 Phone&Internet U.S.Bank Visa 601-494 601-494-4321-000 114.51 114586 Verizon Wireless Phone&Internet U.S.Bank Visa 601-494 601-494-4321-000 -1.46 114586 Verizon Wireless Phone&Internet U.S.Bank Visa 601-494 601-494-4321-000 -107.97 114586 Verizon Wireless Phone&Internet U.S.Bank Visa 601-494 601-494-4322-000 139.83 114586 FedEx/Shipping for Water Analyzer Return to Hach Company U.S.Bank Visa 601-494 601-494-4322-000 122.71 114586 FedEx/Postage mailed to Hach Company Philip's Tree Care 601-494 601-494-4410-000 148.11 114564 Fertilizer&broadleaf weed control SBRK Finance Holdings Inc 601-494 601-494-4410-000 325.50 114576 May UB Web Payments Trans Fee/Active Acct Fee U.S.Bank Visa 601-494 601-494-4452-000 300.00 114586 MN Rural Water Association/Continuing Education-T.Paulno Aspen Equipment Company 601-494 601-494-5000-000 4,128.00 114520 Plow Mount Blade Trip Springs Deflector Kit Torsion bar#510 WSB&Associates Inc. 601-494 601-494-5000-000 2,268.00 114591 April Well House No.1 Rehabilitation 601-494 Total 26,710.33 FREDERICK LUKE&JANELLE 602-000 602-000-2020-000 75.54 114536 Refund Check 015807-000 6443 LAKOTA TRL GILBERTSON MATTHEW&MARIE 602-000 602-000-2020-000 4.40 114537 Refund Check 016955-000 53 ELM ST GILBERTSON MATTHEW&MARIE 602-000 602-000-2020-000 45.80 114537 Refund Check 016955-000 53 ELM ST KAISER MICHAEL&ESTER 602-000 602-000-2020-000 5.29 114547 Refund Check 015252-000 6510 HOKAH DR LEVOIR JAMES 602-000 602-000-2020-000 7.64 114553 Refund Check 005145-000 7269 HEATHER CT 602-000 Total 138.67 U.S.Bank Visa 602-495 602-495-4240-000 118.95 114586 The Home Depot/Hackzall Bit sets Redpath and Company 602-495 602-495-4300-000 8,520.00 114570 2020Audit WSB&Associates Inc. 602-495 602-495-4304-000 151.25 114591 April MCES Record Plans WSB&Associates Inc. 602-495 602-495-4304-000 1,110.00 114591 April 2021 General Engineering Services T-Mobile USA Inc 602-495 602-495-4321-000 83.50 114583 Phone&Internet U.S.Bank Visa 602-495 602-495-4321-000 -34.89 114586 Verizon Wireless Phone&Internet U.S.Bank Visa 602-495 602-495-4321-000 36.33 114586 Verizon Wireless Phone&Internet Met Council Environmental Services 602-495 602-495-4405-000 82,374.02 114555 July Waste Water Services Philip's Tree Care 602-495 602-495-4410-000 118.74 114564 Fertilizer&broadleaf weed control SBRK Finance Holdings Inc 602-495 602-495-4410-000 325.50 114576 May UB Web Payments Trans Fee/Active Acct Fee U.S.Bank Visa 602-495 602-495-4452-000 55.00 114586 MN Pollution Control Agency/Wastewater Testing Fee-K.Gray U.S.Bank Visa 602-495 602-495-4452-000 1.37 114586 MN Pollution Control Agency/Wastewater Testing Service Fee Aspen Equipment Company 602-495 602-495-5000-000 4,128.00 114520 Plow Mount Blade Trip Springs Deflector Kit Torsion bar#510 602-495 Total 96,987.77 U.S.Bank Visa 801-000 801-000-2048-000 126.67 114586 Chipotle/Employee Appreciation Lunch Anoka County Property Records&Taxation 801-000 801-000-2300-000 46.00 114519 Resolution-23 Century Trail Driveway Variance Rocking 5 Horse Company 801-000 801-000-2300-000 1,510.95 114572 Escrow Closure Nordstrom-Schienbein Minor Subdivision Rupp Anderson Squires&Waldspurger P.A. 801-000 801-000-2300-000 704.00 114574 426 Pine Rupp Anderson Squires&Waldspurger P.A. 801-000 801-000-2300-000 225.00 114574 Lino B-Otter Crossing WSB&Associates Inc. 801-000 801-000-2300-000 2,575.50 114591 April Lyngblomsten Senior Housing WSB&Associates Inc. 801-000 801-000-2300-000 4,075.00 114591 April Lino B-Otter Crossing WSB&Associates Inc. 801-000 801-000-2300-000 901.50 114591 April Nadeau Acres 2nd Addition WSB&Associates Inc. 801-000 801-000-2300-000 1,065.00 114591 April Butler WSB&Associates Inc. 801-000 801-000-2300-000 117.00 114591 April Meadow View WSB&Associates Inc. 801-000 801-000-2302-102 209.50 114591 April Eastside Villas WSB&Associates Inc. 801-000 801-000-2309-102 492.00 114591 April Stern Addition WSB&Associates Inc. 801-000 801-000-2327-102 211.75 114591 April Watermark 4th Addition WSB&Associates Inc. 801-000 801-000-2327-102 3,267.75 114591 April Watermark 4th Addition Page 5 —� AP Checks by Account Number 6/28/2021 City Council Meeting C I T AA1 O F KES Vendor Fund/Dept Account Amount Check# Description Rupp Anderson Squires&Waldspurger P.A. 801-000 801-000-2327-103 1,440.00 114574 Watermark 4th Addition WSB&Associates Inc. 801-000 801-000-2328-102 496.00 114591 April Main Street Shoppes 2nd Addition Rupp Anderson Squires&Waldspurger P.A. 801-000 801-000-2331-103 135.00 114574 Bald Eagle Addition WSB&Associates Inc. 801-000 801-000-2336-102 300.00 114591 April Watermark 1st Addition WSB&Associates Inc. 801-000 801-000-2338-102 847.00 114591 April Nadeau Acres AB&Storm Sewer WSB&Associates Inc. 801-000 801-000-2338-102 342.00 114591 April Nadeau Acres Rupp Anderson Squires&Waldspurger P.A. 801-000 801-000-2344-103 96.00 114574 Lino Lakes Storage WSB&Associates Inc. 801-000 801-000-2344-103 309.75 114591 April Lino Lakes Storage WSB&Associates Inc. 801-000 801-000-2351-103 725.50 114591 April Laborer's Training Center Prairie Restorations Inc. 801-000 801-000-2353-103 632.51 114566 Site Spray-Final Spray WSB&Associates Inc. 801-000 801-000-2355-102 121.00 114591 April Watermark 3rd Utilities WSB&Associates Inc. 801-000 801-000-2359-102 270.25 114591 April Saddle Club 4th Addition WSB&Associates Inc. 801-000 801-000-2383-102 2,630.00 114591 April Watermark 3rd Addition WSB&Associates Inc. 801-000 801-000-2388-102 1,100.50 114591 April Watermark 2nd Addition 801-000 Total 24,973.13 Landbridge Ecological 811-499 811-499-4410-000 11,200.00 114550 Preserve Conservation Area Work 811-499 Total 11,200.00 Grand Total 488,881.61 Page 6 CITY OF INCA . KE,� Electronic Funds Transfer MN Statute 471.38 Subd. 3 Council Meeting June 28, 2021 Transfer In/(Out) 6/15/2021 Building Permit Surcharge (3,867.76) 6/11/2021 Payroll #12 (137,982.02) 6/11/2021 Payroll #12 Federal Deposit (41,639.45) 6/11/2021 Payroll #12 PERA (44,026.01) 6/11/2021 Payroll #12 State (9,567.81) 6/11/2021 Payroll #12 Child Support (284.77) 6/11/2021 Payroll #12 H.S.A. Bank Pretax (3,173.18) 6/11/2021 Payroll #12 TASC Pretax (749.96) 6/11/2021 Payroll #12 ICMA 457 Def. Comp #301596 (3,845.00) 6/11/2021 Payroll #12 ICMA Roth IRA #706155 (855.75) 6/11/2021 Payroll #12 MSRS HCSP #98946-01 (1,631 .53) 6/11/2021 Payroll #12 MSRS Def. Comp #98945-01 (3,458.00) 6/11/2021 Payroll #12 MSRS Roth IRA #98945-01 (755.00) 6/20/2021 Sales & Use Tax (1,375.00) CITY COUNCIL WORK SESSION DRAFT t CITY OF LINO LAKES 2 MINUTES 3 4 DATE : June 7, 2021 5 TIME STARTED : 5:00 p.m. 6 TIME ENDED : 8:20 p.m. 7 MEMBERS PRESENT : Council Member Stoesz, Lyden, Ruhland, 8 Cavegn and Mayor Rafferty 9 MEMBERS ABSENT : None 10 11 Staff members present: City Administrator Sarah Cotton; Finance Director Hannah 12 Lynch; Director of Public Services Rick DeGardner; Director of Public Safety John 13 Swenson; Community Development Director Michael Grochala; City Clerk Julie Bartell 14 15 1. (5:00 pm) Final Report on Recreation and Aquatic Center Feasibility Study 16 by Isaac Sports Group—Community Development Director Grochala introduced the 17 subject matter including the background on the former YCMA facility(see written staff 18 report). He introduced consultants Stu Isaac and Duane Proell, who gave a presentation 19 using PowerPoint(on file) that included information on the following: 20 ■ The process and methodology used for the study; 21 ■ Goals, opportunities and vision for the community rec center; 22 ■ Programing: immediate and long term; 23 ■ Programming, more specifically: 24 - for older and active adults; 25 - fitness (including drawing in outside providers); 26 - aquatics; 27 -therapy, rehab and special needs programming; 28 - learn to swim and water safety; 29 ■ Programming, rec center schedule model; 30 ■ Potential Program Outsourcing, finding the right program partners criteria; 31 ■ Possible Opportunities for Outsourced Programming: 32 - swim lesson 33 - fitness program provider; 34 ■ Membership Model (three different scenarios of YMCA fees); found that 35 60% of Y rates was the sweet spot; 36 ■ Recommended Membership and User Fees (table); 37 ■ Operating and Financial Goals; 38 ■ Management Models (City managed, total outsourced; hybrid options); 39 ■ Re-Opening and Start Up Costs (city management option); 40 ■ Financial Operating Analysis (city management and hybrid option); 41 ■ Year 3: City managed vs. hybrid model (cost estimate table); (also showed 42 expense and revenue estimates for year 1 and year 2) 43 ■ Main Sources of Revenue; 44 ■ Main Sources of Costs; 45 ■ Long Term Accrued Deficit; 1 CITY COUNCIL WORK SESSION DRAFT 46 ■ Capital Outlay; 47 ■ Financial Impact of Hybrid Model; 48 ■ Future and Long term Opportunities; 49 ■ Goals (future sports center, outdoor activity center, community function 50 space; 51 ■ Long term Expansion Costs; 52 ■ Workback schedule from Re-Opening (four months); 53 ■ Factors Affecting Timeline; 54 ■ Next steps. 55 56 Mayor Rafferty asked if there was any information obtained on the concept of selling the 57 building outright. Mr. Isaac said they did not look at that option; they feel there is so 58 much need and also they work in the area of real estate. 59 60 Mayor Rafferty noted that partnerships have been noted; was their consideration of 61 partnering with other communities in the area. Mr. Isaac noted that the report includes 62 notes on discounted membership for any group that would want to play a role but they did 63 not specifically identify other communities. 64 65 Councilmember Cavegn, looking at the cumulative deficit model, noted that there is a 66 rise. Mr. Isaac explained that how that accrues. Councilmember Cavegn, asked, without 67 a partnership, would that be City subsidized? Mr. Isaac said their estimates include 68 things that are options such as salaries and adding courts. Councilmember Cavegn asked 69 if the expansion costs are all additional costs because there is no revenue being banked; 70 Mr. Isaac concurred but added that once things were opened he expects additional related 71 revenue. 72 73 Councilmember Lyden said he is looking at the hybrid model, with commitment to long 74 term growth. He likes the fee model. He noted that current membership is anticipated 75 and he wonders where that comes from and should they be offered an incentive. Also 76 Councilmember Lyden mentioned how important it is to hire the correct staff. Mr. 77 Isaac responded that he is aware of a fitness provider that has indicated they would come 78 right into the facility with their membership of about 60% of the membership goal. 79 Administrator Cotton provided information on the current debt service for the YMCA 80 facility and noted that could be available for operating deficit when debt service was 81 complete. 82 83 Councilmember Lyden asked how hard is it to find the right person to lead the operation. 84 Mr. Isaac said he has been involved in filling those positions and while it's hard, it's 85 important to understand what you need; their proposed budget includes a salary that could 86 attract and maintain a top person. 87 88 Councilmember Ruhland asked about the FTE's needed for the hybrid(8.5); Mr. Isaac 89 suggested that would be anticipated needs for the first four years and he explained the 90 needs. Councilmember Ruhland asked if the consultants see value in planning for virtual 2 CITY COUNCIL WORK SESSION DRAFT 91 programming and Mr. Isaac said that is anticipated and has been considered in areas of 92 the budget(equipment). Councilmember Ruhland said he is leaning toward the hybrid 93 model; he asked for the consultants' professional recommendation on the best option. 94 Mr. Proell said the hybrid program makes sense to him; his experience tells him that the 95 city managed program would be a longer and harder road; he added that there are very 96 viable partnerships available to the City. 97 98 Councilmember Stoesz asked about the child watch program; how will that be priced and 99 how important is it. Mr. Isaac said it is a service provided with revenue not covering 100 costs; most facilities provide it as a service for their members. Councilmember Stoesz 101 asked if the City's insurance through the LMC would cover a facility; Mr. Isaac said it 102 would normally be covered through the City's regular insurance channels. 103 104 Community Development Director Grochala remarked that this project has turned over all 105 leafs—the study has been well developed and the options presented are viable. He noted 106 that the consultant will be present for the council meeting(June 28th). The report 107 includes a lot of positives, the facility is a good one and there are opportunities to make it 108 a continuing asset to the community. 109 110 Finance Director Lynch concurred with the completeness of the report and noted that the 111 financial information is appropriate to the question. 112 113 Public Services Director DeGardner said directors have spent a lot of time looking at 114 alternatives and have looked at how a facility could be merged into the City structure, all 115 based on how the council would like to proceed. 116 117 The mayor offered thanks to Mr. Isaac and Mr. Proell for the report. If the council has 118 additional questions, he suggests they pose them to staff previous to further formal review 119 on June 28th 120 The meeting was recessed at 6:50 p.m. to allow for a scheduled special council meeting. 121 122 2. Review 2020 Annual Audit Report—Finance Director Lynch explained that the 123 City's 2020 Annual Financial Report has been prepared by Redpath and Company and 124 their representative, Andy Hering, was present to overview the findings and answer 125 council questions. The council will be asked to accept the report at the June 141h Cit 126 Council meeting. 127 128 Andy Hering, Redpath and Company, the City's auditing firm, reviewed a PowerPoint 129 presentation including information on the following: 130 ■ Overview of report; 131 ■ Results overview; 132 ■ Audit process (schedule); 133 ■ What do the auditors look for; 134 ■ Where they look for data(journals and disbursements); 135 ■ Report on Minnesota Legal Compliance (where they look); 3 CITY COUNCIL WORK SESSION DRAFT 136 ■ Report on Internal Controls Over Financial Reporting; 137 ■ Report on Compliance for Each Major Program and on Internal Control over 138 Compliance; 139 ■ The Single Audit(done when/because of federal funds received); 140 ■ American Rescue Plan Act—eligible uses; 141 ■ Communication to Those Charged with Governance (everything went very well); 142 ■ Summary of Financial Activity(table); 143 ■ General Fund Summary and Five Year History; Monthly Cash Balances; 144 ■ Enterprise Funds, Cash Flow. 145 ■ 146 Mr. Hering summarized the report by noting that everything went very well and there are 147 no findings to report. 148 149 Councilmember Lyden noted the receivables from the Legacy at Woods Edge and the 150 comment that staff believes that is collectible; can staff provide an update? Also how 151 can the City increase its bond rating? Administrator Cotton recalled the question of bond 152 rating was asked of Baker Tiller consultant Terri Heaton and she will be responding on 153 that; it will involve more long range planning and in general the City needs to grow and 154 develop more. The Legacy debt is internal and will work itself out over time. 155 156 Councilmember Ruhland thanked staff for a great job and the auditor for their work. 157 158 3. Electronic Municipal Payments—Finance Director Lynch reviewed her written 159 staff report. She explained that the option for these municipal payments is now available 160 through the Springbrook system that the City uses. The program doesn't have a cost but 161 credit card fees would apply for that type of payment. Staff is recommending the City 162 cover the fee and with the idea to keep an eye on those charges. The amount of the fee is 163 noted in the staff report. 164 165 Councilmember Ruhland asked if there will be an opportunity to receive a check card 166 rather than a credit card so there would be a lower fee; Finance Director Lynch will look 167 into that matter. 168 169 Councilmember Stoesz noted that he works for a bank. He has had training and he 170 knows there is sensitivity about storing credit card information; Ms. Lynch said the City 171 will not be storing card data. 172 173 Councilmember Lyden asked if people can still pay with cash or check and Ms. Lynch 174 said yes those payments will be accepted. 175 176 The council concurred that staff should move ahead. 177 178 4. Liquor License Fees—City Clerk Bartell reviewed the written report. Staff is in 179 the process of receiving renewal applications for City issued liquor licenses and has been 180 looking at measures to provide relief to these businesses that have been greatly impacted 4 CITY COUNCIL WORK SESSION DRAFT 181 by the pandemic regulations. The waiver of license fees for the coming license period is 182 proposed. 183 184 The council concurred that they would support an action waiving the fees. 185 186 5. Water Treatment Plant Update—Community Development Director Grochala 187 reported. It's been almost a year since the council received the result of a feasibility 188 study on this matter. Council wanted to look at rates and a pilot study of treatment 189 results. Staff is asking if they should proceed with that pilot study(over four months). 190 The cost of doing a study was noted and a possible funding source would be Area and 191 Unit Fund. 192 193 Councilmember Cavegn asked if the test would include other things besides manganese; 194 Director Grochala said it would include identified potential issue chemicals. 195 196 Councilmember Ruhland asked if all wells would be included in a pilot test and Mr. 197 Grochala said it would be done only for the well seen as the worst. Councilmember 198 Ruhland asked how long the reports would be viable and Mr. Grochala estimated it would 199 be good for a couple years but he will confirm that estimate. 200 201 Councilmember Stoesz asked if there will be a tour opportunity for the trailer. Mr. 202 Grochala suggested that the trailer wouldn't be a good example of a water treatment 203 facility and if the City choses a treatment facility it will be individually designed. Mayor 204 Rafferty said the council can tour another water treatment facility if they wish. 205 206 Councilmember Ruhland noted that he wants to make sure the schedule for developing a 207 water treatment facility(if that were the council's decision) wouldn't make a pilot study 208 inaccurate. 209 210 The council concurred that staff should get the answers and then add the matter to the 211 council's action agenda. The council concurred that it can be put on the next agenda. 212 213 6. Environmental Board Openings—Administrator Cotton reviewed the written 214 staff report. There are currently two openings (one in July) on the Environmental Board, 215 both due to resignations. There are three applicants from the last open appointments 216 period. Staff would like council direction on proceeding with filling the vacancies. 217 218 Mayor Rafferty suggested that the process be opened again. The three applicants will be 219 notified. The City will accept applications through the end of July. 220 221 7. Council Compensation—Administrator Cotton reviewed the written staff report. 222 This would be an appropriate time to consider council compensation, to be effective 223 2022. She has recommended an increase based on the wage adjustments provided to 224 staff. Staff is recommending that the matter be placed on the June 141h council agenda. 5 CITY COUNCIL WORK SESSION DRAFT 225 226 The council concurred. 227 228 8. Council Updates on Boards/Commissions: 229 230 North Metro TV—Councilmember Stoesz noted federal rulings that could impact their 231 budget. 232 233 Not on Printed Agenda: 234 235 Mayor Rafferty noted that the council will be moving the work session meetings back to 236 the community room beginning in July. There was no objection. 237 238 Blue Heron Days—Councilmember Stoesz noted that the county has approved the road 239 closure. The event planning group will be submitting a special event permit application 240 to the City. He is gaining information by watching how events are proceeding in other 241 cities. He will be looking for some direction from the council on fees (i.e. parade 242 entrants). 243 244 9. Adjourn 245 246 The meeting was adjourned at 8:20 p.m. 247 248 These minutes were considered, corrected and approved at the regular Council meeting held on 249 June 28, 2021. 250 251 252 253 254 Julianne Bartell, City Clerk Rob Rafferty, Mayor 255 6 COUNCIL MINUTES DRAFT 1 2 LINO LAKES CITY COUNCIL 3 REGULAR MEETING 4 MINUTES 5 6 DATE : June 14, 2021 7 TIME STARTED : 6:30 p.m. 8 TIME ENDED : 7:15 p.m. 9 MEMBERS PRESENT : Councilmember Stoesz, Lyden, 10 Ruhland, Cavegn and Mayor Rafferty 11 MEMBERS ABSENT 12 Staff members present: City Administrator Sarah Cotton; Finance Director Hannah Lynch; 13 Community Development Director Michael Grochala; City Planner Katie Larsen; City Engineer 14 Diane Hankee; City Clerk Julie Bartell 15 16 PUBLIC COMMENT 17 There were no public comments. 18 SETTING THE AGENDA 19 The agenda was approved as presented. 20 CONSENT AGENDA 21 Councilmember Stoesz moved to approve the Consent Agenda, Items IA through 1M as presented. 22 Councilmember Lyden seconded the motion. Motion carried on a voice vote. 23 24 ITEM ACTION 25 Consideration of Expenditures: 26 A) June 14, 2021 (Check No. 114436 through 114515) in the 27 Amount of$746,098.31 Approved 28 B) Consider Approval of May 24, 2021 Council 29 Work Session Minutes Approved 30 C) Consider Approval of May 24, 2021 Council 31 Minutes Approved 32 D) Consideration of Not Waiving Monetary Limits on Tort Liability 33 per Minnesota Statute 466.04 Approved 34 E) Consider Approval of Resolution 21-52, 1-4 Day Temp. Liquor, 35 and Cabaret License for the Annual St. Joseph's Catholic 36 Church Festival Approved 37 F) Consider Approval of May 24, 2021 Closed Council Minutes Approved 38 G) Consider Approval of Resolution 21-49, Accepting the American 39 Rescue Plan Act Funds Approved 1 COUNCIL MINUTES DRAFT 4o H) Consider Approval of Resolution 21-50, Approving the Renewal 41 of Liquor, Wine and Beer Licenses Approved 42 I) Consider Approval of Resolution 21-51, Approving Tobacco 43 License Renewals Approved 44 J) Consider Approval of Resolution 21-53, Approving Massage 45 License Renewals Approved 46 K) Consider Resolution No. 21-53 Approving Open Space 47 Easement for Watermark 1st, 2nd, 3rd and 4th Addition Approved 48 L) Consider Resolution No. 21-54 Extending the Recording Date 49 for the Final Plat of Natures Refuge Approved 50 M) Consider Approval of Business Relief for On-Sale Liquor 51 License Holders Approved 52 FINANCE DEPARTMENT REPORT 53 2A) Consider Resolution No. 21-56,Awarding the Sale of$1,815,000 General Obligation 54 Street Reconstruction Bonds, Series 2021A—Finance Officer Lynch introduced City financial 55 consultant Terri Heaton, Baker Tilly, to review the bond sale. 56 Ms. Heaton reported on the sale of bonds earlier in the day. The tabulation was sent out to the 57 council; the document was reviewed. The low bid was well below the estimate, saving about 58 $40,000 over the life of the debt service. This is very much related to the City's good bond rating. 59 Ms. Heaton noted the rating comments that come through very strong on behalf of the City. Credit 60 goes to the council and staff for their planning and hard work 61 Mayor Rafferty noted that the City's consultant also receives some credit. 62 Councilmember Lyden moved to approve Resolution No. 21-56 as presented. Councilmember 63 Ruhland seconded the motion. Motion carried on a voice vote. 64 2B) Accept 2020 Annual Audit Report—Finance Officer Lynch reviewed the City's 2020 65 financial report, as presented by Redpath at the council's last work session. The audit resulted in a 66 clean report and communications were standard only. Staff is recommending that the council 67 accept the report as it is presented. 68 Mayor Rafferty noted that the staff, including new Finance Director Lynch, have done a great job 69 resulting in this good report. 70 Councilmember Cavegn moved to accept the audit report as presented. Councilmember Stoesz 71 seconded the motion. Motion carried on a voice vote. 72 ADMINISTRATION DEPARTMENT REPORT 73 3A) Consider 11t Reading of Ordinance No. 06-21,Adjusting the Salaries of the Mayor and 74 Councilmembers—City Administrator Cotton explained that state statute and city ordinance guide 75 when the council can consider salary amendments. At this time, it would be appropriate for the 76 council to consider an increase and she is recommending an increase based on what was provided to 77 employees. 78 Councilmember Lyden moved to approve the first reading of Ordinance No. 06-21 as presented. 79 Councilmember Stoesz seconded the motion. Motion carried on a voice vote. 2 COUNCIL MINUTES DRAFT 8o PUBLIC SAFETY DEPARTMENT REPORT 81 There was no report from the Public Safety Department. 82 PUBLIC SERVICES DEPARTMENT REPORT 83 There was no report from the Public Services Department. 84 COMMUNITY DEVELOPMENT REPORT 85 6A) Consider Second Reading of Ordinance No. 03-21 Rezoning Property from R,Rural to R- 86 1, Single Family Residential for Butler Addition—City Planner Larsen explained that staff is 87 requesting approval of the second reading of this ordinance that will provide for rezoning of property 88 related to the Butler Addition development. 89 Councilmember Stoesz moved to waive the full reading of the ordinance as presented. Councilmember 90 Ruhland seconded the motion. Motion carried on a voice vote. 91 Councilmember Stoesz moved to approve the second reading and adoption of Ordinance No. 03-21 92 as presented. Councilmember Ruhland seconded the motion. Motion carried: Yeas, 5; Nays 93 none. 94 6B) Nadeau Acres 2"a Addition: i. Consider Resolution No. 21-45 Approving Final Plat; ii. 95 Consider Resolution No. 21-46 Approving Development Agreement—City Planner Larsen 96 explained that the development is moving along and this would be the second and final phase of the 97 development. Ms. Larson reviewed past actions, a preliminary plat rendering, a future trail corridor 98 and findings of facts which find the requested actions to be in compliance. The Planning and 99 Zoning Board recommended approval on a unanimous vote. too Councilmember Stoesz received affirmation that including the trail, to be constructed by the 101 developer, is a good deal for the City. 102 Larry Olson, developer and resident of Columbus, explained how well the development is moving 103 along. Their goal is to continue the quality of the first addition. 104 Councilmember Cavegn moved to approve Resolution No. 21-45 as presented. Councilmember 105 Ruhland seconded the motion. Motion carried on a voice vote; Councilmember Lyden voted no. 106 Councilmember Cavegn moved to approve Resolution No. 21-46 as presented. Councilmember 107 Ruhland seconded the motion. Motion carried on a voice vote; Councilmember Lyden voted no. 108 6C) Consider 211 Reading of Ordinance 04-21,Approving Sale of Property, Lots 12 & 13, 109 Carole Estates 2"a Addition—Community Development Director Grochala explained that this sale 110 has been previously reviewed and discussed by the city council. The first reading of the ordinance was 111 approved at a previous council meeting. He explained the contingincies (see staff report). 112 Councilmember Lyden moved to waive the full reading of the ordinance as presented. Councilmember 113 Cavegn seconded the motion. Motion carried. 114 Councilmember Lyden moved to approve the second reading and adoption of Ordinance No. 04-21 115 as presented. Councilmember Cavegn seconded the motion. Motion carried: Yeas, 5; Nays none. 116 6D) Consider Resolution No. 21-59,Authorizing Water Treatment Plant PILOT Study— 117 Community Development Director Grochala reviewed the written staff report. The study requested 118 would be completed by WSB &Associates. Mr. Grochala reviewed the testing elements and 3 COUNCIL MINUTES DRAFT 119 abilities of treatment as outlined in his report. If approved by the council, the project would move 120 ahead as soon as possible. 121 Councilmember Stoesz asked if there would be any noise related to these activities (for neighbors 122 adjacent to the trailer). Community Development Diredctor Grochala indicated not. 123 Councilmember Cavegn moved to approve Resolution No. 21-59 as presented. Councilmember 124 Stoesz seconded the motion. Motion carried on a voice vote 125 6E) Consider Resolution No. 21-57,Accepting Bids,Awarding a Construction Contract, 126 2021 Street Maintenance Project—City Engineer Hankee explained that staff would like 127 authorization to accept the bid received and award a contract to that bidder. Staff is recommending 128 that the alternate to the bid also be included in the project. 129 Councilmember Cavegn asked if engineering costs are included in the project cost noted. Ms. 130 Hankee said yes. 131 Councilmember Ruhland moved to approve Resolution No. 21-57 as presented. Councilmember 132 Stoesz seconded the motion. Motion carried on a voice vote 133 6F) Consider Resolution No. 21-60,Approving Capital Budget Request to the Commissioner 134 of Management and Budget,Water Treatment Plant—Community Development Director 135 Grochala reported that staff is requesting that the council approve a resolution requesting that the 136 State include capital funding for the City's water treatment plan. Application materials are being 137 prepared and would be submitted as soon as possible, with council approval. 138 Councilmember Cavegn asked, if the City is approved for funding, how soon could the funding be 139 included. Mr. Grochala explained that funding is requested beginning in 2022 with design, etc. Use 140 of the funds would be 2023. Councilmember Cavegn asked if receiving the money locks the City 141 into developing a facility? Mr. Grochala said the city could return the funding. 142 Mayor Rafferty suggested this is an opportunity and it's important that the City seek this funding. 143 He's thankful for staff s hard work preparing the grant request. 144 Councilmember Ruhland moved to approve Resolution No. 21-60 as presented. Councilmember 145 Lyden seconded the motion. Motion carried on a voice vote 146 UNFINISHED BUSINESS 147 There was no Unfinished Business. 148 149 NEW BUSINESS 150 There was no New Business. 151 152 COMMUNITY EVENTS 153 There were no events announced. 154 COMMUNITY CALENDAR 155 Community Calendar—A Look Ahead 156 June 14,2021 through June 28,2021 157 Monday,June 28 6:00 pm,Community Room Council Work Session 158 Monday,June 28 6:30 pm,Council Chambers City Council Meeting 159 4 COUNCIL MINUTES DRAFT 160 ADJOURN 161 162 There being no further business, Councilmember Cavegn moved to adjourn at 7:15 p.m. 163 Councilmember Stoesz seconded the motion. Motion carried on a voice vote. 164 165 These minutes were considered and approved at the regular Council Meeting on June 28, 2021. 166 167 168 169 170 Julianne Bartell, City Clerk Rob Rafferty, Mayor 171 5 COUNCIL MINUTES DRAFT 1 LINO LAKES CITY COUNCIL 2 SPECIAL MEETING 3 MINUTES 4 5 DATE : June 7, 2021 6 TIME STARTED : 6:50 p.m. 7 TIME ENDED : 7:10 p.m. 8 MEMBERS PRESENT : Councilmember Stoesz,Lyden, 9 Ruhland, Cavegn and Mayor Rafferty 10 MEMBERS ABSENT none 11 12 Staff members present: City Administrator Sarah Cotton; Public Safety Director John Swenson; 13 City Clerk Julie Bartell 14 15 PUBLIC COMMENT 16 There were no public comments. 17 SETTING THE AGENDA 18 The agenda was approved as presented. 19 CONSENT AGENDA 20 There were no Consent Items. 21 FINANCE DEPARTMENT REPORT 22 There was no report from the Finance Department. 23 ADMINISTRATION DEPARTMENT REPORT 24 3A) Consider Approval of Special Event Permit for the National Multiple Sclerosis 25 Society's Bike MS 150 26 City Clerk Bartell reviewed the written report. Ms. Bartell indicated that the Administration 27 Department receives the permit application, reviews the proposal for conformance to general 28 regulations and then passes the proposal onto appropriate staff for further review for impacts to the 29 City and safety concerns. In this case, the application was reviewed by the Public Safety 30 Department and Director Swenson will report on their findings. 31 32 Public Safety Director Swenson reported on discussions with the event planners. There have been 33 three meetings. There are implications and some concern about the bike ride route due to a detour 34 of cars from Birch Street. At this time he feels there is an adequate plan in place for public safety 35 considerations. He noted that there will inevitably be complaints about this situation and traffic 36 related to the Birch Street detour. He reviewed the bike ride route (long and short). In providing 37 public safety personnel along the route, they will be focusing specially on uncontrolled intersections. 38 The staff that will be utilized are community service officers, on-duty officers and it probably one 39 overtime officer(the cost of the overtime officer would be billed to MS organization). Anoka 40 County has agreed to control the intersection of Hodgson and Ash. The plan is to do as little traffic 41 control as possible—hopefully staying away from controlled intersection unless needed. He noted 1 COUNCIL MINUTES DRAFT 42 that fire division staff will be shifted based on traffic changes. He added that this will be a 43 staggered start event. The situation is as safe as staff can achieve. 44 45 Councilmember Lyden expressed concern about the left turn at Centerville Road and Ash Street. 46 Director Swenson said staff has expressed similar concern to Anoka County, not only with this 47 event but with the detour. It is not currently the County's intent to add traffic control but they will 48 add signage. 49 50 Mayor Rafferty remarked that it's a good thing to assist in making this event work but it is 51 obviously something that requires good planning including by the City. 52 Councilmember Cavegn moved to approve the special event permit with conditions established by 53 the Public Safety Division. Councilmember Lyden seconded the motion. Motion adopted upon a 54 voice vote. 55 PUBLIC SAFETY DEPARTMENT REPORT 56 There was no report from the Public Safety Department. 57 PUBLIC SERVICES DEPARTMENT REPORT 58 There was no report from the Public Services Department. 59 COMMUNITY DEVELOPMENT REPORT 60 There was no report from the Community Development Department. 61 UNFINISHED BUSINESS 62 There was no Unfinished Business. 63 64 NEW BUSINESS 65 There was no New Business. 66 67 COMMUNITY EVENTS 68 There were no events announced. 69 7o ADJOURN 71 72 There being no further business, Councilmember Lyden moved to adjourn at 7:10 p.m. 73 Councilmember Ruhland seconded the motion. Motion carried on a voice vote. 74 75 These minutes were considered and approved at the regular Council Meeting on June 28, 2 02 1. 76 77 78 79 80 Julianne Bartell, City Clerk Rob Rafferty, Mayor 81 2 CITY COUNCIL WORK SESSION DRAFT t CITY OF LINO LAKES 2 MINUTES 3 4 DATE : June 14, 2021 5 TIME STARTED : 6:00 p.m. 6 TIME ENDED : 6:25 p.m. 7 MEMBERS PRESENT : Councilmember Stoesz,Lyden, Ruhland 8 Cavegn and Mayor Rafferty 9 MEMBERS ABSENT : None 10 Staff members present: City Administrator Sarah Cotton; Finance Director Hannah 11 Lynch; Community Development Director Michael Grochala; City Planner Katie Larsen; 12 City Engineer Diane Hankee; City Clerk Julie Bartell 13 14 1. Review Regular Agenda of June 14, 2021 15 Item 1L—Nature's Refuge—Mayor Rafferty asked how many extensions are allowed 16 for filing the final plat. Planner Larsen noted that it is up to the council; staff is getting 17 to a point where they believe the extensions should probably end. The developer is 18 working towards an end. 19 Expenditures—Administrator Cotton noted that the filing fee for Blue Heron Days road 20 closure is included as a non-budgeted expense. 21 Item 2A, General Obligation Reconstruction Bonds—Finance Director Lynch reported 22 that the City's financial consultant Terri Heaton will be reporting on the results of today's 23 bond sale. 24 Item 2B, 2020 Annual Audit Report—Mayor Rafferty remarked that this item was 25 pulled from consent in order to highlight the good results. 26 Item 6A, Butler Addition—City Planner Larsen noted that this is the second reading of 27 the ordinance. The plat is expected a couple months down the line. 28 Item 6B,Nadeau Acres - City Planner Larsen noted the status of the development 29 (selling well). This is the 2nd Addition final plat. 30 Councilmember Lyden recalled there was some concern from neighbors about drainage; 31 has that remained an issue. Staff indicated that there have been no complaints. 32 Item 6D,Water Treatment Plant Pilot Study—Community Development Director 33 Grochala remarked that this matter was discussed at the council work session. He has 34 checked on the question of how long a study would remain valid and hears that the 35 Department of Health would accept findings up to five years. Mr. Grochala also noted 36 information gained on what else would be removed from the water by filtration. 37 Item 6E, 2021 Street Maintenance Project—City Engineer Hankee explained the 38 funding behind the project and the process used to seek bids. Only one bid was received, 39 the bid is favorable to the City and staff is recommending acceptance of the bid and the 40 alternate. 1 CITY COUNCIL WORK SESSION DRAFT 41 Item 6F,Water Treatment Plant State Funding Request—Community Development 42 Director Grochala explained the process underway seeking state funding for a project in 43 Lino Lakes. A resolution approved by the Council is required as part of the process. 44 45 The meeting was adjourned at 6:25p.m. 46 47 These minutes were considered, corrected and approved at the regular Council meeting held on 48 June 28, 2021 49 50 51 52 53 Julianne Bartell, City Clerk Rob Rafferty, Mayor 54 2 CITY COUNCIL AGENDA ITEM IF STAFF ORIGINATOR: Katie Larsen, City Planner MEETING DATE: June 28, 2021 TOPIC: Consider Resolution No. 21-61 Approving Site Improvement Performance Agreement for Otter Crossing VOTE REQUIRED: 3/5 BACKGROUND The applicant, Tyme Properties, LLC, submitted a land use application for the final plat of Otter Crossing. The plat creates a 1.46 acre parcel for the purpose of constructing a 7,800 sf commercial retail building. Per Section 1007.020 Site and Building Plan Review, a Site Improvement Performance Agreement is required. (1) General. All site and building plans for multiple family, commercial, industrial or public/semi-public uses shall require review and approval by the Community Development Department. (5)Performance Standards. (d) The applicant shall, upon completion of site and building plan review, submit to the City an agreement that they will cause all improvements called for in the site and building plan review to be completed within the time specified by the City. Performance of such contracts shall be secured by the amount submitted at application or additional amount as may be required by the City Council. The attached Site Improvement Performance Agreement addresses the site improvements for the building and provides for submittal of all required fees and securities. RECOMMENDATION Staff recommends approval of Resolution No. 21-61. ATTACHMENTS 1. Resolution No. 21-61 2. Site Improvement Performance Agreement CITY OF LINO LAKES RESOLUTION NO. 21-61 RESOLUTION APPROVING A SITE IMPROVEMENT PERFORMANCE AGREEMENT WITH LINOEXCH321, LLC WHEREAS, the City has completed review of the site and building plans for Otter Crossing; and WHEREAS, the parcel is legally described as: Lot 1, Block 1, Otter Crossing; and WHEREAS, Section 1007.020(5)(d) of the Lino Lakes Zoning Ordinance requires the execution of a site performance agreement prior to issuance of a building permit. NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of Lino Lakes that the Site Improvement Performance Agreement between the City of Lino Lakes and LinoExch321, LLC is hereby approved and the Mayor and City Clerk are authorized to execute such agreements on behalf of the City. Adopted by the Council of the City of Lino Lakes this 28t' day of June, 2021. The motion for the adoption of the foregoing resolution was introduced by Council Member and was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: Rob Rafferty, Mayor ATTEST: Julianne Bartell, City Clerk CITY OF LINO LAKES,MINNESOTA SITE IMPROVEMENT PERFORMANCE AGREEMENT THIS AGREEMENT made this day of , 2021, is by and between the City of Lino Lakes, a municipal corporation organized under the laws of the State of Minnesota, and LinoExch321 LLC ("Developer"). WHEREAS, the Developer has received approval of Site Development Plans, hereinafter called the "Plans", by the City of Lino Lakes on the 28th day of June, 2021, and in accordance with the Plans all of which are made a part hereof by reference. In consideration of such approval, the Developer, its successors and assigns, does covenant and agree to perform the work as set forth in the Plans, in the aforesaid approval, and as hereinafter set forth upon the real estate (hereinafter referred to as "Property") described as follows: Lot 1, Block 1, Otter Crossing NOW, THEREFORE, in consideration of the mutual promises of the parties made herein, IT IS AGREED BY AND BETWEEN THE PARTIES HERETO: I. DESIGNATION OF IMPROVEMENTS. A. Improvements on the project site to be installed at the Developer's expense by the Developer as hereinafter provided are hereinafter referred to as "On-site Work". B. Improvements off the project site to be installed at the Developer's expense, if any, by the Developer as hereinafter provided are hereinafter referred to as "Off-Site Work". C. Developer shall enter into a Declaration for Maintenance of Stormwater Facilities. II. ON-SITE WORK. A. On-Site Work. The On-Site Work shall consist of the improvements described in the approved Plans, to include any approved subsequent amendments, and shall be in compliance with all applicable statutes, codes and ordinances of the City. The On-Site Work includes all on-site exterior amenities as shown on the approved Plans and as required by the plan approval, such as, but not limited to: landscaping, private driveways, parking areas, sanitary sewer extension, water system extension, storm drainage systems, curbing, lighting, fencing, fire lanes, sidewalks, exterior building architectural design and building elements, site grading and erosion control measures. LinoExch321 LLC Site Performance Agreement page 1 of 10 Such improvements shall be completed in accordance with Section IV herein. B. Cost Estimates. The Developer shall provide the City with a written estimate of all applicable costs of the On-Site Work, itemized by type; the estimates shall be based upon the actual estimates provided by the contractors who are to do the Work. Said cost estimates shall be reviewed by the City, and the City shall establish the actual amount of the financial guarantee. The description and estimated cost of Developer's On-Site Work are as follows: Description of Improvements Estimated Costs 1. Lighting $0* 2. Fences/ Screen Structures $ 1,200.00 3. Trash Disposal Structures $ 26,938.00 4. Curbing/Islands/Delineators $0* Storm Drainage Systems/ Sewers/Catch Basins/ * 5' Culverts/ Swales $0 6. Public Trails and/or Sidewalk $0* 7. Private Trails and/or Sidewalk $0* 8. Driveway/Curb cut/Parking Lot/Fire Lane $0* 9. Water mains/Hydrants/ Sanitary Sewers $0* 10. Landscaping $ 48,058.00 11. Site Grading $0* 12. Erosion Control $0* Total Estimated Cost of Developer Improvements $ 76,196.00 Security Requirement (Total * 35%) $ 26,668.60 *Previously collected through Otter Crossing Development Agreement III. DEVELOPER FEES. A. Trunk Sanitary Sewer Connection Fees The City established trunk utility connection fees to uniformly distribute the costs of public trunk sanitary sewer infrastructure. The Trunk Utility Connection Fee consists of two components; a Trunk Charge and an Availability Charge. Trunk Charge The trunk charge shall be paid at the time of subdivision approval or at the LinoExch321 LLC Site Performance Agreement page 2 of 10 time of hook-up, whichever is first. The Sanitary Sewer Trunk Charge is $1,630.00 per unit. Commercial/Industrial/Institutional(CII)trunk charges are based on a factor of 2.92 units per acre. Trunk fees were paid at the time of development. There are no trunk fees due. Availability Charge For residential properties, the availability charge shall be paid at the time of subdivision approval or at the time of hook-up, whichever is first. Commercial/Industrial/Institutional availability charges shall be paid at the time of building permit. Fees are based on the number of sanitary access charge (SAC)units assigned by Metropolitan Council Environmental Services (MCES). City Sewer(CSAC) $1,525.00 Per SAC Unit Trunk sewer unit charges addressed under this paragraph are in addition to any SAC charges imposed by Metropolitan Council Environmental Services. B. Trunk Water Connection Fees The City established trunk utility connection fees to uniformly distribute the costs of public trunk water infrastructure. The Trunk Utility Connection Fee consists of two components; a Trunk Charge and an Availability Charge. Trunk Charge The trunk charge shall be paid at the time of subdivision approval or at the time of hook-up, whichever is first. The Water Trunk Charge is $2,341.00 per unit. CommerciaUlndustriaUlnstltutlonal(CII)trunk charges are based on a factor of 2.92 units per acre. Trunk fees were paid at the time of development. There are no trunk fees due. Availability Charge For residential properties, the availability charge shall be paid at the time of subdivision approval or at the time of hook-up, whichever is first. Commercial/Industrial/Institutional availability charges shall be paid at the time of building permit. Fees are based on the number of sanitary access charge (SAC)units assigned by Metropolitan Council Environmental Services (MCES). City Water(CWAC) $1,473.00 Per SAC Unit. LinoExch321 LLC Site Performance Agreement page 3 of 10 C. Surface Water Management Area Charges The City established a trunk area charge to uniformly distribute the costs of public trunk surface water infrastructure and water quality improvements. 1. Sanitary Sewer Trunk Unit Fee ($1,630/unit; 2.92 units/Acre) $0* 2. City Sewer Availability Fee ($1,525/SAC Unit) TBD** 3. Water Trunk Unit Fee ($2,34 1/unit; 2.92 units/Acre) $0* 4. City Water Availability Fee ($1,473/SAC Unit) TBD** 5. City Surface Water Management Fee $0* Total Estimated (Budget)Developer Fees $0 *Paid with Otter Crossing Development Agreement **Paid at the time of Building Permit based on MCES unit determination IV. RECORD DRAWINGS. a. Upon project completion, Developer shall submit record drawings, in electronic format, of all public and private infrastructure improvements, including grading, sanitary sewer,water main, storm sewer facilities, and roads, constructed by Developer. The as-built survey must include, but is not limited to,proposed and final contours with adequate elevation shots to show conformance, property irons (to be exposed in field), low floor and low opening elevations, and the 100-Year High Water Level (HWL) of all ponds, lakes, and wetland areas. The files shall be drawn in Anoka County NAD 83 Coordinate system and provided in both AutoCAD .dwg and Adobe .pdf file formats. The plans shall include accurate locations, dimensions, elevations, grades, slopes and all other pertinent information concerning the complete work. The Developer shall also submit certified compaction testing results for the site grading operations. b. A summary of the record plan attribute data for the storm sewer, water main, and sanitary sewer structures and pipes shall be submitted in the form of an Excel Spreadsheet as provided by the City Engineer. c. No securities will be fully released until all record drawings have been submitted and accepted by the City Engineer. V. COMPLETION DATE. If the activities authorized by site and building plan approval are not initiated within twelve(12)months from the final execution of this agreement,then LinoExch321 LLC Site Performance Agreement page 4 of 10 Developer will need to start the site and building plan approval process from the beginning. VI. GUARANTEE. A. The Developer will fully and faithfully comply with all terms and conditions of any and all contracts entered into by the Developer. Concurrently with the execution hereof by the Developer, the Developer will furnish to, and at all times thereafter maintain with the City, a cash deposit, certified check, or Irrevocable Letter of Credit, based on thirty- five (35%)percent of the total estimated cost of Developer's On-site Work. An Irrevocable Letter of Credit shall be for the exclusive use and benefit of the City of Lino Lakes and shall state thereon that the same is issued to guarantee and assure performance by the Developer of all the terms and conditions of this Development Contract, construction of all required improvements in accordance with the ordinances and specifications of the City and guarantees the workmanship and materials for the landscape improvements for a period of one year following the City's acceptance of the landscape improvements. The City reserves the right to draw, in whole or in part, on any portion of the Irrevocable Letter of Credit for the purpose of guaranteeing the terms and conditions of this contract, if Developer has been found to be in default of this agreement and only after providing Developer with written notice and opportunity to cure any default. The Irrevocable Letter of Credit shall be automatically extended for additional periods of one year from present or future expiration dates unless sixty(60) days prior to such the City Clerk or Administrator is notified in writing by certified mail or overnight mail that the Letter of Credit will not be renewed. B. Upon written request, The City will grant a reduction of the Letter of Credit, or cash deposit based on prepayment or the value of the completed improvements at the time of the requested reduction. The Developer may make such requests three times throughout the life of this agreement, with the third and/or final request being at the completion of the project. The City will respond to such request within 30 days time. Prior to the final acceptance of the Developer's Improvements the City shall require a Letter of Credit or Cash Escrow to cover the warranty provisions of the agreement. The amount shall be agreed to by the City Engineer and Developer and Developer may use the Letter of Credit discussed in Section VLA above. VII. REIMBURSEMENT OF COSTS. A. The Developer agrees to establish a non-interest bearing escrow account with the City in an amount established by the City Engineer or his LinoExch321 LLC Site Performance Agreement page 5 of 10 designee for the payment of all City fees and costs incurred by the City related to the On-site Work, including, but not limited to, the following: 1. Site Plan Review Fee $5,800.00 2 Administration $2,285 88 (Legal, Engineering, Planning and Contract Administration) 3. Negative Short Term Escrow Balance NA Total Estimated(Budget) Costs for Escrow Account _7—$8,085.88 B. If it appears that the actual costs incurred will exceed the estimate or that the actual costs incurred will be less than the estimate, then Developer and City shall review the costs required to complete the project. In such case, if the actual costs exceed the estimate, then Developer shall promptly pay the additional sums to the City to pay for the agreed upon increase. However, in such case where the actual costs are less than the estimate, the City shall promptly reimburse to Developer any amounts overpaid by the Developer. The Developer may request a statement of the account each month for review. VIII. REMEDIES FOR BREACH. A. The City shall give prior written notice to the Developer of any default hereunder before proceeding to enforce such financial guarantee or before the City undertakes any work for which the City will be reimbursed through the financial guarantee. If within twenty(20) days after receipt of such written notice to it, the Developer has not notified the City by stating in writing the manner in which the default will be cured and the time within which such default will be cured, the City will proceed with the remedy it deems reasonably appropriate. B. At any time after the completion date and any extensions thereof, if any of the work is deemed incomplete, the City may proceed in any one or more of the following ways to enforce the undertakings herein set forth, and to collect any and all expenses reasonably incurred by the City in connection therewith, including, but not limited to, engineering, legal, planning and litigation costs and expense. The enumeration of the remedies hereunder shall be in addition to any other remedies available to the City. 1. Specific Performance. The City may in writing direct the surety or the Developer to cause the Work to be undertaken and completed within a specified reasonable time. If the Developer fails to cause the Work to be done and completed in a manner and time reasonably acceptable to the City, the City may proceed to bring an action for specific performance to require work to be undertaken. LinoExch321 LLC Site Performance Agreement page 6 of 10 2. Completion by the City. The City, after written notice, may enter the premises and proceed to have the Work done either by contract, by day labor or by regular City forces. The Developer may not question the manner of doing such work or the letting of any such contracts for the doing of any such work; provided that all such work is performed in a reasonable manner, the costs are reasonable and the work is completed in a good and workman-like manner and in accordance with the approved plans and specifications. Upon completion of such work, the Developer shall promptly pay the City the full cost thereof as aforesaid. 3. Deposit of Financial Guarantee. In the event the financial guarantee has been submitted in the form of a Letter of Credit, the City may draw on the Letter of Credit the sum equal to the reasonably estimated cost of completing the Work, plus the City's reasonably estimated expenses as defined herein, including any other reasonable costs, expenses, and damages for which the surety may be liable hereunder, but not exceeding the amount set forth on the Letter of Credit. The money shall be deemed to be held by the City for the purpose of reimbursing the City for any reasonable costs incurred in completing the Work as hereinafter specified. Any funds remaining after completion of the project shall be promptly returned to the Developer. IX. OCCUPATION OF PREMISES. The Developer agrees that it will not cause to be occupied any portion of the building or improvements to be constructed upon the premises until completion of the building and site improvements as more fully described in the approved plans and following issuance of a Certificate of Occupancy. X. INSURANCE. Developer or its general contractor shall take out and maintain until one year after the City accepted the Developer Improvements, public liability and property damage insurance covering personal injury, including death, and claims for property damage which may arise out of the Developer's or general contractor's work, as the case may be, or the work of its subcontractors or by one directly or indirectly employed by any of them. Limits for bodily injury and death shall be not less than Five Hundred Thousand and no/100 ($500,000.00) Dollars for one person and One Million and no/100 ($1,000,000.00) Dollars for each occurrence; limits for property damage shall be not less than One Million and no/100 ($1,000,000.00) Dollars for each occurrence; or a combination single limit policy of Two Million and no/100 ($2,000,000.00) Dollars or more. The City, its employees, its agents and assigns shall be named as an additional insured on the LinoExch321 LLC Site Performance Agreement page 7 of 10 policy, and the Developer or its general contractor shall file with the City a certificate evidencing coverage prior to the City signing the plat. The certificate shall provide that the City must be given ten days advance written notice of the cancellation of the insurance. The certificate may not contain any disclaimer for failure to give the required notice. XI. REIMBURSEMENT FOR LITIGATION EXPENSES. The City and Developer agree that the prevailing party in any litigation pertaining to the enforcement of this Agreement shall be entitled to reimbursement from the non-prevailing party for all reasonable costs incurred by said prevailing party including court costs and reasonable engineering and attorneys' fees. XII. VALIDITY. If a portion, section, subsection, sentence, clause, paragraph or phrase in this Agreement is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect or void any of the other provisions of the Site Improvement Performance Agreement. XIII. GENERAL. A. BindingEffect.ffect. The terms and provisions hereof shall be binding upon and inure to the benefit of the heirs, representatives, successors and assigns of the parties hereto and shall be binding upon all future owners of all or any part of the Property and shall be deemed covenants running with the land. B. Notices. Whenever in this Agreement it shall be required or permitted that notice or demand be given or served by either party to this Agreement to or on the other party, such notice or demand shall be delivered personally or(i)mailed by United States mail by certified mail (return receipt requested) or(ii) sent by nationally recognized overnight carrier to the addresses hereinbefore set forth on Page 1. Such notice or demand shall be deemed timely given when delivered personally or when deposited in the mail or the overnight carrier in accordance with the above. The addresses of the parties hereto are as set forth on Page 1 until changed by notices given as above. C. Incorporation by Reference. All plans, special provisions, proposals, specifications and contracts for the improvements furnished and let pursuant to this Agreement shall be and hereby are made a part of this Agreement by reference as fully as if set out herein in full. LinoExch321 LLC Site Performance Agreement page 8 of 10 C. Hours of Construction Activity. Construction activity shall be limited to the hours set out as follows: Monday through Friday 7:00 a.m.to 7:00 p.m. Saturday 9:00 a.m.to 5:00 p.m. Sunday and Holidays No working hours allowed XIV. VIOLATIONS/BUILDING PERMITS. In the event that Developer violates any of the covenants and agreements contained in this Site Improvement Performance Agreement and to be performed by the Developer, the City, at its option, and after providing written notice and opportunity to cure to Developer in addition to the rights and remedies as set out hereunder may refuse to issue building permits to any property within the development and/or stop building construction within the development until such time as such default has been corrected to the satisfaction of the City. DEVELOPER CITY OF LINO LAKES By By LinoExch321 LLC Mayor ATTEST: By City Clerk STATE OF MINNESOTA ) ) SS COUNTY OF ANOKA ) This instrument was acknowledged before me on day of , 2021, by Rob Rafferty as Mayor of the City of Lino Lakes on behalf of said City. Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF ANOKA ) LinoExch321 LLC Site Performance Agreement page 9 of 10 This instrument was acknowledged before me on day of , 2021 by Julianne Bartell as City Clerk of the City of Lino Lakes on behalf of said City. Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF ANOKA ) On this day of , 2021, before me, a Notary Public within and for said County, personally appeared, , who executed the foregoing instrument. Notary Public This instrument was drafted by: City of Lino Lakes 600 Town Center Parkway Lino Lakes, Minnesota 55014 LinoExch321 LLC Site Performance Agreement page 10 of 10 CITY COUNCIL AGENDA ITEM IG STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: June 28,2021 TOPIC: Consider Resolution Consider Resolution No. 21-66, Approving Common Interest Agreement, Water Appropriation Permit Amendment Appeal VOTE REQUIRED: 3/5 Vote Required INTRODUCTION Staff is requesting Council consideration to approve a Common Interest Agreement regarding the DNR Water Appropriation Permit Amendment appeals. BACKGROUND August 30, 2017, the Ramsey County District Court issued a judgement regarding the groundwater management of White Bear Lake and the Prairie Du Chien-Jordan Aquifer. As a result the City's Minnesota Department of Natural Resources (DNR) Water Appropriation Permit 1985-6168 was amended to include the following requirements: • PLAN TO CONVERT TO SURFACE WATER SOURCE:A revised Water Supply Plan must be submitted to the DNR,by August 29,2018,that includes a contingencyplan to fully or partially convert the source water that is authorized under this permit from groundwater to surface water source(s).The contingency plan must include a schedule for funding design,construction and conversion to a surface water supply.Whether any conversion would occur shall be determined by the DNR and the holder of this permit. • RESIDENTIAL IRRIGATION BAN:The permittee must prepare,enact and enforce a residential irrigation ban when notified by DNR that the lake level of White Bear Lake has fallen below 923.5 feet (MSL 1912),to continue until notified by the DNR that the lake level has reached an elevation of 924 feet (MSL 1912).By April 30,2018,send the DNR your approved ordinance or other enforceable mechanism for implementing an irrigation ban consistent with this permit condition. • PER CAPITA WATER USE PLAN: By August 29,2018 submit an enforceable plan to the DNR to phase down per capita residential water use to 75 gallons per day and total per capita water use to 90 gallons per day. • REPORT ON COLLABORATIVE EFFORTS:Annual reporting to the DNR is required on your collaborative efforts with northeast metro communities to develop plans to phase down per capita residential water use to 75 gallons per day and total per capita water use to 90 gallons per day.Annual reports are due on March 31 st of each year,beginning in 2019. Lino Lakes, along with several other municipalities, objected to the conditions and requested a hearing pursuant to state law. The administrative hearing process was stayed pending completion of the DNR's appeal of the District Court's Order. The appeals process was completed and the DNR provided notice in May of 2021 that the appeals cases would be reinstituted. Given similar shared issues, 10 communities are considering adoption of a Common Interest Agreement. It permits us to cooperate in the challenge to the watering limitations imposed on the permit amendments. The agreement was reviewed and recommended for approval by the City Attorney. RECOMMENDATION Staff recommends adoption of Resolution No. 21-66. ATTACHMENTS 1. Resolution No. 61-66 CITY OF LINO LAKES RESOLUTION NO. 21-66 APPROVING COMMON INTEREST AGREEMENT WATER APPROPRIATIONS PERMIT 1985-6168 AMENDMENT APPEAL WHEREAS,Ramsey County District Court Order issued a judgement 62-CV-13-2414 on August 30, 2017 regarding the groundwater management of White Bear Lake and the Prairie du Chein-Jordan Aquifer; and WHEREAS,the City of Lino Lakes' Minnesota Department of Natural Resources Water Appropriation Permit 1985-6168 has been amended to include conditions resulting from said Court Order; and WHEREAS,the City of Lino Lakes objected to the amendments, along with other communities, and requested a hearing in accordance with state law; and WHEREAS,the City finds that it is in the best interests of the community to cooperate with other communities challenging the amendments; NOW, THEREFORE BE IT RESOLVED The City Council of The City of Lino Lakes approves the Common Interest Agreement and authorizes the City Attorney to execute the agreement on behalf of the City. Adopted by the Council of the City of Lino Lakes this 28t" day of June, 2021. The motion for the adoption of the foregoing resolution was introduced by Council Member and was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: Rob Rafferty, Mayor ATTEST: Julianne Bartell, City Clerk CITY COUNCIL AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala, Community Development Director Sarah Cotton, City Administrator MEETING DATE: June 28, 2021 TOPIC: Consider Resolution No. 21-62, Accepting Recreation and Aquatic Center Feasibility Study VOTE REQUIRED: 3/5 INTRODUCTION Staff if requesting City Council consideration to accept the Recreation and Aquatic Center Feasibility Study completed by ISG. BACKGROUND In July of 2020, the City was notified the YMCA would not be reopening the Lino Lakes Facility. In November of 2020, the City retained Isaac Sports Group (ISG) to evaluate potential facility operating options. Pursuant to a notice provided by the YMCA on January 4, 2021, and in accordance with the development agreement between the YMCA and the City, the YMCA transferred their property and building to the City on March 1, 2021. ISG has completed their report and presented their findings to the City Council at the work session June 7, 2021 work session. The report examines programming options, three potential management models, and multiple fee structures. Financial operating budgets and projections were developed to evaluate the different options. The report also includes considerations for long term development and expansion, impact of the COVID-19 pandemic, along with a project timeline and next steps. Keys to success are also included as a resource to identify key operating best practices and needs necessary to make the facility a success. Representatives from ISG will be present at the council meeting to discuss the report findings. As discussed at the work session, an opportunity for public comment will provided at the meeting. Our next step will be to discuss the options and determine a preferred course of action. Staff will include the Rec Center as a discussion item on the July 7, 2021 work session agenda. RECOMMENDATION Staff is recommending acceptance of the report. ATTACHMENTS 1. Resolution 21-62 2. Final Report CITY OF LINO LAKES RESOLUTION NO. 21-62 ACCEPTING RECREATION AND AQUATIC CENTER FEASIBILITY STUDY WHEREAS,the City retained the services of Isaac Sports Group (ISG)to evaluate options for the former YMCA's continued operation as a community center; and WHEREAS, ISG has completed said report and presented their findings to the City Council; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes that the report, prepared by Isaac Sports Group, is hereby accepted. Adopted by the City Council of the City of Lino Lakes this 28th day of June, 2021. The motion for the adoption of the foregoing resolution was introduced by Councilmember and was duly seconded by Councilmember and upon vote being taken thereon, the following voted in favor thereof- The following voted against same: Rob Rafferty, Mayor ATTEST: Julianne Bartell, City Clerk i - A S t \ • t� -- - fFil�llfl� Yll CITY OF700 VW LIN E YMCA/ Recreat *ion Center Analys *is Report Summary June 28, 2021 Isaac Sports Group 1 Study Process and Methodology A • Regular Meetings with City Staff • Individual interviews with City Council • Walk through inspection of current YMCA facility • Review and analysis of YMCA program, operating budget, membership data and equipment and furnishings • Review and market analysis of programs, facilities, membership and program fees at comparable public and private facilities in the area • Interviews with key stakeholders, potential partners, program providers, Centennial School District, YMCA "Reimagining" committee, outside user groups • Exploration and interviews with service, equipment, and program providers • Staffing, Budgeting, and Management Reviews with City Management 2 Goals & Opportunities for the Rec Center • How can the Rec Center develop expanded community programming that integrate and enhance existing City and local organization community programming? • How can a Lino Lakes Rec Center better serve the residents of Lino Lakes? • How can the Rec Center differentiate itself from the old Y and other YMCAs and facilities in the area? • What can the Rec Center do or provide what the YMCA could not? • How can the Rec Center create unique or "signature" programs and enhancements not readily available in the market? • Support future economic development in Lino Lakes: Enhancing lifestyle benefits and encouraging local business and residential growth 0 ,, 3 I low • Provide community c asses, activities, and services to augment the recreation, sp and leisure activities of the Rec Center • A facility that is relevant to all Lino Lakes constituencies: A Community Hub • A community friendly membership model • Enhanced community classes and programs, linked to existing City programs and creating new and enhanced programs — Immediate opportunities — Future potential for expanded opportunities • Senior Programming — Wide range of fitness programs, intensity levels, and classes — Part-time employment and volunteerism — Partnerships or joint programs with neighboring senior living centers — Intergenerational opportunities • Re-visit potential community partners — School Districts and Community Education — Area Health Care providers: Wellness, Fitness, Aquatic Therapy/Rehab, etc. — Other? 9 Programming Rec & Community Center Programming K I AIL Immediat Program Initiative • Introduction in new and enhanced programming in Fitness and Aquatics • Expanded senior and older adult programs — Coordinate with existing City programs • Optimize schedule options and flexibility: Concurrent Programing • Expand Special Needs and Adaptive PE/Recreation programs • Increase cooperative or partnership programming resources • Programming opportunities in current spaces Long Term Growth and Expansion • Sports Center: Court Facility • "Outdoor" Activity Center • Expanded Community meeting, function and program space Awl$ 6 Lti i JL1,; P otential Program Outsourcing ft I JL49 • Finding the right program partners — Identify program providers that captured former YMCA users when Y closed? — Providers that offer more robust and diverse program offerings than Y — Market service area : • Do they already draw from Lino Lakes population? • Can they expand the market service area of the existing Y? — Rates and Fees in line with City membership and use affordability goals • Can provide resident discount — Consolidate potential program competition in local market 40 Outsourced Programming-Opportunifim-, LO.M..- "W j - - A Swim Lesson Program with Centennial School District Vommunity Ed • Instructor/management/marketing structure in place — Community Ed to provide instructors and management • Optimize the swim lesson friendly Rec Center pools • Existing Student base • Minimize competition Fitness Program Provider • Introduction in new and enhanced programming in Fitness and Aquatics • Provide all fitness equipment, flooring, etc. • Provide Instructors, management, and monitoring staff • Existing membership and user base: Accelerate revenue and growth • Existing marketing platforms • Significant upfront and start-up cost savings 8 .-- Membership Model lh�� j • Analyzed three residen mem ers ipr to scenarios compared to YMCA rates — 75% of Y rates — 60% of Y rates — 50% of Y rates • Recommended Resident rates — 60% of equivalent YMCA Membership rates • Non-resident rates is approximately a 20% premium — Comparable to area and regional community recreation center facilities — "Sweet Spot" balancing affordability and revenue generation • Overall Facility and Fitness Only membership categories — "I don't want to pay for what I won't be using" • Drop-in day and multiple visit pass use options • Wider range of membership categories: Seniors, couples, military • Discount for annual membership (approximately 11 month equivalent) 9 Recommended Membership and User Fees (Resident Rates-60% of YMCA Rates) Membership Monthly C gory ategory Overall/Fitness Annual Drop-in Daily 10-Visit Pasc— WM MO&M Adult $42/$36 $462/$393 $7 $60 Adult Couple $63/$54 $695/$590 NA NA Senior $26/$22 $285/$242 $5 $42 Senior Couple $39/$33 $430/$365 NA NA Youth $26/$22 $285/$242 $5 $5 Family $86/$73 $945/$803 $12 NA Military Adult $36/$31 $395/$335 $6 $6 Military Family NA $73/$62 $800/$680 NA Management Opening Costs Financial Operating Analysis Options and Opportunities Operating • A financially sustainable facility — Revenue to balance operating expenses • Minimize costs for re-opening • Explore management options for optimum efficiency • Identify funding model for future long term expansion and growth • Explore opportunities for enhanced financial performance — Reducing operating and long term expenses — Enhancing revenue streams — Partner opportunities Sopea- 12 Management Models nL AM • City Managed • Total outsourced management organization • Hybrid options • • Key elements — City provides all management and staff — City provides all programming and program staff • Some exceptions for specific outsourced programs — City responsible for all facility and programming costs but retains all revenue • Pros — Ensures control of all elements of Rec & Community Center — Optimum coordination with other City based community programming — Total control of all membership and program fees • Cons — Need for broad expansion of City employees with program expertise, experience, and skill sets not currently available within City staff — Likely to incur higher opening costs — Likely ramp up model in first two years - - Greater risk for City if facility does not meet initial or ongoing financial goals and projections 14 Outsourced Total Facility Management I A • Key elements — Turn-Key management team runs all membership, usage, programs, scheduling, and staffing — Management company pays all staff, utilities, regular cleaning and handles marketing and other normal operating costs — May include all annual and long term maintenance and replacement — May require City paid management fee based on profit model for Management Company • Pros — Can be faster start up than City managed facility — May reduce City start up costs if equipment and other costs included in management contract — Reduces City annual operating deficit risk — No significant increase in City staff or expenses • Cons — Adds another layer of cost to support profit margin that may add City cost — City may have less control of membership and usage fees — May reduce accessibility to community groups and other non-revenue generating City program goals — For profit management group may not share City vision and goals 40; 3 — Requires very detailed agreement and understanding of City requirements 15 A6. Hybrid Management Model • Key elements — City manages facility operations, maintenance, cleaning — City manages membership program and back office financial operations — Some programs provided internally — Some programs provided and managed by outside providers • Partnership model will vary by program — Key program partners • Aquatics • Fitness • Most instructors and program staff are independent contract employees — Potential Combination of lease and profit share agreements • Pros — Can be fastest start up scenario — Most of necessary staff is already in place, reducing any challenges in finding staff — Program providers have established user base: Help jump start programs and revenue — May reduce City start up costs if equipment and other costs included in management contract — Programs, access, and fee models can be shaped to meet City goals and objectives • Cons 4Q* 4r — Multiple program providers can require strong management organization 16 Re-Opening and Start- Up Costs (City Management Option ) • Estimated at $516,000 • Staffing Management — Operations and Management — Membership/Customer Service — Part-time staff hiring and training (Lifeguards, instructors, front desk, etc.) win win � ar�� Program Development � .. �� <<:« • Facility Cleaning - - - LAI • Equipment and Furnishings '4Aof - • Rebranding and Signage � ► • Pool Start-Up • Membership/Access/IT Systems • MembershipDrive and Marketing 17 g '� Financial Operating Analysis -(City anagernent & Hybrid Option) • Membership and use ees scenarios — Market Analysis, Projections • Swim Lesson Program — Market Analysis, Projections • Facility Revenue AL .m&l • Program Revenue • Facility Expenses — Includes City Administrative Allocation • Program Expenses • Profit and Loss Summary • Long Term Capital Replacement and Maintenance projections 40 P & L Summaries and all Budget Line Item Detail included in Study Report A.' Year 3 : City Managed vs. Hybrid Model Budget Cate�� City Managed Hybrid Model Revenue Facility Revenue $1,854,000 $1,634,000 Program Revenue $445,000 $201,000 REVENUE SUBTOTAL $2,299,000 $1,835,000 Expenses Operational Expenses $2,036,000 $1,688,000 Program Expenses $206,000 $69,000 EXPENSES SUBTOTAL $2,242,000 $1,757,000 OPERATING NET REVENUE (DEFICIT) $57,000 $78,000 Cost Recovery 103% 104 City Administrative Allocation $165,000 $165,000 A EXPENSE SUBTOTAL with City Admin Allocation $2,407,000 $1,922,000 OVERALL NET REVENUE (Deficit) $(1081000) $(87,000) Cost Recovery 95% 95% M Financial Operating Analysis Main Sources of Revenue (Year Three) Revenue Center City Managed Hybrid Model Membership and Daily Use $1,745,000 $1,454,000 Swim Lessons $240,000 $76,000 Youth Camps $78,000 $78,000 Lease Revenue (Program Partner) $0 $75,000 Dry-side Fitness $73,000 $0 Pool Rentals $41,000 $41,000 Aquatic Fitness $34,000 $31,000 Court/Gym Rentals $32,000 $32,000 Special Events/Functions $28,000 $25,000 Retail Kiosk $7,000 $8,000 Sponsorship & Advertising $0 $0 Financial Operating Analysis Main Cost/Expense Centers (Year Three) Cost Center City Managed Hybrid Model Includes Personnel Services: TOTAL $11557,000 $1,229,000 Full-time Staff $672,000 $545,000 10.5 FTE vs 8.5 FTE Part-time Staff $505,000 $384,000 Benefits and Other Staff Costs $380,000 $300,000 Other Services and Charges Utilities, $260,000 2461000 General Office, Supplies Maintenance, $193,000 $120,000 Equipment, Supplies Contractual Services $11,000 77,000 Program Expenses $206,000 $69,000 City Administration Share Allocation $165,000 $165,000 Capital Outlay $70,000 $70,000 Long Term Accrued Deficit Cumulative Operating Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Deficit* City Managed Model ($516,000) ($886,000) ($867,000) ($800,000) ($707,000) ($607,000) Hybrid Model ($437,000) ($5601000) ($497,000) ($420,000) ($323,000) ($227,000) Variance $79,000 $326,000 $370,000 $380,000 $384,000 $380,000 *Not including administrative allocation After• Hybrid reduces start up expenses • Hybrid model accelerates start up with current membership • Hybrid has greater potential upside for growth • operating deficits continue to reduce slightly from : 1 111 down Capital Outlay Long Term Replacement & Maintenance Accrual (Same in both Management Models) Year Accrued Capital Outlay Year 1 $0 Year 5 $292,000 Year 10 $743,000 Year 15 $1,265,000 Year 20 $1,871,000 Financial Impact of Hybrid Model • Potential Start-up Co"MV11ngs — Reducing need for staff hiring and training — Reduce equipment costs • Fitness equipment start-up costs could be reduced by $200,000 to $250,000 — Reduce marketing expenses leveraging outside providers existing marketing • Ramp-up timing — Higher initial membership levels drawing from programs already in place — Built in base of former YMCA members and program participants • Net financial impact — Less gross revenue for overall facility — Balanced by significantly lower expenses — Improved bottom line — Smaller reduced accrued start up and operating deficit b 24 Future & Long Term Opportunities R 0 0 F • Expand facilities to provide space for enhanced and existing programs and use • Provide facilities for new programming • Expansion to support expansion of community programming • Create unique "signature" features and amenities to become a destination • Identify and develop partners to support expansion • Identify new spaces and programs with positive financial impact — Increased revenue supporting overall Rec Center sustainability — Support increased economic development • Synergies with existing Rec & Community Center facilities to grow all programs • Can future expansion be supported by renewal of existing millage 26 ti� Sports Center • Court Facilities ` — Basketball, volleyball, pickleball, and more — Recommend 6 x regulation basketball courts (8+ volleyball) — Leagues, development programs, tournaments • Indoor walking track — Costly to retro-fit existing facility — Very cost effective if combined with expanded court facility • Climbing Center — Climbing wall —1 — Very cost effective if combined with expanded court facility • Partner Opportunities � 4 — Investor interest , ; i r — Sports Center management interest Financial Analysis: Profit Center with Partner r Outdoor Activity Center _ _ Expanded family friendly play area y, • Outdoor fitness stations/course` - • Compact ropes/leadership course '- - • Sand volleyball courts) � �. • Dog Park f f 1 - I' 1U4 1 . Community Function Space 00 - y • Work-back schedules prepared that start 6 months prior to opening • Factors affecting timeline — Any unexpected facility surprises — Delay in developing program partners or management group — Any specific timelines or milestones for partners — Suitability of actual opening target date — Coordinated with key community/school timelines — Other considerations — Good and bad times to open — Any difficulty in finding staff — Other? 30 • Development of Management Model • Development of Membership Model • Ongoing review and refinement of Budget/Business Model • Funding model for pre-opening costs • Funding model for annual operating deficit • Identify target opening date • Fine tune workback schedule based on target opening date 31 QUESTIONS and DISCUSSION ciT ofISG I I V KE Isaac Sports Group Lino Lakes Recreation and Community Center Analysis Facility, Opportunities, Program, Management, Financial, and Strategic Analysis June 23, 2021 E+ t �t a f~ a ymCA 700 TABLE OF CONTENTS Introduction Page 4 Study Methodology Page 5 Strategic Overview Page 7 Evaluation of Current Facility Page 11 Programming Analysis Page 19 Aquatic Programming Page 19 Fitness Programming Page 28 Special Needs and Adaptive Programs Page 30 Sport, Camp, and Youth Programs Page 31 Facility Schedule Analysis Page 33 Membership and User Programs Page 35 Child Watch Program Page 40 Facility Management and Staffing Models Page 41 Management Models and Options Page 41 Staffing Model Page 43 Financial Budgets and Operating Projections Page 46 Future Long Term Recreation Center Development and Expansion Page 51 Potential Impact of COVID-19 Pandemic Page 57 Project Timeline and Next Steps Page 59 Keys to Success and Factors in Failure Page 61 Conclusion Page 69 CITY '_'OF LNOL KES Page 2 of 72 APPENDIX INDEX APPENDIX A: Programming #A1 Learn to Swim Market Analysis and Comparisons #A2 Learn to Swim Program Projections #A2a City Managed Model #A2b Community Education Partner Model #A3 Aquatic Facility Scheduling Matrix APPENDIX B: Membership #B 1 Membership Market Analysis #132 Membership Fee Structure, Scenarios, and Projections APPENDIX C: Budget/Operating Analysis #C 1 Profit and Loss Summaries #C 1 a City Managed P & L #Clb Hybrid Management Model P & L #C 1 c P &L Comparison #C2 City Managed Model Budget Line Item Detail #C2a Facility Revenue #C2b Program Revenue #C2c Operational Expenses #C2d Program Expenses #C2e Program Profit Analysis #C3 Hybrid Management Model Budget Line Item Detail #C3a Facility Revenue #C3b Program Revenue #C3c Operational Expenses #C3d Program Expenses #C3e Program Profit Analysis APPENDIX D: Pools Operational and Mechanical Systems C ITYIWOF LNOL KES Page 3 of 72 INTRODUCTION The Chain of Lakes YMCA branch in Lino Lakes (the "YMCA") suspended operations at the start of the COVID pandemic in spring of 2020. In early fall of 2020 the YMCA made the decision to close the YMCA permanently and return ownership of the YMCA building to the City of Lino Lakes (the "City"). On March 1, 2021 the ownership of the building formally reverted to the City. The closing of the YMCA prompted the City to face hard decisions about the future of the former YMCA building. Key questions included: • What is the City going to do with this building? • Can the City reopen and manage the old Y as a City Recreation Center? • What private or outside management options may work in managing the building as a Recreation Center? • What would it cost to re-open? • What changes or improvements are needed? • What will it cost the City to run this facility? • What strategic long term opportunities are there for a Recreation Center? • Should the building be sold or repurposed? These questions and the info and analysis needed to analyze these questions led the City to seek outside consulting expertise to answer these questions and develop strategic, tactical, and practical plans and recommendations for the future of the former YMCA. The Isaac Sports Group, LLC. was retained in December 2020 to conduct this overall analysis of the potential and opportunities for the former YMCA building (the "Study"). C7 IT YJUD IF LNOL KES Page 4 of 72 METHODOLOGY Organization of Study and Report This ISG Report is organized roughly in the order of progression through the Study. This progression and Study organization included the following: • Evaluation of the existing YMCA building • Review and analysis of the YMCA Programming and Membership model • Review, analysis, and quantification of City resident program and recreation needs and opportunities • Development of program model for a City Recreation Center • Analysis and projections of the cost of re-opening the existing building as a new Recreation Center • Exploration of Recreation Center management options and models • Operating cost and revenue model and projections for the Recreation Center, including different management models • Development of long term strategic opportunities and options for long term development of the Recreation Center and its overall site • Development of a work-back timeline from re-opening of the Recreation Center Study Elements Key elements of Study research included but were not limited to the following: • Review of the former YMCA o Onsite inspection of the existing building with YMCA Operation staff and City staff o Review of YMCA equipment and furniture inventory, including what the YMCA would be leaving for the City(virtually nothing) o Study of YMCA operating and program records as well as minutes of the meetings of the YMCA Steering Committee minutes on their process of re-imaging the YMCA o Evaluation of nearby YMCAs impacting the former Lino Lakes YMCA • Market research o Area demographics o Research on area and regional public/municipal community Recreation Centers ■ Facilities,programs, fees, membership models, etc. ■ Best practice examples o Research on area and regional private fitness and recreation facilities currently drawing members and users from the Lino Lakes area • Identification and engagement of potential area user groups and stakeholders o Meetings and interviews with potential stakeholders and user groups and groups utilizing the former YMCA o Identification of area stakeholders and program providers that may be potential management and/or program partners for the Recreation Center • Detailed assessment of projected needs and costs for re-opening the facility o Work with City facility management, outside service providers, and equipment suppliers to develop cost projection • Explore outside management entities and opportunities, including pros and cons LNOL KES Page 5 of 72 �` ^°° o Potential of a management contract with the YMCA o Examples of management by fitness facility chains o Hybrid options • Operating Budget development o Detailed review of existing City management, staffing, maintenance, utility and other budget centers relevant to the operating budget of the Recreation Center o Comparison to operating budgets of the former YMCA and other comparable facilities o Specific analysis of operating costs during the facility closure prior to re-opening o Ongoing review of budget and backup projections and documents with City management and staff • Stakeholder engagement to identify opportunities for future development • Presentation of initial findings to City Council work session March 18, 2021 Using the Report The report is forward looking,providing information to help support the key City Staff driven Next Steps in the development process. In addition to the analysis in the Study many sections include a Next Step box to provide suggestions on City next steps building on the Study analysis. LNO KES Page 6 of 72 STRATEGIC OVERVIEW The theme of the Strategic Overview focuses on several key elements: 1. How can the Recreation Center improve on the former YMCA in terms of providing greater access for Lino Lakes residents and enhance community programming and access for the entire community? 2. How can the Recreation Center be differentiated from YMCAs and other community recreation centers to enhance value to users and draw users and members from outside Lino Lakes to help support the financial sustainability of the Recreation Center? a. Can the Recreation Center be a destination facility? 3. How best to position Recreation Center memberships, program, user, and rental fees in the Lino Lakes community to provide the most equitable and affordable access to residents while supporting long term financial sustainability? 4. What Recreation Center enhancements and/or expansion and new facilities make the most sense in terms of community programming and impact and return on investment and long term financial sustainability? a. Are there strategic partners or partnerships that can support the Recreation Center and program enhancements and expansion? 5. How can phasing of facility enhancements and expansion be achieved? 6. What management model makes the most sense in achieving these strategic objectives? The Strategic Overview has been developed through discussions with City Management and Leadership, engagement of stakeholders, review of the YMCA programs,budgets, and challenges that faced the YMCA, and a creative approach to differentiating the Lino Lakes Recreation Center. These strategic considerations will link the elements of the facility,program, management, and financial analysis of this Study and Report. Role in the Community Perhaps the single most important strategic element we identified was the incorporation of community programming and access into the existing facility and future expansion and updates. The YMCA had limited community classes, functions, and community organizational partners and the ones they had were decreasing, such as some sport classes through Centennial School District Community Education. Currently the City has limited space and resources for senior programming and special needs residents are underserved. There is also limited community accessible meeting and function spaces for use by organizations and outside community programs. Although the current building has limited function space the potential exists to make this space more flexible and user friendly and add to increased availability of the small gymnasium and workout spaces for a wider range of community programming and access. Communicating this community element will be very important to building membership and use of the Center and generating support for the long term enhancement and expansion of the Recreation. We feel it is important to "rebrand"the Recreation Center as the: "Lino Lakes Recreation and Community Center" LNOL KES Page 7 of 72 Throughout the rest of this report we will refer to the Recreation Center as the "Rec & Community Center"to reinforce this theme or just the "Center." This name can be tweaked but it will be important to emphasize both the Recreation and the Community elements of the re-opened Center. Hopefully a catchy name for the Center can be collectively developed. Examples and suggestions for the increased role in the community are throughout this report in facilities,programming and partnerships. Differentiating Theme(s) Reviewing the former YMCA programs there were not real unique or specialty programs, facility features, or other elements that differentiated the Y from other YMCAs or recreation facilities in the area. Reviewing the needs and opportunities in the area plus shortages of key facilities suggests differentiating themes for the Rec and Community Center. These themes are discussed in the Future Long Term Recreation Center Development and Expansion Section of this Report. Strategic Partnerships Strategic partnerships will be an important part of both the re-opening and the future expansion of the Rec and Community Center. Strategic partnerships fall into several categories, all relevant to the Center. See specific partner details in the Facility Management and Staffing Models section of this Report. Additional strategic partnerships relevant in long term expansion are discussed in the Future Long Term Recreation Center Development and Expansion section of this Report. • Program Partner o Provide programming at the Center under City branding ■ Specialized expertise and instructors ■ Specialized equipment partner brings to the programs ■ Reduce or absorb all of program costs to the City o Completely manage and run program at Center ■ Providing all staff and costs for programs ■ Revenue for City through facility lease or revenue sharing program o Examples ■ Outside fitness provider that could run all of the fitness programs at the Center • Providing management, staffing, equipment, and maintenance • Facility space lease payments and shared user revenue • Capital Partnership o Provide funding for expansion or enhancement of Center facilities ■ Most often joint funding of an addition to the Center that would be managed or leased by the partner as a program partner o Examples ■ Development and funding partner for Court Sport Facility and Climbing ■ Likely partner would manage that facility or portion of its programming • Community/Facility Partner o Potential partner that has its own facilities that complement the Rec and Community Center, allowing both the Community partner and the Center to jointly provide programs at both facilities that cannot be provided by each organization at their own or the City Rec and Community Center facilities. o Shared expenses, program management, and revenue/profit LNOL KES Page 8 of 72 o Examples ■ Jointly providing learn to swim program with Centennial School District Community Ed • See specifics on swim lesson partner program in Aquatics Programming in the Programming Section of this Report • Key User Groups o User groups or anchor tenants that would lease spaces at the Center with long term and volume commitment ■ Often these anchor tenants provide a key marketing component to increasing regular facility memberships and program participation Strategic Long Term Development and Phasing The immediate priority of the City is to re-open the Center and start up programming, membership, and community access as soon as is practically and safely possible. The need to open quickly also reduces the costs of maintaining the Center in its closed dormant state prior to re-opening. The long term opportunity for expanded and enhanced facility to provide new opportunities and plan for population, membership, and program growth is an important part of the initial decision making process of re-opening. The strategic development and phasing for long term growth of the Center includes the following considerations: • Renewal extension of the existing City property tax levy originally approved to fund the building of the Center through taxes payable 2022. • Prioritize initial low cost additions, enhancements, and partnerships that can shorten the ramp up time for Center programs and membership to achieve financial break even more quickly o Several program and community partners/user groups have expressed interest in launching program partnerships coordinated with re-opening ■ Prioritize these groups for initial discussions of partnership parameters o Prioritize outdoor enhancements that can be added at limited costs but can accelerate and grow membership and program elements participation and revenue • Analyze and prioritize long term expansion projects based on several factors: o Overall cost o Partnership investment o Potential impact on Center membership and net revenue ■ Does any new additions or facility upgrades enhance the overall community benefits of the Center? o Overall return on investment ■ Opportunity for Sport Tourism and economic impact ■ Impact on business and residential development in Town Center area adjacent to Rec and Community Center o Contribution to differentiation of Center and creation of destination components of Center • Identify efficiency creating elements of bundling additions, enhancements, or renovation of facilities o Bundling like or related elements to reduce building costs of each element independently CITY-`�OF �. LN®L KES Page 9 of 72 o Create management, maintenance, and operational efficiencies through efficient design and facility alignment LN(0) KES Page 10 of 72 EVALUATION OF CURRENT FACILITY The existing YMCA building is typical of YMCAs in the area opened in the early to mid-2000s. The spaces are relatively small compared to newer larger YMCAs opened in the last ten years, such as the YMCA in Forest Lake. The overall gross square footage of the existing facility is approximately 40,000+ sf with a footprint of approximately 32,000 square feet. The YMCA does have all of the key facility and amenity spaces to support a community Recreation Center. The YMCA has been very well maintained and the high level analysis of any maintenance issues or needs did not turn up any significant repair or replacement needs that would add cost to re-opening. The inspection also did not turn up any significant capital maintenance or replacement needs projected for the next five to eight years. Key Recreation Center features include the following: Aquatics • Lap/Program Pool: Total square feet=2,966 sf 0 6 x 25 yard lap lanes of 6' width ■ Narrow for all but young team swimmers or 2-3 lap lanes o Depth: 3'6: to 5' ■ Suitable for community programming o Temperature: 83-84' F ■ Suitable for wide range of community programming ■ Warm for any high intensity training o Programming Capabilities ■ Lap lanes for low to mid-intensity fitness swimming ■ Ideally suited for the youngest age groups on competitive swim teams (potential for outside user groups) ■ Swim lessons: Older more advance lesson groups ■ Good depth and temperature for aquatic and senior fitness programs ■ Family friendly recreation and aquatic lifestyle activities ■ Special needs and adaptive PE programming Lap Pool Y CITY OF LINO KES Page 11 of72 saoe9�°��tl y JOa • Leisure/Wellness Pool o Free Form: roughly 70' x 36' (total square footage=2,900 sf) o Depth: Zero to 5' o Temperature: 87° F o Zero/Beach Entry(provides easy wheelchair access also) o Slide o Programming (see details and examples in the Aquatic Programming subsection of the Programming Analysis section of this Report) ■ Family leisure and recreation ■ Young child and senior friendly ■ Therapy/Rehab ■ Swim Lessons (younger children) Leisure/Wellness Pool o Pool Mechanical Systems and Structure ■ Filter Systems • The Pool mechanical rooms are clean, well maintained, and functional CITY OF LINO KES Page 12 of 72 • Both pools have high rate sand filters. The filters are in good shape and should not need replacing for another 6-8 years. • New technology in pool filtration systems, water disinfection, and energy management present options for replacing these filters which can have a significant impact on reducing water consumption, waste water to sewer, reduced electrical and natural gas use, and pool chemical consumption. o Detailed discussion of new applicable pool mechanical technology is in Appendix D:Pool Operational and Mechanical Current Pool Mechanical Room and Systems �� 4 ■ Structural Features • The pool tank is well maintained and not in need of any patching or re-grouting. • The pool decks are well maintained and are not in need of any immediate deck replacement. Fitness and Sport Features • Aerobics Studio spaces: 1,993 sf o Includes mirrors for classes • Fitness/Cardio/Strength Space; 5,665 sf o Very open space allowing flexibility as exercise needs evolve LN(0) KES Page 13 of 72 FitnesslAerobic Studio A 5 CardiolStrength Area ,F sue_ LINO KES g_ 14 of • Gymnasium: 4,566 sf floor space (4,740 gross sq ft) 0 80' x 59.25' including walls o Small Gym ■ NOTE: A full size high school basketball court is 84' x 50' (Total=4,200 sf)not including the surrounding safety buffer space ■ This existing gym supports a smaller size full basketball court • Court lines are marked ■ Other gym configurations • Volleyball: 1 court(measures 78' 9"x 49'2.5" for full court and free zone) • Pickleball Courts: 2 courts can be squeezed into the gym o Full court is 44' x 20' with dimensions of 64' x 34' for buffer area but can be squeezed into 2 spaces in gym measuring 64' x 29' each Current Gymnasium I f�� As indicated in the Strategic Overview adding additional larger gyms is the first priority for future expansion of the Recreation Center. A detailed discussion of a potential Sport Center including the enhanced Court Facility and additional amenities is discussed in the Future Long Term Recreation Center Development and Expansion section of this Report. Potential management partnership and funding of this Sports Center addition is discussed in the Facility Management and Staffing Models section. Multi-Purpose Function Space • Activity/Flex Function and Party Space: 1,479 sf o Layout and flexibility not well suited to classroom and meeting functions o Includes small warming/catering kitchenette to support functions • Kid-Zone/Child Watch: 1,343 sf • Small Meeting Room: 240 sf • Current Spaces are limited for any broad expansion of community programming and meeting/function space. Expanding function/meeting space at the Recreation Center is the second most important long term priority after court space (See Future Long Term Recreation Center Development and Expansion section of this of Report). CITY OF LN0L KES Page 15 of 72 saee9pe��tl Current Facilities Common Spaces • Locker and Changing Rooms: Total Square Footage= 3,194 sf o The facility has a good mix of general locker rooms and family changing rooms to support the facility and near future changes in locker room and changing room evolution. o Facility includes a laundry/towel service facility o No staff locker rooms are in the facility o Future expansion would need larger locker room space with increased gender neutral facilities, handicap specific changing rooms, and a small staff locker room to meet future growth and anticipated ongoing evolution in locker room and changing room design, codes, and best practices. Family Changing Room Hallway • Lobby: 1,186 sf o Includes front desk and access control o Good space to support size of current size of building and user load • Reception area: 147 sf CITY r4 0f �+ LN(OL KES Page 16 of 72 • Restrooms: 800 sf • Vending Area: 714 sf Front Desk and Lobby r r �:�• L Building Support Spaces • Storage Spaces o Ample storage in most areas for programs and equipment o Aquatic storage is small to support expansion of aquatic programming ■ Creative solutions can be explored as aquatic programming expands • Office Spaces o Admin Offices: 1,456 sf o Program Offices: 600 sf o The facility has ample support spaces for building management, administration, and workspaces for instructors and staff o Current office, administrative, workspace, and breakroom spaces support the management/staffing model in both the City Managed and Hybrid Management models for Recreation Center operation Office Spaces LINO KES Page 17 of 72 �a` u • Building Operations and Maintenance o Building Operations and Maintenance spaces are ample for the current size of the facility and well located and laid out in the design Outdoor Spaces • Small fenced in playground accessed through Child Water/Kid Zone in building Current Playground Area fr - LN(0) KES Page 18 of 72 PROGRAMMING ANALYSIS Current programming (up to the pandemic closing) can be classified as traditional YMCA programming. The programs included basic aquatic programs, standard fitness classes and programs with inclusion of some relatively new trends, and open facility time for member use. Quite a few new program and scheduling opportunities exist in a re-envisioned community based Recreation Center that can provide a wider range of programs, attract new users and members, and support enhancement and creation of new community wide classes and programs. This study has identified the following opportunities for expanded programming utilizing the existing facilities. Overall Programming Considerations One of the most important elements of expanded and enhanced programming will be the ability to run concurrent programming. The pre-COVID YMCA schedule had single programs taking over specific spaces. Even though the gym and pools are relatively small, their configuration allows for multiple programs utilizing the spaces concurrently, expanding the availability and range of classes. Analysis of the schedule also identified the need to a wider range of scheduled times for specific classes that support wider access to classes when working people and families can more easily access programs. Overall, the YMCA programs were limited in supporting several user groups and underserviced populations across the range of programs. These include: • Senior and Older Adult programs • Intergenerational programs • Special needs and adaptive PE classes and programs • Community programs • Support for underserviced segments of the population, including those unable to afford membership or programs at the YMCA AQUATIC PROGRAMMING Aquatic Fitness • Y aquatic fitness programming is very traditional, focusing on seniors and traditional "aqua aerobics." Virtually all classes offered were during the workday, reducing access to aquatic fitness for working people. • Most of the Y aquatic fitness programs offered focused on low intensity programming, not taking advantage of the overall benefits of aquatic fitness for cross-training, personal training, and higher intensity programming. • The current pools support a wider range of aquatic that will appeal to a much wider segment of the population, including active adults, athletes, and a much wider age and intensity range. Potential new programs can include: o Hydro spinning o In water yoga and balance o Personal training and cross training CITY OF LINO KES Page 19 of 72 saoe9�°��tl o Sport Team Cross training o Aqua Zumba o Whatever"current fad" dry side program gets converted to the water o The current facilities would not support deep water exercise or water running o The revenue projections are based on a very conservative model of: ■ Classes average a fee of$4/class for residents ($5/class for non-residents) • NOTE: Classes are not included in membership (see discussion in Membership and User Program section of this Report) ■ 16 classes/week with 8 students/class at $4.00/class for 50 weeks. ■ NOTE: The Schedule Model for the pools allow time for twice as many classes per week with space for up to 16 students/class. o NOTE: The addition and expansion of aquatic fitness program can be phased in as the Recreation Center program and staff evolve. Aquatic Fitness Revenue Projections City Managed and Hybrid Model (Year 3) Category Year 3 Revenue Aquatic Fitness Classes $26,000 Personal Training-Aquatics $7,800 TOTAL REVENUE $33,800 TOTAL EXPENSES $14,520 NET REVENUE $19,280 Profit Margin 57% Examples of Potential Enhanced Aquatic Fitness and Cross Training Vow- Aqua Zumba Floating Yoga CITY OF LINO KES Page 20 of 72 saoe9�°��tl Hydro-Spinning High School Sport Team Cross Training if 1�n�L�►�1I� �- ■a I Tor s t Paddleboard Yoga/Aerobics doll- Traditional Aquatic Aerobics and Resistance Training Swim Lesson Programs • The YMCA has a basic swim lesson program. A new and more robust swim lesson program with new curriculum, lower student to staff ratios (targeting 4:1 compared to YMCA average of 6:1), and wider range of schedule availability can create a better swim lesson program for the Recreation Center • The different depths and temperatures in the two pools support a range of lesson students from the younger parent and tot classes all the way up to adult lessons. • Increase in the offerings of private and semi-private lessons o These lessons are the fastest category of swim lessons in today's market CITY OF LINO KES Page 21 of 72 saoe9�°��tl i; = w �Y k r Swim Lesson Class Fees A Market Analysis of swim lesson programs in and around Lino Lakes and in the region was conducted. This Market Analysis included the YMCA of the North Chapter wide swim lesson rates as well as neighboring community aquatic facility programs. It also looked at private swim schools and the program fees and structure of the Centennial School District Community Education program. Since many of the programs have different numbers of classes in each session or different lengths of class times and billing models we use a pro-rated cost of the lessons per 30minutes of lesson times. This provides an"apples to apples" comparison regardless of the format. The Market Analysis is included in Appendix A:Programming#AI The YMCA group rates were $7.86/30 minutes for YMCA members and$15.57/30 minutes for non-members. Public facilities such as Shorewood, Brooklyn Center, and Brooklyn Park were in the range of$10.15 to $11.00 for residents and up to $13.00 for non-residents. The non-resident premium averaged 10%to 22%. Centennial Community Education rates averaged $9.38/30 minutes. The average studentAeacher ratio for these public programs is 6:1. Local for profit swim schools such as Foss Swim School and Goldfish Swim School usually have a student:teacher ratio of 4:1 and bill as a monthly membership which provides ongoing 1 lesson per week. These swim schools average $22.00/30 minutes. Based on the market research and the opportunities for two water temperature levels at the Rec and Community Center pools the suggested class fees used in the financial projections are the following: Youth Group Lessons: 8 x 30 minute classes per session Resident: $11.00/hour Non-Resident $13.00/hour Adult lessons are based on 6 x 45 minute classes per session but have the same 30/minutes equivalent. Residents also have the opportunity to have priority early class registration prior to opening registration to non-residents. CITY r4 0f �+ LINO) KES Page 22 of 72 Private and Semi-Private and specialty lessons are priced accordingly Swim Lesson Participation and Revenue Projection Based on these fees, history of lessons at the YMCA and Community Education the overall swim lesson revenue projects is as follows: City Managed Swim Lesson Program Revenue Lesson Category Year 1 Year 2 Year 3 *Year 4 Year 5 Revenue Youth Group $113,280 $152,928 $175,867 $206,033 $216,335 Adult Group $10,620 $14,337 $16,488 $19,316 $20,281 +Private $21,504 $29,030 $33,385 $39,704 $41,689 Semi-Private $9,120 $12,312 $14,159 $16,633 $17,465 TOTAL $154,524 $208,607 $239,899 $281,686 $295,770 REVENUE &EXPENSES $69,101 $89,886 $102,042 $117,988 $123,412 NET $85,423 $118,721 $137,857 $163,698 $172,358 REVENUE Profit Margin 55% 57% 57% 58% 58% NOTES.- 0 The projections are based on a 60%resident/40%non-resident breakdown • *Projecting a rate increase of 9% in Year 4. +The YMCA and Community Ed do not offer a wide availability of private lessons and this projection for the Rec and Community Center is conservative. Private lessons will likely generate an upside over these conservative projections. • &Expenses include staff, staff training, marketing, supplies, credit card/registration fees, etc. Instructor wages are average$18/hour to ensure attracting and retaining instructor staff. • Budget funds are included to support scholarships for those that cannot afford the cost of lessons The detail City Managed Lesson Projections are included in Appendix A: Programming #A2a. CITY OF LlN(0) KE$ Page 23 of 72 saoe9°� tl Swim Lesson Program Partnership with Centennial School District Community Education Centennial Community Ed runs a well-respected lesson program in the community but the program is limited by lack of pool space with all of the other uses of the Centennial High School Pool and the lack of child-friendly warm-water for lessons. The one pool at the high school is kept cooler (81-82°)based on the use by the high school and club swim teams. The pool also has limited shallow water space and cannot run lessons during the school day for school security purposes. The Community Ed program does have a good management and instructor team in place. The Rec and Community Center has two pools with two different temperatures (84° and 87°)plus ample shallow water space. The Center also has the ability to offer pre-school and parent/tot lessons during the school day as well as in the prime after-school hours when the high school pools is used by the high school swim teams. Significant synergies, growth and program enhancements can be generated through partnering with the Centennial School District Community Ed Swim Lesson Program (see Management Options Section in this Report). Exploratory discussions were held with Community Ed management and aquatic staff. Community Ed is very interested in further exploring the partnership. There are several advantages: • Existing trained staff and management would create a faster ramp up and high quality lessons • Combining programs were reduce "competition" in the market • Community Ed marketing and information brochures and ability to reach families in the school district and the community would enhance Center and City marketing reach • Although no specific discussions on the structure of this partnership have occurred, the partnership model could tentatively include the following: o Community Ed to manage and staff the program o Community Ed would cover virtually all program expenses o Resident rates would still apply, for both the City and Centennial School District residents o The Center would provide the pool time and related pool operating costs o City would receive a percentage of gross swim lesson revenue (used 25% in these projections). This would still give Community Ed the revenue needed to cover their costs and meet their budget model. o Community Ed would share in any scholarship costs for students that cannot pay the full class fee. This conservative partnership model projects a lower net revenue for the City. These calculations included in this report can serve as a tool in developing a swim lesson partnership with Community Ed that would be a net zero impact on the City managed revenue model. There are other savings that the City Rec and Community Center would realize in a reduction in general management/administration costs that are not directly shown as swim lesson expenses. CITY OF LINO KES Page 24 of 72 saoe9�°��tl Following is a summary of the swim lesson program in this Community Ed partnership model. Community Ed City Partnership Swim Lesson Program Revenue *Lesson Category Year 1 Year 2 Year 3 *Year 4 Year 5 Revenue Youth Group $142,272 $192,067 $220,877 $259,473 $272,446 Adult Group $13,338 $18,006 $20,707 $24,326 $25,542 +Private $27,296 $36,850 $42,377 $50,234 $52,746 Semi-Private $11,648 $15,725 $18,084 $21,274 $22,338 TOTAL $194,554 $262,648 $302,045 $355,306 $373,071 REVENUE CITY NET $48,639 $65,662 $75,511 $88,827 $93,268 REVENUE Variance to City Managed $(36,784) $(53,059) $(62,346) $(74,871) $(79,090) Program NOTES. • Lesson projects use the same class fees and project an overall increase of 30% in lesson enrollment in this joint program • The projections are based on a 80%resident/20%non-resident breakdown incorporating the full Centennial School District and the City of Lino Lakes as residents • *Projecting a rate increase of 9% in Year 4. • *Revenue represents total projected revenue • +City Share used in this calculation is 25%of gross revenue. This is conservative and hopefully this percentage would be higher • Drawing more participants for swim lessons through the Community Ed partnership should also help drive additional memberships, but this potential membership increase is not currently factored into the membership revenue. The detail Community Education Partnership Lesson Projections are included in Appendix A Programming 4A2b. Aquatic Therapy and Rehab • The warm water(87' F) and the depths and ease of access in the current Leisure/Wellness pool is well suited to some levels of Therapy/Rehab treatment and programs: o Cardio Rehab o Autism Spectrum(Aquatics is a growing component of programs across the Autism spectrum) o Movement o Arthritic and Pain relief o Orthopedic rehab CITY OF LINO KES Page 25 of 72 saoe9°� tl o And more • These programs are provided by outside therapists or health care providers renting pool space, usually utilizing the pool during the quieter and less used times during the work/school day • The initial revenue projection from outside therapist and therapy/rehab service providers is a very conservative $5,000/year by Year 2. o This is calculated projecting 100 hours per year(only 2 hours/week for 50 weeks) @ $50/hour rental rate for a portion of the Program/Leisure Pool. o Space and time in the Program/Leisure Pool schedule can allow five to eight times more therapy/rehab use in the Pool Examples of Aquatic Therapy and Rehab 0000000 AW «� p Cardiac Rehab Movement Rehab Injury Rehab Special Needs Therapy Aquatic Recreation • The Leisure/Wellness pool has a slide and zero depth that is family friendly and provides some recreation/leisure amenities to use during open swim • There is a much wider range of aquatic activities that can take place in the lap pool that attracts a much wider range of ages and users. These include fun activities that support popular activities in the area and can be taken in and out of the pool. o Kayak and paddle boarding CITY r4 0f �+ LINO) KES Page 26 of 72 o Inflatable obstacle course for shallow water o Log rolling o Water Basketball (the YMCA did have this feature) o Water Volleyball • Birthday parties FF I � r _ y i Swim Team/Masters Swimming/Lap Swimming • The lap pool is not suitable for any level of competitive swimming, except for the youngest age swimmers not utilizing starting blocks • Youth swim team CITY OF LINO KES Page 27 of 72 o Interviews during the Study with area swim teams did identify a very strong commitment to rent pool space in the lap pool for use with the team's youngest entry level swimmers who prefer the shallow warmer water. • There is potential for a summer recreation entry level swim team at the facility • Lap Swimming o Increased lap lane availability is factored into the sample pool schedule • We do not anticipate any significant masters swimming program based on the warm water in the lap pool 72 ; r - s • '� FITNESS PROGRAMMING As with the aquatic programs, the fitness programs were relatively basic and personal training was not a significant portion of the overall fitness program. Even before the pandemic driven closer of the Lino Lakes YMCA the Y was losing fitness oriented members to fitness facilities and programs that offered more specialized training, more program options and the latest fitness trends appealing to a wider range of members and participants, often at a lower membership cost. The personal training options and opportunities are also a significant added benefit for the Rec and Community Center and can further help differentiate the Center. Expanded, enhanced, and new programs can include the following: • Higher intensity specialty fitness systems and programs • Increase in senior specific programs • Increased personal training with varying level and package options • Enhanced instructor expertise and quality • Continuing updated programming and equipment and adding new programs o It is very important to not allow Rec Center fitness programs to get stale or not keep up with the latest fitness trends. To achieve these enhanced fitness program goals it is worth exploring using more outside contract instructors with specialty expertise as well as explore partner program providers that can bring both expertise and training equipment and systems to the Center. (See Management and Partner Section of Report). Outside user groups or programs can also lease the exercise studios or workout spaces for programs not offered by the Rec and Community Center. These can include a wide range of programs such as martial arts, dance, fit boxing, mindful experience, and much more. CITY OF LINO KES Page 28 of 72 saoe9�°��tl Larger classes can also be held in the current gym. Times when the gym is not fully programmed, rented, or utilized for open gym the space can be used for a wider range of programs that may be too big for the dedicated fitness spaces. Samples of Enhanced and New Fitness Programs at the Center (Not currently offered or no space, trainers, or equipment to support) AW Large Classes in the Gym t Spinning Specialty Classes FfbESERT•;oxns�s ��'9 i Senior Chair Classes Barre Classes LINO KES Page 29 of 72 �a` U 719 fir► � . ' =� �`"� C ,., ,,�� +' �� s 44 ri .� r- Ir New Fitness/Strength Trends Martial Arts Fitness Program Component Financials Fitness classes are not included in the membership model used in the financial projections. Not including basic classes as a membership benefit is designed to keep membership fees low and not charge members for services and programs they will not use. Class fees are relatively low with a lower rate for residents than non-residents. The Personal Training component represents a significant upside potential. This was not a strong program at the YMCA but can be much more robust at the Recreation Center,particularly with experienced instructors. Following is the summary of projected Fitness Program revenues and expenses for Year 3. Fitness Revenue Projections City Managed Model (Year 3) Category Year 3 Revenue Fitness Classes $67,392 Personal Training-Aquatics $5,980 TOTAL REVENUE $73,372 TOTAL EXPENSES $34,751 NET REVENUE $38,621 Profit Margin 53% SPECIAL NEEDS AND ADAPTIVE PE PROGRAMS Special Needs and Adaptive PE Programs were underserved at the YMCA but represent important community programs for the Recreation and Community Center. These programs include a wide range of programs, classes, and even competitive programs for both mentally and physically handicapped of ages, even included veterans programs. These programs also include both aquatic and dry-side components. LN(0) KES Page 30 of 72 Time and space is allocated in the Schedule Matrices included in this report and referenced in the Facility Schedule Analysis section as well as in Appendix A: Programming#A3. Examples of Special Needs and Adaptive PE Programs �a 116 41 .�- _tea,.•_ 7!qJ. SPORT, CAMP, and FOUTHPROGRAM Sport Leagues and Programs The small gym space restricted the extent and capacity of court based sport programs at the former YMCA. Centennial School District partnered with the YMCA on some introductory sport classes but this cooperation was winding down prior to the pandemic shutdown. The projections for the CITY r4 0f �+ LN(0L KES Page 31 of 72 Rec and Community Center do not anticipate any in-house sports leagues. Most of these will continue to be run by outside groups utilizing school district gyms and facilities. We anticipate some introductory sport classes for young children and an in-house pickleball program and league. If a Sports Center or Court facility is built there will be extensive sport club and league programs, but these will likely be run through partnerships with any development partner for the Sport Court Center. Total in-house sport programs are only projected to generate $9,000 in gross revenue by Year 2 with net revenue of roughly$4,500. Youth Summer, Holiday, and Sport Camps The YMCA did run robust youth camp programs. Interviews with individuals who were part of the YMCA camp program have expressed confidence that these programs can actually grow,both inside the Rec and Community Center facility and with programs cross the surrounding park systems. The potential to bring City Parks and Recreation resources to the camp program will help open the camp programs up to a larger portion of Lino Lakes youth. Initial very conservative estimates project gross youth sport camp revenue of$75,000 by Year 2 with net revenue of$34,000. There is significant upsides to the camp program, especially as future expanded facilities with outdoor sport themed activities that can provide a wider range of experiences and activities than the former YMCA. Youth Programs Youth programs in aquatics and aquatic based recreation will grow at the Rec and Community Center as previously discussed in Aquatics. The potential also exists to provide more youth based fitness and activity programs but the limited gym space will continue to limit youth sports programs. Youth sports and programs will be a significant beneficiary of future development of the Sports Center and the outdoor sport features. C I Y Of LINO KE$ Page 32 of 72 saoe9�°��tl FACILITY SCHEDULE ANALYSIS At first glance it is difficult to imagine the immediate growth of programs and access at the Rec and Community Center upon re-opening without any additional facility expansion. Detailed review of the YMCA pre-pandemic program, use, and facility schedules indicated that the scheduling of facilities and programs did not effectively optimize the use of the different venues in the building, especially in providing concurrent programs within each venue. To understand how the variety of programs and schedule demands can be integrated in the existing ISG has developed a Schedule Model Matrix. This Matrix lays out a full range of programming across all of the venues within the facility. • Lap Pool • Leisure/Wellness Pool • Cardio/Strength Rooms • Fitness/Exercise Spaces • Gym • Community Meeting/Function Spaces • Child Watch Programs and time use are broken out by the following general categories: • Aquatics • Fitness • Gym and General Programming/Use • Each category does include times and space available to rent by outside groups There are six Schedule Matrices to capture the weekly and seasonal variances in programming and scheduling. These Matrices are: • School Year: Weekdays • School Year: Saturday • School Year: Sunday • Summer: Weekdays • Summer: Saturday • Summer: Sunday The Schedule Matrix serves several important functions in the programming and analysis of the Rec and Community Center. • Provides a comprehensive visual of time available for each stakeholder and user constituencies in the community to understand how and when they can use the Rec and Community Center • Provides a basis for discussion with potential program or management partners • Provides a quantitative structure to help project Center costs and revenue o Staffing needed for Center such as lifeguards o Instructors needed for programs CITY OF LN0L KES Page 33 of 72 o Program time and capacity to calculate program revenue o Support projections of rental revenues o Support capacity calculations o Identify time and space shortfalls in future demand to support projections for long term facility expansion Scheduling Principles and Goals Key principles and goals of stakeholders, user groups, and constituencies: • Maximize availability of some Lap Swim lanes throughout as much of the day as possible (improving availability of lap lanes compared to former YMCA schedule) • Maximize flexibility for concurrent programming and effective space and time sharing • Adult and child program times that can be accessed by working parents and adults • Mid-day, after-school, evening, and weekend hours available for swim lessons, including private and semi-private lessons and adult lessons o Lesson program times in both the Lap and the Leisure/Wellness Pools for different temperatures • Early morning and evening aquatic fitness class times available in addition to mid-day lessons for working participants and greater course intensity options accessible to broader portion of community. • Open after school and evening hours in the leisure pool plus after school availability in Program pool for youth access and after school programming • Significant time for community open recreation and swim on Saturdays and Sundays, including opportunity for addition of recreational features to the Main and deep water pools (see Rectangular Recreation in the Program Section) • Provide school day and after school time availability for non-competitive school district • Create Masters Swimming times before and after work hours and during the lunch hour • Access to the Leisure/Wellness Pool throughout the day for therapy/rehab treatment and programs • Open Gym space that can be sub-divided to provide for large fitness classes and other flexible programming It is important to note that these Schedule Matrices are examples of what can be done. It is unlikely that the actual schedule will perfectly match these Schedules,but we have programmed these Matrices based on best practice practices and comparable facility and program schedules, reflecting times requested by users. Following is the Schedule Matrix for the School Year weekdays. The full Schedule Matrix is included in Appendix A: Programming#A3. CITY OF LlN(0)L KES Page 34 of 72 saoe9�°��tl Lino Lakes Recreation and Community Center School Year: Weekdays May 17,2021 NOTE: Stations in the warm-water Leisure/Wellness pool can be divided to accommodate different programs NOTE: Spaces in Gym,workout rooms,and function spaces can be subdivided. Schedule shows options. Program and Use Color Codes Aquatic Programs Fitness&Use Programs General Programming/Use Masters Swimming/Triathlon Community Ed. Summer Camp Open Gym Swimming Club Team Lap Lanes Personal Training Pickleball Child Watch-Kids Program Pre-Team Program-Swim Rec Programs/Classes Rec Classes&Programs Senior Program Meeting Space Open Swim Time: Community Aquatic Special Needs Programs Home School PE •.- .. - Open Recreation Leisure-Swim Aquatic Fitness School District Program Court Rental Aquatic Rec Programs/Classes After School Programs Open Exercise Time Pool Rentals Rec Swim Team/Summer Court Sport Outside Users Lap Pool Leisure/Wellness Pool Cardio Exercise Gym Community Child 25 yards Warm-Water Fitness Spaces Meeting Watch Depth: 3'6"to 5' Depth:0 to 4'6" Room Function Space Stations or Recreation Features Half Gyms Sub Dividable 1 1 2 3 4 5 6 1 1 2 3 4 1 2 1 2 5:00 5:00 Cardio 5:30 Masters/ Lap 5:30 Fitness Open 6:00 Triathlon Lanes 6:00 Aquatic Open Gym Meeting 6:30 6:30 Fitness Time Spaces 7:00 7:00 and Flexible Open 7:30 7:30 Personal Scheduling 8:00 Aquatic 8:00 Training Classes& 8:30 Fitness 8:30 More 9:00 Home School 9:00 Senior Pickleball Seniors 9:30 Program 9:30 essons Program 10:00 10:00 Home Home 10:30 10:30 School School 11:00 11:00 rents and Tots Open Gym 11:30 11:30 ater Lessons 12:00 12:00 Aquatic 12:30 12:30 Fitness 1:00 Senior 1:00 Seniors Meeting 1:30 Program 1:30 Srs. Spaces 2:00 2:00 Special Needs Flexible 2:30 2:30 Adaptive PE Scheduling 3:00 After School 3:00 After School After Sch After School Classes& 3:30 Programs 3:30 Programs Programs Programs More 4:00 4:00 Special Needs 4:30 Club Swim Team 4:30 5:00 Outside Rental 5:00 wi Open Gym 5:30 5:30 essons 6:00 6:00 OR 6:30 Aquatic Rec 6:30 Rec Programs 7:00 Programs 7:00 Open Recreation Pickleball 7:30 7:30 Leisure Swim 8:00 Masters/ 8:00 Outside 8:30 Triathlon 8:30 Court 9:00 9:00 Users 9:30 9:30 (Rentals) 10:00 10:00 10:30 MEMBERSHIP and USER PROGRAMS The issue of membership and user fees has been brought up in virtually all stakeholder and user engagement meetings, interviews, and input. The key feedback included the following: • The YMCA membership rates were too high o People leaving the Y or choosing not to join felt that the rates were too high, especially for those that only wanted to use a portion of the facility o No senior rates, although many seniors qualified for Silver Sneaker program subsidies through Medicare Advantage programs or insurance coverage o Many local public/municipal community recreation centers had much lower rates than the YMCA • Need options for daily drop-in use, not just membership only • If Lino Lakes is taking over the operation of the Recreation Center Lino Lakes residents should have a discounted rate • Fitness only commercial facilities have grown in number in Lino Lakes and the surrounding area providing basic fitness and workout facilities at lower rates. Membership Market Survey ISG conducted a market survey of area and regional facility membership and usage fees to provide a market base to help develop membership/use fee scenarios for the Rec and Community Center. This market study included public, YMCA of the North, and private facilities. The market study also differentiated facilities with just fitness and those with comprehensive fitness, gym, and aquatic facilities. Resident and Non-Resident rates were identified when available at public facilities. This market study is included in Appendix B: Membership #B1. Membership Options Based on stakeholder and constituent input and market research the membership and use scenarios included both a full facility membership and a fitness only membership option. This two tiered option creates a fitness membership option that more effectively competes with the private commercial fitness only facilities in the area as well as an option to for those only looking for the dry-side fitness facilities and programs. This also provides a cleaner delineation if the fitness programs and management are outsourced by a private partner. Membership Benefits Membership benefits include the following: • Access to open swim, lap lanes, open gym and the cardio and strength workout areas • Discounts on facility rentals, birthday parties, and other special event opportunities • Priority program registrations (along with residents) The proposed Membership Model used in this study do not include free access to fitness classes. During the Study we received input recommending lower membership rates without classes included. Many former YMCA members expressed concerns about paying for programs or classes in their membership that they would not use. Low rates and pay for programs you use was an important message. CITY OF LINO KES Page 35 of 72 In the future a"Premium"membership may be available which would include basic programs. Membership Categories A wider range of membership categories are also provided for great flexibility as well as providing incentives for annual full facility memberships. The following member and user categories are included: • Adult • Adult Couple (equivalent to 1.5 times a single adult membership) • Senior • Senior Couple (equivalent to 1.5 times a single senior membership) • Child, Youth, Student(all the same) • Family(4 members) • Military Adult • Military Family • Corporate: No revenue factored into budget initially. • Hotel Program to provide access for guests: Membership Terms The following membership terms were included: • Monthly • Seasonal o Based on a three month period o May be summer membership o Roughly equal to 2.5 months of the equivalent monthly rate • Annual Lump Sum(in advance) • Most annual membership are equivalent to 11 months of the monthly fee,providing approximately an 8% discount for the annual rate • The family annual rate is slightly more to further incentivize the annual family membership Resident versus Non-Resident The Lino Lakes resident rate is used as the base rate. Non-Resident rates represent an average of a 20%premium across most membership categories. If any neighboring community provides financial support for the Rec and Community Center residents of this community may also qualify for resident rates pending negotiations and level of support. Membership Fee Scenarios To analyze various levels of fees ISG developed three different membership fee scenarios based on comparison to the current YMCA of the North fees. ISG developed three different membership and user fee scenarios. These scenarios project resident rates as a percentage of the current YMCA rates. The three scenarios are the following: C I Y Of LINO KES Page 36 of 72 • Full Facility Membership (resident) o Scenario#1 75% of equivalent YMCA rate o Scenario#2 60% of equivalent YMCA rate o Scenario#3 50% of equivalent YMCA rate • Fitness Only Membership (resident) o Scenario#1 63% of equivalent YMCA rate o Scenario#2 5 1% of equivalent YMCA rate o Scenario#3 42% of equivalent YMCA rate Following is the Resident Membership Fee Breakdown by category for each scenario with the comparable YMCA rate. Rate Scenarios: Full Rec Center Resident Monthly Rates Membership Public Rec Category YMCA Rate Center Scenario #1 Scenario#2 Scenario#3 Average* Adult $71 $36-$40 $53 $42 $35 Adult Couple $121 $60-$71 $86 $63 $53 Senior(65+) NA $34 $30 $26 $20 Senior Couple NA $56-$60 $45 $39 $30 Child/Youth $40-$50 $34 $30 $26 $20 Family $132 $60-$80 $99 $86 $66 Daily Drop-In+ NA $6410 $6-$8 $547 $547 10-Use Pass+ NA $70-$90 $50-$68 $42-$60 $42-$60 *NOTE: Public Rec Center average range is based on data from the Market Analysis of area and regional public recreation centers with aquatic facilities. The Market Analysis is found in Appendix B: Membership #Bl. +NOTE: Daily drop-in rates and 10-use pass rates range from youth to adult. Daily Drop-in Passes and 10-Visit Passes The need for drop-in and some type multiple user pass was strongly indicated in ISG's research and is typical of most community recreation centers. Drop-ins and multiple use passes only apply to individuals. They do not apply to families or couples. The categories include adults, seniors, and youth and includes the military adult category. The Fitness only membership has a daily drop-in fee but no multiple user pass option. Punch pass rates also vary by scenario and by full facility or fitness only. CITY OF LINO KES Page 37 of 72 Membership and Revenue Projections, Including Daily and 10-Visit Passes Following are the projections of membership numbers and revenue for each scenario in the City Managed Model. The Membership Units, Members, and Membership Revenue are for combined overall Rec Center Membership and Fitness Only Memberships. Note that drop-in and punch pass revenue is highest in Scenario #1 as more users opt for drop-ins instead of membership based on the higher membership fees. Membership and Revenue Projections Category Scenario#1 Scenario #2 Scenario #3 Total Membership Units; 1,360 1,812 1,977 Overall and Fitness Memberships Total Members 4,737 6,399 7,018 Drop-In Users (per year) 6,775 6,835 6,835 10 Visit Passes 650 650 650 Membership Revenue $1,358,611 $1,567,207 $1,336,223 Drop-In Revenue $46,975 $41,615 $41,615 10 Visit Pass Revenue $40,740 $34,960 $34,960 TOTAL REVENUE AL $1,446,326 $1,643,782 $1,412,798 Based on comparable market rates ISG projected that the Scenario#2 would be the most effective balance in maximizing membership while balancing revenue. • Scenario#1 was not enough of a discount to attract YMCA members, especially those that take advantage of using any Y in the YMCA of the North Chapter. The rates were also slightly higher than comparable public recreation facilities. • Scenario#3: The added discount of Scenario #3 compared to Scenario #2 was not significant enough to drive much incremental membership and would generate less overall revenue • Scenario#2 was the sweet spot in balancing fair and accessible membership fees with revenue necessary to improve operating net costs/revenue. Scenario#2 revenue projections are used in the financial budget analysis. Hybrid Managed Model Membership and Usage Revenue Projections (Using Year 2 for comparison purposes) Category Scenario#2 Memberships $1,290,130 Daily Drop In $41,615 Multi-Visit Pass $34,960 TOTAL $1,366,705 REVENUE CITY OF LN0L KES Page 38 of 72 NOTES: • For the purposes of the Hybrid Management Model we focused the analysis on Scenario #2. • The membership revenue is lower based on a large share of fitness membership revenue is paid to the Fitness Program Partner, but the overall expense savings still result in a higher total net revenue for the overall Rec and Community Center. The full breakdown of daily and multiple user pass rates by scenario and overall annual Year 2 projections is included in Appendix B: Membership #B2. Membership and Use Scholarships or Need-Based Discounts Scholarship or need based aid has been factored into the operating budget to enable those that cannot afford to use the Rec and Community Center and programs to fully access and participate in the Center and its programs. CITY OF LINO KES Page 39 of 72 CHILD WATCH PROGRAM Childwatch Program An important element of the Membership model as well as the programming at the Rec and Community Center is the inclusion of a Childwatch program. The Childwatch and Kid Stuff space is 1,340 square feet in the existing facility. The Childwatch program is designed to provide childcare for short periods of time (usually up to a maximum of one to two hours)while a parent or caregiver works out or uses the Center facilities. It is not designed to be a full daycare program. Use of the Childwatch program is planned to be a benefit of the family membership with the option to pay a drop in fee for non-family member users. The overall cost of the program is projected to be approximately$70,000 per year with projected average drop-in fees of$16,000/year. Example of a Childwatch Space at a Fitness Center ��nn�En 1 r44 Mal � 3 ti C I Y Of LINO KES Page 40 of 72 saoe9�°��tl FACILITY MANAGEMENT and STAFFING MODELS MANAGEMENT MODELS AND OPTIONS Center Management Options The ISG Study explored three Center management options: 1. Total City Managed Facility 2. Total Outsourcing of Management and Operations by outside entity a. Essentially the same as the former YMCA management model 3. Hybrid Option a. City manages and operates the facility b. Outside entities provide management and programming in specific areas City Managed Model The City Managed Model is very straight forward and is the model used by most municipal recreation centers in the area. In this model the City provides all management and operational staff and pays all operating expenses and maintenance costs. The City also retains all of the revenue. Some instructors may be independent outside contractors or providers, but for the purposes of this financial operating analysis all part-time instructors and trainers are assumed to be City employees. Outsourced Management Model The full Outsourced Management Model is often used for municipal facilities, especially golf courses and sometimes ice rinks or large sports complexes. Most outside management groups are for-profit businesses. In the case of recreation centers where many of the program and use elements are community service based there is less net operating to support the for-profit management groups. The City also loses some control over programming and membership models depending on the structure of the management agreement structure. In analyzing the City goals and objectives and the financial model, ISG determined that the full Outsourced Management Model was not a good model for the Center. Hybrid Management Model The Hybrid Management Model is designed to take advantage of the City's expertise in managing and maintaining facilities while bringing in outside providers or developing program partnerships in areas where City staff does not have the expertise or experience in house to run specific programs and management tasks. The Hybrid model also can generate cost reductions in several areas: • Staffing o Reduce program specific instructors and trainers who are now provided by the outside entity o Reduce some facility staffing in the overall operations and program specific support staff • Program equipment and supplies o Outside program providers often provide their own equipment which can generate significant capital and operational cost savings, especially in the category of fitness programs CITY OF LINO L KES Page 41 of 72 saoe9�°��tl The successful Hybrid model can also help accelerate the ramping up of membership, programming and revenue generation from opening through Year 2 and Year 3. This acceleration is driven by several factors: • If program provider relocates their entire program to the Rec and Community Center they will bring an established membership and participant base to the Center. • The program provider will have an established name and credibility in the market plus an established marketing platform that can help accelerate the ramp up at the Center. • The Hybrid also shortens the time to develop and train key program staff, especially trainers, instructors, and coaches. There are several revenue/fee models associated with outside program providers or management. • Revenue o Program provider can retain all of the revenue generated by their specific programs o Program provider can retain a portion of overall facility membership that reasonably attributed to their programs and the membership they brought from their existing programs o The Center and the Provider can develop a revenue sharing plan • Fees paid to the Center o The provider can pay a direct lease payment to the Center for the space they use for their programs o The provider can pay a rights fee for the ability to run the specific program they are providing Ultimately most hybrid type partnerships include some combination of these revenue and fee structures. In meetings and research ISG identified two areas that would achieve the goals of a hybrid program partner/manager and enhance the net revenue projections for the Rec and Community Center. During the course of the Study ISG spoke with several potential providers or partners in these areas to understand the potential for these partnerships or outside program providers. Fitness Program Provider and Management The fitness program at the Rec and Community Center is the prime example of the advantages of an outside program provider. The advantages include: • An outside provider with an established program would bring a strong existing membership base to the Rec and Community Center • Experienced trainers and instructors, many with established following in the local market • Wider range of fitness programming, classes, and new trends than offered in the former YMCA and in most YMCAs and public recreation centers • Faster membership, program, and revenue ramp up upon re-opening A Fitness Program Provider Partnership could potentially bring the following value and benefits to the Rec Center. • Close their existing fitness facility and move existing programs and operation to the Rec Center CITY OF LINO KES Page 42 of 72 saoe9�°��tl • Fitness Provider would provide all necessary fitness, strength, cardio, specialty flooring, and other program equipment, significantly reducing or virtually eliminating City equipment costs or lease expenses • Maintain all fitness and exercise equipment • Provide, train,pay, and manage all fitness program staff, instructors, monitors o Experienced trainers and instructors, many with established following in the local market • Provide front desk/access control staff to support overall Rec Center front desk staffing needs o Reducing City staffing and payroll • An outside provider with an established program would bring a strong existing membership base to the Rec and Community Center o Strong likelihood that many Fitness Members would upgrade to full Rec Center Memberships, driving additional overall membership • Pre-established marketing and social media platforms The potential financial model with a Fitness Program Provider/Partner could include the following financial considerations. These would all be part of negotiations with a potential Fitness Program Partner. • Lease payments to Rec Center • Fitness provider to receive Fitness Memberships o Potential fitness program revenue sharing with Rec Center o Fitness provider to receive incentive for Fitness Members upgraded to overall Memberships • City to share in cost of moving and setting up equipment in Rec Center. • Fitness Partner would provide Lino Lakes resident discounts for programs as well as priority program registration for residents. Swim Lesson Program Provider Partnering with Centennial School District Community Ed in the swim lesson program would be a successful program partnership benefitting both the Rec Center and Community Ed. The details, advantages, and financial analysis of this partnership is discussed in Aquatic Programming in the overall Programming Analysis section of this Report. STAFFING MODEL Professional, experienced, and well-trained management, staff, instructors, and trainers are critical to the success of the Recreation and Community Center(See the Keys to Success and Factors in Failure section in this Report). During the process of developing this management and staffing model ISG worked closely with City management and staff to coordinate the development of the management options and the staffing needed to support each option. The budget projections include all staff salaries, wages, payroll taxes, employee benefits, training, travel,professional development. The Staffing Analysis utilizes the following assumptions and information. • Part-time wages assume a future $15/hour minimum wage CITY OF LINO L KES Page 43 of 72 saoe9�°��tl • Annual staff wages and salaries assume an annual 4% increase to accommodate cost of living adjustments and merit and retention raises. • Salary levels fall within the City salary and position guidelines and ranges. • The City Human Resources management have provided the appropriate City calculations of benefits,payroll taxes and other related additional staffing costs • Increased City staff responsibilities for existing staff are incorporated into the annual City administration cost allocation included in the operating budget Key staff positions in the City Managed Model include the following. Positions highlighted in yellow are positions that may be eliminated or reduced in the Hybrid Management Model with the use of the Partner management and staff provided. The budget includes the costs of hiring and starting these positions at appropriate lead times prior to re-opening of the Rec Center. • Full Time Positions o Facility Director o Program Manger o Aquatic Supervisor o Fitness Supervisor o Maintenance/Operations Manager o Membership/Customer Service Manager o Administrative/Accounting/HR Supervisor o Front Desk Coordinator o Custodial and Building Maintenance Staff • Part Time Positions-Operations o Head Lifeguard o Lifeguards o Front Desk/Access Control Staff o Fitness Attendants o Custodial/Maintenance Part-time staff o Child Watch staff • Part Time Positions-Program Staff o Instructors o Trainers o Coaches Following is summary of overall staff costs for both the City Managed and Hybrid Management Model assuming both the Fitness Provider partner and a swim lesson partnerships with Centennial Community Education. CITY OF LINO KES Page 44 of 72 Summary of Total Recreation and Community Center Staff Costs Year Three of Operation City Managed Hybrid Category Option Management Option Full-Time Staff $671,974 $545,186 Part-Time Staff(non-program) $504,504 $384,111 Benefits &Payroll Taxes $369,690 $294,897 Other Staff Costs (training, etc.) $9,981 $4,990 Aquatic Program Instructors & Staff $97,144 $12,168 Dry-side Program Instructors & Staff $64,662 $34,772 TOTAL STAFF COSTS $1,717,955 $1,276,124 *TOTAL OPERATING COSTS $2,407,608 $1,922,472 Staff Percent of Total 71% 66% NOTE: Salary Costs include salaries, wages, employment taxes, and benefits. These costs were provided by City staff *NOTE: Total Operating Costs do not include the Long Term Capital Replacement and Maintenance annual allocation. The full detail of full-time and part-time staff positions, salary and wages, benefits, and budget projections are included in the Operational and Program Expenses in the Budget Line Item Detail in Appendix C: Budget/Operating Analysis #C2 and#C3. CITY OF LINO KES Page 45 of 72 saoe9�°��tl FINANCIAL BUDGETS and OPERATING PROJECTIONS The Financial Budget and Operating Projections are based on the following methodology and assumptions. Expenses • Utility Expenses factor in a 2.5% annual increase. o Actual utility costs utilize actual City utility rates and costs. o Total utility costs are slightly higher than the historic rates at the former YMCA reflecting escalation and increased use. • Maintenance expenses factor in a 2.5% annual increase except where otherwise noted as some equipment and maintenance expenses increase as warranties expire and the building ages. • Staffing expenses project increases of 4%per year based on cost of living and merit and retention raises. • Lease payments to Rec Center • Budgets include all projected expenses plus a budget expense contingency. Line items include: o Credit Card and online registration fees (assumes 100% of all membership and registration revenue processed by credit cards) o Marketing, advertising, website, and IT expenses o Staff training, development, and travel o Outside services o Staff outfitting o Certifications, membership, subscriptions, dues o Scholarship subsidies or financial aid for City residents unable to afford the membership or program fees o Insurance • Annual City Administrative Allocation o Rec Center share of the following ■ Allocation to existing City staff responsibilities for Rec Center ■ Human Resources ■ Additional in-house administrative, clerical, and accounting services ■ Marketing ■ Current City maintenance and grounds keeping staff ■ Other utilization of existing City support services and staff o City Administrative Allocation is $150,000 in Year 1 o Future years allocation increases by 5% annually Revenue • Revenue projections are supported by the back-up worksheets for Membership and Daily Use included in Appendix B • Swim Lesson projections are supported by the back-up worksheets in Appendix A. • Revenue is also shown for the following areas: o Vending machines and front desk sale kiosk o All facility rentals CITY OF LINO KES Page 46 of 72 saoe9�°��tl • No sponsorship or advertising revenue is included in the revenue projections, although the opportunity will exist for some revenue in these areas. • No grant funds are shown in support of user financial aid,but the opportunity will exist for some support of the financial aid programs. Year Zero Year Zero in the Budget is the period following the City taking control of the facility up to the re- opening of the Recreation and Community Center. These expenses include the following • Pre-opening expenses o Staff costs pre-opening o Marketing o Cleaning and Building prep o Re-branding of Recreation Center, including new signage o Equipment purchases o Pool start-up o Other start-up expenses • Building Expenses o Utilities o Maintenance and grounds keeping o Security o Miscellaneous expenses Currently all City Year Zero Building expenses are covered by the State of Minnesota leasing of the building as a COVID vaccination site through June 30. Long Term Capital Replacement and Maintenance Fund It is very important that the City budget for projected long term facility capital replacement and maintenance. The annual maintenance staffing and budget should support best practice annual maintenance and upkeep, reducing the potential for premature long term replacement and maintenance. ISG has included an annual budget line item for allocation to a Long Term Capital Replacement and Maintenance Reserve Fund. This annual allocation to this Fund begins in Year 3 at$60,000 and ramps up to $80,000 in Year 4 and then increases by 3% annually. Total Reserve Fund accrual over the first twenty years of operation is as follows: • Year Five: $ 292,400 • Year Ten: $ 742,997 • Year Fifteen: $1,265,362 • Year Twenty: $1,870,927 CITY OF LINO KES Page 47 of 72 saoe9�°��tl Annual Profit and Loss Statements The P &L budget summaries provide a summary of Years Zero to Five for both Management options. These P & L Statements breakdown the revenue and expenses as follows with detailed categories within each: • Facility Revenue • Program Revenue • Operational Expenses • Program Expenses • City Administration Allocation • Annual allocation to Long Term Capital Replacement Reserve The P & L Statements calculate the annual Net Revenue (Deficit) and the percentage Cost Recovery for both Management options. The Net Revenue (Deficit) calculations calculate the following Net Revenue scenarios: • Net Operating Expenses • Net Operating Expenses with City Administration Allocation included • Net Operating Expenses with City Admin Allocation plus annual Capital Reserve Fund allocation Following is a summary of the Profit and Loss Summary for Year Two. Year Two P& L Comparison Budget Category City Managed Hybrid Variance Option Management Option Facility Revenue $1,767,017 $1,561,440 $(205,577) Program Revenue $406,157 $186,162 $(219,995) TOTAL REVENUE $2,173,174 $1,747,602 $(425,572) Operational Expenses $1,952,592 $1,617,475 $335,117 Program Expenses $191,529 $67,550 $123,979 City Admin Share Allocation $157,500 $157,500 $0 *TOTAL EXPENSES $2,301,621 $1,842,525 $459,096 NET REVENUE (DEFICIT) $(128,447) $(94,923) $33,524 Cost Recovery 94% 95% *NOTE: Total Expenses do not include annual Long Term Reserve Allocation. Accrued Net Operating Revenue (Deficit) The P &L Statements also show the accrued Deficit for the Rec Center from Year Zero through Year Five. The accrued Deficit is where the biggest variance between the City Managed and Hybrid Management Model exists. The accrued Deficit for the Hybrid Management Model is significantly less than the City Management Model based on the much lower up front re-opening costs and the faster ramp up of membership and program revenue. CITY OF LINO KES Page 48 of 72 saoe9�°��tl Following is a summary of the accrued operating Deficits for each option through the first five years of Rec Center operation. Accrued Operating Deficits through Year Five (With City Administration Allocation but without Capital Reserve Fund Allocation) City Managed Accrued Hybrid Management Year Deficit Accrued Deficit Variance Year Zero $515,905 $437,255 $78,650 Year One $1,035,587 $709,945 $325,642 Year Two $1,164,034 $804,868 $359,166 Year Three $1,272,687 $892,465 $380,221 Year Four $1,353,860 $969,878 $383,982 Year Five $1,436,084 $1,055,473 $380,612 Bottom Line After Year Three, the net deficit variance between the two Management Options level off and are roughly equivalent. Although the projections show this variance leveling off, we feel that the potential net operating revenue has a higher upside in the Hybrid Management Model based on continuing updating of programs and enhanced program opportunities. These P & L Summaries do not include the potential additional operating revenue and expenses for future expansions. These are dealt with at a very high level in the Future Long Term Recreation Center Development and Expansion section of this Report. The detailed P& L Summary with all revenue and expense categories for both Management options is included in the next nine pages. These P&L Summaries also include the annual growth in both Revenue and Expenses. CITY OF LINO KES Page 49 of 72 saoe9�°��tl A I B C I G I H I I J K L 1 Lino Lakes Recreation and Community Center 2 Existing Facility City Managed 3 Profit& Loss Summary 4 Membership Scenario#2 5 May 10,2021 6 NOTES: *Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility 7 Initially assumes management by City with many programs outsourced. 8 Net Operating Revenue(Deficit)Categories Net Operating Revenue With City Admin Alloca.Incl. With Reserve Included Rec and Community Center Projections 9 10 REVENUE Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 11 FACILITY REVENUE $ - $ 1,342,698 $ 1,767,017 $ 1,853,709 $ 1,944,063 $ 2,039,660 12 Educational,Classes,Camps and Clinics Rentals 0 0 0 0 0 0 13 Gym/Court Rentals 0 20,000 30,000 31,500 33,075 34,729 14 Pool Rentals 0 36,412 39,773 40,806 42,082 43,398 15 Competitive Event Rentals 0 0 0 0 0 0 16 Special Events&Function Space Rentals 0 21,000 28,000 28,840 29,911 31,065 17 Therapy, Rehab,Health Use 0 0 0 0 0 0 18 Memberships&Daily Use Fees 0 1,260,286 1,662,094 1,745,199 1,831,409 1,922,655 19 Retail and Vending Revenue 0 5,000 7,150 7,365 7,585 7,813 21 Facility Sponsorships/Advertising/Contributions 0 0 0 0 0 0 22 School District and Partners 0 0 0 0 0 0 23 Miscellaneous 0 0 0 0 0 0 24 25 PROGRAM REVENUE $ - $ 296,024 $ 406,157 $ 445,246 $ 495,247 $ 517,873 26 JEclucation and Community Programming 0 5,500 10,500 10,815 11,248 11,698 27 Aquatic Training, Fitness and Therapy 0 20,000 32,500 33,800 35,152 36,558 28 Dry-Side Fitness&Training 0 65,000 70,550 73,372 76,307 79,359 29 Learn to Swim 0 154,524 208,607 239,899 281,686 295,770 30 Camps and Clinics 0 45,000 75,000 78,000 81,120 84,365 31 Aquatic Team Programs 0 0 0 0 0 0 32 Sport Team Programs 0 6,000 9,000 9,360 9,734 10,124 35 Program Sponsorships/Advertising/Contributions 0 0 0 0 0 0 36 Miscellaneous 0 0 0 0 0 0 37 38 TOTAL REVENUE $ - $ 1,638,722 $ 2,173,174 $ 2,298,955 $ 2,439,310 $ 2,557,533 39 Projected Revenue Growth Rate 33% 6% 6% 5% 1of3 A I B C G H I J K L 40 EXPENSES 41 Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 42 OPERATIONAL EXPENSES $ 515,905 $ 1,859,962 $ 1,952,592 $ 2,035,846 $ 2,120,662 $ 2,221,809 43 Utilities 9,000 140,631 144,850 149,195 153,671 158,281 44 Maintenance 19,000 44,000 45,320 46,680 48,080 56,522 45 Equipment and Supplies 239,514 139,000 144,010 146,170 148,395 150,687 46 Staff Wages&Salary&Benefits 47 Full Time Staff 137,708 609,500 639,975 671,974 705,572 740,851 48 Part Time Staff 15,500 457,600 480,480 504,504 529,729 556,216 49 Benefits and Payroll Taxes 58,183 335,320 352,086 369,690 388,175 407,584 50 Staff-Other Costs 3,000 9,500 9,738 9,981 10,230 10,486 51 Outside Services 15,000 16,000 11,150 11,335 6,525 6,720 52 General Office 11,500 88,411 107,184 110,708 114,356 118,206 53 Insurance 5,000 10,000 10,300 10,609 10,927 11,255 54 Miscellaneous Expense Contingency 2,500 10,000 7,500 5,000 5,000 5,000 55 56 PROGRAM EXPENSES $ - $ 148,441 $ 191,529 $ 206,387 $ 226,177 $ 235,623 57 Community and Educational Programs 0 2,700 4,700 4,826 4,999 5,179 58 Aquatic Training, Fitness,and Therapy 0 9,000 14,000 14,520 15,061 15,623 59 Dry-Side Fitness&Training 0 30,900 33,453 34,751 36,101 37,505 60 Learn to Swim 0 69,101 89,886 102,042 117,988 123,412 61 Camps and Clinics 0 21,080 34,100 35,556 37,003 38,509 62 Aquatic Team Programs 0 0 0 0 0 0 63 Sport Team Programs 0 3,160 4,390 4,692 5,025 5,394 65 Program Staff-Miscellaneous 0 0 0 0 0 0 66 Scholarships&Student Support 0 5,000 5,000 5,000 5,000 5,000 67 Miscellaneous Expense Contingency 0 7,500 6,000 5,000 5,000 5,000 68 69 TOTAL OPERATING EXPENSES $ 515,905 $ 2,008,403 $ 2,144,121 $ 2,242,233 $ 2,346,839 $ 2,457,432 70 Projected Expense Growth Rate 7% 5% 5% 5% 71 72 CITY SHARED ADMINISTRATIVE EXPENSES $ - $ 150,000 $ 157,500 $ 165,375 $ 173,644 $ 182,326 73 741 GROSS TOTAL OPERATING EXPENSES $ 515,905 $ 2,158,403 $ 2,301,621 $ 2,407,608 $ 2,520,483 $ 2,639,758 2of3 A I B C G H I J K L 75 Mir 76 Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 77 NET OPERATING REVENUE(DEFICIT) $ (515,905) $ (369,682) 29,053 $ 56,722 $ 92,471 $ 100,102 78 Not Including City Administrative Allocation 79 COST RECOVERY(Direct Revenue&Expenses Only) 0% 82% 101% 103% 104% 104% 80 81 CUMMULATIVE OPERATING NET REVENUE(DEFICIT) $ (515,905) $ (885,587) $ (856,534) $ (799,812) $ (707,341) $ (607,240) 82 83 NET GROSS OPERATING REVENUE(DEFICIT) $ (515,905) $ (519,682) $ (128,447) $ (108,653) $ (81,173) $ (82,224) 84 Including City Administrative Allocation 85 COST RECOVERY(Direct Revenue&Expenses Only) 0% 76% 94% 95% 97% 97% 86 87 CUMMULATIVE OPERATING NET REVENUE(DEFICIT) $ (515,905) $ (1,035,587) $ (1,164,034) $ (1,272,687) $ (1,353,860) $ (1,436,084) 88 89 NON-OPERATING EXPENSES 90 91 Long Term Capital Replacement&Maintenance Reserve 0 0 60,000 70,000 80,000 82,400 92 Capital Reserve Accumulation Years 1-5 292,400 93 Years 6-10 84,872 87,418 90,041 92,742 95,524 94 Years 11-15 98,390 101,342 104,382 107,513 110,739 95 Years 16-20 114,061 117,483 121,007 124,637 128,377 96 97 Capital Accumulation Year 10 742,997 98 Capital Accumulation Year 15 1,265,362 99 Capital Accumulation year 20 0 1,870,927 100 NON-OPERATING EXPENSES $ - $ - $ 60,000 $ 70,000 $ 80,000 $ 82,400 101 104 GRAND TOTAL ALL EXPENSES(Including Reserve) $ 515,905 $ 2,158,403 $ 2,361,621 $ 2,477,608 $ 2,600,483 $ 2,722,158 105 106 GRAND TOTAL REVENUE(DEFICIT) $ (515,905) $ (519,682) $ (188,447) $ (178,653) $ (161,173) $ (164,624) 107 COST RECOVERY 0% 76% 92% 93% 94% 94% 108 CUMMULATIVE TOTAL GROSS REVENUE(DEFICIT) $ (515,905) $ (1,035,587) $ (1,224,034) $ (1,402,687) $ (1,563,860) $ (1,728,484) 3of3 A I B C I G I H I I J K L 1 Lino Lakes Recreation and Community Center 2 Existing Facility Hybrid Management Model 3 Profit& Loss Summary 4 Membership Scenario#2 5 May 10,2021 NOTES: Hybrid Management/Program model includes a Fitness Program Partner and Centennial Community Ed Swim Lesson/Aquatic 6 Partnership 7 *Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility 8 Net Operating Revenue(Deficit)Categories Net Operating Revenue With City Admin Alloca.Incl. With Reserve Included 9 Rec and Community Center Projections 10 REVENUE Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 11 FACILITY REVENUE $ - $ 1,336,903 $ 1,561,440 $ 1,634,173 $ 1,709,872 $ 1,790,042 12 Educational,Classes,Camps and Clinics Rentals 0 0 0 0 0 0 13 Gym/Court Rentals 0 20,000 30,000 31,500 33,075 34,729 14 Pool Rentals 0 36,412 39,773 40,806 42,082 43,398 15 Competitive Event Rentals 0 0 0 0 0 0 16 Special Events&Function Space Rentals 0 18,000 24,000 24,720 25,668 26,652 17 Therapy,Rehab,Health Use 0 0 0 0 0 0 18 Memberships&Daily Use Fees 0 1,181,491 1,385,017 1,454,268 1,525,932 1,601,904 19 Retail and Vending Revenue 0 6,000 7,650 7,880 8,116 8,359 21 Facility Sponsorships/Advertising/Contributions 0 0 0 0 0 0 22 School District and Partners 0 75,000 75,000 75,000 75,000 75,000 23 Miscellaneous 0 0 0 0 0 0 24 25 26 PROGRAM REVENUE $ - $ 120,639 $ 186,162 $ 200,701 $ 219,024 $ 228,673 27 Education and Community Programming 0 7,000 13,000 13,390 13,926 14,483 28 Aquatic Training,Fitness and Therapy 0 20,000 32,500 33,800 35,152 36,558 29 Dry-Side Fitness&Training 0 0 0 0 0 0 30 Learn to Swim 0 48,639 65,662 75,511 88,827 93,268 31 Camps and Clinics 0 45,000 75,000 78,000 81,120 84,365 32 Aquatic Team Programs 0 0 0 0 0 0 33 Sport Team Programs 0 0 0 0 0 0 36 Program Sponsorships/Advertising/Contributions 0 0 0 0 0 0 37 Miscellaneous 0 0 0 0 0 0 38 39 TOTAL REVENUE $ - $ 1,457,541 $ 1,747,602 $ 1,834,874 $ 1,928,896 $ 2,018,715 40 Projected Revenue Growth Rate 20% 5% 5% 5% 41 1of3 A I B C G H I J K L 42 EXPENSES Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 43 OPERATIONAL EXPENSES $ 437,255 $ 1,532,351 $ 1,617,475 $ 1,687,915 $ 1,761,280 $ 1,848,308 44 Utilities 9,000 140,631 144,850 149,195 153,671 158,281 45 Maintenance 19,000 43,000 44,290 45,619 46,987 55,397 46 Equipment and Supplies 210,514 67,000 72,010 74,170 76,395 78,687 47 Staff Wages&Salary&Benefits 48 Full Time Staff 108,958 494,500 519,225 545,186 572,446 601,068 49 Part Time Staff 13,500 348,400 365,820 384,111 403,317 423,482 50 Benefits and Payroll Taxes 46,283 267,480 280,854 294,897 309,642 325,124 51 Staff-Other Costs 2,000 4,750 4,869 4,990 5,115 5,243 52 Outside Services 11,000 64,831 73,656 77,066 77,643 81,395 53 General Office 9,500 81,760 94,101 97,071 100,137 103,376 54 Insurance 5,000 10,000 10,300 10,609 10,927 11,255 55 Miscellaneous Expense Contingency 2,500 10,000 7,500 5,000 5,000 5,000 56 57 PROGRAM EXPENSES $ - $ 47,880 $ 67,550 $ 69,182 $ 71,384 $ 73,676 58 Community and Educational Programs 0 3,300 5,700 5,856 6,070 6,293 59 Aquatic Training,Fitness,and Therapy 0 9,000 14,000 14,520 15,061 15,623 60 Dry-Side Fitness&Training 0 1,000 1,000 1,000 1,000 1,000 61 Learn to Swim 0 4,750 4,750 4,750 4,750 4,750 62 Camps and Clinics 0 21,080 34,100 35,556 37,003 38,509 63 Aquatic Team Programs 0 0 0 0 0 0 64 Sport Team Programs 0 0 0 0 0 0 66 Program Staff-Miscellaneous 0 0 0 0 0 0 67 Scholarships&Student Support 0 5,000 5,000 5,000 5,000 5,000 68 Miscellaneous Expense Contingency 0 3,750 3,000 2,500 2,500 2,500 69 70 TOTAL OPERATING EXPENSES $ 437,255 $ 1,580,231 $ 1,685,025 $ 1,757,097 $ 1,832,664 $ 1,921,984 71 Projected Expense Growth Rate 7% 4% 4% 5% 72 73 CITY SHARED ADMINISTRATIVE EXPENSES $ - $ 150,000 $ 157,500 $ 165,375 $ 173,644 $ 182,326 74 75 GROSS OPERATING EXPENSES $ 437,255 $ 1,730,231 $ 1,842,525 $ 1,922,472 $ 2,006,308 $ 2,104,310 2of3 A I B C G H I J K L 76 77 78 NET OPERATING REVENUE(DEFICIT) $ (437,255) $ (122,690) $ 62,577 $ 77,777 $ 96,232 $ 96,731 79 Not Including City Administrative Allocation 80 COST RECOVERY(Direct Revenue&Expenses Only) 0% 92% 104% 104% 105% 105% 81 82 CUMMULATIVE OPERATING NET REVENUE(DEFICIT) $ (437,255) $ (559,945) $ (497,368) $ (419,590) $ (323,359) $ (226,628) 83 84 NET GROSS OPERATING REVENUE(DEFICIT) $ (437,255) $ (272,690) $ (94,923) $ (87,598) $ (77,412) $ (85,595) 85 Including City Administrative Allocation 86 COST RECOVERY(Direct Revenue&Expenses Only) 0% 84% 95% 95% 96% 96% 87 88 CUMMULATIVE OPERATING NET REVENUE(DEFICIT) $ (437,255) $ (709,945) $ (804,868) $ (892,465) $ (969,878) $ (1,055,473) 89 90 NON-OPERATING EXPENSES 91 92 Long Term Capital Replacement&Maintenance Reserve 0 0 60,000 70,000 80,000 82,400 93 Capital Reserve Accumulation Years 1-5 292,400 94 Years 6-10 84,872 87,418 90,041 92,742 95,524 95 Years11-15 98,390 101,342 104,382 107,513 110,739 96 Years 16-20 114,061 117,483 121,007 124,637 128,377 97 98 Capital Accumulation Year 10 742,997 99 Capital Accumulation Year 15 1,265,362 100 Capital Accumulation year 20 0 1,870,927 101 NON-OPERATING EXPENSES $ - $ - $ 60,000 $ 70,000 $ 80,000 $ 82,400 102 105 GRAND TOTAL ALL EXPENSES(Including Reserve) $ 437,255 $ 1,730,231 $ 1,902,525 $ 1,992,472 $ 2,086,308 $ 2,186,710 106 107 GRAND TOTAL REVENUE(DEFICIT) $ (437,255) $ (272,690) $ (154,923) $ (157,598) $ (157,412) $ (167,995) 108 COST RECOVERY 0% 84% 92% 92% 92% 92% 109 CUMMULATIVE TOTAL GROSS REVENUE(DEFICIT) $ (437,255) $ (709,945) $ (864,868) $ (1,022,465) $ (1,179,878) $ (1,347,873) 3of3 A I B C G H I I 1 I K I L M N O P Q R 1 Lino Lakes Recreation and Community Center 2 Comparison: City Managed versus Hybrid Management Model 3 Profit& Loss Summary 4 Membership Scenario#2 5 May 10,2021 6 NOTES: *Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility 7 Initially assumes management by City with many programs outsourced. 8 Net Operating Revenue(Deficit)Categories Net Operating Revenue With City Admin Alloca.Incl. With Reserve Included Net Operating Revenue With City Admin Alloca.Incl. With Reserve Included City Managed Rec and Community Center Projections Hybrid Management Model: Rec and Community Center Projections 9 10 REVENUE Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 11 FACILITY REVENUE $ $1,342,698 $ 1,767,017 $ 1,853,709 $1,944,063 $ 2,039,660 $ $ 1,336,903 $ 1,561,440 $ 1,634,173 $ 1,709,872 $ 1,790,042 12 Educational,Classes,Camps and Clinics Rentals 0 0 0 0 0 0 $ - $ - $ - $ - $ - $ - 13 Gym/Court Rentals 0 20,000 30,000 31,500 33,075 34,729 $ - $ 20,000 $ 30,000 $ 31,500 $ 33,075 $ 34,729 14 Pool Rentals 0 36,412 39,773 40,806 42,082 43,398 $ - $ 36,412 $ 39,773 $ 40,806 $ 42,082 $ 43,398 15 Competitive Event Rentals 0 0 0 0 0 0 $ - $ - $ - $ - $ - $ - 16 Special Events&Function Space Rentals 0 21,000 28,000 28,840 29,911 31,065 $ - $ 18,000 $ 24,000 $ 24,720 $ 25,668 $ 26,652 17 Therapy,Rehab,Health Use 0 0 0 0 0 0 $ - $ - - 18 Memberships&Daily Use Fees 0 1,260,286 1,662,094 1,745,199 1,831,409 1,922,655 $ - $ 1,181,491 $ 1,385,017 $ 1,454,268 $ 1,525,932 $ 1,601,904 19 Retail and Vending Revenue 0 5,000 7,150 7,365 7,585 7,813 $ - $ 6,000 $ 7,650 $ 7,880 $ 8,116 $ 8,359 21 Facility Sponsorships/Advertising/Contributions 0 0 0 0 0 0 $ - $ - - 22 School District and Partners 0 0 0 0 0 0 $ - $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 23 Miscellaneous 0 0 0 0 0 0 $ - $ - - 24 25 26 PROGRAM REVENUE $ $ 296,024 $ 406,157 $ 445,246 $ 495,247 $ 517,873 $ $ 120,639 $ 186,162 $ 200,701 $ 219,024 $ 228,673 27 Education and Community Programming 0 5,500 10,500 10,815 11,248 11,698 0 7,000 13,000 13,390 13,926 14,483 28 Aquatic Training,Fitness and Therapy 0 20,000 32,500 33,800 35,152 36,558 0 20,000 32,500 33,800 35,152 36,558 29 Dry-Side Fitness&Training 0 65,000 70,550 73,372 76,307 79,359 0 0 0 0 0 0 30 Learn to Swim 0 154,524 208,607 239,899 281,686 295,770 0 48,639 65,662 75,511 88,827 93,268 31 Camps and Clinics 0 45,000 75,000 78,000 81,120 84,365 0 45,000 75,000 78,000 81,120 84,365 32 Aquatic Team Programs 0 0 0 0 0 0 0 0 0 0 0 0 33 Sport Team Programs 0 6,000 9,000 9,360 9,734 10,124 0 0 0 0 0 0 36 Program Sponsorships/Advertising/Contributions 0 0 0 0 0 0 0 0 0 0 0 0 37 Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 38 39 TOTAL REVENUE $ $1,638,722 $ 2,173,174 $ 2,298,955 $2,439,310 $ 2,557,533 $ $ 1,457,541 $ 1,747,602 $ 1,834,874 $ 1,928,896 $ 2,018,715 40 Projected Revenue Growth Rate 33% 6% 6% 5% $ - 20% 5% 5% 5% 41 Variance of Hybrid Model vs.City Managed $ (181,180) $ (425,572) $ (464,081) $ (510,414) $ (538,819) 42 1 of A I B C G H I J K L M N O P Q R City Managed Rec and Community Center Projections Hybrid Management Model: Rec and Community Center Projections 43 EXPENSES 44 Year Zero* Year Year Year Year Years Year Zero* Year Year Year Year4 Years 45 OPERATIONAL EXPENSES $ 515,905 $1,859,962 $ 1,952,592 $ 2,035,846 $2,120,662 $ 2,221,809 $ 437,255 $ 1,532,351 $ 1,617,475 $ 1,687,915 $ 1,761,280 $ 1,848,308 46 Utilities 9,000 140,631 144,850 149,195 153,671 158,281 9,000 140,631 144,850 149,195 153,671 158,281 47 Maintenance 19,000 44,000 45,320 46,680 48,080 56,522 19,000 43,000 44,290 45,619 46,987 55,397 48 Equipment and Supplies 239,514 139,000 144,010 146,170 148,395 150,687 210,514 67,000 72,010 74,170 76,395 78,687 49 Staff Wages&Salary&Benefits 50 Full Time Staff 137,708 609,500 639,975 671,974 705,572 740,851 108,958 494,500 519,225 545,186 572,446 601,068 51 Part Time Staff 15,500 457,600 480,480 504,504 529,729 556,216 13,500 348,400 365,820 384,111 403,317 423,482 52 Benefits and Payroll Taxes 58,183 335,320 352,086 369,690 388,175 407,584 46,283 267,480 280,854 294,897 309,642 325,124 53 Staff-Other Costs 3,000 9,500 9,738 9,981 10,230 10,486 2,000 4,750 4,869 4,990 5,115 5,243 54 Outside Services 15,000 16,000 11,150 11,335 6,525 6,720 11,000 64,831 73,656 77,066 77,643 81,395 55 General Office 11,500 88,411 107,184 110,708 114,356 118,206 9,500 81,760 94,101 97,071 100,137 103,376 56 Insurance 5,000 10,000 10,300 10,609 10,927 11,255 5,000 10,000 10,300 10,609 10,927 11,255 57 Miscellaneous Expense Contingency 2,500 10,000 7,500 5,000 5,000 5,000 2,500 10,000 7,500 5,000 5,000 5,000 58 59 PROGRAM EXPENSES $ - $ 148,441 $ 191,529 $ 206,387 $ 226,177 $ 235,623 $ - $ 47,880 $ 67,550 $ 69,182 $ 71,384 $ 73,676 60 Community and Educational Programs 0 2,700 4,700 4,826 4,999 5,179 0 3,300 5,700 5,856 6,070 6,293 61 Aquatic Training,Fitness,and Therapy 0 9,000 14,000 14,520 15,061 15,623 0 9,000 14,000 14,520 15,061 15,623 62 Dry-Side Fitness&Training 0 30,900 33,453 34,751 36,101 37,505 0 1,000 1,000 1,000 1,000 1,000 63 Learn to Swim 0 69,101 89,886 102,042 117,988 123,412 0 4,750 4,750 4,750 4,750 4,750 64 Camps and Clinics 0 21,080 34,100 35,556 37,003 38,509 0 21,080 34,100 35,556 37,003 38,509 65 Aquatic Team Programs 0 0 0 0 0 0 0 0 0 0 0 0 66 Sport Team Programs 0 3,160 4,390 4,692 5,025 5,394 0 0 0 0 0 0 68 Program Staff-Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 69 Scholarships&Student Support 0 5,000 5,000 5,000 5,000 5,000 0 5,000 5,000 5,000 5,000 5,000 70 Miscellaneous Expense Contingency 0 7,500 6,000 5,000 5,000 5,000 0 3,750 3,000 2,500 2,500 2,500 71 72 TOTAL OPERATING EXPENSES $ 515,905 $2,008,403 $ 2,144,121 $ 2,242,233 $2,346,839 $ 2,457,432 $ 437,255 $ 1,580,231 $ 1,685,025 $ 1,757,097 $ 1,832,664 $ 1,921,984 73 Projected Expense Growth Rate 7% 5% 5% 5% 7% 4% 4% 5% 74 Variance of Hybrid Model vs.City Managed $ (78,650) $ (428,172) $ (459,097) $ (485,136) $ (514,175) $ (535,448) 75 76 CITY SHARED ADMINISTRATIVE EXPENSES $ - $ 150,000 $ 157,500 $ 165,375 $ 173,644 $ 182,326 $ - $ 150,000 $ 157,500 $ 165,375 $ 173,644 $ 182,326 77 78 1 GROSS TOTAL OPERATING EXPENSES $ 515,905 $2,158,403 $ 2,301,621 $ 2,407,608 $2,520,483 $ 2,639,758 $ 437,255 $ 1,730,231 $ 1,842,525 $ 1,922,472 $ 2,006,308 $ 2,104,310 79 Variance of Hybrid Model vs.City Managed $ (78,650) $ (428,172) $ (459,097) $ (485,136) $ (514,175) $ (535,448) 80 2 of A I B C G H I I I J I K L M I N 1 O 1 P I C! I R City Managed Rec and Community Center Projections Hybrid Management Model: Rec and Community Center Projections 81 82 Year Zero* Year Year Year Year Year 83 NET OPERATING REVENUE(DEFICIT) (515,905) (369,682) 29,053 56,722 92,471 100,102 $ (437,255) $ (122,690) 62,577 77,777 96,232 96,731 84 Not Including City Administrative Allocation 85 Variance of Hybrid Model vs.City Managed $ 78,650 $ 246,992 $ 33,524 $ 21,055 $ 3,761 $ (3,371) 86 COST RECOVERY(Direct Revenue&Expenses Only) 0% 82% 101% 103% 104% 104% 0% 92% 104% 104% 105% 105% 87 88 CUMMULATIVE OPERATING NET REVENUE(DEFICIT) $ (515,905) $ (885,587) $ (856,534) $ (799,812) $ (707,341) $ (607,240) $ (437,255) $ (559,945) $ (497,368) $ (419,590) $ (323,359) $ (226,628) 89 Variance of Hybrid Model vs.City Managed $ 78,650 $ 325,642 $ 359,166 $ 380,221 $ 383,982 $ 380,612 90 91 NET GROSS OPERATING REVENUE(DEFICIT) $ (515,905) $ (519,682) $ (128,447) $ (108,653) $ (81,173) $ (82,224) $ (437,255) $ (272,690) $ (94,923) $ (87,598) $ (77,412) $ (85,595) 92 Including City Administrative Allocation 93 Variance of Hybrid Model vs.City Managed $ 78,650 $ 246,992 $ 33,524 $ 21,055 $ 3,761 $ (3,371) 94 COST RECOVERY(Direct Revenue&Expenses Only) 0% 76% 94% 95% 97% 97% 0% 84% 95% 95% 96% 96% 95 96 CUMMULATIVE OPERATING NET REVENUE(DEFICIT) $ (515,905) $(1,035,587) $ (1,164,034) $ (1,272,687) $(1,353,860) $ (1,436,084) $ (437,255) $ (709,945) $ (804,868) $ (892,465) $ (969,878) $ (1,055,473) 97 Variance of Hybrid Model vs.City Managed $ 78,650 $ 325,642 $ 359,166 $ 380,221 $ 383,982 $ 380,612 98 99 NON-OPERATING EXPENSES 100 101 Long Term Capital Replacement&Maintenance Reserve 0 0 60,000 70,000 80,000 82,400 0 0 60,000 70,000 80,000 82,400 102 Capital Reserve Accumulation Years 1-5 292,400 292,400 103 Years 6-10 84,872 87,418 90,041 92,742 95,524 84,872 87,418 90,041 92,742 95,524 104 Years 11-15 98,390 101,342 104,382 107,513 110,739 98,390 101,342 104,382 107,513 110,739 105 Years 16-20 114,061 117,483 121,007 124,637 128,377 114,061 117,483 121,007 124,637 128,377 106 107 Capital Accumulation Year 10 742,997 742,997 108 Capital Accumulation Year 15 1,265,362 1,265,362 109 Capital Accumulation year 20 0 1,870,927 0 1,870,927 110 NON-OPERATING EXPENSES $ - $ - $ 60,000 $ 70,000 $ 80,000 $ 82,400 $ - $ - $ 60,000 $ 70,000 $ 80,000 $ 82,400 111 114 GRAND TOTAL ALL EXPENSES(Including Reserve) $ 515,905 $2,158,403 $ 2,361,621 $ 2,477,608 $2,600,483 $ 2,722,158 $ 437,255 $ 1,730,231 $ 1,902,525 $ 1,992,472 $ 2,086,308 $ 2,186,710 115 116 GRAND TOTAL REVENUE(DEFICIT) $ (515,905) $ (519,682) $ (188,447) $ (178,653) $ (161,173) $ (164,624) $ (437,255) $ (272,690) $ (154,923) $ (157,598) $ (157,412) $ (167,995) 117 COST RECOVERY 0% 76% 92% 93% 94% 94% 0% 84% 92% 92% 92% 92% 118 CUMMU,TV TOTAL GROSS REVENUE(DEFICIT) $ (515,905) $(1,035,587) $ (1,224,034) $ (1,402,687) $(1,563,860) $ (1,728,484) $ (437,255) $ (709,945) $ (864,868) $ (1,022,465) $ (1,179,878) $ (1,347,873) 3 of Budget Line Item Detail Supporting the P&L Summaries the detailed Budget Line Item Detail spreadsheets are included in Appendix C. These cost and revenue center budget worksheets include pre-opening expenses prior to the re-opening of the Recreation Center in Year Zero. For budgeting purposes Year One begins with the re-opening of the facility and subsequent years correspond to the year in operation. These years to do not correspond to the City Fiscal Year or a calendar year. The budgets can be updated to correspond with the City Fiscal Year when an opening date is determined. The budget worksheets also include a comment column providing detailed comments for specific line items. These worksheets also include color highlights of specific line items identifying the following: • Items to Review in the Next Steps phase • Potential for reduced costs • Potential for increased costs • Potential for increased revenue The full budget detail supporting the P& L Summary for the two Management options are included in Appendix C as follows: APPENDIX C: Budget/Operating Analysis #C2 City Managed Model Budget Line Item Detail #C2a Facility Revenue #C2b Program Revenue #C2c Operational Expenses #C2d Program Expenses #C2e Program Profit Analysis #C3 Hybrid Management Model Budget Line Item Detail #C3a Facility Revenue #C3b Program Revenue #C3c Operational Expenses #C3d Program Expenses #C3e Program Profit Analysis CITY OF LINO KES Page 50 of 72 FUTURE LONG TERM RECREATION CENTER DEVELOPMENT AND EXPANSION Future Long Term Development and Expansion of the Recreation and Community Center focus on several key areas. See the Strategic Overview section of this Report for discussion of the underlying strategy. • Plan for future growth in City and regional population • Plan for future program, membership, and use growth • Address current needs identified o Court Space o Community function and meeting space • Provide support for differentiating themes for the Recreation and Community Center o Outdoor Sports and Activities o Sport Center(court complex) The expansion of the Outdoor Sports and Activities and the Sport Center lend themselves to partnership development, outside investment, and outside program providers. Outdoor Sport Center The existing facility has a small playground attached to the building. Space exists on the City owned site to not only support expansion of the building but to provide for the utilization of additional space to create outdoor sport activities that are unique to the City and the area. These can also link to classes and activities inside the current and future Rec and Community Center. An "Outdoor Sports Center" can include the following: • Expanded child and youth playground • Outdoor fitness course • Ropes course • Trail link to nearby park areas • Dog Park The Outdoor theme can be connected to indoor activities that teach and support outdoor sport and lifestyle activities, such as: • Kayak, Paddleboard classes in the lap pool • Climbing Wall/Gym included in expansion of facility • Outdoor recreation activities built into year round youth camps and community classes The Outdoor Sport and Activity theme can be a cost effective way to enhance the differentiating elements of the Lino Lakes Recreation and Community Center as well as enhancing the financial sustainability of the Center and creating unique programming for the City and its residents. The cost projections vary greatly for each potential component of these outdoor facilities, depending on design and elements. Costs can be in the $50,000 to $150,000 for outdoor fitness courses and the compact ropes courses can range from $100,000 and up much higher. The Ropes Course could link to the climbing wall partner linked to the Sports Center. CITY OF LINO KES Page 51 of 72 saoe9�°��tl Examples of Potential Outdoor Opportunities Outdoor Fitness Stations: Can Connect To Trails t�'I T ii S r Compact Rope Courses and Team Building (Youth and Adults) A Sand Volleyball Dog Park CITY OF LINOS KES Page 52 of 72 Sport Center Court Complex The analysis of the existing facility as well as facilities in Lino Lakes and the wider area have identified a significant lack of good centralized and flexible court sport facilities; including basketball, volleyball, and pickleball in particular. The local School Districts have a large number of gyms and courts but they are spread throughout the schools and often are limited use joint facilities such as school cafeterias and function spaces that double as courts as needed. There is no facility in the area that can support tournaments and training for these sports as well as provide an engine for sports tourism and economic impact. Most importantly, a court sport center can provide the facility framework for outdoor sport facilities and the addition of critical community fitness facilities at the Rec and Community Center. These elements all combine a strong revenue stream that can actually create a profit center for the overall Recommended features include the following: • Recommend 6 x full size basketball courts o Can accommodate: ■ 10 volleyball courts ■ Large number of pickleball courts o Sub-dividable to create sport specific area court spaces • Support amenities for training and tournaments o Can expand training areas pending increasing capacity needs in overall facility workout, fitness, and training spaces o Expanded and enhanced meeting and flexible function spaces that can not only support events and use in the Court Center but can provide additional flexible community meeting and function spaces as the community element of the Center continue to expand • Features supporting the Outdoor Sport Center and overall fitness facilities o Indoor walking/running track ■ One of the most requested fitness features that the existing facility lacks is an indoor walking track ■ Building a court facility likes this provides the structure for inclusion of a large second level walking track surrounding the courts. • Adding a walking track to the existing building or as a separate new facility is cost prohibitive. • Adding the walking track to a new court addition is very cost effective with the space, height and structure in place as part of the new Court Sport addition o Climbing Wall or Gym ■ A large climbing wall with appropriate height is very costly to build on its own. Incorporation into a new Court Sport addition provides the height and structural framework to create a much more cost effective climbing wall addition than a standalone structure. Further enhancing the potential for this differentiating element is the potential of a private investment interest in the north suburbs looking to partner with a community to develop such a facility. CITY OF LINO KES Page 53 of 72 Estimated Cost Projections • Estimated Costs of the Sport Center addition (2021 dollars) o Court complex: $9,000,000 to $12,000,000 ■ Depends on a large number of variables in design, materials, and supporting spaces o Indoor Walking Track: $500,000 to $750,000 ■ When combined with Sport Center construction o Climbing Wall: $500,000 to $750,000 ■ When combined with Sport Center construction Examples of Sport Center or Court Sport Center (Basketball, Volleyball, Pickleball) _) LN(0) KES Page 54 of 72 Additional Differentiating Features in Sport Center 1 � Elevated Walking Track around Gym 4b All Climbing Wall Incorporated into Sports Center CITY OF LINO KE$ Page 55 of 72 Additional Meeting and Function Space As part of the Sport Center Expansion there is an option to include some additional meeting and function space for the overall Recreation and Community Center. Additional space can help meet current and future needs plus community program expansion and enhancements. Enhancements as part of Additions and Future Upgrades s _y 1 r►, LINO KES Page 56 of 72 POTENTIAL IMPACT OF COVID-19 PANDEMIC The current COVID pandemic has had a very significant and undoubtedly a lasting impact on aquatic and recreational facilities. The majority of current focus to date is on how to most safely open existing facilities and how to begin operations and programming in a safe and healthy fashion during the course of the pandemic. The aquatic and overall recreation and sport industry is also trying to identify and develop facility, operation, and management long term changes that will be part of a"New Normal" in the future. The future New Normal may include code updates and requirements as well as non-code best practices. These New Normal elements will be in design, operations, and programming elements, touching most aspects of new and existing facilities. ISG has identified some of the most likely potential accommodations to address,prevent, and mitigate future health challenges and crises. Keep in mind that these are not yet requirements but that best practices may suggest some or all of these initiatives. We have tried to take into account some added budget to support potential additional operating costs. These included the following. Operational Elements These are most relevant to the re-opening Lino Lakes Rec and Community Center • Increase staff and outside services costs o Added custodial staff and time for enhanced cleaning and disinfecting o Added outside services for potential staff,user, and facility testing and cleaning o Potential added front desk/access point control and staffing for potential screening and monitoring • Staff training and safety costs o Additional staff and management training on handling and management of health emergencies (beyond current First Aid, CPR, AED) and new standard practices o Additional Personal Protective Equipment(PPE) for use by staff as needed • System Operations o Enhanced air handling and HVAC systems, including addition of HEPA filters and other air quality controls o Increase requirements for outside replacement air exchange in system ■ NOTE: Source capture exhaust system discussed in this report would be a major advantage in this process o Potential increase in pool water turnover rate (although COVID does not live in chlorinated water, this may be a broader concession to future health crises) ■ NOTE: The projected design and costing in the report include all the state of the art water mechanical and purification systems that currently exist and are recommended for optimum health conditions. • Develop inside traffic and circulation patterns that encourage social distancing and eliminating bottle necks • Development of updated emergency action plans to address future contagious health issues and threats • Change in overall code bather and user capacity load calculations CITY OF LINO KES Page 57 of 72 Design Elements These elements are not relevant currently to the Center, but will be in the future for any expansion or addition. • Potential increase in code space requirements concerning deck, changing rooms, locker rooms and other common spaces based on lower user capacities/square meter. • Increased design and cost for increased separation or partitioning in common areas, particularly locker rooms, changing areas, and restrooms • Incorporate more robust and higher capacity HVAC and dehumidification systems o See operational note above o Potentially include new UV and Bipolar Ionization air purification systems o In July he ASHRE (the American Society of Heating, Refrigerating and Air Conditioning Engineers) Epidemic Task Force has issued new air purification and HVAC safety recommendations to address the current and minimize future contagious illness and pathogen circulation in indoor air systems • New products for facility safety and cleanliness are already coming to market. It will be important to continue to be award of new technologies relevant to existing and new aquatic, sport, and recreational facilities. Renovation Renovation considerations are relevant to the Center as systems replacement or other renovation take place over the next several years. • Consider upgrading pool water mechanical systems at existing pools earlier than dictated by projected life expectancy o Added advantage of achieving operational cost savings and increased efficiency in addition to the higher levels of water quality and cleanliness o Relevant to the BAC/Odle analysis and renovation plan • Review current HVAC system to identify potential upgrades and inclusion of air purification systems • When reviewing potential renovation of locker rooms, changing rooms, and common lobby space take spacing and partitions into account based on the latest recommendations at the time of renovation CITY OF LINO KES Page 58 of 72 PROJECT TIMELINE and NEXT STEPS Re-Opening Timeline The potential re-opening date for the Recreation and Community Center is still to be determined. Following is a timeline working back from the re-opening date. This timeline includes key staff hiring, marketing,program development, development and negotiations with key program and management partners/providers, physical facility needs, and other action items. Six Months Prior to Opening • Approval to move forward with re-opening • Identification of and initial discussions with potential program providers/partners or management entities o Identify key milestone dates for potential partners • Develop Org Chart for facility management model • Start search for Facility Manager Five Months Prior to Opening • Hiring of Facility Manager • Negotiations with potential program providers/partners • Initial media campaign • Determine any facility maintenance needs or"sprucing up" options Four Months Prior to Opening • Finalize program providers/partners or management entities as appropriate • Begin purchasing of equipment, furniture, etc. needed for opening • Hiring of Membership/Customer Service Manager • Develop Membership model and fees • Development of Recreation and Community Center marketing materials • Begin planning for Grand Opening Three Months Prior to Opening • Launch Membership Campaign • Hiring of Facility Operations/Maintenance Manager • Begin recruiting part-time staff • Develop all necessary Emergency Action Plans, operations, management documents, procedures and manuals Two Months Prior to Opening • Hiring all employees (actual employee start dates closer to opening) • Pool fill and start-up o Allowing time to identify any operational issues • Building full functional • Community Open Houses and Rec Center tours and promotion o Link to membership drive CITY OF LINO KES Page 59 of 72 One Month Prior to Opening • Facility and Program Staff training • Rehearsals and dry-runs of all programming and procedures • Can select specific areas of building for pre-opening programming or use as appropriate o Can pull earlier if building is ready • Potential for soft early opening Opening • Soft Opening • Grand Opening (usually 3-4 weeks following soft opening) Factors Affecting Timeline • Any unexpected facility surprises • Timeline in developing partner and program providers o Any specific key milestones for their programs, marketing, or business • Suitability of actual opening date o Coordinated with key community/school timelines o Other considerations • Difficulty in finding staff • Other? Next Steps Next Steps will be developed in conjunction with City Leadership and Management. Key decisions include: • Determination of Membership Model • Determining of Management Model • Ongoing review and refinement of Budget Model • Funding model for pre-opening costs • Funding model for annual operating deficit • Identification of target opening date • Fine tune workback schedule based on target opening date CITY OF LN0L KES Page 60 of 72 KEYS TO SUCCESS AND FACTORS IN FAILURE The common perception of pools is that they always lose money and cannot operate in a reasonable financially sustainable model within public budgets without excessive costs or subsidies from public entities, taxpayers, or outside entities. Throughout this Report there have been many references to best practices, enhanced revenue opportunities, and operational cost savings opportunities. To further understand how a new Lino Lakes Rec and Community Center can succeed, it is important to understand the best practices of facilities that succeed and the reasons behind failed or underperforming pools. This Section of the Report builds on the elements of previous Sections to present a summary of Keys to Success and Factors in Failure. The Risks of Failure are general obstacles facing all facilities and are not specific concerns for the City of Lino Lakes. These factors are broken down into several key areas: • Management • Programming • Design • Financial Management DEFINITION OF SUCCESS and SUSTAINABILITY The definition of success and financial sustainability is different for each facility and community, depending on the public and partner goals of the facility. An important element for the planning process of a new Lino Lakes Rec and Community Center and understanding what success means to the City of Lino Lakes and any partners. Throughout this report ISG has identified needs and opportunities for all the elements of the community and discussed best practices to optimize programming and the financial model. The financial operating analysis in this report and project operating deficits and cost recovery. To help define success and related goals and objectives for the Rec and Community Center it will be important for Lino Lakes Staff and Financial Staff to identify an acceptable cost recovery target to maintain the Rec and Community Center and successfully meet budget goals. This City process will need to include balancing cost recovery with City mission to provide affordable facilities, access, and programs for all residents of Lino Lakes. These Keys to Success and Factors in Failure include both general and specific elements relevant to the proposed Rec and Community Center. MANAGEMENT The management of the facility is the single most important key element in the success of a Rec and Community Center. The management must be proactive in its programming and marketing approach and adopt an entrepreneurial approach to the business of the Rec and Community Center. The ISG Study assume that the City of Lino Lakes would be managing the Rec and Community Center but the Keys to Success and Factors in Failure apply to all potential Rec and Community Center management and operational models. CITY OF LINO KES Page 61 of 72 saoe9�°��tl Lino Lakes Rec and Community Center Facility Manager Position Keys to Success • In the case of Lino Lakes ISG recommends the Facility Director Position oversee all the facility programing in the Lino Lakes Rec and Community Center. • Critical to have significant experience in this position in running facilities that have a full range of programming for both the dry side and the wet side with specific financial and operating goals and metrics o Expertise in developing, marketing and executing a wide range of programs o Experience in developing and managing overall facility budgets o Network and membership in key facility safety, fitness, and management professional organizations and regular attendance at conventions and camps to maintain up to date knowledge of new trends in Rec and Community facility and program management o Experience in marketing, sponsorship, advertising as it relates to generating support for the Rec and Community Center and its programs o Ability to work closely with the community, civic entities, interest groups, and the philanthropic community to generate maximum support for the operations and programming of the Rec and Community Center o Experience in operating and maintaining a significant Rec and Community facility • The Facility Manager position should ideally begin six to twelve months in advance of the opening of the center. o Build new programs o Expand and enhance existing programs o Obtain commitments and contracts from users and partners o Identify thresholds for initial year and beyond for programs and user/partner agreements o Launch marketing of the Center programs o Build staff structure and develop training program for staff prior to opening o Funding for this is part of the Year Zero or Project Capital expenses o Develop job descriptions, identify quality candidates, and begin to staff the Center Risks for Failure • Traditional experience in subsidized community parks and recreation facilities where marketing and entrepreneurial initiatives are not encouraged or rewarded • Lack of strong programing, facility, and activity experience • Limited business management background • Lack of clear and measureable facility program,use, and revenue goal, objectives, and metrics • Lack of clear management accountability linked to the goal metrics • Lack of strong community engagement,partnerships and establishment of ongoing community opportunities Rec and Community Center Plan • The Feasibility Study includes funding and support for the Facility Manager, with the Director responsible for all Rec and Community programs and facilities. o Salary level is robust enough to attract top regional level qualified candidates CITY OF LlN(0)L KES Page 62 of 72 saoe9�°��tl • Travel budget is included to allow key management to attend conferences and for continuing professional development • Hires six to nine months in advance Program Management(Coordinators and Supervisors) Keys to Success • Very important to have a strong and experienced program management team on board. • Also important to include experience and responsibilities for marketing the programs-it is not just build it and they will come!! • Adaptability to new programming opportunities and regular evaluation of existing programs • Network and membership in key aquatic safety, fitness, and management professional organizations and regular attendance at conventions and camps to maintain up to date knowledge of new trends in Rec and Community facility and program development, trends, and management • If funding allows these positions should be filled three to four months prior to opening, but this role is often filled by the overall Facility Director initially. Bringing new program management on board can be coordinated with the growth and expansion of existing Lino Lakes programming at the Rec and Community Center o Allows the coordinators and supervisors to have role in hiring and developing program staff • Important to have experience in training and certifying part-time instructor, lifeguarding, Fitness and other program staff • It may be more effective to have specific program coordinators part time linked to key programs like learn to swim, aquatic fitness, fitness, camps, etc. o May be head instructor with a an additional stipend for management responsibilities Risks for Failure • Inexperience in starting up programs or growing programs • Lack of involvement in the Recreational professional world and not remaining current in trends and developments in programming • Lack of personal hands on experience in actually running and teaching in programs • Lack of quantifiable and subjective goals and accountability in building and marketing the programs • Lack of funding and support for ongoing professional development and training • Insufficient resources to support programming Marketing and Membership Keys to Success • Experience in marketing and promoting all aspects of facility o Programs o Membership o Sponsorship and Advertising o Supporting and promoting competitive and special events o Community relations o Donor relations (usually led by Facility Director) • Experience in Customer Service-understanding the importance of Customer Service CITY OF LINO KES Page 63 of 72 • Ability to train part-time front desk and customer service staff • Resources to support marketing efforts • Ability to coordinate with overall City, School District, and other partners' marketing and informational platforms and community outreach programs • Entrepreneurial approach to marketing and membership • Establishment and accountability for quantifiable goals Risks for Failure • Assuming that"If you build it they will come!" • Lack of staff and resources focused on marketing, membership, and customer service • Absence of clearly defined goals for program participation and membership and ongoing tracking of metrics • Staff inexperience in facility,program, and membership marketing and sponsorship/advertising solicitation Rec and Community Center Plan o Center budget includes the following positions o Marketing and Membership Coordinator o Customer Service Coordinator • Marketing and advertising budget for facility and programs included in budget analysis Facility Maintenance Staff Keys to Success • Specific maintenance team along with cross training from other City staff positions for Rec and Community Center o Full-time positions increase accountability for the successful operation and maintenance of a facility o Cross training in a smaller Rec and Community Center offers opportunities to be sure everything can be maintained and serviced properly when a particular staff member needs time off or goes on vacation o Limiting need for outside services with no vested interest in facility • Maintenance team with some Rec facility experience • Certified pool operators to cover both pools throughout the week, weekends and during when a particular CPO is not available • Regular preventative and pre-emptive maintenance • Dedicated custodial team for Rec and Community Center • Learning from other comparable facilities' best practices; participation in and investment in education and latest maintenance trends Risks for Failure • Over reliance on outsourced services • Lack of Rec and Community specific facility maintenance experience • Cost cutting on maintenance staff and routine preventative maintenance • Failure to develop long term Capital maintenance and replacement reserve fund CITY OF LINO KES Page 64 of 72 saoe9�°��tl Rec and Community Center Plan • Robust in-house maintenance staff o Maintenance Foreman: Hired 3 months in advance of opening o Aquatic Certified Pool Operator: Hired 1 month in advance of opening o Full-time custodial and maintenance staff • Annual budget set aside for long term Capital Maintenance and Replacement Fund Instructors and Support Staff Keys to Success • Instructors, teachers, front desk/reception staff,building supervisors and other key staff that interface with the public should be well trained and compensated. • Important to have training and retention programs to attract and keep well trained fitness, recreation, learn to swim, aquatic fitness, and other instructors o Don't necessarily expect to pay minimum wage!!! o Collaborate with School District to create programs that attract students or program graduates to become instructors and other staff • Understanding of their importance to the overall success of the facility o Understanding and adopting the basics of customer service and communication o In most cases, these individuals are the most important"face" of the facility that will interface and engage with the Lino Lakes Rec and Community users and customers Risks for Failure • Lack of potential staff pool to draw from • High turn-over rate/lack of retention • Inadequate training in their specific jobs and in overall facility procedures and customer service o It is very important that all staff understand overall facility goals and operations, not just their specific area • Lack of understanding of their impact on the success of the overall facility Rec and Community Center Plan • Budget includes very competitive hourly wages for all part-time positions, especially the key public facing positions such as fitness, instructors, lifeguards, and front desk staff. o Provides flexibility in wages to attract staff for difficult day hours, aid recruitment, and reward retention • Staff development and training funding included in budget • Potential to provide training and certification classes and programs in conjunction with local school curricula Overall Management Elements Keys to Success • Professional outfitting and branding of all staff(in and out of the activity areas) • Clearly defined goals and objectives o Program participation o Use o Revenue CITY OF LINO KES Page 65 of 72 o Expenses o Accountability • Clearly developed safety, emergency, operational, and maintenance procedures and manuals o Includes education and rehearsal of all staff in these elements o Development and incorporation of health crises/pandemic response and procedures into new emergency and operating procedures and manuals • Regular management and staff meetings o Program and schedule • Key user group interaction and input • Cleanliness and well maintained common areas • Continuing education and training • Management and Staff accountability Risks for Failure • Failure to execute all of the above Rec and Community Center Plan • Budgeting for staff outfitting and recognition o Includes promotion of staff certifications, memberships, and training in a visible manner. • Travel and Staff Development budgeting • Incremental marketing budget beyond just existing Parks and Recreation website and brochures. Utilize social media and new communication platforms to reach all demographics. • Focus on low income and community segments that do not have access for staffing, programming opportunities and awareness. PROGRAMMING Keys to Success • Full range of programs for the entire community • Introduction of new programs and trends as regular updates of existing program curriculum • Focus on low income or demographics with no Rec experience or access • Development of program partners including school district, community groups, healthcare providers, and outside program providers as appropriate • Scheduling to allows for all potential program participants and target demographics o Early morning before work o During the school day o Lunch hour specific programs o After school programs o After work programs o Evening after family dinner or"kids are settled" • Progressive programs o Clear and smooth transitions from one program to the next level ■ Fitness ■ Exercise ■ Learn to Swim CITY OF LN0L KES Page 66 of 72 ■ Pre-Team ■ Masters ■ Aquatic fitness • Full range of intensities, abilities, and transition programs ■ Cross training ■ Therapy/Rehab transitioning to mainstream regular fitness classes ■ Etc. • Development of program partners • Concurrent programming o Access to different programs throughout the day o Program access during prime time o Programs that serve both youth and adult for optimized family usage • Marketing of programs Risks for Failure • Weak or poorly trained instructors • Lack of program integration and progression • Inappropriate times for different user groups • Lack of concurrent program scheduling • Lack of responding to the demands or needs of user groups or developing programs that attract new user groups Rec and Community Center Plan • Feasibility Study identifies a wide range of new program and recreational opportunities • Potential schedule matrix allocates programs across all facilities to best use the strengths of each facility • Schedule matrix opens up significant time for use across multiple programs at peak times during the day o Classes before, during and after the work and school day for all o Significantly increase open recreation and family time for pool and facility use • Schedule matrix maximizes opportunity for concurrent programming FINANCIAL MANAGEMENT Keys to Success • Business oriented management practices and financial management • Budget development based on facility management and best practices o Budget tracking to enable analysis of all costs of all specific programs o Increased visibility of all program related costs and revenue for better program development and accountability o Requires tracking revenue, participation, trends, and expenses for each specific program • Develop program fees,usage fees, and rental rates to best combine goals of City: o Accessible and affordable to all residents and users o Help support local youth, adult, and disabled sport and activity programs o Provide revenue to help offset Rec facility and program operating costs and improve Cost Recovery CITY OF LINO KES Page 67 of 72 o Investment in programming and staffing that targets underserviced constituencies and addresses past inequities in programming • Identifying, developing, and optimizing program and facility funding options and potential o Grants o Corporate support o Partnership funding opportunities o Advertising and Sponsorship ■ Cash and financial support ■ Product and services Value-in-Kind(VIK) donations o Community support o Private philanthropy as needed • Develop a budgeting plan or reserve fund for long term capital replacement and maintenance for future repairs, component replacement, and other unexpected financial costs. Risks for Failure • Failure to build sufficient cash reserve or long term replacement fund or plan for future equipment replacement or capital facility repair • Failure to develop fee structure appropriate for market and meeting overall facility financial and program objectives o Market rates o Appropriate discounts for residents, members, etc. o Analysis of revenue needs • Failure to invest sufficiently in key success factors o Marketing o Key management positions o Staff training and development o Air handling and Water handling technology and system Rec and Community Center Plan • The initial framework for these Financial Keys to Success have been incorporated in the ISG Study. CITY OF LINO KES Page 68 of 72 CONCLUSION The Lino Lakes Recreation and Community Center Analysis identified strong potential and opportunity for the re-opening of the former YMCA as a Line Lakes Recreation and Community Center. The new Rec and Community Center can provide expanded community programming as well as meeting the City resident recreation and fitness needs and creating new opportunities better than the former YMCA. The Rec Center can provide greater access for residents at more reasonable membership, use, and program costs than the former YMCA. The Study also identified key areas of opportunity for future expansion of both the indoor and outdoor facilities and components of the existing facility. Following are key conclusions of the Study. Strategic Opportunities • The Rec Center is well positioned to meet current City needs and growth for the next five to ten years. • The Rec Center further has the opportunity to expand its facilities and programs, with the following strategic goals o Meet long term population and user growth well beyond ten years o Create unique facilities in the market that make the Rec Center a destination in select areas to support the long term financial sustainability of the Rec Center o Develop specific themes related to the creating of the destination facility Analysis of ExistingF acility The current facility was very well maintained by the YMCA and there are no readily apparent significant maintenance issues that create an expensive barrier to re-opening. There are several energy savings upgrades to new technology for the pool mechanical system that can be made in the next several years to significantly reduce the operating costs of the pools. Analysis The programming at the former YMCA was a very traditional YMCA model. A re-opened Rec Center will have opportunities to enhance and expand programming in several key areas: • Aquatics o Enhanced swim lesson programs with better student:teacher ratios and more class scheduling options o Expanded aquatic fitness programs addressing a wider range of age and intensity offerings throughout the day and evening o Increased aquatic therapy and rehab opportunities through outside program providers o Increased lap swim time o Greater use of concurrent programming in the pools, making better use of time and space • Fitness programs CITY OF LINO KES Page 69 of 72 o Expand fitness options with broader range of programs and specialty classes, including incorporation of highly trained outside instructors o Use of gym space for larger fitness classes and events o Future expansion should include an indoor walking track as part of a Sport Court facility addition • Special Needs and Adaptive PE o Expand community based aquatic and dry-side special needs and adaptive PE programming and support services • Sport Programs o The small gym size will continue to limit the potential for youth and adult team and league programs o Increased court space in a multi-court addition is a major need for future expansion • Community Programs o The potential exists for expanded community programming through the City and community organizations, utilizing the current meeting space at the Rec Center o Programs can include: ■ Senior Programming ■ Educational and Activity classes o Expanded community meeting spaces is a strong need for future expansion Membership Analysis The Study reviewed several membership scenarios. The best membership model scenario targeted membership rates for residents at approximately 60% of the equivalent rates for the area YMCAs. This lower cost results in a larger number of overall members. The membership model also included daily drop in and multi-visit passes as well as a wide range of membership options. The membership model also included a 20%premium for non-residents of Lino Lakes. Facility Management Models The Study explored three Rec Center management options: • Entirely City managed • Hybrid Management Model o Outside management and program providers for selected components of the Rec Center • Fully managed by outside management group Both the City managed and the Hybrid Model are feasible. The fully outside group management model would not be feasible or successful in meeting City goals of financially accessible membership and use models or overall revenue generation. The Hybrid Model as several key advantages of the City Managed Model. • Much lower start-up costs • Faster ramp-up at opening and initial revenue and membership generation • Existing readymade membership base with existing program following • Wider range of programming options and expertise The two areas where partner program providers and management would be beneficial are: CITY OF LINO KES Page 70 of 72 • Fitness Programming and Management of fitness facility • Swim Lesson program partnership with Centennial School District Community Education The Hybrid Model will reduce overall operating deficits by approximately$380,000 over the first five years. Financial Operating Budget Anal ISG used very conservative projections for revenue and expenses in developing the operating budget projections. The Study detail identifies several areas where expenses can be further reduced and revenue enhanced. Even with the conservative nature of the projections the Recreation and Community Center achieve a cost recovery of 92% of total expenses by Year Three in both management models. Beginning in Year Three the average annual operating deficit averages between $150,000 for the Hybrid Option to $170,000 for the City Managed Option. These expenses include an annual City Administrative Allocation of over$150,000 for City support services. The expenses also include an annual allocation to a Long Term Capital Replacement and Maintenance Reserve Fund to support projected future facility maintenance and upkeep. This annual allocation begins at$60,000 in Year Two and increases to over$80,000 by Year Four. Over the first twenty years of operation the Reserve Fund accrues over$1,800,000 for Capital maintenance needs. Future Rec Center Enhancement and Expansion The Study identified several main areas for strategic Rec Center expansion and enhancement. These include: • Sports Center o Court Sport Center with 6 basketball courts that can configure to 10 volleyball courts, multiple pickle ball courts and be sub-divided for great programming flexibility ■ Can also attract sport tournaments and generate economic impact ■ Can be positive net revenue generator for the Rec Center ■ Potential for outside investor/managing partner for the project o Climbing Wall/gym space o Indoor walking track • Community meeting and function space o Expansion of meeting and function space to support community programming or organizational use • Outdoor Components o Take advantage of available space on site for additional outdoor elements that support and complement the indoor facilities of the Rec Center o Outdoor fitness course/stations o Ropes Course o Sand volleyball court o Dog park Timeline From the time that re-opening of the Recreation Center is approved and funded it will reasonably take six months to prepare for re-opening. Key milestones in this timeline are the following: CITY OF LINO KES Page 71 of 72 saoe9�°��tl • Hiring management and staff • Developing program providers/management in the Hybrid Option • Prepare the Rec Center for opening • Marketing the new Rec Center • Launch membership campaign • Bring the facility systems to operational status • Train staff • Prepare for opening Overall, the Lino Lakes Recreation and Community Center can be a significant City asset providing recreation, fitness, leisure, and community activities to a much wider range of City residents that ever utilized the former YMCA. LINO KES Page 72 of 72 �a` u �7 ciT ofISG I I V KE Isaac Sports Group Lino Lakes Recreation and Community Center Analysis APPENDIX INDEX APPENDIX A: Programming #A1 Learn to Swim Market Analysis and Comparisons #A2 Learn to Swim Program Projections #A2a City Managed Model #A2b Community Education Partner Model #A3 Aquatic Facility Scheduling Matrix APPENDIX B: Membership #B 1 Membership Market Analysis #132 Membership Fee Structure, Scenarios, and Projections APPENDIX C: Budget/Operating Analysis #C 1 Profit and Loss Summaries #C 1 a City Managed P &L #Clb Hybrid Management Model P & L #C 1 c P &L Comparison #C2 City Managed Model Budget Line Item Detail #C2a Facility Revenue #C2b Program Revenue #C2c Operational Expenses #C2d Program Expenses #C2e Program Profit Analysis #C3 Hybrid Management Model Budget Line Item Detail #C3a Facility Revenue #C3b Program Revenue #C3c Operational Expenses #C3d Program Expenses #C3e Program Profit Analysis APPENDIX D: Pools Operational and Mechanical Systems Page 1 of 1 APPENDIX Al--Swim Lesson Market Analysis Lino Lakes Recreation Center MARKET COMPARISON OF SWIM LESSON PROGRAMS April 20,2021 CLASS COST per YEAR SCHEDULE WATER PROGRAM PROVIDER LOCATION SESSION COST 30 min. RATIO SESSIONS FACILITY TEMP COMMENTS YMCA of the North Lino Lakes YMCA Group Lessons $39/Family member $6.50 5 or 6 Year Round Ave.=84 Standard lesson rates throughout or Full member to 1 Ranged system depends on Y Forest Lakes YMCA 7 x 30 min classes Per YMCA 2020 info Member $ 55.00 $ 7.86 Non-Member $ 109.00 $ 15.57 Centennial School District Centennial High School 8 x 30 minute lessons $ 75 $ 9.38 5-6 to 1 Year Round 81-82' Shoreview Rec Center 86' 6 x 40 minute Lessions Resident $ 81 $ 10.13 Non-Resident $ 89 $ 11.13 Private: 6 x 30min Resident $ 126 $ 21.00 Non-Resident $ 139 $ 23.17 Brooklyn Center Community Rec Center 84-85° 6 x 30 minute Lessions Resident $ 60 $ 10.00 No resident discount Non-Resident $ 60 $ 10.00 Private: 6 x 35min Resident $ 120 $ 20.00 Non-Resident $ 120 $ 20.00 Brooklyn Park High School Pool 81-82' 6 x 30 minute Lessions Older kids increase to 40 min/lesson Resident $ 63 $ 10.50 Non-Resident $ 77 $ 12.83 Private: 6 x 35min Resident $ 133 $ 22.17 1 of 2 6/1/2021 APPENDIX Al--Swim Lesson Market Analysis CLASS COST per YEAR SCHEDULE WATER PROGRAM PROVIDER LOCATION SESSION COST 30 min. RATIO SESSIONS FACILITY TEMP COMMENTS Non-Resident $ 133 $ 22.17 Foss Swim School Blaine,MN: S+Miles 10 Year Round Small-warm- 90' One of several locations in Twin 12minutes water shallow Cities pool 1 Class per week $84/month $ 22.00 Perpetual Monthly Billing Private Lessons: 1 x 30 $300 $ 75.00 minute class/week Semi-Private: 1 x 30 min $160 $ 40.00 class/week Anoka-Hennepin School District Roosevelt Middle 8 x 35 minute lessons $ 80 $ 8.57 6 to 1 Year Round 81-82 Red Cross Lesson Program: average School,Blaine. 300 kids in program at any one time. Year round docusing on weekends in schoolyear Gold Fish Swim School National Franchise Year Round Small-warm- 90-92° Includes a one-time$25 registration First location opened in water shallow for an individual or$45 one-time fee MN in Oakdale: 25 pool maximum per family. Perpetual miles/26-45 minutes membership program. National Franchise 1 x 30 minute lesson per week, locally owned billed monthly Lesson-Group $84/month $21 4to 1 Inludes 130 min $78.12 for 2nd child lesson/week $72.24 for 3rd child Lesson-Mini Group $110/month $28 3 to 1 NOTE: Some months will have 5 lessons/month: averages here are calculated at 4lessons/month Lesson-Semi-Private $127/month $32 2 to 1 Lesson-Private $188/month $47 1 to 1 2 of 2 6/1/2021 APPENDIX Ala--Swim Lesson Projections: City Managed Facility A B I C I D I E F G 1 Lino Lakes Recreation Center 2 SWIM LESSON ANNUAL PROJECTIONS: Billing by Class 3 4 CITY MANAGED PROGRAM Items to Review Potential for upside growth NOTE: Resident is Lino-Lakes resident. May include surrounding communities or School Districts with added 5 May 10,2021 operational support. 6 Year 1 Year 2 Year 3 Year 4 Year 5 Comments Percent Growth Rate Used in Calculations 35% 15% 8% 5% 1 8 Group Lessons-Youth,Children,Tots Session: 8 x 30 minute classes/session Assume 8 classes/session just for 9 calculation purposes 10 Resident 720 972 1,118 1,207 1,268 Estimate at 60%of total lessons 11 Non-Resident 480 648 745 805 845 Estimate at 40%of total lessons Member Potential to add this category in future-driving memberships through 12 additional discount benefit. 13 Fee per Session 14 Resident $ 88 $ 88 $ 88 $ 96 $ 96 NOTE: Fee increase in Year 4. 15 Non-Resident $ 104 $ 104 $ 104 $ 112 $ 112 16 Member 17 Average cost per 30 minutes 18 Resident $ 11.00 $ 11.00 $ 11.00 $ 12.00 $ 12.00 19 Non-Resident $ 13.00 $ 13.00 $ 13.00 $ 14.00 $ 14.00 20 Member $ - $ $ $ - $ - 21 22 Youth Group Lesson Subtotal $ 113,280 $ 152,928 $ 175,867 $ 206,033 $ 216,335 23 24 Annual Group Lessons-Adult 6 x 45 minute classes per session 25 Resident 60 81 93 101 106 26 Non-Resident 40 54 62 67 70 27 Member 28 Fee per Session 29 Resident $ 99 $ 99 $ 99 $ 108 $ 108 30 Non-Resident $ 117 $ 117 $ 117 $ 126 $ 126 31 Member 32 Average cost per 30 minutes 33 Resident $ 11.00 $ 11.00 $ 11.00 $ 12.00 $ 12.00 34 Non-Resident $ 13.00 $ 13.00 $ 13.00 $ 14.00 $ 14.00 35 Member $ - $ - $ - $ - $ - 36 Adult Group Lesson Subtotal $ 10,620 $ 14,337 $ 16,488 $ 19,316 $ 20,281 37 Private Lessons Calculated as 4 x 30 minute private lessons for session for calculation purposes. Can also do singles or a package of 8 lessons. Rates for all 38 ages. 39 Resident 96 130 149 161 169 40 Non-Resident 64 86 99 107 113 41 Member Fee per Session(4 x 30 min private lesson) Calculated on 30 minute lessons. Also offer 60 minute sessions depending 42 on age and skill level Resident $ 128 $ 128 $ 128 $ 140 $ 140 Local market private lessons rates are low for regional and national markets. Most public facilities are now in$35 to$40 for resident/member private 43 lessons. 44 Non-Resident $ 144 $ 144 $ 144 $ 160 $ 160 45 Member 46 Average cost per 30 minutes 47 Resident $ 32.00 $ 32.00 $ 32.00 $ 35.00 $ 35.00 48 Non-Resident $ 36.00 $ 36.00 $ 36.00 $ 40.00 $ 40.00 49 1 Member 1of2 APPENDIX Ala--Swim Lesson Projections: City Managed Facility A B C D E F G 6 Year 1 Year 2 Year 3 Year 4 Year 5 Comments 50 Private Lesson Subtotals $ 21,504 $ 29,030 $ 33,385 $ 39,704 $ 41,689 51 Semi-Private Lessons Calculated as 4 x 30 minute private lessons for session for calculation purposes. Can also do singles or a 52 package of 8 lessons. 53 Resident 60 81 93 101 106 54 Non-Resident 40 54 62 67 70 55 Member 56 Fee per Session(4 x 30 min private lesson) 57 Resident $ 88 $ 88 $ 88 $ 96 $ 96 58 Non-Resident $ 96 $ 96 $ 96 $ 104 $ 104 59 Member 60 Average cost per 30 minutes 61 Resident $ 22.00 $ 22.00 $ 22.00 $ 24.00 $ 24.00 62 Non-Resident $ 24.00 $ 24.00 $ 24.00 $ 26.00 $ 26.00 63 Member 64 Semi-Private Lesson Subtotals $ 9,120 $ 12,312 $ 14,159 $ 16,633 $ 17,465 65 Specil Lessons May offer family and special lesson groups. Not readily available in the market but a differentiating program for the future. Not factored in initially. Special Needs lessons are included in group lessons for now. 66 67 Resident 68 Non-Resident 69 Member 70 Fee per Session 71 Resident 72 Non-Resident 73 Member 74 Average cost per 30 minutes 75 Resident $ $ $ $ $ 76 Non-Resident $ $ $ $ $ 77 Member 78 Family Lesson Subtotals $ $ $ $ $ 79 80 TOTAL SWIM LESSON REVENUE $ 154,524 $ 208,607 $ 239,899 $ 281,686 $ 295,770 81 82 TOTAL Youth Group Swim Lesson Sessions 1,200 1,620 1,863 2,012 2,113 Including Adults TOTAL Estimated Unique Students in Youth 480 648 745 1 805 1 845 1 Each student averages 2.5 sessions 83 Group Lessons I peryear 84 TOTAL Lino Lakes Resident Youth Group 720 972 1,118 1,207 1,268 85 Lessons TOTAL Lino Lakes unique students in Youth 288 389 447 483 507 86 Group Lessons 87 88 89 90 Analysis of Lino Lakes Market Penetration Percent Population Uses Year Three for Market Penetration 91 Lino Lakes Population(2020 Projection) 22,500 92 Percent of population under 10 years of age 18.0% 4,050 93 Percent of population under 18 years of age 28.8% 6,480 94 Number of Unique Lino Lakes students in lessons 447 Assume all students under 10 years old which is conservative. 95 There will be some older kids,but not many. 96 97 Percent of Lino Lakes population under 10 years old taking lessons 11.0%1 Percentage is actually lower since there will be some>9 yrs old 2of2 APPENDIX Alb--Learn to Swim Projections Hybrid Management Model A B I C I D I E F G 1 Lino Lakes Recreation Center 2 SWIM LESSON ANNUAL PROJECTIONS: Billing by Class 3 4 CENTENNIAL COMMUNITY ED PARTNERSHIP Items to Review Potential for upside growth 5 May 10,2021 NOTE: Residency in partnership model include both Lino Lakes and Centennial School District residents. 6 Year 1 Year 2 Year 3 Year 4 Year 5 Comments Percent Growth Rate Used in Calculations 35% 15% 8% 5% 1 8 Group Lessons-Youth,Children,Tots Session: 8 x 30 minute classes/session Assume 8 classes/session just for 9 calculation purposes Assume 30%increase in total lessons when combined with existing Community Ed Swim lesson program. 10 Resident 1,248 1,685 1,938 2,093 2,197 Estimate at 80%of total lessons: Increased%resident when including residents of Centennial School District. 11 12 Non-Resident 312 421 484 523 549 Estimate at 20%of total lessons Member Potential to add this category in future-driving memberships through 13 additional discount benefit. 14 Fee per Session Resident $ 88 $ 88 $ 88 $ 96 $ 96 NOTE: Fee increase in Year 4. Rates are increased from current$75 15 Community Ed Rate. 16 Non-Resident $ 104 $ 104 $ 104 $ 112 $ 112 17 Member 18 Average cost per 30 minutes 19 Resident $ 11.00 $ 11.00 $ 11.00 $ 12.00 $ 12.00 20 Non-Resident $ 13.00 $ 13.00 $ 13.00 $ 14.00 $ 14.00 21 Member $ - $ - $ - $ - $ - 22 23 Youth Group Lesson Subtotal $ 142,272 $ 192,067 $ 220,877 $ 259,473 $ 272,446 24 25 Annual Group Lessons-Adult 6 x 45 minute classes per session 26 Resident 104 140 161 174 183 27 Non-Resident 26 35 40 44 46 28 Member 29 Fee per Session 30 Resident $ 99 $ 99 $ 99 $ 108 $ 108 31 Non-Resident $ 117 $ 117 $ 117 $ 126 $ 126 32 Member 33 Average cost per 30 minutes 34 Resident $ 11.00 $ 11.00 $ 11.00 $ 12.00 $ 12.00 35 Non-Resident $ 13.00 $ 13.00 $ 13.00 $ 14.00 $ 14.00 36 Member $ - $ - $ - $ - $ 37 Adult Group Lesson Subtotal $ 13,338 $ 18,006 $ 20,707 $ 24,326 $ 25,542 38 Private Lessons Calculated as 4 x 30 minute private lessons for session for calculation purposes. Can also do singles or a package of 8 lessons. Rates for all 39 ages. 40 Resident 166 224 258 278 292 41 Non-Resident 42 57 65 70 74 42 Member Fee per Session(4 x 30 min private lesson) Calculated on 30 minute lessons. Also offer 60 minute sessions depending 43 1 Ion age and skill level 1of2 APPENDIX Alb--Learn to Swim Projections Hybrid Management Model A B C D E F G Resident $ 128 $ 128 $ 128 $ 140 $ 140 Local market private lessons rates are low for regional and national markets. Most public facilities are now in$35 to$40 for resident/member private 44 lessons. 45 Non-Resident $ 144 $ 144 $ 144 $ 160 $ 160 46 Member 47 Average cost per 30 minutes 48 Resident $ 32.00 $ 32.00 $ 32.00 $ 35.00 $ 35.00 49 Non-Resident $ 36.00 $ 36.00 $ 36.00 $ 40.00 $ 40.00 50 Member 51 Private Lesson Subtotals $ 27,296 $ 36,850 $ 42,377 $ 50,234 $ 52,746 52 Semi-Private Lessons Calculated as 4 x 30 minute private lessons for session for calculation purposes. Can also do singles or a 53 package of 8 lessons. 54 Resident 104 140 161 174 183 55 Non-Resident 26 35 40 44 46 56 Member 57 Fee per Session(4 x 30 min private lesson) 58 Resident $ 88 $ 88 $ 88 $ 96 $ 96 59 Non-Resident $ 96 $ 96 $ 96 $ 104 $ 104 60 Member 61 Average cost per 30 minutes 62 Resident $ 22.00 $ 22.00 $ 22.00 $ 24.00 $ 24.00 63 Non-Resident $ 24.00 $ 24.00 $ 24.00 $ 26.00 $ 26.00 64 Member 65 Semi-Private Lesson Subtotals $ 11,648 $ 15,725 $ 18,084 $ 21,274 $ 22,338 66 Family Lessons&Specily Lessons May offer family and special lesson groups. Not readily available in the market but a differentiating program for the future. Not factored in initially. Special Needs lessons are r6 included in group lessons for now. 67 68 Resident 69 Non-Resident 70 Member 71 Fee per Session 72 Resident 73 Non-Resident 74 Member 75 Average cost per 30 minutes 76 Resident $ $ $ $ $ 77 Non-Resident $ $ $ $ $ 78 Member 79 Family Lesson Subtotals $ $ $ $ $ 80 81 TOTAL SWIM LESSON REVENUE $ 194,554 $ 262,648 $ 302,045 $ 355,306 $ 373,071 82 83 TOTAL Youth Group Swim Lesson Sessions 1,560 2,106 2,422 2,616 2,746 Including Adults TOTAL Estimated Unique Students in Youth 624 842 969 1,046 1,099 Each student averages 2.5 sessions 84 Group Lessons peryear 85 TOTAL Lino Lakes&Centennial Resident 1,248 1,685 1,938 2,093 2,197 86 Youth Group Lessons TOTAL Lino Lakes&Centennial unique 499 674 775 837 879 87 students in Youth Group Lessons 88 89 2of2 APPENDIX A3--Schedule Matrix Lino Lakes Recreation and Community Center School Year: Weekdays May 17,2021 NOTE: Stations in the warm-water Leisure/Wellness pool can be divided to accommodate different programs NOTE: Spaces in Gym,workout rooms,and function spaces can be subdivided. Schedule shows options. Program and Use Color Codes Aquatic Programs Fitness&Use Programs General Programming/Use Masters Swimming/Triathlon Community Ed. Summer Camp Open Gym Swimming Club Team Lap Lanes Personal Training Pickleball Child Watch-Kids Program Pre-Team Program-Swim Rec Programs/Classes Rec Classes&Programs Senior Program Meeting Space Open Swim Time: Community Aquatic Special Needs Programs Home School PE •.- .. - Open Recreation Leisure-Swim Aquatic Fitness School District Program Court Rental Aquatic Rec Programs/Classes After School Programs Open Exercise Time 1W Pool Rentals Rec Swim Team/Summer Court Sport Outside Users Lap Pool Leisure/Wellness Pool Cardio Exercise Gym Community Child 25 yards Warm-Water Fitness Spaces Meeting Watch Depth: 3'6"to 5' Depth:0 to 4'6" Room Function Space Stations or Recreation Features Half Gyms Sub-Dividable 1 2 3 4 5 6 1 2 3 4 1 2 1 2 5:00 5:00 Cardio 5:30 Masters/ Lap 5:30 Fitness Open 6:00 Triathlon Lanes 6:00 Aquatic Open Gym Meeting 6:30 6:30 Fitness Time Spaces 7:00 7:00 and Flexible Open 7:30 7:30 Personal Scheduling 8:00 Aquatic 8:00 Training Classes& 8:30 Fitness 8:30 More 9:00 Home School 9:00 Senior Pickleball Seniors 9:30 Program 9:30 ratenr Program 10:00 10:00 Home Home 10:30 10:30 School School 11:00 11:00 nd Tots Open Gym 11:30 11:30sons 12:00 12:00 Aquatic 12:30 12:30 Fitness 1:00 Senior 1:00 Seniors Meeting 1:30 Program 1:30 Srs. Spaces 2:00 2:00 Special Needs Flexible 2:30 2:30 Adaptive PE Scheduling 3:00 After School 3:00 After School After Sch After School Classes& 3:30 Programs 3:30 Programs Programs Programs More 4:00 4:00 Special Needs 4:30 Club Swim Team 14:30 5:00 Outside Rental 5:00 wi Open Gym 5:30 5:30 essons 6:00 6:00 OR 6:30 Aquatic Rec 6:30 Rec Programs 7:00 Programs 7:00 Open Recreation Pickleball 7:30 7:30 Leisure Swim 8:00 Masters/ 8:00 Outside 8:30 Triathlon 8:30 Court 9:00 9:00 Users 9:30 9:30 (Rentals) 10:00 10:00 10:30 APPENDIX A3--Schedule Matrix Lino Lakes Recreation and Community Center School Year: Saturday May 17,2021 NOTE: Stations in the warm-water Leisure/Wellness pool can be divided to accommodate different programs NOTE: Spaces in Gym,workout rooms,and function spaces can be subdivided. Schedule shows options. Program and Use Color Codes Aquatic Programs Fitness&Use Programs General Programming/Use Masters Swimming/Triathlon Aquatic Th Community Ed. Summer Camp Open Gym Swimming Club Team Lap Lanes Personal Training Pickleball Child Watch-Kids Program Pre-Team Program-Swim Rec Programs/Classes Rec Classes&Programs Senior Program Meeting Space Open Swim Time: Community Aquatic Special Needs Programs Home School PE . @. Open Recreation Leisure-Swim Aquatic Fitness School District Program Court Rental ons -Aquatic Rec Programs/Classes After School Programs 10pen Exercise Time ool Rentals lCourt Sport Outside Users Lap Pool Leisure/Wellness PoITimp Cardio Exercise Gym Community 25 yards Warm-WaterFitness Spaces Meeting Child Watch Depth: 3'6"to 5' Depth:0 to 4'6" Room Function Space Stations or Recreatio Half Gyms Sub-Dividable 1 2 3 4 5 6 1 2 3 5:00 Lap 5:00 5:30 Masters/ Lanes 5:30 6:00 Triathlon 6:00 Cardio Open Open Meeting 6:30 6:30 Fitness Exercise Gym Spaces 7:00 7:00 Open Time Flexible 7:30 Aquatic 7:30 Aquatic Scheduling 8:00 Fitness 8:00 Fitness and Classes Classes Classes 8:30 8:30 Personal 9:00 Swim 9:00 'Swim Training Open 9:30 Lessons 9:30 Lessons 10:00 10:00 Court 10:30 10:30 Rentals 11:00 11:00 Senior 11:30 11:30 Programs 12:00 en 12:00 Open Open 12:30 Recreation 12:30 Recreation Time 1:00 Leisure Swim 1:00 Leisure Classes 1:30 1:30 Swim 2:00 2:00 2:30 2:30 3:00 3:00 3:30 3:30 4:00 4:00 Open Open 4:30 4:30 Exercise Gym 5:00 5:00 Time 5:30 5:30 6:00 6:00 6:30 6:30 7:00 7:00 7:30 7:30 8:00 8:00 8:30 8:30 9:00 9:00 9:30 9:30 10:00 10:00 10:30 APPENDIX A3--Schedule Matrix Lino Lakes Recreation and Community Center School Year: Sunday May 17,2021 NOTE: Stations in the warm-water Leisure/Wellness pool can be divided to accommodate different programs NOTE: Spaces in Gym,workout rooms,and function spaces can be subdivided. Schedule shows options. Program and Use Color Codes Aquatic Programs Fitness&Use Programs General Programming/Use Masters Swimming/Triathlon Community Ed. Summer Camp Open Gym Swimming Club Team Lap Lanes Personal Training Pickleball Child Watch-Kids Program Pre-Team Program-Swim Rec Programs/Classes Rec Classes&Programs Senior Program Meeting Space Open Swim Time: Community Aquatic Special Needs Programs Home School PE Rental/Open S.. - Open Recreation Leisure-Swim Aquatic Fitness School District Program Court Rental ons -Aquatic Rec Programs/Classes After School Programs 10pen Exercise Time Pool Rentals Court Sport Outside Users Lap Pool Leisure/Wellness Pool Cardio Exercise Gym Community 25 yards Warm-Water Fitness Spaces Meeting Child Watch Depth: 3'6"to 5' Depth:0 to 4'6" Room Function Space Stations or Recreation Half Gyms Sub-Dividable 1 1 2 3 4 5 6 1 2 3 4 1 2 1 2 5:00 5:00 5:30 5:30 6:00 Lap 6:00 Cardio 6:30 Lanes 6:30 Fitness 7:00 7:00 Rentals Open Open Open 7:30 7:30 Time Gym Space 8:00 8:00 and Rentals Rentals 8:30 8:30 Personal Parties Classes 9:00 9:00 Birthday Training Classes Court Birthday 9:30 9:30 and Rentals Parties 10:00 10:00 Other 10:30 10:30 Parties 11:00 11:00 11:30 11:30 12:00 Open 12:00 Open Sport Open 12:30 Recreation 12:30 Recreation Classes 1:00 Leisure43:30 1:00 Leisure 1:30 Swim1:30 Swim 2:00 2:00 Open 2:30 2:30 Gym 3:00 3:00 3:30 4:00 4:00 Open 4:30 4:30 Recreation 5:00 5:00 Rentals Court 5:30 5:30 Birthday Rentals 6:00 6:00 Parties 6:30 6:30 7:00 7:00 7:30 7:30 8:00 8:00 Ope 8:30 8:30 Recreatio 9:00 9:00 9:30 9:30 10:00 10:00 10:30 APPENDIX A3--Schedule Matrix Lino Lakes Recreation and Community Center Summer: Weekdays May 17,2021 NOTE: Stations in the warm-water Leisure/Wellness pool can be divided to accommodate different programs NOTE: Spaces in Gym,workout rooms,and function spaces can be subdivided. Schedule shows options. Program and Use Color Codes Aquatic Programs Fitness&Use Programs General Programming/Use Masters Swimming/Triathlon Aquatic Th Community Ed. Summer Camp Open Gym Swimming Club Team Lap Lanes Personal Training Pickleball Child Watch-Kids Program Pre-Team Program-Swim Rec Programs/Classes Rec Classes&Programs Senior Program Meeting Space Open Swim Time: Community Aquatic Special Needs Programs Home School PE . @. Open Recreation Leisure-Swim Aquatic Fitness School District Program Court Rental ons -Aquatic Rec Programs/Classes After School Programs 10pen Exercise Time ool Rentals Rec Swim Team/Summer lCourt Sport Outside Users Lap Pool Leisure/Wellness Pool Cardio Exercise Gym Community 25 yards Warm-Water Fitness Spaces Meeting Child Watch Depth: 3'6"to 5' Depth:0 to 4'6" Room Function Space Stations or Recreation Half Gyms Sub-Dividable 1 2 3 4 5 6 1 2 3 4 1 2 1 2 5:00 5:00 Cardio 5:30 Master/ Lap 5:30 Fitness 6:00 Triathlon Lanes 6:00 Aquatic Open asses Open 6:30 6:30 Fitness Time Gym 7:00 7:00 Personal Court 7:30 Aquatic Fitness 7:30 Training Rentals 8:00 8:00 Special Needs Camps 8:30 Summer 8:30 9:00 Rec 9:00 115wim Lessons Senior Pickle 9:30 Team 9:30 Program Ball 10:00 10:00 Camps 10:30 10:30 11:00 11:00 11:30 Senior 11:30 12:00 Programs 12:00 Senior 12:30 Aquatic Fitness 12:30 Programs 1:00 Open 1:00 Swim Lessons Seniors Seniors Camps 1:30 Rec 1:30 2:00 Camps 2:00 Camps 2:30 2:30 3:00 3:00 3:30 3:30 4:00 Club Swim Team 4:00 Open 4:30 Outside Rental 4:30 Recreation 5:00 5:00 Open 5:30 5:30 Gym 6:00 6:00 Court 6:30 ecreation 6:30 Rentals 7:00 7:00 7:30 7:30 8:00 Master/ 8:00 8:30 Triathlon 8:30 9:00 9:00 9:30 9:30 10:00 10:00 10:30 APPENDIX A3--Schedule Matrix Lino Lakes Recreation and Community Center Summer:Saturday May 17,2021 NOTE: Stations in the warm-water Leisure/Wellness pool can be divided to accommodate different programs NOTE: Spaces in Gym,workout rooms,and function spaces can be subdivided. Schedule shows options. Program and Use Color Codes Aquatic Programs Fitness&Use Programs General Programming/Use Masters Swimming/Triathlon Community Ed. Summer Camp Open Gym Swimming Club Team Lap Lanes Personal Training Pickleball Child Watch-Kids Program Pre-Team Program-Swim Rec Programs/Classes Rec Classes&Programs Senior Program Meeting Space Open Swim Time: Community Aquatic Special Needs Programs Home School PE Rental/Open Space Open Recreation Leisure-Swim Aquatic Fitness School District Program Court Rental ns Aquatic Rec Programs/Classes After School Programs Open Exercise Time Pool Rentals Rec Swim Team/Summer Court Sport Outside Users Lap Pool Leisure/Wellness Pool Cardio Exercise Gym Community 25 yards Warm-Water Fitness Spaces Meeting Child Watch Depth: 3'6"to 5' Depth:0 to 4'6" Room Function Space Stations or Recreation Half Gyms Sub-Dividable 1 2 3 4 5 6 1 2 3 4 1 2 1 2 5:00 5:00 5:30 Masters/ 5:30 6:00 Triathlon Lap 6:00 Cardio Open Open Meeting 6:30 Lanes 6:30 Fitness Time Gym Spaces 7:00 7:00 Aquatic Open Flexible 7:30 7:30 Fitness Time Scheduling 8:00 Summer Rec Swim Team 8:00 and Classes Court Classes 8:30 8:30 Personal Rental 9:00 9:00 Swim Lessons Training Open 9:30 9:30 10:00 wim Fitness 10:00 10:30 ons 10:30 11:00 11:00 11:30 11:30 12:00 Open 12:00 Open Open 12:30 Recreation 12:30 Recreation Time 1:00 Leisure 1:00 Leisure 1:30 Swim 1:30 Swim 2:00 2:00 2:30 6 2:30 3:00 3:00 3:30 3:30 4:00 4:00 4:30 4:30 5:00 5:00 Court 5:30 5:30 Rental 6:00 6:00 6:30 6:30 7:00 7:00 7:30 7:30 8:00 8:00 8:30 8:30 9:00 9:00 9:30 9:30 10:00 10:00 10:30 APPENDIX A3--Schedule Matrix Lino Lakes Recreation and Community Center Summer:Sunday May 17,2021 NOTE: Stations in the warm-water Leisure/Wellness pool can be divided to accommodate different programs NOTE: Spaces in Gym,workout rooms,and function spaces can be subdivided. Schedule shows options. Program and Use Color Codes Aquatic Programs Fitness&Use Programs General Programming/Use Masters Swimming/Triathlon Community Ed. Summer Camp Open Gym Swimming Club Team Lap Lanes Personal Training Pickleball Child Watch-Kids Program Pre-Team Program-Swim Rec Programs/Classes Rec Classes&Programs Senior Program Meeting Space Open Swim Time: Community Aquatic Special Needs Programs Home School PE Rental/Open S.. - Open Recreation Leisure-Swim Aquatic Fitness School District Program Court Rental ons -Aquatic Rec Programs/Classes After School Programs 10pen Exercise Time Pool Rentals Rec Swim Team/Summer Court Sport Outside Users Lap Pool Leisure/Wellness Pool Cardio Exercise Gym Community 25 yards Warm-Water Fitness Spaces Meeting Child Watch Depth: 3'6"to 5' Depth:0 to 4'6" Room Function Space Stations or Recreation Half Gyms Sub-Dividable 1 2 3 4 5 6 1 2 3 4 1 2 1 2 5:00 5:00 5:30 5:30 6:00 Rentals Lap 6:00 Cardio Open 6:30 Lanes 6:30 Fitness Exercise 7:00 7:00 Rentals Open Time Open Open 7:30 7:30 Time Gym Space 8:00 8:00 and Rentals Rentals 8:30 8:30 Personal Parites Classes 9:00 Birthday 9:00 Birthday Training Birthday 9:30 Parties 9:30 Parties Parties 10:00 and 10:00 and 10:30 Other 10:30 Other 11:00 Parties 11:00 Parties 11:30 11:30 12:00 Open 12:00 Open Open 12:30 Recreation 12:30 Recreation 1:00 Leisure43:30 1:00 Leisure 1:30 Swim1:30 Swim 2:00 2:00 2:30 2:30 3:00 3:00 3:30 4:00 Open 4:00 Open 4:30 Recreation 4:30 Recretion 5:00 Rentals 5:00 Rentals 5:30 Birthday 5:30 Birthday 6:00 Parties 6:00 Parties 6:30 6:30 7:00 7:00 7:30 7:30 8:00 8:00 8:30 8:30 9:00 9:00 9:30 9:30 10:00 10:00 10:30 APPENDIX 31--Membership Market Analysis A 6 I C I D E F I G I H I I 1 1 K LI M I N I U1 V I W I X I V I Z I AA I AS 1 LINO LAKES RECREATION CENTER 2 Regional Market Membership and User Fee Analysis 3 4 Projections based on Year One City Managed Facility 5 April 20,2021 Market Area Rec/Community Facilities with Aquatics Market Area Fitness Centers:No Aquatics Lino Lakes Bee Center:Membership Scenarios Maple Grove Maple Grove Endurance Endurance Community Community New Brighton Brooklyn Lifetime LA Fitness Egan Fitness with Fitness Anytime YMCAofthe Shoreview Center Center Community Center Fee Fitness(Maple (Brooklyn Community Planet Fitness some Classes w/o classes Fitness 6 Category of Membership North Rec Center Overall Bldg. Pool Only Center Center Grove) Center) Fitness Center (Blaine) (Circle{Pines) (Circle(Pines) (Lino Lakes) Scenario H1 Scenario N2 Scenario N3 Comments Overall Fitness Overall Fitness Overall Fitness 7 Building Only Building Only Building Only Resident Average%less than g 75% 60% 50% YMCA Rates One Time Registration Fee $50 $30 ?? $ 49 $ 39 $ 10 $ 10 $ 39 Do not anticipate any one-time No Resident or annual registration fee. Discounts 9 Member Benefits 30% Discount on classes discount off 181 of classes 19 Child Care Facility:Drop In $1/child $ 6.50 $ 6.S0 Resident Fees(if applicable) Approx 18% Additional municipalities may be to 22% added to resident status based Discount on support of Rec Center 20 21 Drop In 22 Adult $ 10.00 $ 9.50 $ 7.50 $ 4.00 $ 8 $ 7 $ 7 $ 6 $ 7 $ 6 23 Senior $ 8.75 $ 4.00 $ 6 $ 5 $ 5 $ 5 $ 5 $ 5 Youth 5-12 $ 8.75 $ 4.00 $ 6 $ 5 $ 5 $ 5 $ 5 $ 5 Combine youth and child 24 category 25 Youth 13-15 $ 9.75 $ 4.00 $ 6 $ 5 $ 5 $ 4 $ 5 $ 4 26 Military $ 9.00 $ 6.50 $ 7 $ 6 $ 6 $ 5 $ 6 $ 5 27 Family $ 36.00 $ 36.00 $ 28.00 $ 14 N/A $ 12 N/A $ 12 N/A 28 Multiple Use Passes 29 Adult-10 Visit Pass $ 90.00 $ 70.00 $ 38.00 $ 68 N/A $ 60 N/A $ 60 N/A 30 Senior-30 Visit Pass $ 38.00 $ 50 N/A $ 42 N/A $ 42 N/A 31 Youth-10 Visit Pass $ 38.00 $ 50 N/A $ 42 N/A $ 42 N/A 32 Family N/A N/A N/A N/A N/A N/A 33 15-visit pass 34 7-visit pass 35 Monthly Annual NA NA Assume average monthly Billed membership over 12 months 36 Monthly 37 Adult $ 40.00 $ 28.00 $ 36.00 $ 40.00 $ 53 $ 45 $ 42 $ 36 $ 35 $ 30 38 Adult Couple $ 60.00 $ 41.00 $ 45.00 $ 71.00 $ 86 $ 73 $ 63 $ 54 $ 53 $ 45 39 Young Adult $ - $ - $ - 40 Senior $ 34.00 $ 20.00 $ 29.00 $ 56.00 $ 30 $ 26 $ 26 $ 22 $ 20 $ 17 41 Senior Couple $ 38.00 $ 45 $ 38 $ 39 $ 33 $ 30 $ 26 42 Youth<13 $ 34.00 $ 18.00 $ 30 $ 26 $ 26 $ 22 $ 20 $ 17 43 Youth 13-18 $ 34.00 $ 18.00 $ 30 $ 26 $ 26 $ 22 $ 20 $ 17 44 Family(4 members) $ 68.00 $ 43.00 $ 51.00 $ 89.00 $ 99 $ 84 $ 86 $ 73 $ 66 $ 56 45 Military(Adult) $ 45 $ 38 $ 36 $ 31 $ 30 $ 26 46 Military Family $ 84 $ 71 $ 73 $ 62 $ 56 $ 48 Corporate Explore corporate fitness partnerships-include$$ 47 1 1 1 1 1 1 1 1 1 1 1 placeholder. Annual Approx 13% Average is between equivalent to 15% of 10 to 11 of monthly annual pre- payments.Utilizing 11 months pay discount for suggested rates. 48 49 Adult $ 410.00 $ 220.00 $ 185.00 $ 290.00 $ 435.00 $ 585 $ 497 $ 462 $ 393 $ 385 $ 327 50 Adult Couple $ 625.00 $ 414.00 $ 774.00 $ 946 $ 804 $ 695 $ 590 $ 583 $ 495 51 Young Adult 52 Senior $ 350.00 $ 200.00 $ 160.00 $ 209.00 $ 360.00 $ 330 $ 280 $ 285 $ 242 $ 220 $ 187 53 Senior Couple $ 495 $ 421 $ 430 $ 365 $ 330 $ 280 54 Senior Family 55 Youth<13 $ 200.00 $ 160.00 $ 186.00 $ 330 $ 280 $ 285 $ 242 $ 220 $ 187 56 Youth 13-18 $ 350.00 $ 200.00 $ 160.00 $ 186.00 $ 330 $ 280 $ 285 $ 242 $ 220 $ 187 Family(4 members) $ 700.00 $ 440.00 $ 390.00 $ 441.00 5 973.00 $1,090 $ 926 $ 945 $ 803 $ 725 $ 616 Family annual is equivalent of 10 57 months to incentivize 58 Military(Adult) $ 190.00 $ 160.00 $ 495 $ 420 $ 395 $ 335 $ 330 $ 280 59 Military Family $ 380.00 $ 340.00 $ 924 $ 785 $ 800 $ 680 $ 615 $ 523 60 Cor orate-Individual 1 of APPENDIX 31--Membership Market Analysis A B C 1 D E F I G I H I I J K L I M I N I Ul V I W I X I V I Z I AA I AB Maple Grove Maple Grove Endurance Endurance Community Community New Brighton Brooklyn Lifetime LA Fitness Egan Fan ur with Fitness Anytime YMCA of the Shoreview Center Center Community Center Re Fitness(Maple (Brooklyn Community Planet Fitness some Classes w/o classes Fitness 6 Category of Membership North Rec Center Overall Bldg. Pool Only Center Center Grove) Center) Fitness Center (Blaine) (Circle{Pines) (Circle{Pines) (Lino Lakes) Scenario HS Scenario N2 Scenario N3 Comments 61 Corporate Family 62 63 Seasonal Membership(3 3 3 Consecutive contiguous months) Consecutive Months 64 Months 65 Adult $ 175.00 $ 96.00 $ 143 $ 122 $ 113 $ 97 $ 95 $ 81 66 Adult Couple $ 247.00 $ 121.00 $ 232 $ 197 $ 170 $ 146 $ 143 $ 122 67 Young Adult $ - $ - $ - $ - $ - $ - 68 Senior $ 145.00 $ 78.00 $ 81 $ 70 $ 70 $ 59 $ 54 $ 46 69 Senior Couple $ 302.00 $ 122 $ 103 $ 105 $ 89 $ 81 $ 70 70 Senior Family $ 81 $ 70 $ 70 $ 59 $ 54 $ 46 L Youth<13 $ 145.00 $ 8170 $ 70 $ 59 $ 54 $ 46 Youth 13-18 $ 145.00 $ 267 $ 227 $ 232 $ 197 $ 178 $ 151 Family(4 members) $ 267.00 $ 138.00 $ 122 $ 103 $ 97 $ 84 $ 81 $ 7Military $ 227 $ 192 $ 197 $ 167 $ 151 $ 130 ALI Non-Resident Fees NA 89% 69% 58% Non-Resident Average%less 77 than YMCA Rates 78 Drop In NA 79 Adult $ 11.25 $ 10.50 $ 8.50 $ 9 $ 8 $ 8 $ 7 $ 8 $ 7 Ave 2/day SO Senior $ 10.25 $ 7 $ 6 $ 6 $ 6 $ 6 $ 6 Youth 5-12 $ 10.25 $ 7 $ 6 $ 6 $ 6 $ 6 $ 6 Combine all Youth 18 and under 81 82 Youth 13-15 $ 10.25 $ 7 $ 6 $ 6 $ 6 83 Family R members) $ 43.00 $ 40.00 $ 32.00 $ 16 N/A $ 14 N/A $ 14 N/A Multiple Use Passes X10 NA X 30 X 10 Do not recommend punch 84 passes.Drive to memberships SS Adult $ 90.00 $ 70.00 $ 82 $ 70 $ 72 $ 61 $ 72 $ 61 86 Senior $ 60 $ 51 $ 50 $ 42 $ 50 $ 42 87 Youth $ 60 $ 51 $ 50 $ 42 $ 50 $ 42 88 Family 4members Monthly NA NA Assume average monthly 89 membership over 12 months 90 Adult $ 71.00 $ 49.00 $ 69.00 $ 23.00 $ 45.00 $23/$10 $ 55.00 $ 45.00 $ 37.50 $ 64 $ 54 $ 50 $ 43 $ 42 $ 36 91 Adult Couple(Dual) $ 121.00 $ 69.00 $ 81.00 $ 103 $ 88 $ 75 $ 64 $ 63 $ 54 92 Senior NA $ 43.00 $ 63.00 $ 40.00 $ 35.00 $ 36 $ 31 $ 31 $ 26 $ 24 $ 20 93 Senior Couple NA $ 65.00 $ 55.00 $ 54 $ 46 $ 43 $ 37 $ 36 $ 30 94 Youth $ 40.00 $ 43.00 $ 30.00 $ 25.00 $ 36 $ 31 $ 31 $ 26 $ 24 $ 20 95 Student $ 50.00 $ 43.00 $ 30.00 $ 25.00 $ 36 $ 31 $ 31 $ 26 $ 24 $ 20 96 Family R members) $ 132.00 $ 81.00 $ 101.00 $ 80.00 $ 65.00 $ 120 $ 102 $ 103 $ 88 $ 79 $ 67 97 Military(Adult) $ 54 $ 46 $ 43 $ 37 $ 36 $ 30 98 Military Family $ 100 $ 85 $ 87 $ 74 $ 67 $ 57 99 Corporate Annual No Discount Approx 13% to 15% ann ual pre- pay discount 00 101 Adult $ 852.00 $ 525.00 $ 260.00 $ 210.00 $ 490.00 $ 450.00 $ 704 $ 598 $ 550 $ 468 $ 462 $ 393 102 Adult Couple $1,452.00 $ 760.00 $ 882.00 $1,133 $ 963 $ 825 $ 701 $ 693 $ 589 103 Senior NA $ 425.00 $ 220.00 $ 185.00 $ 403.00 $ 396 $ 337 $ 341 $ 290 $ 264 $ 224 104 Senior Couple NA $ 594 $ 505 $ 473 $ 402 $ 396 $ 337 105 Youth $ 480.00 $ 425.00 $ 220.00 $ 185.00 $ 396 $ 337 5 341 $ 290 $ 264 5 224 106 Student $ 600.00 $ 425.00 $ 396 $ 337 $ 341 $ 290 $ 264 $ 224 107 Family(4 members) $1,584.00 $ 880.00 $ 540.00 $ 440.00 $ 1,103.00 $1,320 $1,122 $ 1,133 $ 963 $ 869 $ 739 108 Military(Adult) $ 190.00 $ 160.00 $ 594 $ 505 $ 473 $ 402 $ 396 $ 337 109 Military Family $ 380.00 $ 340.00 $1,100 $ 935 $ 957 $ 813 $ 737 $ 626 Corporate-Individual NA Explore corporate fitness partnerships-nothing included 0 now. 111 Corporate-Family NA 112 Seasonal Membership NA 3 Consecutive 13 Months Adult $ 225.00 $270/6 $ 173 $ 146 $ 135 $ 116 $ 113 $ 97 14 months 115 Adult Couple $ 315.00 $ 278 $ 238 $ 203 $ 173 $ 170 $ 146 116 Young Adult 117 Senior S 175.00 97 S 84 84 70 $ 65 $ 54 2 of3 APPENDIX 31--Membership Market Analysis A B C 1 D E F I G I H I I J K L I M I N I Ul V I W I X I V I Z I AA I AB Maple Grove Maple Grove Endurance Endurance Community Community New Brighton Brooklyn Lifetime LA Fitness Egan Fan ur with Fitness Anytime YMCA of the Shoreview Center Center Community Center Re Fitness(Maple (Brooklyn Community Planet Fitness some Classes w/o classes Fitness 6 Category of Membership North Rec Center Overall Bldg. Pool Only Center Center Grove) Center) Fitness Center (Blaine) (Circle{Pines) (Circle{Pines) (Lino Lakes) Scenario HS Scenario N2 Scenario N3 Comments 118 Senior Couple $ 146 $ 124 $ 116 $ 100 $ 97 $ 81 119 Senior Family 120 Youth<13 $ 175.00 $ 97 $ 84 $ 84 $ 70 $ 65 $ 54 121 Youth 13-18 $ 275.00 $ 97 $ 84 $ 84 $ 70 $ 65 $ 54 122 Family(4 members) $ 335.00 $ 324 $ 275 $ 278 $ 238 $ 213 $ 181 123 Military(Adult) $ 146 $ 124 $ 116 $ 100 $ 97 $ 81 124 Military Family $ 270 $ 230 $ 235 $ 200 $ 181 $ 154 125 26 Hotel/Condo Rental User 127 Programs 128 Use Purchases for guests 129 Rental by Ownerguests 30 31 32 3 of APPENDIX B2--Membership Structure and Projections A 1 31 C I D I E I F I G I H I I I 1 I K I L I M I N 1 O 1 P I Q I R I 5 I T I U 1 LINO LAKES RECREATION CENTER z Membership and Usage Projections 3 City Managed Facility 4 Projections based on Year Two 5 May 10,2021 Lino Lakes Rec Center: Membership Scenarios 6 Category of Membership Scenario p1 Scenario q2 Scenario p3 Comments 7 Overall Building Fitness Only Overall Building Fitness Only Overall Building Fitness Only M of Total M of Total A of p of M of Total p of Total 8 Rate Members Revenue Rate Members Revenue Rate Members Total Revenue Rate Members Total Revenue Rate Members Revenue Rate Members Revenue One Time Registration Fee N/A N/A N/A N/A N/A N/A Do not anticipate any one-time g or annual registration fee. 18 Member Benefits Discount on classes 19 Child Care Facility:Drop In Resident Fees Additional municipalities may be added to resident status 20 based on support of Rec Center Resident Rate Average as percent of YMCA 75% 63% 60% 51% 50% 42% 21 membership 22 Drop In 23 Adult $ 8 700 $ 5,600 $ 7 250 $ 1,750 $ 7 700 $ 4,900 $ 6 250 $ 1,500 $ 7 700 $ 4,900 $ 6 250 $ 1,500 Scenario#2:Ave 2/day 24 Senior $ 6 525 $ 3,150 $ 5 125 $ 625 $ 5 525 $ 2,625 $ 5 125 $ 625 $ 5 525 $ 2,625 $ 5 125 $ 625 Scenario#2:Ave 1.5/day Child&Youth $ 6 1,750 $ 10,500 $ 5 300 $ 1,500 $ 5 1,750 $ 8,750 $ 5 300 $ 1,500 $ 5 1,750 $ 8,750 $ 5 300 $ 1,500 Scenario#2:Ave 5/day taking into account summer and 25 weekends. J Military $ 7 50 $ 350 $ 6 25 $ 150 $ 6 50 $ 300 $ 5 25 $ 125 $ 6 50 $ 300 $ 5 25 $ 125 Famil $ 14 100 $ 1,400 N/A $ 12 100 $ 1,200 N/A $ 12 100 $ 1,200 N/A Multiple Use Passes May choose not to offer multi- visit cards to push membership Adult-10 Visit Pass $ 68 150 $ 10,200 N/A $ 60 150 $ 9,000 N/A $ 60 150 $ 9,000 N/A Senior-10 Visit Pass $ 50 150 $ 7,500 N/A $ 42 150 $ 6,300 N/A $ 42 150 $ 6,300 N/A Youth-10 Visit Pass $ 50 60 $ 3,000 N/A $ 42 60 $ 2,520 N/A $ 42 60 $ 2,520 N/A Family N/A N/A N/A N/A N/A N/A Monthly Assume average monthly membership over 12 months Adult $ 53 36 $ 22,896 $ 45 13 $ 7,020 $ 42 45 $ 22,680 $ 36 18 $ 7,776 $ 35 47 $ 19,740 $ 30 19 $ 6,840 Adult Couple $ 86 8 $ 8,256 $ 73 2 $ 1,752 $ 63 12 $ 9,072 $ 54 3 $ 1,944 $ 53 13 $ 8,268 $ 45 4 $ 2,160 Senior $ 30 32 $ 11,520 $ 26 10 $ 3,120 $ 26 35 $ 10,920 $ 22 12 $ 3,168 $ 20 35 $ 8,400 $ 17 13 $ 2,652 Senior Couple $ 45 12 $ 6,480 $ 38 3 $ 1,368 $ 39 15 $ 7,020 $ 33 4 $ 1,584 $ 30 16 $ 5,760 $ 26 5 $ 1,560 43 Child&Youth $ 30 17 $ 6,120 $ 26 2 $ 624 $ 26 19 $ 5,928 $ 22 2 $ 528 $ 20 21 $ 5,040 $ 17 2 $ 408 45 Family(4 members) $ 99 60 $ 71,280 $ 84 22 $ 22,176 $ 86 70 $ 72,240 $ 73 30 $ 26,280 $ 66 74 $ 58,608 $ 56 32 $ 21,504 46 Military(Adult) $ 45 4 $ 2,160 $ 38 3 $ 1,368 $ 36 6 $ 2,592 $ 31 4 $ 1,488 $ 30 6 $ 2,160 $ 26 4 $ 1,248 47 Military Family $ 84 2 $ 2,016 $ 71 1 $ 852 $ 73 4 $ 3,504 $ 62 1 $ 744 $ 56 6 $ 4,032 $ 48 2 $ 1,152 Corporate $ - Explore corporate fitness partnerships-include$$ 48 placeholder. Annual Annual is approximately 11 49 months equivalent. 50 Adult $ 585 60 $ 35,100 $ 497 24 $ 11,928 $ 462 75 $ 34,650 $ 393 32 $ 12,576 $ 385 79 $ 30,415 $ 327 34 $ 11,118 51 Adult Couple $ 946 22 $ 20,812 $ 804 10 $ 8,040 $ 695 30 $ 20,850 $ 590 14 $ 8,260 $ 583 32 $ 18,656 $ 495 15 $ 7,425 53 Senior $ 330 50 $ 16,500 $ 280 16 $ 4,480 $ 285 60 $ 17,100 $ 242 20 $ 4,840 $ 220 64 $ 14,080 $ 187 22 $ 4,114 54 Senior Couple $ 495 16 $ 7,920 $ 421 6 $ 2,526 $ 430 24 $ 10,320 $ 365 8 $ 2,920 $ 330 25 $ 8,250 $ 280 9 $ 2,520 56 Child&Youth $ 330 25 $ 8,250 $ 280 2 $ 560 $ 285 35 $ 9,975 $ 242 4 $ 968 $ 220 37 $ 8,140 $ 187 5 $ 935 Family(4 members) $ 1,090 330 $ 359,700 $ 926 90 $ 83,340 $ 945 425 $ 401,625 $ 803 125 $ 100,375 $ 725 467 $ 338,575 $ 616 131 $ 80,696 Family annual is equivalent of 58 10 months to incentivue 59 Military(Adult) $ 495 3 $ 1,485 $ 420 1 $ 420 $ 395 5 $ 1,975 $ 335 2 $ 670 $ 330 6 $ 1,980 $ 280 3 $ 840 60 Military Family $ 924 2 $ 1,848 $ 785 1 $ 785 $ 800 3 $ 2,400 $ 680 1 $ 680 $ 615 5 $ 3,075 $ 523 1 $ 523 61 Corporate-Individual 7 Corporate Family 63 1 of APPENDIX B2--Membership Structure and Projections A B C D E I F I G I H I I I 1 K L I M N O 1 P I Q I R I S T U 5 May 10,2021 Lino Lakes Rec Center: Membership Scenarios 6 Category of Membership Scenario#1 Scenario#2 Scenario#3 Comments 7 Overall Building Fitness Only Overall Building Fitness Only Overall Building Fitness Only #of Total #of Total #of #of #of Total #of Total 8 Rate Members Revenue Rate Members Revenue Rate Members Total Revenue Rate Members Total Revenue Rate Members Revenue Rate Members Revenue Seasonal Membership(3 64 contiguous months) 65 Adult $ 143 10 $ 1,431 $ 122 3 $ 365 $ 113 13 $ 1,474 $ 97 4 $ 389 $ 95 14 $ 1,323 $ 81 5 $ 405 66 Adult Couple $ 232 2 $ 464 $ 197 0 $ - $ 170 4 $ 680 $ 146 1 $ 146 $ 143 5 $ 716 $ 122 2 $ 243 68 Senior $ 81 10 $ 810 $ 70 2 $ 140 $ 70 13 $ 913 $ 59 4 $ 238 $ 54 15 $ 810 $ 46 5 $ 230 69 Senior Couple $ 122 3 $ 365 $ 103 1 $ 103 $ 105 5 $ 527 $ 89 1 $ 89 $ 81 6 $ 486 $ 70 2 $ 140 71 Child&Youth $ 81 35 $ 2,835 $ 70 10 $ 702 $ 70 40 $ 2,808 $ 59 14 $ 832 $ 54 44 $ 2,376 $ 46 15 $ 689 L7773 Family(4 members) $ 267 70 $ 18,711 $ 227 15 $ 3,402 $ 232 75 $ 17,415 $ 197 18 $ 3,548 $ 178 79 $ 14,078 $ 151 19 $ 2,873 Family summer memberships. 74 Military(Adult) $ 122 2 $ 243 $ 103 1 $ 103 $ 97 3 $ 292 $ 84 1 $ 84 $ 81 4 $ 324 $ 70 2 $ 140 75 Military Family $ 227 2 $ 454 $ 192 1 $ 192 $ 197 3 $ 591 $ 167 1 $ 167 $ 151 4 $ 605 $ 130 1 $ 130 76 Non-Resident Fees Non-Resident Average%less 78 than YMCA Rates Non-Resident Rate Average 89% 76% 69% 60% 58% 50% as percent of YMCA 79 membership 80 Drop In 81 Adult $ 9 650 $ 5,850 $ 8 250 $ 2,000 $ 8 650 $ 5,200 $ 7 250 $ 1,750 $ 8 650 $ 5,200 $ 7 250 $ 1,750 Ave 2/day 82 Senior $ 7 400 $ 2,800 $ 6 100 $ 600 $ 6 400 $ 2,400 $ 6 100 $ 600 $ 6 400 $ 2,400 $ 6 100 $ 600 Child&Youth $ 7 1,400 $ 9,800 $ 6 150 $ 900 $ 6 1,400 $ 8,400 $ 6 150 $ 900 $ 6 1,400 $ 8,400 $ 6 150 $ 900 Combine all Youth 18 and under 83 84 Youth 13-15 $ 7 $ - $ 6 $ - $ 6 $ - $ - $ 6 $ - $ - 85 Family(4 members) $ 16 $ N/A $ 14 60 $ 840 N/A $ 14 60 $ 840 Multiple Use Passes X30 $ - $ - $ - $ - Do not recommend punch 86 passes.Drive to memberships 87 Adult $ 82 120 $ 9,840 N/A $ 72 120 $ 8,640 N/A $ 72 120 $ 8,640 N/A 88 Senior $ 60 120 $ 7,200 N/A $ 50 120 $ 6,000 N/A $ 50 120 $ 6,000 N/A 89 Youth $ 60 50 $ 3,000 N/A $ 50 50 $ 2,500 N/A $ 50 50 $ 2,500 N/A 90 Family(4 members) $ N/A N/A N/A N/A Monthly Assume average monthly 91 membership over 12 months 92 Adult $ 64 26 $ 19,968 $ 54 14 $ 9,072 $ 50 44 $ 26,400 $ 43 20 $ 10,320 $ 42 48 $ 24,192 $ 36 22 $ 9,504 93 Adult Couple(Dual) $ 103 8 $ 9,888 $ 88 1 $ 1,056 $ 75 15 $ 13,500 $ 64 3 $ 2,304 $ 63 17 $ 12,852 $ 54 4 $ 2,592 94 Senior $ 36 23 $ 9,936 $ 31 6 $ 2,232 $ 31 30 $ 11,160 $ 26 9 $ 2,808 $ 24 33 $ 9,504 $ 20 11 $ 2,640 95 Senior Couple $ 54 6 $ 3,888 $ 46 2 $ 1,104 $ 43 9 $ 4,644 $ 37 3 $ 1,332 $ 36 10 $ 4,320 $ 30 4 $ 1,440 96 Child&Youth $ 36 14 $ 6,048 $ 31 2 $ 744 $ 31 16 $ 5,952 $ 26 2 $ 624 $ 24 17 $ 4,896 $ 20 2 $ 480 98 Family(4 members) $ 120 55 $ 79,200 $ 102 12 $ 14,688 $ 103 70 $ 86,520 $ 88 15 $ 15,840 $ 79 77 $ 72,996 $ 67 17 $ 13,668 99 Military(Adult) $ 54 2 $ 1,296 $ 46 1 $ 552 $ 43 2 $ 1,032 $ 37 1 $ 444 $ 36 3 $ 1,296 $ 30 1 $ 360 100 Military Family $ 100 2 $ 2,400 $ 85 1 $ 1,020 $ 87 2 $ 2,088 $ 74 1 $ 888 $ 67 3 $ 2,412 $ 57 2 $ 1,368 101 Corporate $ 02 Annual 103 Adult $ 704 43 $ 30,272 $ 598 18 $ 10,764 $ 550 68 $ 37,400 $ 468 22 $ 10,296 $ 462 71 $ 32,802 $ 393 23 $ 9,039 104 Adult Couple $ 1,133 15 $ 16,995 $ 963 6 $ 5,778 $ 825 24 $ 19,800 $ 701 6 $ 4,206 $ 693 25 $ 17,325 $ 589 7 $ 4,123 105 Senior $ 396 35 $ 13,860 $ 337 7 $ 2,359 $ 341 45 $ 15,345 $ 290 9 $ 2,610 $ 264 50 $ 13,200 $ 224 11 $ 2,464 106 Senior Couple $ 594 10 $ 5,940 $ 505 3 $ 1,515 $ 473 16 $ 7,568 $ 402 6 $ 2,412 $ 396 18 $ 7,128 $ 337 7 $ 2,359 107 Child&Youth $ 396 25 $ 9,900 $ 337 3 $ 1,011 $ 341 39 $ 13,299 $ 290 4 $ 1,160 $ 264 44 $ 11,616 $ 224 5 $ 1,120 109 Family(4 members) $ 1,320 185 $ 244,200 $ 1,122 60 $ 67,320 $ 1,133 275 $ 311,575 $ 963 90 $ 86,670 $ 869 300 $ 260,700 $ 739 100 $ 73,900 110 Military(Adult) $ 594 1 $ 594 $ 505 1 $ 505 $ 473 2 $ 946 $ 402 2 $ 804 $ 396 3 $ 1,188 $ 337 3 $ 1,011 111 Military Family $ 1,100 1 $ 1,100 $ 935 1 $ 935 $ 957 2 $ 1,914 $ 813 1 $ 813 $ 737 3 $ 2,211 $ 626 2 $ 1,252 112 Corporate-Individual 113 Corporate-Family 114 2 of APPENDIX B2--Membership Structure and Projections A B C D E I F I G I H I I I 1 K L I M N O 1 P I Q I R I S T U 5 May 10,2021 Lino Lakes Rec Center: Membership Scenarios 6 Category of Membership Scenario#1 Scenario#2 Scenario#3 Comments 7 Overall Building Fitness Only Overall Building Fitness Only Overall Building Fitness Only #of Total #of Total #of #of #of Total #of Total 8 Rate Members Revenue Rate Members Revenue Rate Members Total Revenue Rate Members Total Revenue Rate Members Revenue Rate Members Revenue 115 Seasonal Membership 116 Adult $ 173 9 $ 1,555 $ 146 $ - $ 135 11 $ 1,485 $ 116 3 $ 348 $ 113 12 $ 1,361 $ 97 4 $ 389 117 Adult Couple $ 278 2 $ 556 $ 238 $ - $ 203 3 $ 608 $ 173 4 $ 691 $ 170 4 $ 680 $ 146 4 $ 583 119 Senior $ 97 8 $ 778 $ 84 $ - $ 84 11 $ 921 $ 70 4 $ 281 $ 65 12 $ 778 $ 54 5 $ 270 120 Senior Couple $ 146 2 $ 292 $ 124 $ - $ 116 4 $ 464 $ 100 1 $ 100 $ 97 5 $ 486 $ 81 2 $ 162 122 Child&Youth $ 97 36 $ 3,499 $ 84 $ - $ 84 50 $ 4,185 $ 70 5 $ 351 $ 65 55 $ 3,564 $ 54 6 $ 324 124 Family(4 members) $ 324 33 $ 10,692 $ 275 $ - $ 278 48 $ 13,349 $ 238 8 $ 1,901 $ 213 54 $ 11,518 $ 181 9 $ 1,628 Family summer memberships 125 Military(Adult) $ 146 2 $ 292 $ 124 2 $ 248 $ 116 2 $ 232 $ 100 2 $ 200 $ 97 3 $ 292 $ 81 3 $ 243 126 Military Family $ 270 4 $ 1,080 $ 230 2 $ 459 $ 235 5 $ 1,175 $ 200 2 $ 400 $ 181 6 $ 1,085 $ 154 3 $ 462 127 28 Hotel/Condo Rental User 129 Programs 130 Use Purchases for guests 131 Rental by Owner guests 32 133 134 135 TOTAL:REVENUE BY SCENARIO $1,262,074 $ 284,252 $ 1,308,687 $ 335,095 $1,123,873 $ 288,925 TOTAL:COMBINED REVENUE $1,446,326 $ 1,643,782 $1,412,798 137 ALL TYPES 138 TOTAL:MEMBERSHIP REVENUE $1,082,884 $ 276,727 $ 1,239,212 $ 328,095 $1,054,298 $ 281,925 139 BY CATEGORY TOTAL:MEMBERSHIP REVENUE $1,358,611 $ 1,567,207 $1,336,223 140 COMBINED OVERALL+FITNESS 141 1 22 TOTAL:MEMBERSHIP UNITS 1,360 381 1,812 547 1,977 609 143 Combined 1,741 2,359 2,586 144 Resident 813 239 1,019 324 1,104 352 145 Non-resident 547 142 793 223 873 257 146 Percentage Residents 60% 63% 56% 59% 56% 58% 147 Percent by Overall/Fitness 78% 22% 77% 23% 76% 24% 149 150 MEMBERSHIP BREAKDOWN 151 Adult 184 14% 72 19% 256 14% 99 18% 271 14% 107 18% 152 Adult Couple 57 4% 19 5% 88 5% 31 6% 96 5% 36 6% 153 Senior 158 12% 41 11% 194 11% 58 11% 209 11% 67 11% 154 Senior Couple 49 4% 15 4% 73 4% 23 4% 80 4% 29 5% 155 Child/Youth 152 11% 19 5% 199 11% 31 6% 218 11% 35 6% 156 Family 733 54% 199 52% 963 53% 286 52% 1,051 53% 308 51% 157 Military Adult 14 1% 9 2% 20 1% 12 2% 25 1% 16 3% 158 Miilitary Family 13 1% 7 2% 19 1% 7 1% 27 1% 11 2% 161 162 CATEGORY BREAKDOWN 163 Monthly 307 23% 95 25% 394 22% 128 23% 426 22% 144 24% 164 Annual 823 61% 249 65% 1,128 62% 346 63% 1,229 62% 378 62% 165 Seasonal 230 17% 37 10% 290 16% 73 13% 322 16% 87 14% 166 3 of APPENDIX B2--Membership Structure and Projections A B C D E I F I G I H I I I 1 K L I M N O 1 P I Q I R I S T U 5 May 10,2021 Lino Lakes Rec Center: Membership Scenarios 6 Category of Membership Scenario#1 Scenario#2 Scenario#3 Comments 7 Overall Building Fitness Only Overall Building Fitness Only Overall Building Fitness Only #of Total #of Total #of #of #of Total #of Total B Rate Members Revenue Rate Members Revenue Rate Members Total Revenue Rate Members Total Revenue Rate Members Revenue Rate Members Revenue 167 TOTAL:MEMBERS 3,704 1,033 4,919 1,480 5,387 1,631 168 Combined 4,737 6,399 7,018 169 Members/Membeship Unit 2.72 2.71 2.71 172 173 TOTAL:DAY/DROP-IN REVENUE 5,575 $ 39,450 1,200 $ 7,525 5,635 $ 34,615 1,200 $ 7,000 5,635 $ 34,615 1,200 $ 7,000 174 Combined 6,775 $ 46,975 6,835 6,835 $ 41,615 6,835 6,835 $ 41,615 1,200 175 Resident 3,125 700 3,125 700 3,125 700 176 Non-resident 2,450 500 2,510 500 2,510 500 177 Percentage Residents 46% 58% 55% 58% 55% 58% 178 Percent by Overall/Fitness 82% 18% 82% 18% 82% 18% 179 180 TOTAL:PUNCH CARD REVENUE 6S0 $ 40,740 $ - 650 $ 34,960 0 $ - 650 $ 34,960 0 $ - 181 Combined 650 $ 40,740 650 $ 34,960 650 $ 34,960 182 Resident 360 360 360 183 Non-resident 290 290 290 184 Percentage Residents 55% 55% 55% 185 186 4 of APPENDIX C1a--P L City Managed Model A I B C I G I H I I J K L 1 Lino Lakes Recreation and Community Center 2 Existing Facility City Managed 3 Profit& Loss Summary 4 Membership Scenario#2 5 May 10,2021 6 NOTES: *Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility 7 Initially assumes management by City with many programs outsourced. 8 Net Operating Revenue(Deficit)Categories Net Operating Revenue With City Admin Alloca.Incl. With Reserve Included Rec and Community Center Projections 9 10 REVENUE Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 11 FACILITY REVENUE $ - $ 1,342,698 $ 1,767,017 $ 1,853,709 $ 1,944,063 $ 2,039,660 12 Educational,Classes,Camps and Clinics Rentals 0 0 0 0 0 0 13 Gym/Court Rentals 0 20,000 30,000 31,500 33,075 34,729 14 Pool Rentals 0 36,412 39,773 40,806 42,082 43,398 15 Competitive Event Rentals 0 0 0 0 0 0 16 Special Events&Function Space Rentals 0 21,000 28,000 28,840 29,911 31,065 17 Therapy, Rehab,Health Use 0 0 0 0 0 0 18 Memberships&Daily Use Fees 0 1,260,286 1,662,094 1,745,199 1,831,409 1,922,655 19 Retail and Vending Revenue 0 5,000 7,150 7,365 7,585 7,813 21 Facility Sponsorships/Advertising/Contributions 0 0 0 0 0 0 22 School District and Partners 0 0 0 0 0 0 23 Miscellaneous 0 0 0 0 0 0 24 25 PROGRAM REVENUE $ - $ 296,024 $ 406,157 $ 445,246 $ 495,247 $ 517,873 26 JEclucation and Community Programming 0 5,500 10,500 10,815 11,248 11,698 27 Aquatic Training, Fitness and Therapy 0 20,000 32,500 33,800 35,152 36,558 28 Dry-Side Fitness&Training 0 65,000 70,550 73,372 76,307 79,359 29 Learn to Swim 0 154,524 208,607 239,899 281,686 295,770 30 Camps and Clinics 0 45,000 75,000 78,000 81,120 84,365 31 Aquatic Team Programs 0 0 0 0 0 0 32 Sport Team Programs 0 6,000 9,000 9,360 9,734 10,124 35 Program Sponsorships/Advertising/Contributions 0 0 0 0 0 0 36 Miscellaneous 0 0 0 0 0 0 37 38 TOTAL REVENUE $ - $ 1,638,722 $ 2,173,174 $ 2,298,955 $ 2,439,310 $ 2,557,533 39 Projected Revenue Growth Rate 33% 6% 6% 5% 1of3 APPENDIX C1a--P L City Managed Model A I B C G H I J K L 40 EXPENSES 41 Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 42 OPERATIONAL EXPENSES $ 515,905 $ 1,859,962 $ 1,952,592 $ 2,035,846 $ 2,120,662 $ 2,221,809 43 Utilities 9,000 140,631 144,850 149,195 153,671 158,281 44 Maintenance 19,000 44,000 45,320 46,680 48,080 56,522 45 Equipment and Supplies 239,514 139,000 144,010 146,170 148,395 150,687 46 Staff Wages&Salary&Benefits 47 Full Time Staff 137,708 609,500 639,975 671,974 705,572 740,851 48 Part Time Staff 15,500 457,600 480,480 504,504 529,729 556,216 49 Benefits and Payroll Taxes 58,183 335,320 352,086 369,690 388,175 407,584 50 Staff-Other Costs 3,000 9,500 9,738 9,981 10,230 10,486 51 Outside Services 15,000 16,000 11,150 11,335 6,525 6,720 52 General Office 11,500 88,411 107,184 110,708 114,356 118,206 53 Insurance 5,000 10,000 10,300 10,609 10,927 11,255 54 Miscellaneous Expense Contingency 2,500 10,000 7,500 5,000 5,000 5,000 55 56 PROGRAM EXPENSES $ - $ 148,441 $ 191,529 $ 206,387 $ 226,177 $ 235,623 57 Community and Educational Programs 0 2,700 4,700 4,826 4,999 5,179 58 Aquatic Training, Fitness,and Therapy 0 9,000 14,000 14,520 15,061 15,623 59 Dry-Side Fitness&Training 0 30,900 33,453 34,751 36,101 37,505 60 Learn to Swim 0 69,101 89,886 102,042 117,988 123,412 61 Camps and Clinics 0 21,080 34,100 35,556 37,003 38,509 62 Aquatic Team Programs 0 0 0 0 0 0 63 Sport Team Programs 0 3,160 4,390 4,692 5,025 5,394 65 Program Staff-Miscellaneous 0 0 0 0 0 0 66 Scholarships&Student Support 0 5,000 5,000 5,000 5,000 5,000 67 Miscellaneous Expense Contingency 0 7,500 6,000 5,000 5,000 5,000 68 69 TOTAL OPERATING EXPENSES $ 515,905 $ 2,008,403 $ 2,144,121 $ 2,242,233 $ 2,346,839 $ 2,457,432 70 Projected Expense Growth Rate 7% 5% 5% 5% 71 72 CITY SHARED ADMINISTRATIVE EXPENSES $ - $ 150,000 $ 157,500 $ 165,375 $ 173,644 $ 182,326 73 741 GROSS TOTAL OPERATING EXPENSES $ 515,905 $ 2,158,403 $ 2,301,621 $ 2,407,608 $ 2,520,483 $ 2,639,758 2of3 APPENDIX C1a--P L City Managed Model A I B C G H III i J K L 75 IIIIIWEIIIII 76 Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 77 NET OPERATING REVENUE(DEFICIT) $ (515,905) $ (369,682) 29,053 $ 56,722 $ 92,471 $ 100,102 78 Not Including City Administrative Allocation 79 COST RECOVERY(Direct Revenue&Expenses Only) 0% 82% 101% 103% 104% 104% 80 81 CUMMULATIVE OPERATING NET REVENUE(DEFICIT) $ (515,905) $ (885,587) $ (856,534) $ (799,812) $ (707,341) $ (607,240) 82 83 NET GROSS OPERATING REVENUE(DEFICIT) $ (515,905) $ (519,682) $ (128,447) $ (108,653) $ (81,173) $ (82,224) 84 Including City Administrative Allocation 85 COST RECOVERY(Direct Revenue&Expenses Only) 0% 76% 94% 95% 97% 97% 86 87 CUMMULATIVE OPERATING NET REVENUE(DEFICIT) $ (515,905) $ (1,035,587) $ (1,164,034) $ (1,272,687) $ (1,353,860) $ (1,436,084) 88 89 NON-OPERATING EXPENSES 90 91 Long Term Capital Replacement&Maintenance Reserve 0 0 60,000 70,000 80,000 82,400 92 Capital Reserve Accumulation Years 1-5 292,400 93 Years 6-10 84,872 87,418 90,041 92,742 95,524 94 Years 11-15 98,390 101,342 104,382 107,513 110,739 95 Years 16-20 114,061 117,483 121,007 124,637 128,377 96 97 Capital Accumulation Year 10 742,997 98 Capital Accumulation Year 15 1,265,362 99 Capital Accumulation year 20 0 1,870,927 100 NON-OPERATING EXPENSES $ - $ - $ 60,000 $ 70,000 $ 80,000 $ 82,400 101 104 GRAND TOTAL ALL EXPENSES(Including Reserve) $ 515,905 $ 2,158,403 $ 2,361,621 $ 2,477,608 $ 2,600,483 $ 2,722,158 105 106 GRAND TOTAL REVENUE(DEFICIT) $ (515,905) $ (519,682) $ (188,447) $ (178,653) $ (161,173) $ (164,624) 107 COST RECOVERY 0% 76% 92% 93% 94% 94% 108 CUMMULATIVE TOTAL GROSS REVENUE(DEFICIT) $ (515,905) $ (1,035,587) $ (1,224,034) $ (1,402,687) $ (1,563,860) $ (1,728,484) 3of3 APPENDIX C1b--P L Summary Hybrid Model A I B C I G I H I I J K L 1 Lino Lakes Recreation and Community Center 2 Existing Facility Hybrid Management Model 3 Profit& Loss Summary 4 Membership Scenario#2 5 May 10,2021 NOTES: Hybrid Management/Program model includes a Fitness Program Partner and Centennial Community Ed Swim Lesson/Aquatic 6 Partnership 7 *Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility 8 Net Operating Revenue(Deficit)Categories Net Operating Revenue With City Admin Alloca.Incl. With Reserve Included 9 Rec and Community Center Projections 10 REVENUE Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 11 FACILITY REVENUE $ - $ 1,336,903 $ 1,561,440 $ 1,634,173 $ 1,709,872 $ 1,790,042 12 Educational,Classes,Camps and Clinics Rentals 0 0 0 0 0 0 13 Gym/Court Rentals 0 20,000 30,000 31,500 33,075 34,729 14 Pool Rentals 0 36,412 39,773 40,806 42,082 43,398 15 Competitive Event Rentals 0 0 0 0 0 0 16 Special Events&Function Space Rentals 0 18,000 24,000 24,720 25,668 26,652 17 Therapy,Rehab,Health Use 0 0 0 0 0 0 18 Memberships&Daily Use Fees 0 1,181,491 1,385,017 1,454,268 1,525,932 1,601,904 19 Retail and Vending Revenue 0 6,000 7,650 7,880 8,116 8,359 21 Facility Sponsorships/Advertising/Contributions 0 0 0 0 0 0 22 School District and Partners 0 75,000 75,000 75,000 75,000 75,000 23 Miscellaneous 0 0 0 0 0 0 24 25 26 PROGRAM REVENUE $ - $ 120,639 $ 186,162 $ 200,701 $ 219,024 $ 228,673 27 Education and Community Programming 0 7,000 13,000 13,390 13,926 14,483 28 Aquatic Training,Fitness and Therapy 0 20,000 32,500 33,800 35,152 36,558 29 Dry-Side Fitness&Training 0 0 0 0 0 0 30 Learn to Swim 0 48,639 65,662 75,511 88,827 93,268 31 Camps and Clinics 0 45,000 75,000 78,000 81,120 84,365 32 Aquatic Team Programs 0 0 0 0 0 0 33 Sport Team Programs 0 0 0 0 0 0 36 Program Sponsorships/Advertising/Contributions 0 0 0 0 0 0 37 Miscellaneous 0 0 0 0 0 0 38 39 TOTAL REVENUE $ - $ 1,457,541 $ 1,747,602 $ 1,834,874 $ 1,928,896 $ 2,018,715 40 Projected Revenue Growth Rate 20% 5% 5% 5% 41 1of3 APPENDIX C1b--P L Summary Hybrid Model A I B C G H I J K L 42 EXPENSES Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 43 OPERATIONAL EXPENSES $ 437,255 $ 1,532,351 $ 1,617,475 $ 1,687,915 $ 1,761,280 $ 1,848,308 44 Utilities 9,000 140,631 144,850 149,195 153,671 158,281 45 Maintenance 19,000 43,000 44,290 45,619 46,987 55,397 46 Equipment and Supplies 210,514 67,000 72,010 74,170 76,395 78,687 47 Staff Wages&Salary&Benefits 48 Full Time Staff 108,958 494,500 519,225 545,186 572,446 601,068 49 Part Time Staff 13,500 348,400 365,820 384,111 403,317 423,482 50 Benefits and Payroll Taxes 46,283 267,480 280,854 294,897 309,642 325,124 51 Staff-Other Costs 2,000 4,750 4,869 4,990 5,115 5,243 52 Outside Services 11,000 64,831 73,656 77,066 77,643 81,395 53 General Office 9,500 81,760 94,101 97,071 100,137 103,376 54 Insurance 5,000 10,000 10,300 10,609 10,927 11,255 55 Miscellaneous Expense Contingency 2,500 10,000 7,500 5,000 5,000 5,000 56 57 PROGRAM EXPENSES $ - $ 47,880 $ 67,550 $ 69,182 $ 71,384 $ 73,676 58 Community and Educational Programs 0 3,300 5,700 5,856 6,070 6,293 59 Aquatic Training,Fitness,and Therapy 0 9,000 14,000 14,520 15,061 15,623 60 Dry-Side Fitness&Training 0 1,000 1,000 1,000 1,000 1,000 61 Learn to Swim 0 4,750 4,750 4,750 4,750 4,750 62 Camps and Clinics 0 21,080 34,100 35,556 37,003 38,509 63 Aquatic Team Programs 0 0 0 0 0 0 64 Sport Team Programs 0 0 0 0 0 0 66 Program Staff-Miscellaneous 0 0 0 0 0 0 67 Scholarships&Student Support 0 5,000 5,000 5,000 5,000 5,000 68 Miscellaneous Expense Contingency 0 3,750 3,000 2,500 2,500 2,500 69 70 TOTAL OPERATING EXPENSES $ 437,255 $ 1,580,231 $ 1,685,025 $ 1,757,097 $ 1,832,664 $ 1,921,984 71 Projected Expense Growth Rate 7% 4% 4% 5% 72 73 CITY SHARED ADMINISTRATIVE EXPENSES $ - $ 150,000 $ 157,500 $ 165,375 $ 173,644 $ 182,326 74 75 GROSS OPERATING EXPENSES $ 437,255 $ 1,730,231 $ 1,842,525 $ 1,922,472 $ 2,006,308 $ 2,104,310 2of3 APPENDIX C1b--P L Summary Hybrid Model A I B C G H I J K L 76 77 78 NET OPERATING REVENUE(DEFICIT) $ (437,255) $ (122,690) $ 62,577 $ 77,777 $ 96,232 $ 96,731 79 Not Including City Administrative Allocation 80 COST RECOVERY(Direct Revenue&Expenses Only) 0% 92% 104% 104% 105% 105% 81 82 CUMMULATIVE OPERATING NET REVENUE(DEFICIT) $ (437,255) $ (559,945) $ (497,368) $ (419,590) $ (323,359) $ (226,628) 83 84 NET GROSS OPERATING REVENUE(DEFICIT) $ (437,255) $ (272,690) $ (94,923) $ (87,598) $ (77,412) $ (85,595) 85 Including City Administrative Allocation 86 COST RECOVERY(Direct Revenue&Expenses Only) 0% 84% 95% 95% 96% 96% 87 88 CUMMULATIVE OPERATING NET REVENUE(DEFICIT) $ (437,255) $ (709,945) $ (804,868) $ (892,465) $ (969,878) $ (1,055,473) 89 90 NON-OPERATING EXPENSES 91 92 Long Term Capital Replacement&Maintenance Reserve 0 0 60,000 70,000 80,000 82,400 93 Capital Reserve Accumulation Years 1-5 292,400 94 Years 6-10 84,872 87,418 90,041 92,742 95,524 95 Years11-15 98,390 101,342 104,382 107,513 110,739 96 Years 16-20 114,061 117,483 121,007 124,637 128,377 97 98 Capital Accumulation Year 10 742,997 99 Capital Accumulation Year 15 1,265,362 100 Capital Accumulation year 20 0 1,870,927 101 NON-OPERATING EXPENSES $ - $ - $ 60,000 $ 70,000 $ 80,000 $ 82,400 102 105 GRAND TOTAL ALL EXPENSES(Including Reserve) $ 437,255 $ 1,730,231 $ 1,902,525 $ 1,992,472 $ 2,086,308 $ 2,186,710 106 107 GRAND TOTAL REVENUE(DEFICIT) $ (437,255) $ (272,690) $ (154,923) $ (157,598) $ (157,412) $ (167,995) 108 COST RECOVERY 0% 84% 92% 92% 92% 92% 109 CUMMULATIVE TOTAL GROSS REVENUE(DEFICIT) $ (437,255) $ (709,945) $ (864,868) $ (1,022,465) $ (1,179,878) $ (1,347,873) 3of3 APPENDIX C1c--P L Comparison by Mangaement Model A I B C G H I I 1 I K I L M N O P Q R 1 Lino Lakes Recreation and Community Center 2 Comparison: City Managed versus Hybrid Management Model 3 Profit& Loss Summary 4 Membership Scenario#2 5 May 10,2021 6 NOTES: *Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility 7 Initially assumes management by City with many programs outsourced. 8 Net Operating Revenue(Deficit)Categories Net Operating Revenue With City Admin Alloca.Incl. With Reserve Included Net Operating Revenue With City Admin Alloca.Incl. With Reserve Included City Managed Rec and Community Center Projections Hybrid Management Model: Rec and Community Center Projections 9 10 REVENUE Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 11 FACILITY REVENUE $ $1,342,698 $ 1,767,017 $ 1,853,709 $1,944,063 $ 2,039,660 $ $ 1,336,903 $ 1,561,440 $ 1,634,173 $ 1,709,872 $ 1,790,042 12 Educational,Classes,Camps and Clinics Rentals 0 0 0 0 0 0 $ - $ - $ - $ - $ - $ - 13 Gym/Court Rentals 0 20,000 30,000 31,500 33,075 34,729 $ - $ 20,000 $ 30,000 $ 31,500 $ 33,075 $ 34,729 14 Pool Rentals 0 36,412 39,773 40,806 42,082 43,398 $ - $ 36,412 $ 39,773 $ 40,806 $ 42,082 $ 43,398 15 Competitive Event Rentals 0 0 0 0 0 0 $ - $ - $ - $ - $ - $ - 16 Special Events&Function Space Rentals 0 21,000 28,000 28,840 29,911 31,065 $ - $ 18,000 $ 24,000 $ 24,720 $ 25,668 $ 26,652 17 Therapy,Rehab,Health Use 0 0 0 0 0 0 $ - $ - - 18 Memberships&Daily Use Fees 0 1,260,286 1,662,094 1,745,199 1,831,409 1,922,655 $ - $ 1,181,491 $ 1,385,017 $ 1,454,268 $ 1,525,932 $ 1,601,904 19 Retail and Vending Revenue 0 5,000 7,150 7,365 7,585 7,813 $ - $ 6,000 $ 7,650 $ 7,880 $ 8,116 $ 8,359 21 Facility Sponsorships/Advertising/Contributions 0 0 0 0 0 0 $ - $ - - 22 School District and Partners 0 0 0 0 0 0 $ - $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 23 Miscellaneous 0 0 0 0 0 0 $ - $ - - 24 25 26 PROGRAM REVENUE $ $ 296,024 $ 406,157 $ 445,246 $ 495,247 $ 517,873 $ $ 120,639 $ 186,162 $ 200,701 $ 219,024 $ 228,673 27 Education and Community Programming 0 5,500 10,500 10,815 11,248 11,698 0 7,000 13,000 13,390 13,926 14,483 28 Aquatic Training,Fitness and Therapy 0 20,000 32,500 33,800 35,152 36,558 0 20,000 32,500 33,800 35,152 36,558 29 Dry-Side Fitness&Training 0 65,000 70,550 73,372 76,307 79,359 0 0 0 0 0 0 30 Learn to Swim 0 154,524 208,607 239,899 281,686 295,770 0 48,639 65,662 75,511 88,827 93,268 31 Camps and Clinics 0 45,000 75,000 78,000 81,120 84,365 0 45,000 75,000 78,000 81,120 84,365 32 Aquatic Team Programs 0 0 0 0 0 0 0 0 0 0 0 0 33 Sport Team Programs 0 6,000 9,000 9,360 9,734 10,124 0 0 0 0 0 0 36 Program Sponsorships/Advertising/Contributions 0 0 0 0 0 0 0 0 0 0 0 0 37 Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 38 39 TOTAL REVENUE $ $1,638,722 $ 2,173,174 $ 2,298,955 $2,439,310 $ 2,557,533 $ $ 1,457,541 $ 1,747,602 $ 1,834,874 $ 1,928,896 $ 2,018,715 40 Projected Revenue Growth Rate 33% 6% 6% 5% $ - 20% 5% 5% 5% 41 Variance of Hybrid Model vs.City Managed $ (181,180) $ (425,572) $ (464,081) $ (510,414) $ (538,819) 42 1 of APPENDIX C1c--P L Comparison by Mangaement Model A I B C G H I J K L M N O P Q R City Managed Rec and Community Center Projections Hybrid Management Model: Rec and Community Center Projections 43 EXPENSES 44 Year Zero* Year Year Year Year Years Year Zero* Year Year Year Year4 Years 45 OPERATIONAL EXPENSES $ 515,905 $1,859,962 $ 1,952,592 $ 2,035,846 $2,120,662 $ 2,221,809 $ 437,255 $ 1,532,351 $ 1,617,475 $ 1,687,915 $ 1,761,280 $ 1,848,308 46 Utilities 9,000 140,631 144,850 149,195 153,671 158,281 9,000 140,631 144,850 149,195 153,671 158,281 47 Maintenance 19,000 44,000 45,320 46,680 48,080 56,522 19,000 43,000 44,290 45,619 46,987 55,397 48 Equipment and Supplies 239,514 139,000 144,010 146,170 148,395 150,687 210,514 67,000 72,010 74,170 76,395 78,687 49 Staff Wages&Salary&Benefits 50 Full Time Staff 137,708 609,500 639,975 671,974 705,572 740,851 108,958 494,500 519,225 545,186 572,446 601,068 51 Part Time Staff 15,500 457,600 480,480 504,504 529,729 556,216 13,500 348,400 365,820 384,111 403,317 423,482 52 Benefits and Payroll Taxes 58,183 335,320 352,086 369,690 388,175 407,584 46,283 267,480 280,854 294,897 309,642 325,124 53 Staff-Other Costs 3,000 9,500 9,738 9,981 10,230 10,486 2,000 4,750 4,869 4,990 5,115 5,243 54 Outside Services 15,000 16,000 11,150 11,335 6,525 6,720 11,000 64,831 73,656 77,066 77,643 81,395 55 General Office 11,500 88,411 107,184 110,708 114,356 118,206 9,500 81,760 94,101 97,071 100,137 103,376 56 Insurance 5,000 10,000 10,300 10,609 10,927 11,255 5,000 10,000 10,300 10,609 10,927 11,255 57 Miscellaneous Expense Contingency 2,500 10,000 7,500 5,000 5,000 5,000 2,500 10,000 7,500 5,000 5,000 5,000 58 59 PROGRAM EXPENSES $ - $ 148,441 $ 191,529 $ 206,387 $ 226,177 $ 235,623 $ - $ 47,880 $ 67,550 $ 69,182 $ 71,384 $ 73,676 60 Community and Educational Programs 0 2,700 4,700 4,826 4,999 5,179 0 3,300 5,700 5,856 6,070 6,293 61 Aquatic Training,Fitness,and Therapy 0 9,000 14,000 14,520 15,061 15,623 0 9,000 14,000 14,520 15,061 15,623 62 Dry-Side Fitness&Training 0 30,900 33,453 34,751 36,101 37,505 0 1,000 1,000 1,000 1,000 1,000 63 Learn to Swim 0 69,101 89,886 102,042 117,988 123,412 0 4,750 4,750 4,750 4,750 4,750 64 Camps and Clinics 0 21,080 34,100 35,556 37,003 38,509 0 21,080 34,100 35,556 37,003 38,509 65 Aquatic Team Programs 0 0 0 0 0 0 0 0 0 0 0 0 66 Sport Team Programs 0 3,160 4,390 4,692 5,025 5,394 0 0 0 0 0 0 68 Program Staff-Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 69 Scholarships&Student Support 0 5,000 5,000 5,000 5,000 5,000 0 5,000 5,000 5,000 5,000 5,000 70 Miscellaneous Expense Contingency 0 7,500 6,000 5,000 5,000 5,000 0 3,750 3,000 2,500 2,500 2,500 71 72 TOTAL OPERATING EXPENSES $ 515,905 $2,008,403 $ 2,144,121 $ 2,242,233 $2,346,839 $ 2,457,432 $ 437,255 $ 1,580,231 $ 1,685,025 $ 1,757,097 $ 1,832,664 $ 1,921,984 73 Projected Expense Growth Rate 7% 5% 5% 5% 7% 4% 4% 5% 74 Variance of Hybrid Model vs.City Managed $ (78,650) $ (428,172) $ (459,097) $ (485,136) $ (514,175) $ (535,448) 75 76 CITY SHARED ADMINISTRATIVE EXPENSES $ - $ 150,000 $ 157,500 $ 165,375 $ 173,644 $ 182,326 $ - $ 150,000 $ 157,500 $ 165,375 $ 173,644 $ 182,326 77 78 1 GROSS TOTAL OPERATING EXPENSES $ 515,905 $2,158,403 $ 2,301,621 $ 2,407,608 $2,520,483 $ 2,639,758 $ 437,255 $ 1,730,231 $ 1,842,525 $ 1,922,472 $ 2,006,308 $ 2,104,310 79 Variance of Hybrid Model vs.City Managed $ (78,650) $ (428,172) $ (459,097) $ (485,136) $ (514,175) $ (535,448) 80 2 of APPENDIX C1c--P L Comparison by Mangaement Model A I B C G H I I J I K L M N O P Q R City Managed Rec and Community Center Projections Hybrid Management Model: Rec and Community Center Projections 81 82 Year Zero* Year Year Year Year Year 83 NET OPERATING REVENUE(DEFICIT) (515,905) (369,682) 29,053 56,722 92,471 100,102 $ (437,255) $ (122,690) 62,577 77,777 96,232 96,731 84 Not Including City Administrative Allocation 85 Variance of Hybrid Model vs.City Managed $ 78,650 $ 246,992 $ 33,524 $ 21,055 $ 3,761 $ (3,371) 86 COST RECOVERY(Direct Revenue&Expenses Only) 0% 82% 101% 103% 104% 104% 0% 92% 104% 104% 105% 105% 87 88 CUMMULATIVE OPERATING NET REVENUE(DEFICIT) $ (515,905) $ (885,587) $ (856,534) $ (799,812) $ (707,341) $ (607,240) $ (437,255) $ (559,945) $ (497,368) $ (419,590) $ (323,359) $ (226,628) 89 Variance of Hybrid Model vs.City Managed $ 78,650 $ 325,642 $ 359,166 $ 380,221 $ 383,982 $ 380,612 90 91 NET GROSS OPERATING REVENUE(DEFICIT) $ (515,905) $ (519,682) $ (128,447) $ (108,653) $ (81,173) $ (82,224) $ (437,255) $ (272,690) $ (94,923) $ (87,598) $ (77,412) $ (85,595) 92 Including City Administrative Allocation 93 Variance of Hybrid Model vs.City Managed $ 78,650 $ 246,992 $ 33,524 $ 21,055 $ 3,761 $ (3,371) 94 COST RECOVERY(Direct Revenue&Expenses Only) 0% 76% 94% 95% 97% 97% 0% 84% 95% 95% 96% 96% 95 96 CUMMULATIVE OPERATING NET REVENUE(DEFICIT) $ (515,905) $(1,035,587) $ (1,164,034) $ (1,272,687) $(1,353,860) $ (1,436,084) $ (437,255) $ (709,945) $ (804,868) $ (892,465) $ (969,878) $ (1,055,473) 97 Variance of Hybrid Model vs.City Managed $ 78,650 $ 325,642 $ 359,166 $ 380,221 $ 383,982 $ 380,612 98 99 NON-OPERATING EXPENSES 100 101 Long Term Capital Replacement&Maintenance Reserve 0 0 60,000 70,000 80,000 82,400 0 0 60,000 70,000 80,000 82,400 102 Capital Reserve Accumulation Years 1-5 292,400 292,400 103 Years 6-10 84,872 87,418 90,041 92,742 95,524 84,872 87,418 90,041 92,742 95,524 104 Years 11-15 98,390 101,342 104,382 107,513 110,739 98,390 101,342 104,382 107,513 110,739 105 Years 16-20 114,061 117,483 121,007 124,637 128,377 114,061 117,483 121,007 124,637 128,377 106 107 Capital Accumulation Year 10 742,997 742,997 108 Capital Accumulation Year 15 1,265,362 1,265,362 109 Capital Accumulation year 20 0 1,870,927 0 1,870,927 110 NON-OPERATING EXPENSES $ - $ - $ 60,000 $ 70,000 $ 80,000 $ 82,400 $ - $ - $ 60,000 $ 70,000 $ 80,000 $ 82,400 111 114 GRAND TOTAL ALL EXPENSES(Including Reserve) $ 515,905 $2,158,403 $ 2,361,621 $ 2,477,608 $2,600,483 $ 2,722,158 $ 437,255 $ 1,730,231 $ 1,902,525 $ 1,992,472 $ 2,086,308 $ 2,186,710 115 116 GRAND TOTAL REVENUE(DEFICIT) $ (515,905) $ (519,682) $ (188,447) $ (178,653) $ (161,173) $ (164,624) $ (437,255) $ (272,690) $ (154,923) $ (157,598) $ (157,412) $ (167,995) 117 COST RECOVERY 0% 76% 92% 93% 94% 94% 0% 84% 92% 92% 92% 92% 11181 18 CUMM ILLATIVE TOTAL GROSS REVENUE(DEFICIT) 1 $ (515,905) $(1,035,587) $ (1,224,034) $ (1,402,687) $(1,563,860) $ (1,728,484) $ (437,255) $ (709,945) $ (864,868) $ (1,022,465) $ (1,179,878) $ (1,347,873) 3 of APPENDIX C2a--Facility Revenue City Managed Model AlB G I H I I I J I K I L I M 1 Lino Lakes Recreation and Community Center 2 Financial Forecast Pre-Opening Year Through Year 5 3 4 OPTION Existing Facility City Managed Membership Scenario#2 5 NOTES: 6 *Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility 7 Initially assumes management by City with many programs outsourced. 8 9 May 10,2021 10 Facility Revenue 11 Issues to Review 12 Potential for Increased Revenue 13 Potential for Pre-Opening Revenue 14 Potential for Loss of Revenue 15 Rec and Community Center Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 17 Educational,Class,Camp and Clinic Rentals 18 Youth Camps 0 0 0 0 0 Any outside groups renting space for camp programs. In 19 house camps/clinics are in program revenue 20 Sport Camps Outside sport group camp rentals Recreational and Educational Classes and 0 0 0 Kayak,canoe,martial arts,dance for example: 21 Programming by outside providers Outsourced programming-could bring in house as developed 22 Community/Youth organizations Outside organizations renting space for programs. 23 24 EDUC,REC,CLASS,CAMP RENTALS 0 0 0 0 0 0 25 26 Gym/Court Space Rentals Hourly Gym Rentals=$60/full court/hour; 27 $35/half court/hour. 28 Basketball Programs 29 AAU Program 30 Centennial Basketball Assoc. 31 General Rental 20,000 30,000 31,500 33,075 34,729 10 hours/week @$60/hour for 50 weeks in Year 2. 32 33 Volleyball 34 Pickle ball 35 Other Sport Program 36 Non-sport Rentals 37 38 1 of 5 6/1/2021 APPENDIX C2a--Facility Revenue City Managed Model A B G H I I I J I K L M 15 Rec and Community Center Projections 16 Category Year Zero* Year 1 Year 2 Year 3 1 Year 4 Year 5 Comments 39 GYM/COURT RENTALS SUBTOTAL 0 20,000 30,000 31,5001 33,075 34,729 40 Pool Rentals Rental revenue based on Schedule Matrix time allocated. Local Club team has expressed immediate interest in renting lane 41 space. 42 Tentative Lane Rental Rates: 25 yard-$12.50/lane/hour 43 Club Team Lane Rental Great Wolf Swim Club 30,912 32,148 32,952 33,941 34,959 Club has expressed interest in renting as soon as facility opens. Rent approximately 14 hours/week for 4 lanes at$12/lane/hour 44 for 46 weeks/year. 45 Other Groups/Clubs 0 0 0 0 46 25 Yd.Pool Rentals(Non-competitive) 0 0 0 0 47 Program/Leisure Pool Rentals 2,500 2,625 2,704 2,785 2,868 Lesson Program or Community Ed Aquatic Programs Therapy/Rehab 3,000 5,000 5,150 5,356 5,570 Rental rate for space in Program/Leisure Pool @$50/hour. Year 2=100 hours per year,roughly 2 hours/week. Very conservative. Likely to be able to get some advance commitments. 48 49 50 POOL RENTALS SUBTOTAL 0 36,412 39,773 40,806 42,082 43,398 51 52 Competitive Event Rentals Not Applicable in existing facility 62 COMPETITIVE EVENTS REVENUE 0 0 0 0 0 0 63 SUBTOTAL 64 65 Special Rentals and Functions 66 Birthday Parties and other parties 16,000 20,000 20,600 21,424 22,281 Average Fee of$200 for party-anticipate 100/year initially.-covers 67 wide range of party functions. Meeting/Function Spaces 2,000 4,000 4,120 4,244 4,371 Potential for rentals of meeting spaces. Approximate meeting space rental of$50/hour plus set up fee.Year 2 estimate is 80 68 hours per year;roughly 1.6 hours/week. Fitness Studios or Workout space rentals 3,000 4,000 4,120 4,244 4,413 Potential for outside organizations and programs to rent workout spaces and studio spaces when available. Includes outside program providers of classes such as martial arts,outside fitness 69 classes,dance groups,etc. 70 Other rentals 71 72 SPECIAL EVENTS,FUNCTIONS,RENTALS :10 21,000 28,000 28,840 29,911 31,065 73 74 Therapy,Rehab and Health Care Programming Outsourced rental to health care provider/partner 75 Therapy time rental 0 0 0 0 Showing in Pool rental 2 of 5 6/1/2021 APPENDIX C2a--Facility Revenue City Managed Model A B G H I I I J I K L M 15 Rec and Community Center Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 76 Corporate health care programs 77 78 THERAPY,REHAB,HEALTH SUBTOTAL 0 0 0 0 0 0 84 Public Memberships/Daily Usage See Membership Worksheet. Utilized Membership Scenario#2. 85 Plan on advance membership drive in Year Zero to help offset Year Zero costs. Launch approximately 3 months prior to 86 opening. 87 88 Daily Admission 39,534 41,615 43,696 45,881 48,175 See membership worksheet for breakdown of passes Residents 0 0 0 Anticipate high start up for drop-in admissions in Year 1 as people 89 try out the"new"Rec Center. 90 Non-residents 0 0 0 91 12-Punch Pass 29,716 34,960 36,708 37,809 39,700 92 Residents 0 0 0 0 93 Non-residents 0 0 0 0 Membership Fees See Membership/Use Market analysis and projection worksheet. Want to review our assumptions,rates,and calculations. Potential for pre-opening advance membership sales. Year 1 is 75%of Year 2 projections based on membership model. Growth Year 2 to 3 is 5%and Year 3 on at 3%. Used Scenario#2. 94 95 Overall Facility Membership 929,334 1,239,112 1,301,068 1,366,121 1,434,427 Anticipate membership fee increase in Year 4 or sooner. 96 Fitness Only Membership 246,071 328,095 344,500 361,725 379,811 Residents Anticipate attracting more residents compared to Y but losing 97 some non-residents who may continue at Forest Lake Y. Non-residents We have the breakdown of the Y members by resident to 98 compare. Child Watch Membership Add-On 12,750 15,000 15,750 16,223 16,709 100 drop-ins per week at 50 weeks @$3/drop-in. Will revisit the business plan for this based on area facilities and develop a membership add on option. Market range is$1 to$6.50 for drop 99 in. Corporate Membership Programs Explore Opportunities-May depend on accessibility of location to 100 businesses. Combined Group/Organizational 101 membership partnerships Hotel Guest Membership Program 2,880 3,312 3,478 3,651 3,834 Explore Opportunities with Hampton Inn. Project average of 40 day passes/month @$6/pass for the Hotel. May be drop in passes purchased by the hotel. May link to some sponsorship H102 program. 103 3 of 5 6/1/2021 APPENDIX C2a--Facility Revenue City Managed Model A B G H I I I J I K L M 15 Rec and Community Center Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 104 105 MEMBERSHIP/DAILY USAGE SUBTOTAL 0 1,260,286 1,662,094 1,745,199 1,831,409 1,922,655 106 107 Retail and Vending: Vending Machine Revenue 1,000 1,150 1,185 1,220 1,257 Vending machines at facility-share of proceeds to facility revenue- 108 focus on healthy vending systems(see examples) 109 Food concession No food concession in current facility. Pro shop/Kiosk sales at front desk 4,000 6,000 6,180 6,365 6,556 Swim/workout accessories,bottled water/sports drinks,energy bars,and other items sold as a service to members through front desk kiosk. Line items shows net profit. No added staff to 110 support. Average$500/month profit in Year 2. 111 112 RETAIL&VENDING SUBTOTAL 0 5,000 7,150 7,365 7,585 7,813 113 114 Retail Lease Revenue No outside lease revenue in current facility. 115 116 Food Concessions 117 Other outsourced sales or space lease 118 119 RETAIL LEASE REVENUE SUBTOTAL 0 0 0 0 0 0 120 121 Facility Sponsorships and Contributions 122 Includes cost relieving in-kind donations(VIK) Sponsorships 0 0 0 0 0 We have not included any"soft"dollars. Potential exists for 123 some sponsorship revenue within City guidelines and policies. 124 Advertising 0 0 0 0 0 125 Annual Fundraising Partnerships Opportunity for corporate health programs/program funding and 126 other partnerships Grant Support Potential program for membership scholarships or financial aid to support financial aid to those that cannot afford the full cost of membership or programs. Nothing factored in but potential 127 exists. 128 SPONSORSHIP/CONTRIBUTIONS 0 0 0 0 0 0 129 SUBTOTAL 130 131 Municipal,School District and Other Partnerships To be developed. 132 133 School District Annual Use 134 Neighboring Municipalities Operating subsidy in exchange of resident rates,etc. 135 Health Care Provider 4 of 5 6/1/2021 APPENDIX C2a--Facility Revenue City Managed Model A B G H I I I J I K L M 15 Rec and Community Center Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 136 Other 137 138 139 SCHOOL DISTRICT&OTHER 0 0 0 0 0 0 No partnership or rental use included in this business model 140 141 Miscellaneous Income 142 Other 143 144 MISCELLANEOUS INCOME 0 0 01 01 0 0 A145 146 147 GRAND TOTAL-FACILITY REVENUE 0 1,342,698 1,767,017 1,853,7091 1,944,063 2,039,660 5 of 5 6/1/2021 APPENDIX C2b--Program Revenue City Managed Model AlB G I H I I I J I K I L I M 1 Lino Lakes Recreation and Community Center 2 Financial Forecast Pre-Opening Year Through Year 5 3 4 OPTION Existing Facility City Managed Membership Scenario#2 5 NOTES: 6 *Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility 7 Initially assumes management by City with many programs outsourced. 8 9 May 10,2021 10 Program Revenue 11 Revenue from In-house programs Issues to Review 12 Potential for Pre-Opening Revenue Potential for Increased Revenue 13 Potential for Loss of Revenue 14 ISG Projections 15 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 16 17 Education and Community Programming Lifesaving/Water Safety/Instructor 0 0 0 Facility not ideal for lifeguard training but could be joint program Courses and Certification. with Community Ed using this facility and function room and high 18 school for deep water certification. 19 First Aid/CPR/AED 1,500 2,500 2,575 2,678 2,785 Provide classes for outside groups also. 20 Community Classes 2,000 4,000 4,120 4,285 4,456 Examples: Computer,Art,Nutrition,Etc. 21 Sport/Reclntro Classes 2,000 4,000 4,120 4,285 4,456 22 Miscellaneous 0 0 0 0 Classes and other programs linked to 0 0 0 0 0 23 Health care providers 24 COMMUNITY AND EDUCATIONAL 0 5,500 10,500 10,815 11,248 11,698 25 PROGRAMMING SUBTOTAL 26 27 Aquatics Training,Fitness and Therapy Programs 28 Aquatic Fitness Classes 15,000 25,000 26,000 27,040 28,122 29 Personal Training-Aquatics 5,000 7,500 7,800 8,112 8,436 Personal training and cross training are rapidly increasing in 30 aquatics. This is upside potential. 31 32 1 of 4 6/1/2021 APPENDIX C2b--Program Revenue City Managed Model A B G H I I J K L M 14 ISG Projections 15 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments Senior Programs-independent of 0 0 0 0 0 Significant opportunities with senior living centers and supported membership by facility meeting space. May want to engage organizations at 33 next step in the development process. 34 Aquatic Therapy/Rehab Outsources-showing in facility revenue as rental income 35 36 AQUATIC FITNESS SUBTOTAL 0 20,0001 32,500 33,800 35,152 36,558 37 38 Dry-Side Fitness&Training Programs 39 40 Dry-Land Fitness Classes 60,000 64,800 67,392 70,088 72,891 41 Personal Training-Dry-side 5,000 5,750 5,980 6,219 6,468 Personal Training is trending higher today. Upside potential. Senior Programs-independent of Significant opportunities with senior living centers and supported membership by facility meeting space. May want to engage organizations at next step in the development process. Nothing factored in at this point. Can also be outsourced as rental space for senior living centers or other community senior programs. 42 43 44 45 DRY-SIDE FITNESS SUBTOTAL 0 65,000 70,550 73,372 76,307 79,359 46 Learn to Swim Program Includes all group lessons,kids and adults,private and semi- private lessons,swim lessons for triathletes,or private stroke 47 lessons,etc. 48 See Market Analysis and Projection worksheets Can explore partnership with School District existing Community Ed program or explore potential outside provider partnership. 49 Registration Fees-Swim Lesson Program 154,524 208,607 239,899 281,686 295,770 Assumes in-house program. 50 51 Group Lessons 0 0 0 52 Private Lessons 0 0 0 Private Lessons are trending up 53 Semi-Private Lessons 0 0 0 54 55 Other Revenue(Grants,Sponsorships) Grant programs supporting community and disadvantaged learn to swim programs,scholarships and community programs. 56 57 2 of 4 6/1/2021 APPENDIX C2b--Program Revenue City Managed Model AlB I G I H I I I J I K I L M 14 1 ISG Projections 15 Category I Year Zero* I Year 1 1 Year 2 Year 3 1 Year 4 I Year 5 Comments School or Community Ed Partnership Potential for swim lesson partnership with school district-would Program require some outside grant funding and transportation. Nothing included at this point in time. Example: Swim lessons for all 2nd 58 graders. 59 60 LEARN TO SWIM PROGRAM SUBTOTAL 0 154,524 208,607 239,899 281,686 295,770 61 62 Camp and Clinic Programs 63 Kids summer day camps/all sport 45,000 75,000 78,000 81,120 84,365 64 activities 65 Dive in Movies 0 0 0 66 Sport Specific Camps 0 0 0 67 Other Programs 68 69 CAMP/CLINIC PROGRAMS SUBTOTAL 01 45,000 75,000 78,000 81,1201 84,365 70 71 Aquatic Team Programs 72 73 USA Swimming In House Club 0 0 0 0 0 No in-house team. Outside clubs renting time. Summer Rec Swim Team 0 0 0 0 0 XX kids @$XXX/summer 6 week season in summer league. Explore Option-No revenue initially planned. Should explore in 74 Year 2. Masters Masters projected as outside group renting pool space. May consider an in-house masters or adult organized lap swimming 75 program at some point in time. 76 77 78 AQUATIC TEAMS SUBTOTAL 0 0 0 0 0 0 79 Any in-house programs 80 Sport&Team Programs and Classes To be determined 81 82 Youth Team Programs Most likely to be outside programs,renting some space 83 Adult Team Programs Pickle Ball 4,000 6,000 6,240 6,490 6,749 In-House Program: Small scale with current size of gym. If program grows the Rec Center may consider renting outside court 84 spac for its program demand. 85 Introductory Sport Classes 2,000 3,000 3,120 3,245 3,375 May coordinate with Community Ed. 86 Other 87 3 of 4 6/1/2021 APPENDIX C2b--Program Revenue City Managed Model A B G H I I J K L M 14 ISG Projections 15 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 88 89 SPORT TEAM PROGRAM SUBTOTAL 0 6,000 9,000 9,360 9,734 10,124 90 105 Program Specific Sponsorships and Contributions No"Soft"revenue factored in at this point,but anticipate some revenue,especially in grant support for outreach and program 106 user subsidies and scholarships. 107 Sponsorships In support of Specific Programs 108 Advertising In support of Specific Programs 109 Annual Fundraising Annual Fundraising in support of specific programs. Partnerships Opportunity for corporate health programs/program funding and 110 other partnerships 111 Grant Support Scholarship Programs and other grant support for programs 112 SPONSORSHIP/CONTRIBUTIONS 0 0 0 0 0 0 113 SUBTOTAL 114 115 Miscellaneous Income 116 Other 117 118 MISCELLANEOUS INCOME 0 0 0 0 0 0 119 120 121 GRAND TOTAL-PROGRAM REVENUE 0 296,024 406,157 445,2461 495,247 517,873 4 of 4 6/1/2021 APPENDIX C2c--Operational Expenses City Managed Model A B G H I I I J I K I L M 1 Lino Lakes Recreation and Community Center 2 Financial Forecast Pre-Opening Year Through Year 5 3 4 OPTION Existing Facility City Managed Membership Scenario#2 5 NOTES: 6 *Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility 7 Initially assumes management by City with some programs possibly outsourced. 8 9 May 10,2021 Factored in potential future$15/hour state minimum io Operational Expenses wage. 11 Issues to Review Annual Utility and Misc.Expenses increases at 3% 12 Potential for Increased Costs Salary and Wages increase at 5%annually 13 Potential to Reduce Costs Specific Pre-Opening One Time Costs 14 ISG Projections 15 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Years Comments 16 Utilities 25 yard lap pool Based on 104,000 Gallons-3'5"deep to 5"deep. (75'x 36')2,700 Square Feet 6 hour turnover rate. Flow Rate=288 GPM. These estimates are for the existing sand filters and equipment as 17 is. 18 Electric 6,000 6,180 6,365 6,556 6,753 Just pool water circulation 19 Water/Sewer 3,500 3,605 3,713 3,825 3,939 Does not include initial pool fill. 20 Gas(Heat/Cool) 6,000 6,180 6,365 6,556 6,753 Just Pool 21 Chemicals 0 0 0 0 In Equipment and Supplies UV Light 0 0 0 0 Annual Maintenance and Bulb Replacement in Pool 22 Maintenance 23 Program/Leisure Pool (60'x 36') Based on 29,000 Gallons-Zero depth to 4'deep. 6 2,160 Square Feet hour turnover rate. Flow Rate=241. These estimates are 24 for the existing Sand Filters. 25 Electric 5,000 5,150 5,305 5,464 5,628 Just the pool water circulation 26 Water/Sewer 3,000 3,090 3,183 3,278 3,377 Does not include initial pool fill. 27 Gas(Heat/Cool) 4,000 4,120 4,244 4,371 4,502 Just the pool 28 Chemicals 0 0 0 0 In Equipment and Supplies UV Light 0 0 0 0 Annual Maintenance and Bulb Replacement in Pool 29 Maintenance. 50 Pool Room Space Pool Room Space: 8,859 sq.ft.@$3.25/sq.ft.=$28,792 51 Electric 16,000 16,480 16,974 17,484 18,008 All Pool Room Space included. 52 Water/Sewer 792 816 840 865 891 53 Gas(Heat/Cool) 14,000 14,420 14,853 15,298 15,757 54 1 of 8 6/1/2021 APPENDIX C2c--Operational Expenses City Managed Model A B G H I I J I K L M 14 ISG Projections 15 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 55 56 Common and Support Spaces 11,661 sf @$3.00/sf=$34,983 57 Electric 20,000 20,600 21,218 21,855 22,510 Includes Locker rooms,Lobby,Offices,etc. 58 Water/Sewer 3,983 4,102 4,226 4,352 4,483 59 Gas(Heat/Cool) 15,500 15,965 16,444 16,937 17,445 60 61 62 Gym Space 4,566 sf @$2.50/sf=$11,415 63 Electric 5,500 5,665 5,835 6,010 6,190 64 Water/Sewer 415 427 440 453 467 65 Gas(Heat/Cool) 5,500 5,665 5,835 6,010 6,190 66 67 Fitness Center Spaces Includes all fitness workout and supporting spaces. 7,658 sf 68 @$3.00/square foot._$22,974 69 Electric 15,000 15,450 15,914 16,391 16,883 70 Water/Sewer 474 488 503 518 533 71 Gas(Heat/Cool) 11,250 11,588 11,935 12,293 12,662 72 0 0 0 0 73 0 0 0 0 86 Building Mechanicals and Operations 1,887 sq.ft.-average cost approx.$2.50=$4,717 87 Electric 2,000 2,060 2,122 2,185 2,251 88 Water/Sewer 717 739 761 783 807 89 Gas(Heat/Cool) 2,000 2,060 2,122 2,185 2,251 90 0 0 0 0 91 0 01 0 0 UTILITIES SUBTOTAL 9,000 140,631 144,850 149,195 153,671 158,281 Approximately$3.35/sf. Current Y is$3.30/sf. Year Zero is total of estimated monthly costs while closed: roughly$ 3,139/month assuming 4 months prior to full opening with expenses for 3 months of use as COVID Vaccination center factored out. This cost may increase as other costs are factored in. Expenses through June 30,2021 are covered by State of Minnesota for use as COVID Vaccine site. Lower energy use in warmer months when closed. 98 99 Maintenance Some of these services can be outside contracted services 100 101 Pool Maintenance 0 0 0 Anticipate Maintenance costs increasing as equipment ages H102 103 S&E Pool Mechanical 1 1 4,0001 4,1201 4,2441 4,3711 4,502 2 of 8 6/1/2021 APPENDIX C2c--Operational Expenses City Managed Model A B G H I I J K L M 14 ISG Projections 15 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments UV System Maintenance and Bulb 0 0 0 104 Replacement 105 25 yard Lap Pool 5,000 5,150 5,305 5,464 5,628 107 Program Pool 3,000 3,090 3,183 3,278 3,377 110 Building Repairs&Maintenance 10,000 10,300 10,609 10,927 11,255 Building Grounds,Maint,Plowing 20,000 20,600 21,218 21,855 22,510 Provided by City Maintenance team,but additional costs 111 factored into Rec Center Budget Replacement and Maintenance Showing in gross expenses below. 112 Accrual Fund Equipment Repairs 2,000 2,060 2,122 2,185 2,251 Includes fitness equipment-Could be different in a Lease 113 situation 114 Pre-Opening: Pool 6,000 Pre-Opening: Cleaning 6,000 First Floor cleaned by State as part of Vaccination Center 115 rental. 116 Pre-Opening: Maintenance 3,000 Contingency 117 Pool Refill-Water and chemicals 4,000 7,000 Both Pools-On a 5-year drain and fill cycle 118 119 MAINTENANCE SUBTOTAL 19,000 44,000 45,320 46,680 48,080 56,522 120 Equipment&Supplies Includes start up supplies and any equipment not included in Capital Costs and FF&E(Furniture,Fixtures,& Equipment). Specific program equipment showing in 121 Program Expenses. 122 Office Supplies 3,000 3,090 3,183 3,278 3,377 123 First Aid/Safety 2,000 2,060 2,122 2,185 2,251 124 Maintenance/Repair/Materials 3,000 3,090 3,183 3,278 3,377 Custodial Supplies 30,000 30,900 31,827 32,782 33,765 YMCA was on the high side on this. Anticipate some 125 savings with overall City purchase contracts. 126 Pool Chemicals 0 0 0 0 127 Lap Pool 5,000 5,150 5,305 5,464 5,628 128 Program/Leisure Pool 2,000 2,060 2,122 2,185 2,251 Pre-Opening Re-branded Building 16,000 132 Signage 133 Pre-Opening Pool Equipment 26,149 Pool Equipment 2,000 2,060 2,122 2,185 2,251 Includes equipment needed for opening and then annual 134 replacements Pre-Opening Sport Equipment 7,940 Includes equipment needed for opening and then annual 135 replacements. Includes Gym Equipment Sport Equipment 2,000 2,060 2,122 2,185 2,251 Includes equipment needed for opening and then annual 136 replacements. Includes Gym Equipment Pre-Opening Fitness Equipment 50,000 $15,000 in equipment already purchased. Already 137 Purchases I I 1purchased from Y by City. 3 of 8 6/1/2021 APPENDIX C2c--Operational Expenses City Managed Model A B G H I I J K L M 14 ISG Projections 15 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 138 Fitness Equipment Purchases 0 3,000 3,090 3,183 3,278 Fitness Equipment Leasing 9,000 72,000 72,000 72,000 72,000 72,000 Assumes Leasing majority of equipment at average of 139 6,000/month. Start 6 weeks prior to opening. Move and Set up Fitness Equipment, 140 Flooring,etc. 141 Recreational Supplies 2,000 jO6 2,122 2,185 2,251 142 Uniforms 3,000 3,183 3,278 3,377 May be offset by equipment/apparel sponsorships 143 Printing&Postage 1,000 1,061 1,093 1,126 Pre-Opening General Supplies and 48,000 Includes Start Up for Camp Equipment,Child Watch/Kids 144 Equipment Stuff Equipment 145 General Supplies and Equipment 0 5,000 5,305 51464 5,628 Pre pemng ui mg enera 65,425 Includes Start Up for Custodial Equipment,Copier,Printers, Supplies,Equipment and FF&E Camp Equipment,Child Watch/Kids Stuff Equipment 146 Contingency Building General Supplies, 5,000 5,150 5,305 5,464 5,628 147 Equipment and FF&E Contingency 148 Pre-Opening Management Program 17,000 Includes Card Access/Membership System Management 149 Equipment Equipment and Software jl� 150 Management Program Equipment 2,000 2,060 2,122 2,185 2,251 Updates,maintenance,and upgrades to systems 151 152 153 EQUIPMENT&SUPPLIES SUBTOTAL 239,514 139,000 144,010 146,170 148,395 150,687 154 Staff Costs: Salaries&Wages Year Zero includes staffing needed prior to opening of facility and not included in project capital costs and training of part-time staff. Using S%annual escalation to 155 account for COLA and step increases. 156 Full-Time Staff Need to review proper job title hierarchy with the City structure. City HR Director reviewing positions,grades, 157 and titles. Facility Director 37,500 90,000 94,500 99,225 104,186 109,396 1.0 FTE Start position 5 months prior to opening. Review 158 based on market rate and City grade levels. 159 Program Manager 16,250 65,000 68,250 71,663 75,246 79,008 1/0 FTE Start position 3 months prior to opening. Aquatic Supervisor 15,000 60,000 63,000 66,150 69,458 72,930 1.0 FTE May not be needed if working with Lease 160 Agreement-Start 3 months prior to opening. Membership/Customer Service 13,750 55,000 57,750 60,638 63,669 66,853 1.0 FTE Start 3 months prior to opening. 161 Manager Front Desk Coordinator 3,333 40,000 42,000 44,100 46,305 48,620 1.0 FTE Start 1 months prior to opening.May just be part- 162 1 1 1 1 1 1 time 4 of 8 6/1/2021 APPENDIX C2c--Operational Expenses City Managed Model A B G H I I J K L M 14 ISG Projections 15 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments Fitness Supervisor 13,750 55,000 57,750 60,638 63,669 66,853 May not need if working with Lease Agreement-Start 3 163 months prior to opening. 164 Maintenance/Operations Manager 19,250 77,000 80,850 84,893 89,137 93,594 1.0 FTE Start 3 months prior to opening. Administrative,Accounting,HR 9,500 55,000 57,750 60,638 63,669 66,853 1.0 FTE Start 3-4 months prior to opening.-Reviewing with City HR and operations to determine need or add on costs for existing City Staff. Is this covered in the City Admin 165 share costs? Custodial&Bldg.Maint.Staff 9,375 112,500 118,125 124,031 130,233 136,744 2.5 FTE Start 1 Months prior to opening following deep cleaning. Should this be in part-time? What should the base annual salary/rate by for these positions? We used 166 45,000 in this model. 167 168 169 170 FULL-TIME STAFF SUBTOTAL 137,708 609,500 639,975 671,974 705,572 740,851 171 172 Part-Time Staff Currently using 4%as annual escalation. All Part-Time positions are<30 hours/week. Assuming$15 minimum 173 hourly wage in near future. 174 Front Desk/Access Control 3,000 78,000 81,900 85,995 90,295 94,809 2.5 FTE,100 hrs./week @$15.00/hr.-$78,000 175 Fitness Attendants 2,000 78,000 81,900 85,995 90,295 94,809 2.5 FTE,100 hrs./week @$15.00/hr.-$78,000 Gym Monitors 2,000 31,200 32,760 34,398 36,118 37,924 1 FTE,40 hrs./week @$15.00/hr.-$31,200. Includes safety monitor and manage proper use of equipment("lifeguard" 176 for the weight and workout spaces) Head Lifeguard 2,000 18,720 19,656 20,639 21,671 22,754 .5 FTE,20 hrs./week @$18.00/hr.-$18,720. Should be 177 CPO certified. 178 Lifeguards 2,000 93,600 98,280 103,194 108,354 113,771 3 FTE,120 hrs./week @$15.00/hr.-$93,600 Custodial/Maintenance Part-Time 2,500 95,680 100,464 105,487 110,762 116,300 2 FTE for part-time custodial @$23/hour. Is this an hourly wage in line with current City custodial part-time staff? 179 Child watch 2,000 62,400 65,520 68,796 72,236 75,848 2 FTE,80 hrs./week @$15.00/hr.-$62,400. Revenue does not come close to supporting costs of program,but it is an important membership benefit/service. Year Zero is 180 training. 181 Program Instructors and Staff In program Expenses 182 183 Camp Staff In program Expenses 184 Other 185 [ltl Clerical/Administrative Support I Iln Full Time Staff 5 of 8 6/1/2021 APPENDIX C2c--Operational Expenses City Managed Model A B G H I I J K L M 14 ISG Projections 15 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments Event Staff costs All extraordinary event staff costs are paid separately by event renter/host or included in event expenses as a pass 187 through. 188 189 190 PART-TIME STAFF SUBTOTAL 15,5001 457,600 480,480 504,504 529,729 556,216 191 192 Staff Benefits and Payroll Taxes Confirm benefit&payroll tax calculations. HR reviewing. 193 194 Full Time 195 Benefits&Payroll Taxes 55,083 243,800 255,990 268,790 282,229 296,340 Roughly average 40%-will need to calculate exactly. 197 198 Part Time 200 Benefits&Payroll Taxes 3,100 91,520 96,096 100,901 105,946 111,243 Calculated at 20%to cover FICA,PERA,Workers Comp,etc. 201 BENEFITS&PAYROLL TAXES 202 SUBTOTAL 58,183 335,320 352,086 369,690 388,175 407,584 203 204 STAFF SALARIES,WAGES&BENEFITS 211,391 1,402,420 1,472,541 1,546,168 1,623,476 1,704,650 205 GRAND TOTAL 206 Staff Costs:Other NOTE: Outside services linked to funding,fundraising, design,etc.included in capital costs,not operating 207 budget. 208 209 Staff Development and Training 2,000 2,500 2,563 2,627 2,692 2,760 Can be managed by management staff 210 Conferences 2,000 2,050 2,101 2,154 2,208 211 Staff Certifications&Licenses 500 2,000 2,050 2,101 2,154 2,208 212 Staff Travel 2,000 2,050 2,101 2,154 2,208 213 Dues/Subscriptions 500 1,000 1,025 1,051 1,077 1,104 214 215 216 STAFF COSTS-OTHER 3,000 9,500 9,738 9,981 10,230 10,486 217 218 Outside(contract)Services 219 220 Accounting Services Included in Full Time Staff 221 PR/Media 11nitially combined with Marketing. 6 of 8 6/1/2021 APPENDIX C2c--Operational Expenses City Managed Model A B G H I I J K L M 14 ISG Projections 15 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments Marketing 10,000 10,000 5,000 5,000 Includes consultant fees. Can reduce after Year One and 222 phase out. Building Rebranding Development 4,000 Consulting on branding of Rec/Community Center. Can be 223 combined with marketing and PR services also. IT/Computer Support Included in City Admin Cost/Services Allocation line item. 224 225 Human Resources Handle in-house 226 Testing Services TBD 227 Custodial Outsourcing Currently showing in staff costs 228 Maintenance Outsourcing Currently showing in staff costs 229 Landscape Maintenance In Maintenance 230 231 Operations/Mgmt.Consultant N/A 232 Other 233 Trash Service 1,000 6,000 6,150 6,335 6,525 6,720 234 Contract Services 0 0 0 TBD 235 236 OUTSIDE SERVICES SUBTOTAL 15,000 16,000 11,150 11,335 6,525 6,720 237 238 General Office Costs 239 Phone/Media Service 0 3,000 3,100 3,200 3,300 3,400 240 Technology/IT Support 3,000 3,100 3,200 3,300 3,400 Scholarship and Membership 15,000 20,000 20,000 20,000 20,000 Allocation to support financial aid for residents not able to Financial Aid afford full cost of facility use and programs. Likely part of this expense can be offset by grant funding. At this point no grant support or other charitable support of financial aid 241 is factored in to budget. 242 Postage 1,500 1,500 1,500 1,500 1,500 1,500 General marketing mailing Marketing and Promo Materials 10,000 7,500 5,000 5,000 5,000 5,000 Marketing support for overall facility. Includes brochure, post cards,and other collateral materials. Additional marketing funds are also included in specific programs under program expenses. Important to incorporate into advance marketing. Some program specific marketing is listed in Program Expenses line items for the specific 243 program. 244 Advertising 0 3,000 3,000 3,000 3,000 3,000 Fees-Registration/CC/On-Line 50,411 66,484 69,808 73,256 76,906 Calculated at 4%of 100%of membership revenue using on- line registration and credit card processing. Program Registration&CC Fees show in Program Expenses. This is Maximum projected expenses and some savings are likely. 245 246 Bank Charges I JAre there any other bank charges 7 of 8 6/1/2021 APPENDIX C2c--Operational Expenses City Managed Model A B G H I I J K L M 14 ISG Projections 15 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 247 Legal Fees 5,000 5,000 5,000 5,000 5,000 Budgeted retainer. 248 2491 GENERAL OFFICE SUBTOTAL 11,500 88,411 107,184 110,708 114,356 118,206 250 251 Insurance 252 253 Insurance: 5,000 10,000 10,300 10,609 10,927 11,255 254 Insurance: Property 2-55 Insurance: Liability 256 Insurance: Other 257 258 INSURANCE SUBTOTAL 5,000 10,000 10,300 10,609 10,927 11,255 259 260 Miscellaneous 261 262 Other Expenses Expense Contingency 21500 10,000 7,500 5,000 5,000 5,000 Contingency decreases as history provides better budgeting 263 info. 264 265 MISCELLANEOUS SUBTOTAL 2,500 10,000 7,500 5,000 5,000 5,000 266 267 TOTAL-OPERATING EXPENSES 515,905 1,859,962 1,952,592 2,035,8461 2,120,662 2,221,809 268 269 GROSS OPERATING EXPENSES-Additional Support long term capital replacement,maintenance,and growth. Target is$440,000 by Year 10 and$1,000,000 by 270 Year 20. 271 Facility Reserve How do you want to show or account for this. 272 Initial Funding of Reserve Annual Reserve Replacement $ $ - $ 60,000 $ 70,000 $ 80,000 $ 82,400 Capital Replacement and Maintenance Reserve Fund. See Funding cumulative calculations in P&L Statement.After Year 3 273 reserve increases by 3%annually. 274 275 276 City Charge Backs(Administrative Overhead) City Support/Admin Charge Backs 150,000 157,500 165,375 173,644 182,326 The share of City Overhead charged to Rec Center. 277 Increasing 5%/year per City. 278 279 Additional Gross Operating Expenses 01 150,0001 217,5001 235,3751 253,6441 264,726 280 281 TOTAL GROSS EXPENSES 1 515,9051 2,009,9621 2,170,0921 2,271,2211 2,374,3061 2,486,535 8 of 8 6/1/2021 APPENDIX C2d:--Program Expenses City Managed Model AlB G I H I I I J I K I L I M 1 Lino Lakes Recreation and Community Center 2 Financial Forecast Pre-Opening Year Through Year 5 3 4 OPTION Existing Facility City Managed Membership Scenario #2 5 NOTES: 6 *Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility 7 Initially assumes management by City with many programs outsourced. 8 9 May 10,2021 10 Program Expenses 11 Program related expenses not included in annual operating pool staff and expenses 12 13 Potential for Increased Costs Program Expenses increase by 3%after Year 14 Potential to Reduce Costs 2. 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 17 Community Educational Programming Program Director 0 0 0 0 0 Program management and supervision in full- 18 time staff in Operational Expenses. Instructors 1,650 3,150 3,245 3,374 3,509 Hourly-Instructor fees increase at rate equal to increase in program gross revenue- Instructor wages average 30%of gross 19 program fees. Payroll Expenses/benefits/taxes 0 330 630 649 675 702 Assume part-time instructors. Calculated at 20%of wages to cover PERA, FICA, 20 Workman's comp,etc. Travel,Staff Development Staff development and Training in 21 Operational Expenses. 22 Marketing and Promo Materials 23 Other Program Expenses 500 500 500 500 500 24 Postage Fees-Registration/CC/On-Line 220 420 433 450 468 Showing in Operational Expenses-Bank 25 Charges 26 1 of 5 6/1/2021 APPENDIX C2d:--Program Expenses City Managed Model AlB I G I H I I I J I K I L M 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 1 Year 3 1 Year 4 1 Year 5 Comments COMMUNITY EDUCATIONAL 0 2,700 4,700 4,826 4,999 5,179 271 SUBTOTAL 28 29 Aquatic Training,Fitness and Therapy Programs Fitness Program Director 0 0 0 0 Program management and supervision in full- 30 time staff in Operational Expenses. Instructors for Classes 6,000 9,750 10,140 10,546 10,967 Hourly Wages calculated as 30%of class fee 31 revenue 33 Payroll Expenses/benefits/taxes 1,200 1,950 2,028 2,109 2,193 Assume part-time instructors 34 Travel,Staff Development Staff development and Training 35 Marketing and Promo Materials 36 Other Program Expenses 1,000 1,000 1,000 1,000 1,000 37 Postage Fees-Registration/CC/On-Line 800 1,300 1,352 1,406 1,462 Showing in Operational Expenses-Bank 38 Charges 39 40 AQUATIC FITNESS SUBTOTAL 0 9,0001 14,000 14,520 15,061 15,623 41 42 Dry-Side Fitness Fitness Program Director Program management and supervision in full- 43 time staff in Operational Expenses. Instructors 21,000 22,680 23,587 24,531 25,512 Hourly Wages calculated as 35%of class fee 44 revenue Personal Training Instructors 1,750 2,013 2,093 2,177 2,264 Hourly Wages calculated as 35%of class fee 45 revenue. Personal Training is growing. Payroll Expenses/benefits/taxes 0 4,550 4,939 5,136 5,341 5,555 Assume part-time instructors: Both City 46 employees and independent contractors. 47 Travel,Staff Development Staff development and Training 48 Marketing and Promo Materials 49 Other Program Expenses 1,000 1,000 1,000 1,000 1,000 50 Postage 51 Fees-Registration/CC/On-Line 2,600 2,822 2,935 3,052 3,174 52 53 DRY-SIDE FITNESS SUBTOTAL 1 01 30,9001 33,4531 34,7511 36,101 37,505 2 of 5 6/1/2021 APPENDIX C2d:--Program Expenses City Managed Model AlB I G I H I I I J I K I L M 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 54 55 Learn to Swim Program Costs Learn to Swim Program Director 0 0 0 0 0 Program management and supervision in full- time staff in Operational Expenses. May want to have dedictated program director based on size of program. May be lead instructor. 56 Learn to Swim Instructors 43,267 58,410 67,172 78,872 82,816 Hourly,$18/hr.-Year 0 is training. Instructors = approximately 28%of gross lesson 57 revenue. 58 Payroll Expenses/benefits/taxes 0 8,653 11,682 13,434 15,774 16,563 Assume part-time instructors 59 Travel,Staff Development 1,000 1,000 1,000 1,000 1,000 Staff development and Training 60 Marketing and Promo Materials 1,000 1,000 1,000 1,000 1,000 61 Other Program Expenses 1,500 1,950 2,340 2,574 2,703 62 Postage Fees-Registration/CC/On-Line 6,181 8,344 9,596 11,267 11,831 Showing in Operational Expenses-Bank 63 Charges 64 Scholarships 7,500 7,500 7,500 7,500 7,500 65 LEARN TO SWIM PROGRAM SUBTOTAL 0 69,101 89,886 102,042 117,988 123,412 66 67 68 Camp and Clinic Programs Camp Director 0 0 0 0 0 Program management and supervision in full- 69 time staff in Operational Expenses. 70 All Camp Staff 14,400 24,000 24,960 25,958 26,997 Wages calculated at 32%of gross revenue 71 72 Payroll Expenses/benefits/taxes 0 2,880 4,800 4,992 5,192 5,399 Marketing and Promo Materials May include some advertising and direct mail 73 campaign 74 Other Program Expenses 75 Postage Fees-Registration/CC/On-Line 1,800 3,000 3,120 3,245 3,375 Showing in Operational Expenses-Bank 76 1 1 1 Charges 3 of 5 6/1/2021 APPENDIX C2d:--Program Expenses City Managed Model A B G H I J K L M 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments Other Camp Expenses 2,000 2,300 2,484 2,608 2,739 Outfitting/Specific Equipment/Audio visual, 77 etc. 78 79 80 CAMP and CLINIC SUBTOTAL 0 21,080 34,100 35,556 37,003 38,509 81 82 Aquatic Team Programs US Masters Swimming Team Exploring as in-house or outsourced rental 83 program. 84 85 86 Coach Travel and Entertainment 87 Other Swim Team Expenses 88 Fees-Registration/CC/On-Line 89 Marketing and Promo Materials 90 Payroll Expenses/benefits/taxes 91 Masters Team Subtotal 0 0 0 0 0 0 92 Summer Recreation Swim Team Potential for summer rec team as program 93 grows-nothing factored in at this point. Coaches Payroll 0 0 0 0 0 Part time coaches-wage based on XX%of 94 total team revenue. 95 Coach Travel and Entertainment 96 Other Swim Team Expenses 0 0 0 0 Fees-Registration/CC/On-Line Showing in Operational Expenses-Bank 97 Charges 98 Marketing and Promo Materials 99 Payroll Expenses/benefits/taxes 0 0 0 0 0 0 No benefits 100 Summer Rec Team Subtotal 0 01 0 0 0 0 101 102 AQUATIC TEAMS SUBTOTAL 0 0 0 0 0 0 155 156 Sport Team Programs 157 4 of 5 6/1/2021 APPENDIX C2d:--Program Expenses City Managed Model A B G H I J K L M 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments Coaches/Instructors Payroll 1,800 2,700 2,808 2,920 3,037 Part time coaches-wage based on 30%of 158 total team revenue. 159 Coach Travel and Entertainment 160 Other Sport Program Expenses 1,000 1,150 1,323 1,521 1,749 Fees-Registration/CC/On-Line Showing in Operational Expenses-Bank 161 Charges 162 Marketing and Promo Materials In overall marketing 163 Payroll Expenses/benefits/taxes 0 360 540 562 584 607 No benefits 164 165 166 SPORT TEAMS SUBTOTAL 0 3,160 4,390 4,692 5,025 5,394 167 179 180 Scholarship and Student Support Expenses related to all programs 5,000 5,000 5,000 5,000 5,000 All Programs except learn to swim which has 181 its own financial aid budget. 182 183 184 SCHOLARSHIP&SUPPORT SUBTOTAL 0 5,000 5,000 5,000 5,000 5,000 185 186 Miscellaneous 187 Expense Contingency 7,500 6,000 5,000 5,000 5,000 Expense Contingency. ISG like to include a miscellaneous contingency. Contingency decreases each year as history better guides 188 budgeting. 189 190 MISCELLANEOUS SUBTOTAL 0 7,500 6,000 5,000 5,000 5,000 191 192 TOTAL-PROGRAM EXPENSES 0 148,441 191,529 206,387 226,177 235,623 193 194 Program Staff Wages&Benefits Subtotal 01 105,6801 144,0031 157,4361 174,5491 182,478 5 of 5 6/1/2021 APPENDIX C2e--Program Net Revenue City Managed Model A B G I H I I I J I K M 1 Lino Lakes Recreation and Community Center 2 Financial Forecast Pre-Opening Year Through Year 5 3 4 OPTION Existing Facility City Managed Membership Scenario#2 5 NOTES: 6 *Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility 7 Initially assumes management by City with many programs outsourced. 8 9 May 10,2021 10 Net Program Revenue 11 Issues to Review 12 Potential for Increased Revenue 13 Potential for Loss of Revenue 14 ISG Projections 15 Category Year 1' Year 2 Year 3 Year 4 Year 5 Comments 16 PROGRAM EXPENSES 148,441 191,529 206,387 226,177 235,623 17 18 PROGRAM INCOME 296,024 406,157 445,246 495,247 517,873 19 20 NET PROGRAM REVENUE(DEFICIT) 147,583 214,628 238,859 269,070 1 282,251 lYear 2 21 22 PROGRAM BREAKDOWN 23 Community Education Programming 24 Expenses 2,700 4,700 4,826 4,999 5,179 25 Revenue 5,500 10,500 10,815 11,248 11,698 26 Net Revenue(Deficit) 2,800 5,800 5,989 6,249 6,519 27 Profit Margin 51% 55% 55% 56% 56% 28 Aquatic Fitness and Training Programs 29 Expenses 9,000 14,000 14,520 15,061 15,623 30 Revenue 20,000 32,500 33,800 35,152 36,558 31 Net Revenue(Deficit) 11,000 18,500 19,280 20,091 20,935 32 Profit Margin 1 55% 57% 57% 57% 1 570 33 Dry-Side Fitness and Therapy Programs 1 of 2 6/1/2021 APPENDIX C2e--Program Net Revenue City Managed Model A B G H I I J K M 14 ISG Projections 15 Category Year 1' Year 2 Year 3 Year 4 Year 5 Comments 34 Expenses 30,900 33,453 34,751 36,101 37,505 35 Revenue 65,000 70,550 73,372 76,307 79,359 36 Net Revenue(Deficit) 34,100 37,097 38,621 40,206 41,854 37 Profit Margin 52% 53% 53% 53% 53% 38 Learn to Swim Programs 39 Expenses 69,101 89,886 102,042 117,988 123,412 Includes funding of scholarships 40 Revenue 154,524 208,607 239,899 281,686 295,770 Includes grant for scholarships 41 Net Revenue(Deficit) 85,423 118,721 137,857 163,698 172,358 42 Profit Margin 55% 57% 57% 58% 58% 43 Camp and Clinic Programs 44 Expenses 21,080 34,100 35,556 37,003 38,509 45 Revenue 45,000 75,000 78,000 81,120 84,365 46 Net Revenue(Deficit) 23,920 40,900 42,444 44,117 45,856 47 Profit Margin 53% 55% 54% 54% 54% 48 Summer Rec Swim Team 49 Expenses 0 0 0 0 0 50 Revenue 0 0 0 0 0 51 Net Revenue(Deficit) 0 0 0 0 0 52 Profit Margin #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 73 Sport/Team Programs 74 Expenses 3,160 4,390 4,692 5,025 5,394 75 Revenue 6,000 9,000 9,360 9,734 10,124 76 Net Revenue(Deficit) 2,840 4,610 4,668 4,709 4,730 77 Profit Margin 1 47% 1 51% 1 50% 1 48% 1 47% 2 of 2 6/1/2021 APPENDIX C3a Facility Revenue Hybrid Management Model AlB G I H I I I J I K I L I M 1 Lino Lakes Recreation and Community Center 2 Financial Forecast Pre-Opening Year Through Year 5 3 4 OPTION Existing Facility Hybrid Management Model Membership Scenario#2 5 NOTES: 6 Hybrid Management/Program model includes a Fitness Program Partner and Centennial Community Ed Swim Lesson/Aquatic Partnership 7 *Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility 8 Initially assumes management by City with many programs outsourced. 9 10 May 10,2021 11 Facility Revenue 12 Issues to Review 13 Partnership: Decreased Revenue Potential for Increased Revenue 14 Partnership: Decreased Expenses Potential for Pre-Opening Revenue 15 Partnership: Increased Revenue Potential for Loss of Revenue 16 Rec and Community Center Projections 17 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 18 Educational,Class,Camp and Clinic Rentals 19 Youth Camps 0 0 0 0 0 Any outside groups renting space for camp programs. In 20 house camps/clinics are in program revenue 21 Sport Camps Outside sport group camp rentals Recreational and Educational Classes and 0 0 0 Kayak,canoe,martial arts,dance for example: 22 Programming by outside providers Outsourced programming-could bring in house as developed 23 Community/Youth organizations Outside organizations renting space for programs. 24 25 EDUC,REC,CLASS,CAMP RENTALS 0 0 0 0 0 0 26 27 Gym/Court Space Rentals Hourly Gym Rentals=$60/full court/hour; 28 $35/half court/hour. 29 Basketball Programs 30 AAU Program 31 Centennial Basketball Assoc. 32 General Rental 20,000 30,000 31,500 33,075 34,729 10 hours/week @$60/hour for 50 weeks in Year 2. 33 34 Volleyball 35 Pickleball 36 Other Sport Program 37 Non-sport Rentals 38 1 of 6 6/1/2021 APPENDIX C3a Facility Revenue Hybrid Management Model A B G H I I I J I K L M 16 Rec and Community Center Projections 17 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 39 40 GYM/COURT RENTALS SUBTOTAL 0 20,000 30,000 31,500 33,075 34,729 41 Pool Rentals Rental revenue based on Schedule Matrix time allocated. Local Club team has expressed immediate interest in renting lane 42 space. 43 Tentative Lane Rental Rates: 25 yard-$12.50/lane/hour 44 Club Team Lane Rental Great Wolf Swim Club 30,912 32,148 32,952 33,941 34,959 Club has expressed interest in renting as soon as facility opens. Rent approximately 14 hours/week for 4 lanes at$12/lane/hour 45 for 46 weeks/year. 46 Other Groups/Clubs 0 0 0 0 47 25 Yd Pool Rentals(Non-competitive) 0 0 0 0 Program/Leisure Pool Rentals 2,500 2,625 2,704 2,785 2,868 Lesson Program or Community Ed Aquatic Programs other than 48 the swim lesson program Therapy/Rehab 3,000 5,000 5,150 5,356 5,570 Rental rate for space in Program/Leisure Pool @$50/hour. Year 2=100 hours per year,roughly 2 hours/week. Very conservative. Likely to be able to get some advance commitments. 49 50 51 POOL RENTALS SUBTOTAL 0 36,412 39,773 40,806 42,082 43,398 52 53 Competitive Event Rentals Not Applicable in existing facility 63 COMPETITIVE EVENTS REVENUE 0 0 0 0 0 0 64 SUBTOTAL 65 66 Special Rentals and Functions 67 Birthday Parties and other parties 16,000 20,000 20,600 21,424 22,281 Average Fee of$200 for party-anticipate 100/year initially.-covers 68 wide range of party functions. Meeting/Function Spaces 2,000 4,000 4,120 4,244 4,371 Potential for rentals of meeting spaces. Approximate meeting space rental of$50/hour plus set up fee.Year 2 estimate is 80 69 hours per year;roughly 1.6 hours/week. Fitness Studios or Workout space rentals 0 0 0 0 0 Control and outside rental of fitness spaces will be controlled by Fitness Partner except in mutually agreed upon one-off opportunities. Revenue zeroed out. Potential for outside organizations and programs to rent workout spaces and studio spaces when available. Includes outside program providers of classes such as martial arts,outside fitness classes,dance groups, 70 etc. 71 Other rentals 2 of 6 6/1/2021 APPENDIX Ga Facility Revenue Hybrid Management Model A B G H I I I J I K L M 16 Rec and Community Center Projections 17 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 72 73 SPECIAL EVENTS,FUNCTIONS,RENTALS 0 18,000 24,000 24,720 25,668 26,652 74 75 Therapy,Rehab and Health Care Programming Outsourced rental to health care provider/partner 76 Therapy time rental 0 0 0 0 0 Showing in Pool rental 77 Corporate health care programs 78 79 THERAPY,REHAB,HEALTH SUBTOTAL 0 0 0 0 0 0 85 86 Public Memberships/Daily Usage See Membership Worksheet Plan on advance membership drive in Year Zero to help offset Year Zero costs. Launch approximately 3 months prior to 87 opening. 88 Daily Admission 39,534 41,615 43,696 45,881 48,175 See membership worksheet for breakdown of passes. Do not 89 anticipate any change in daily admission passes. Residents 0 0 0 Anticipate high start up for drop-in admissions in Year 1 as people 90 try out the"new"Rec Center. 91 Non-residents 0 0 0 12-Punch Pass 29,716 34,960 36,708 37,809 39,700 Punch passes are not offered for fitness only. Do not anticipate 92 any drop in this revenue. 93 Residents 0 0 0 0 94 Non-residents 0 0 0 0 Membership Fees See Membership/Use Market analysis and projection worksheet. Want to review our assumptions,rates,and calculations. Potential for pre-opening advance membership sales. Year 1 is 75%of Year 2 projections based on membership model. Growth Year 2 to 3 is 5%and Year 3 on at 3%. 95 Ove 1,096,610 1,290,130 1,354,636 1,422,368 1,493,486 Year 1 increases to 85%of Year 2 based on Fitness Partner existing members. Also anticipate additional incremental growth of membership in Year 2 by 5%based on Fitness Partner. 96 Anticipate membership fee increase in Year 4 or sooner. FITNESS PARTNER ASSUMPTIONS: Membership in Year 1 accelerated. Anticipate some share of overall membership driven by Fitness Partner.Also anticipate Fitness partner will enhance value of membership-attracting increased membership overall (particularly considering the membership they were able to pull 97 from YMCA). 3 of 6 6/1/2021 APPENDIX C3a Facility Revenue Hybrid Management Model A B G H I I I J I K L M 16 Rec and Community Center Projections 17 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments Fitness Only Membership 0 0 D Fitness partner would accelerate year one membership,bringing in their existing membership immediately. FITNESS PARTNER ASSUMPTIONS: Fitness Partner would bring over half the anticipated total membership units to the Rec Center from their existing membership,accelerating membership revenue in Year 1.Fitness Partner would retain the equivalent membership revenue of all members they bring to the Rec Center. Rec Center &Fitness Partner would have revenue sharing for new fitness members as well as incentive to Fitness Partner for upgrades of Fitness members to Overall Facility memberships. To be negotiated as part of Joint Use Agreement(JUA). 98 Residents Anticipate attracting more residents compared to Y but losing 99 some non-residents who may continue at Forest Lake Y. Non-residents We have the breakdown of the Y members by resident to 100 compare. Child Watch Membership Add-On 12,750 15,000 15,750 16,223 16,709 100 drop-ins per week at 50 weeks @$3/drop-in. Will revisit the business plan for this based on area facilities and develop a membership add on option. Market range is$1 to$6.50 for drop in. May consider including Child Watch as part of Family 101 Membership. Corporate Membership Programs Explore Opportunities-May depend on accessibility of location to 102 businesses. Combined Group/Organizational 103 membership partnerships Hotel Guest Membership Program 2,880 3,312 3,478 3,651 3,834 Explore Opportunities with Hampton Inn. Project average of 40 day passes/month @$6/pass for the Hotel. May be drop in passes purchased by the hotel. May link to some sponsorship 104 program. 105 106 107 MEMBERSHIP/DAILY USAGE SUBTOTAL 0 1,181,491 1,385,017 1,454,268 1,525,932 1,601,904 108 109 Retail and Vending: Vending Machine Revenue 1,000 1,150 1,185 1,220 1,257 Vending machines at facility-share of proceeds to facility revenue- 110 focus on healthy vending systems(see examples) 111 Food concession No food concession in current facility. Pro shop/Kiosk sales at front desk 5,000 6,500 6,695 6,896 7,103 Swim/workout accessories,bottled water/sports drinks,energy bars,and other items sold as a service to members through front desk kiosk. Line items shows net profit. No added staff to 112 support. Average$500/month profit in Year 2. 113 4 of 6 6/1/2021 APPENDIX C3a Facility Revenue Hybrid Management Model A B G H I I I J I K L M 16 Rec and Community Center Projections 17 Category Year Zero* Year 1 Year 2 Year 3 1 Year 4 Year 5 Comments 114 RETAIL&VENDING SUBTOTAL 0 6,000 7,650 7,8801 8,116 8,359 115 Retail Lease Revenue No outside lease revenue in current facility. Does not include 116 Fitness Partner lease. See this in Partnership revenue center. 117 118 Food Concessions 119 Other outsourced sales or space lease 120 121 RETAIL LEASE REVENUE SUBTOTAL 0 0 0 0 0 0 122 123 Facility Sponsorships and Contributions 124 Includes cost relieving in-kind donations(VIK) Sponsorships 0 0 0 0 0 We have not included any"soft"dollars. Potential exists for 125 some sponsorship revenue within City guidelines and policies. Advertising 0 0 0 0 0 Fitness Partner may bring some sponsorships to the 126 program/facility. 127 Annual Fundraising Partnerships Opportunity for corporate health programs/program funding and 128 other partnerships Grant Support Potential program for membership scholarships or financial aid to support financial aid to those that cannot afford the full cost of membership or programs. Nothing factored in but potential 129 exists. 130 SPONSORSHIP/CONTRIBUTIONS 0 0 0 0 0 0 131 SUBTOTAL 132 133 Municipal,School District and Other Partnerships To be developed. 134 135 School District Annual Use Potential Operating subsidy in exchange of resident rates,etc. 136 Neighboring Municipalities Potential Operating subsidy in exchange of resident rates,etc. 137 Health Care Provider 138 Fitness Partner Lease Payments 75,000 75,000 75,000 75,000 75,000 Lease of Fitness spaces: Will be factored in with membership and program revenue sharing program to be determined. Considerably below market rate,but good to have some lease 139 payment guaranteed as part of overall JUA. 140 Other Other potential program partners as facility evolves and grows. 141 142 143 5 of 6 6/1/2021 APPENDIX C3a Facility Revenue Hybrid Management Model A B G H I I I J I K L M 16 Rec and Community Center Projections 17 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments SCHOOL DISTRICT&OTHER PARTNERSHIPS 0 75,000 75,000 75,000 75,000 75,000 No partnership or rental use included in this business model 144 145 146 Miscellaneous Income 147 Other 148 149 MISCELLANEOUS INCOME 0 0 0 0 0 0 150 r151 152 GRAND TOTAL-FACILITY REVENUE 0 1,336,903 1,561,4401 1,634,1731 1,709,872 1,790,042 6 of 6 6/1/2021 APPENDIX C3b--Program Revenue Hybrid Management Model AlB G I H I I I J I K I L I M 1 Lino Lakes Recreation and Community Center 2 Financial Forecast Pre-Opening Year Through Year 5 3 4 OPTION Existing Facility Hybrid Management Model Membership Scenario#2 5 NOTES: 6 Hybrid Management/Program model includes a Fitness Program Partner and Centennial Community Ed Swim Lesson/Aquatic Partnership 7 *Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility 8 Initially assumes management by City with many programs outsourced. 9 10 May 10,2021 11 Program Revenue Potential for Pre-Opening Revenue 12 Partnership: Decreased Revenue Issues to Review H14 Partnership: Decreased Expenses Potential for Increased Revenue Partnership: Increased Revenue Potential for Loss of Revenue Revenue from In-house programs 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 Year 3 I Year 4 Year 5 Comments 17 18 Education and Community Programming Lifesaving/Water Safety/Instructor 1,500 2,500 2,575 2,678 2,785 Facility not ideal for lifeguard training but could be joint program Courses and Certification. with Community Ed using this facility and function room and high school pool for deep water certification. Adds another program 19 enter. 20 First Aid/CPR/AED 1,500 2,500 2,575 2,678 2,785 Provide classes for outside groups also. 21 Co�y Classes 2,000 4,000 4,120 4,285 4,456 Examp es: Computer,Art, Etc. 22 Sport/Rec Intro Classes 2,000 4,000 4,120 4,285 4,456 May also provide space as needed for Community Ed Classes 23 Miscellaneous 0 0 0 0 Classes and other programs linked to 0 0 0 0 0 Explore health care program partners within City management or 24 Health care providers hybrid models. 25 COMMUNITY AND EDUCATIONAL 0 7,000 13,000 13,390 13,926 14,483 26 PROGRAMMING SUBTOTAL 27 28 Aquatics Training,Fitness and Therapy Programs Aquatic Fitness Classes 15,000 25,000 26,000 27,040 28,122 Potential for coordination with Fitness Partner dry-side programs and community Ed to expand reach of aquatic fitness. 29 30 Personal Training-Aquatics 5,000 7,500 7,800 8,112 8,436 Personal training and cross training are rapidly increasing in 31 aquatics. This is upside potential. 1 of 4 6/1/2021 APPENDIX C3b--Program Revenue Hybrid Management Model A B G H I I J K L M 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 32 33 Senior Programs-independent of 0 0 0 0 0 Significant opportunities with senior living centers and supported membership by facility meeting space. May want to engage organizations at next step in the development process. Coordinate as part of expansion of existing City Senior Programs. 34 35 Aquatic Therapy/Rehab Outsources-showing in facility revenue as rental income 36 37 AQUATIC FITNESS SUBTOTAL 0 20,000 32,500 33,800 35,152 36,558 38 Dry-Side Fitness&Training Programs Fitness Partner retains all class and training program revenue. 39 40 41 Dry-Land Fitness Classes 0 0 0 0 0 42 Personal Training-Dry-side 0 0 0 0 0 Personal Training is trending higher today. Upside potential. Senior Programs-independent of Significant opportunities with senior living centers and supported membership by facility meeting space. May want to engage organizations at next step in the development process. Nothing factored in at this point. Can also be outsourced as rental space for senior living centers or other community senior programs. 43 44 45 46 DRY-SIDE FITNESS SUBTOTAL 0 0 0 0 0 0 47 Learn to Swim Program Includes all group lessons,kids and adults,private and semi- private lessons,swim lessons for triathletes,or private stroke 48 lessons,etc. See Market Analysis and Projection worksheets-Hybrid Program 49 Partnership. Projections are for Community Ed swim lesson partnership but could also develop swim lesson program with another outside 50 partner. Registration Fees-Swim Lesson Program 48,639 65,662 75,511 88,827 93,268 Program partnership assumptions: Increase total participants by 30%. Shift to 80%residences as residency includes both Lino Lakes and Centennial School District. City/Rec Center retains 25% 51 of gross revenue. 52 Group Lessons 0 0 0 53 Private Lessons 0 01 0 Private Lessons are trending up 2 of 4 6/1/2021 APPENDIX C3b--Program Revenue Hybrid Management Model A B G H I I J K L M 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 54 Semi-Private Lessons 0 0 0 55 56 Other Revenue(Grants,Sponsorships) Grant programs supporting community and disadvantaged learn to swim programs,scholarships and community programs. 57 58 School or Community Ed Partnership Potential for swim lesson partnership with school district-would Program require some outside grant funding and transportation. Nothing included at this point in time. Example: Swim lessons for all 2nd 59 graders. 60 61 LEARN TO SWIM PROGRAM SUBTOTAL 0 48,639 65,662 75,511 88,827 93,268 62 63 Camp and Clinic Programs 64 Kids summer day camps/all sport 45,000 75,000 78,000 81,120 84,365 65 activities 66 Dive in Movies 0 0 0 67 Sport Specific Camps 0 0 0 68 Other Programs 69 70 CAMP/CLINIC PROGRAMS SUBTOTAL 0 45,000 75,000 78,000 81,120 84,365 71 72 Aquatic Team Programs 73 74 USA Swimming In House Club 0 0 0 0 0 No in-house team. Outside clubs renting time. Summer Rec Swim Team 0 0 0 0 XX kids @$XXX/summer 6 week season in summer league. 75 Explore Option-No revenue initially planned. Masters Masters projected as outside group renting pool space. May consider an in-house masters or adult organized lap swimming 76 program at some point in time. 77 78 79 AQUATIC TEAMS SUBTOTAL 0 0 0 0 0 0 80 81 Sport&Team Programs and Classes Any in-house programs to be determined. 82 Youth Team Programs Most likely to be outside programs,renting some space. No team 83 programs factored in,but potential exists. 3 of 4 6/1/2021 APPENDIX C3b--Program Revenue Hybrid Management Model A B G H I I J K L M 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 84 Adult Team Programs 85 Pickle Ball 4,000 6,000 6,240 6,490 6,749 In-House Program: Small scale with current size of gym. 86 Introductory Sport Classes 2,000 3,000 3,120 3,245 3,375 May coordinate with Community Ed. 87 Other 88 89 90 SPORT TEAM PROGRAM SUBTOTAL 0 6,000 9,000 9,360 9,734 10,124 91 106 Program Specific Sponsorships and Contributions No"Soft'revenue factored in at this point,but anticipate some revenue,especially in grant support for outreach and program user subsidies and scholarships. Anticipate that Fitness Program partner may have some sponsorship to bring to the Rec Center. 107 108 Sponsorships In support of Specific Programs 109 Advertising In support of Specific Programs 110 Annual Fundraising Annual Fundraising in support of specific programs. Partnerships Opportunity for corporate health programs/program funding and 111 other partnerships 112 Grant Support Scholarship Programs and other grant support for programs 113 SPONSORSHIP/CONTRIBUTIONS 0 0 0 0 0 0 114 SUBTOTAL 115 116 Miscellaneous Income 117 Other 118 119 MISCELLANEOUS INCOME 01 01 01 01 01 0 120 121 122 GRAND TOTAL-PROGRAM REVENUE 01 126,639 195,162 210,0611 228,759 238,797 4 of 4 6/1/2021 APPENDIX C3c Operational Expenses Hybrid Management Model A B G H I I I J I K I L M 1 Lino Lakes Recreation and Community Center 2 Financial Forecast Pre-Opening Year Through Year 5 3 4 OPTION Existing Facility Hybrid Management Model Membership Scenario#2 5 NOTES: 6 Hybrid Management/Program model includes a Fitness Program Partner and Centennial Community Ed Swim Lesson/Aquatic Partnership 7 *Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility 8 Initially assumes management by City with some programs possibly outsourced. 9 10 May 10,2021 Factored in potential future$15/hour state minimum 11 Operational Expenses wage. 12 Partnership: Decreased Revenue Issues to Review Annual Utility and Misc.Expenses increases at 3% 13 Partnership: Decreased Expenses Partnership: Increased Expenses Potential for Increased Costs Salary and Wages increase at 5%annually 14 Partnership: Increased Revenue Potential to Reduce Costs Specific Pre-Opening One Time Costs 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 17 Utilities 25 yard lap pool Based on 104,000 Gallons-3'5"deep to 5"deep. (75'x 36')2,700 Square Feet 6 hour turnover rate. Flow Rate=288 GPM. These estimates are for the existing sand filters and equipment as 18 is. 19 Electric 6,000 6,180 6,365 6,556 6,753 Just pool water circulation 20 Water/Sewer 3,500 3,605 3,713 3,825 3,939 Does not include initial pool fill. 21 Gas(Heat/Cool) 6,000 6,180 6,365 6,556 6,753 Just Pool 22 Chemicals 0 0 0 0 In Equipment and Supplies UV Light 0 0 0 0 Annual Maintenance and Bulb Replacement in Pool 23 Maintenance 24 Program/Leisure Pool (60'x 36') Based on 29,000 Gallons-Zero depth to 4'deep. 6 2,160 Square Feet hour turnover rate. Flow Rate=241. These estimates are 25 for the existing Sand Filters. 26 Electric 5,000 5,150 5,305 5,464 5,628 Just the pool water circulation 27 Water/Sewer 3,000 3,090 3,183 3,278 3,377 Does not include initial pool fill. 28 Gas(Heat/Cool) 4,000 4,120 4,244 4,371 4,502 Just the pool 29 Chemicals 0 0 0 0 In Equipment and Supplies UV Light 0 0 0 0 Annual Maintenance and Bulb Replacement in Pool 30 Maintenance. 51 Pool Room Space Pool Room Space: 8,859 sq ft.@$3.25/sq ft=$28,792 52 Electric 16,000 16,480 16,974 17,484 18,008 All Pool Room Space included. 53 Water/Sewer 792 816 840 865 891 54 Gas(Heat/Cool) 14,000 14,420 14,853 15,2981 15,757 1 of 9 6/1/2021 APPENDIX C3c Operational Expenses Hybrid Management Model A B G H I I J I K L M 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 55 56 57 Common and Support Spaces 11,661 sf @$3.00/sf=$34,983 58 Electric 20,000 20,600 21,218 21,855 22,510 Includes Locker rooms,Lobby,Offices,etc. 59 Water/Sewer 3,983 4,102 4,226 4,352 4,483 60 Gas(Heat/Cool) 15,500 15,965 16,444 16,937 17,445 61 62 63 Gym Space 4,566 sf @$2.50/sf=$11,415 64 Electric 5,500 5,665 5,835 6,010 6,190 65 Water/Sewer 415 427 440 453 467 66 Gas(Heat/Cool) 5,500 5,665 5,835 6,010 6,190 67 68 Fitness Center Spaces Includes all fitness workout and supporting spaces. 7,658 sf 69 @$3.00/square foot.=$22,974 70 Electric 15,000 15,450 15,914 16,391 16,883 71 Water/Sewer 474 488 503 518 533 72 Gas(Heat/Cool) 11,250 11,588 11,935 12,293 12,662 F74] 0 0 0 0 0 0 0 0 87 Building Mechanicals and Operations 1,887 sq ft-average cost approx.$2.50=$4,717 88 Electric 2,000 2,060 2,122 2,185 2,251 89 Water/Sewer 717 739 761 783 807 90 Gas(Heat/Cool) 2,000 2,060 2,122 2,185 2,251 91 0 0 0 0 92 0 01 0 0 UTILITIES SUBTOTAL 9,000 140,631 144,850 149,195 153,671 158,281 Approximately$3.35/sf. Current Y is$3.30/sf. Year Zero is total of estimated monthly costs while closed: roughly$ 3,139/month assuming 4 months prior to full opening with expenses for 3 months of use as COVID Vaccination center factored out. This cost may increase as other costs are factored in. Expenses through June 30,2021 are covered by State of Minnesota for use as COVID Vaccine site. Lower energy use in warmer months when closed. 99 100 Maintenance Some of these services can be outside contracted services 101 102 Pool Maintenance 0 0 0 Anticipate Maintenance costs increasing as equipment ages 103 2 of 9 6/1/2021 APPENDIX C3c Operational Expenses Hybrid Management Model A B G H I I J K L M 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 104 S&E Pool Mechanical 4,000 4,120 4,244 4,371 4,502 UV System Maintenance and Bulb 0 0 0 105 Replacement 106 25 yard Lap Pool 5,000 5,150 5,305 5,464 5,628 108 Program Pool 3,000 3,090 3,183 3,278 3,377 111 Building Repairs&Maintenance 10,000 10,300 10,609 10,927 11,255 Building Grounds,Maint,Plowing 20,000 20,600 21,218 21,855 22,510 Provided by City Maintenance team,but additional costs 112 factored into Rec Center Budget Replacement and Maintenance Accrual Showing in gross expenses below. 113 Fund Equipment Repairs 1,000 1,030 1,061 1,093 1,126 Includes fitness equipment repair. Decrease based on 114 Fitness Partner maintaining fitness equipment 115 Pre-Opening: Pool 6,000 Pre-Opening: Cleaning 6,000 First Floor cleaned by State as part of Vaccination Center 116 rental. 117 Pre-Opening: Maintenance 3,000 Contingency 118 Pool Refill-Water and chemicals 4,000 7,000 Both Pools-On a 5-year drain and fill cycle 119 120 MAINTENANCE SUBTOTAL 19,000 43,000 44,290 45,619 46,987 55,397 121 Equipment&Supplies Includes start up supplies and any equipment not included in Capital Costs and FF&E(Furniture,Fixtures,& Equipment). Specific program equipment showing in 122 Program Expenses. 123 Office Supplies 3,000 3,090 3,183 3,278 3,377 124 First Aid/Safety 2,000 2,060 2,122 2,185 2,251 125 Maintenance/Repair/Materials 3,000 3,090 3,183 3,278 3,377 Custodial Supplies 30,000 30,900 31,827 32,782 33,765 YMCA was on the high side on this. Anticipate some savings 126 with overall City purchase contracts. 127 Pool Chemicals 0 0 0 0 128 Lap Pool 5,000 5,150 5,305 5,464 5,628 129 Program/Leisure Pool 2,000 2,060 2,122 2,185 2,251 Pre-Opening Re-branded Building 16,000 133 Signage 134 Pre-Opening Pool Equipment 26,149 Pool Equipment 2,000 2,060 2,122 2,185 2,251 Includes equipment needed for opening and then annual 135 replacements Pre-Opening Sport Equipment 7,940 Includes equipment needed for opening and then annual 136 replacements. Includes Gym Equipment Sport Equipment 2,000 2,060 2,122 2,185 2,251 Includes equipment needed for opening and then annual 137 Ireplacements. Includes Gym Equipment 3 of 9 6/1/2021 APPENDIX C3c Operational Expenses Hybrid Management Model A B G H I I J K L M 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments Pre-Opening Fitness Equipment 15,000 $15,000 in equipment alrea y pc� urn. Already Purchases purchased from Y by City. Fitness Partner brings all their 138 own equipment reducing cost to City. 139 Fitness Equipment Purchases 0 3,000 3,090 3,183 3,278 140 Fitness Equipment Leasing 0 0 0 0 0 0 Fitness Partner assumes all expenses for equipment. Move and Set up Fitness Equipment, 15,000 Moving and set up of Fitness Partner Equipment-shared 141 Flooring,etc. costs. 142 Recreational Supplies 2,000 2,060 2,122 2,185 2,251 143 Uniforms 3,000 3,090 3,183 3,278 3,377 May be offset by equipment/apparel sponsorships 144 Printing&Postage 1,000 1,030 1,061 1,093 1,126 Pre-Opening General Supplies and 48,000 Includes Start Up for Camp Equipment,Child Watch/Kids 145 Equipment Stuff Equipment 146 General Supplies and Equipment 0 5,000 5,150 5,305 5,464 5,628 Pre-Opening Building General Supplies, 65,425 Includes Start Up for Custodial Equipment,Copier,Printers, Equipment and FF&E Contingency Camp Equipment,Child Watch/Kids Stuff Equipment 147 Building General Supplies,Equipment 5,000 5,150 5,305 5,464 5,628 148 and FF&E Contingency 149 Pre-Opening Management Program 17,000 Includes Card Access/Membership System Management 150 Equipment Equipment and Software 151 Management Program Equipment 2,000 2,060 2,122 2,185 2,251 Updates,maintenance,and upgrades to systems 152 153 154 EQUIPMENT&SUPPLIES SUBTOTAL 210,514 67,000 72,010 74,170 76,395 78,687 155 Staff Costs: Salaries&Wages Year Zero includes staffing needed prior to opening of facility and not included in project capital costs and training of part-time staff. Using 5%annual escalation to 156 account for COLA and step increases. 157 Full-Time Staff Need to review proper job title hierarchy with the City structure. City HR Director reviewing positions,grades, 158 and titles. Facility Director 37,500 90,000 94,500 99,225 104,186 109,396 1.0 FTE Start position 5 months prior to opening. Review 159 based on market rate and City grade levels. 160 Program Manager 16,250 65,000 68,250 71,663 75,246 79,008 1/0 FTE Start position 3 months prior to opening. Aquatic Supervisor 0 0 0 0 0 0 This position can be combined with Program Manager position since Community Ed would provide management of 161 the Swim Lesson program. Membership/Customer Service 13,750 55,000 57,750 60,638 63,669 66,853 1.0 FTE Start 3 months prior to opening. 162 Manager 4 of 9 6/1/2021 APPENDIX C3c Operational Expenses Hybrid Management Model A B G H I I J K L M 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments Front Desk Coordinator 3,333 40,000 42,000 44,100 46,305 48,620 1.0 FTE Start 1 months prior to opening.May just be part- time. Fitness Partner will provide front desk part-time staff but City will have the overall front desk supervisory 163 responsibilities. 164 Fitness Supervis 0 0 0 0 0 0 Fitness Partner provides this positio Maintenance/Operations Manager 19,250 77,000 80,850 84,893 89,137 93,594 1.0 FTE Start 3 months prior to opening. CPO trained and 165 certified. Administrative,Accounting,HR 55,000 60,638 63,669 66,853 1.0 FTE Start 3-4 months prior to opening.-Reviewing with City HR and operations to determine need or add on costs for existing City Staff. Is this covered in the City Admin share costs? May be able to reduce this position since Fitness Partner and Community Ed will manage all of their 166 instructors and staff. Custodial&Bldg.Maint.Staff 9,375 112,500 118,125 124,031 130,233 136,744 2.5 FTE Start 1 Months prior to opening following deep cleaning. Should this be in part-time? What should the base annual salary/rate by for these positions? We used 167 $45,000 in this model. 168 169 170 171 FULL-TIME STAFF SUBTOTAL 108,958 494,500 519,225 545,186 572,446 601,068 172 173 Part-Time Staff Currently using 4%as annual escalation. All Part-Time positions are<30 hours/week. Assuming$15 minimum 174 hourly wage in near future. 175 Front Desk/Access Control 3,000 46,800 49,140 51,597 54,177 56,886 1.5 FTE,60 hrs./week @$15.00/hr.-$46,800 176 Fitness Attendants A 0 0 0 0 0 W 0 Fitness Partner covers these positions. 177 Gym Monitors 2,000 31,200 32,760 34,398 36,118 37,924 1 FTE,40 hrs./week @$15.00/hr.-$31,200 Head Lifeguard 2,000 18,720 19,656 20,639 21,671 22,754 .5 FTE,20 hrs./week @$18.00/hr.-$18,720. Should 178 CPO certified. 179 Lifeguards 2,000 93,600 98,280 103,194 108,354 113,771 3 FTE,120 hrs./week @$15.00/hr.-$93,600 Custodial Part-Time 2,500 95,680 100,464 105,487 110,762 116,300 2 FTE for part-time custodial @$23/hour. Is this an hourly wage in line with current City custodial part-time staff? 180 Child watch 2,000 62,400 65,520 68,796 72,236 75,848 2 FTE,80 hrs./week @$15.00/hr.-$62,400. Revenue does not come close to supporting costs of program,but it is an important membership benefit/service. Year Zero is 181 training. 182 Program Instructors and Staff In program Expenses 183 184 Camp Staff un program Expenses 5 of 9 6/1/2021 APPENDIX C3c Operational Expenses Hybrid Management Model A B G H I I J K L M 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 185 Other 186 187 Clerical/Administrative Support In Full Time Staff Event Staff costs All extraordinary event staff costs are paid separately by event renter/host or included in event expenses as a pass 188 through. 189 190 191 PART-TIME STAFF SUBTOTAL 13,500 348,400 365,820 384,111 403,317 423,482 192 193 Staff Benefits and Payroll Taxes Confirm benefit&payroll tax calculations. HR reviewing. 194 195 Full Time 196 Benefits&Payroll Taxes 43,583 197,800 207,690 218,075 228,978 240,427 Roughly average 40%-will need to calculate exactly. 198 199 Part Time 201 Benefits&Payroll Taxes 2,700 69,680 73,164 76,822 80,663 84,696 Calculated at 20%to cover FICA,PERA,Workers Comp,etc. 202 BENEFITS&PAYROLL TAXES 203 SUBTOTAL 46,283 267,480 280,854 294,897 309,642 325,124 204 205 STAFF SALARIES,WAGES&BENEFITS 168,741 1,110,380 1,165,899 1,224,194 1,285,404 1,349,674 206 GRAND TOTAL 207 Staff Costs:Other NOTE: Outside services linked to funding,fundraising, design,etc.included in capital costs,not operating 208 budget. 209 Staff Development and Training 1,000 1,250 1,281 1,313 1,346 1,380 Can be managed by management staff. Program partners 210 fund staff training. Reducing costs by 50%. 211 Conferences 1,000 1,025 1,051 1,077 1,104 212 Staff Certifications&Licenses 500 1,000 1,025 1,051 1,077 1,104 213 Staff Travel 1,000 1,025 1,051 1,077 1,104 214 Dues/Subscriptions 500 500 513 525 538 552 215 216 217 STAFF COSTS-OTHER 1 2,0001 4p7501 4,8691 4,9901 5,1151 5,243 218 219 Outside(contract)Services 6 of 9 6/1/2021 APPENDIX C3c Operational Expenses Hybrid Management Model A B G H I I J K L M 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 220 221 Accounting Services Included in Full Time Staff 222 PR/Media Initially combined with Marketing. Marketing 6,000 4,000 3,000 3,000 Includes consultant fees. Can reduce after Year One and phase out. Marketing costs reduced based on existing marketing and new marketing provided by program 223 partners. Building Rebranding Development 4,000 Consulting on branding of Rec/Community Center. Can be 224 combined with marketing and PR services also. 225 IT/Computer Support Included in City Admin allocated expenses. Human Resources Anticipate handling in-house. Partners to handle HR for 226 their staff and instructors. 227 Testing Services TBD 228 Custodial Outsourcing Currently showing in staff costs 229 Maintenance Outsourcing Currently showing in staff costs 230 Landscape Maintenance In Maintenance 231 232 Operations/Mgmt.Consultant N/A 233 Other 234 Trash Service 1,000 6,000 6,150 6,335 6,525 6,720 235 Membership Upgrade Incentive to 54,831 64,506 67,732 71,118 74,674 Based on incentive for conversion of Fitness Members to Fitness Partner Overall Members and increased memberships driven to Rec Center. Would develop specific metrics as part of JUA. This line item is an initial estimate. Estimated at 5%of Overall 236 Facility membership revenue. 237 238 Contract Services 0 0 0 TBD 239 240 OUTSIDE SERVICES SUBTOTAL 11,000 64,831 73,656 77,066 77,643 81,395 241 242 General Office Costs 243 Phone/Media Service 0 3,000 3,100 3,200 3,300 3,400 244 Technology/IT Support 3,000 3,100 3,200 3,300 3,400 Scholarship and Membership Financial 15,000 20,000 20,000 20,000 20,000 Allocation to support financial aid for residents not able to Aid afford full cost of facility use and programs. Likely part of this expense can be offset by grant funding. At this point no grant support or other charitable support of financial aid is factored in to budget. Partners to also include some scholarship program in programs they run as part of their 245 commitment. 246 Postage 1,500 1,500 11500 1,500 1,500 1,500 General marketing mailing 7 of 9 6/1/2021 APPENDIX C3c Operational Expenses Hybrid Management Model A B G H I I J K L M 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments Marketing and Promo Materials 6,000 5,000 4,000 4,000 4,000 4,000 Marketing support for overall facility. Includes brochure, post cards,and other collateral materials. Additional marketing funds are also included in specific programs under program expenses. Important to incorporate into advance marketing. Some program specific marketing is listed in Program Expenses line items for the specific program. Some reduction in this line item based on marketing materials provided by Program Partners. 247 Advertising 2,000 2,000 2,000 2,000 2,000 2,000 Slight reduction in expenses more than made up by 248 Program Partner advertising. Fees-Registration/CC/On-Line 47,260 55,401 58,171 61,037 64,076 Calculated at 4%of 100%of membership revenue using on- line registration and credit card processing. Program Registration&CC Fees show in Program Expenses. This is Maximum projected expenses and some savings are likely. May be some decrease depending integration of membership registration systems. 249 250 Bank Charges Are there any other bank charges 251 Legal Fees 5,000 5,000 5,000 5,000 5,000 Budgeted retainer. 252 253 GENERAL OFFICE SUBTOTAL 9,500 81,760 94,101 97,071 100,137 103,376 254 255 Insurance 256 257 Insurance: 5,000 10,000 10,300 10,609 10,927 11,255 City working on getting insurance quote. 258 Insurance: Property Do you want the insurance broken down by category? 259 Insurance: Liability 260 Insurance: Other 261 262 INSURANCE SUBTOTAL 5,000 10,000 10,300 10,609 10,927 11,255 263 264 Miscellaneous 265 266 Other Expenses Expense Contingency 2,500 10,000 7,500 5,000 5,000 5,000 Contingency decreases as history provides better budgeting 267 info. 268 269 MISCELLANEOUS SUBTOTAL 2,500 10,000 7,500 5,000 5,000 5,000 270 271 TOTAL-OPERATING EXPENSES 437,255 1,532,351 1,617,4751 1,687,915 1,761,280 1,848,308 272 8 of 9 6/1/2021 APPENDIX C3c Operational Expenses Hybrid Management Model A B G H I I J K L M 15 ISG Projections 16 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 273 GROSS OPERATING EXPENSES-Additional Support long term capital replacement,maintenance,and growth. Target is$440,000 by Year 10 and$1,000,000 by 274 Year 20. 275 Facility Reserve How do you want to show or account for this. 276 Initial Funding of Reserve Annual Reserve Replacement Funding $ $ $ 60,000 $ 70,000 $ 80,000 $ 82,400 Capital Replacement and Maintenance Reserve Fund. See cumulative calculations in P&L Statement.After Year 3 277 reserve increases by 3%annually. 278 279 280 City Charge Backs(Administrative Overhead) City Support/Admin Charge Backs 150,000 157,500 165,375 173,644 182,326 The share of City Overhead charged to Rec Center. Increasing 59/o/year per City. Potential reduce administration allocation based on fewer employees a 281 reduced management load. 282 283 Additional Gross Operating Expenses 01 150,0001 217,5001 235,3751 253,6441 264,726 284 285 TOTAL GROSS EXPENSES 1 437,2551 1,682,3511 1,834,9751 1,923,2901 2,014,9241 2,113,034 9 of 9 6/1/2021 APPENDIX C3d Program Expenses Hybrid Management Model AlB G I H I I I J I K I L I M 1 Lino Lakes Recreation and Community Center 2 Financial Forecast Pre-Opening Year Through Year 5 3 4 OPTION Existing Facility Hybrid Management Model Membership Scenario #2 5 NOTES: 6 Hybrid Management/Program model includes a Fitness Program Partner and Centennial Community Ed Swim Lesson/Aquatic Partnership 7 *Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility 8 Initially assumes management by City with many programs outsourced. 9 10 May 10,2021 11 Program Expenses 12 Program related expenses not included in annual operating pool staff and expenses 13 Partnership: Decreased Revenue Issues to Review 14 Partnership: Decresed Expenses Potential for Increased Costs Program Expenses increase by 3%after Year 15 Partnership: Increaed Revenue Potential to Reduce Costs 2. 16 ISG Projections 17 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Years Comments 18 Education and Community Programming Program Director 0 0 0 0 0 Program management and supervision in full- 19 time staff in Operational Expenses. Instructors 2,100 3,900 4,017 4,178 4,345 Hourly-Instructor fees increase at rate equal to increase in program gross revenue- Instructor wages average 30%of gross 20 program fees. Payroll Expenses/benefits/taxes 0 420 780 803 836 869 Assume part-time instructors. Calculated at 20%of wages to cover PERA, FICA, 21 Workman's comp,etc. Travel,Staff Development Staff development and Training in 22 Operational Expenses. 23 Marketing and Promo Materials 24 Other Program Expenses 500 500 500 500 500 25 Postage Fees-Registration/CC/On-Line 280 520 536 557 579 Showing in Operational Expenses-Bank 26 Charges 1 of 5 6/1/2021 APPENDIX C3d Program Expenses Hybrid Management Model A B G H I I J K L M 16 ISG Projections 17 Category Year Zero* Year 1 Year 2 1 Year 3 Year 4 Year 5 Comments 27 COMMUNITY EDUCATIONAL 0 3,300 5,700 5,856 6,070 6,293 281 SUBTOTAL 29 Aquatic Training, Fitness and Therapy Programs Will coordinate some aquatic fitness with Fitness Partner and Aquatic Partner. Savings 30 TBD Fitness Program Director 0 0 0 0 Program management and supervision in full- 31 time staff in Operational Expenses. Instructors-Classes 6,000 9,750 10,140 10,546 10,967 Hourly Wages calculated as 30%of class fee 32 revenue 34 Payroll Expenses/benefits/taxes 1,200 1,950 2,028 2,109 2,193 Assume part-time instructors 35 Travel,Staff Development Staff development and Training 36 Marketing and Promo Materials 37 Other Program Expenses 1,000 1,000 1,000 1,000 1,000 38 Postage Fees-Registration/CC/On-Line 800 1,300 1,352 1,406 1,462 Showing in Operational Expenses-Bank 39 Charges 40 41 AQUATIC FITNESS SUBTOTAL 0 9,000 14,000 14,520 15,061 15,623 42 Dry-Side Fitness Fitness Costs and Staff covered by Fitness 43 Partner. Fitness Program Director Program management and supervision in full- 44 time staff in Operational Expenses. Instructors 0 0 0 0 0 Hourly Wages calculated as 35%of class fee 45 revenue Personal Training Instructors 0 0 0 0 0 Hourly Wages calculated as 35%of class fee 46 revenue. Personal Training is growing. Payroll Expenses/benefits/taxes 0 0 0 0 0 0 Assume part-time instructors: Both City 47 employees and independent contractors. 48 Travel,Staff Development Staff development and Training 49 Marketing and Promo Materials 50 Other Program Expenses 1,000 1,000 1,000 1,000 1,000 Miscellaneous Expense 2 of 5 6/1/2021 APPENDIX C3d Program Expenses Hybrid Management Model A B G H I I J K L M 16 ISG Projections 17 Category Year Zero* Year 1 Year 2 1 Year 3 Year 4 Year 5 Comments 51 Postage 52 Fees-Registration/CC/On-Line 0 0 0 0 0 53 54 DRY-SIDE FITNESS SUBTOTAL 0 1,000 1,000 1,000 1,000 1,000 SS Learn to Swim Program Costs Aquatic Partner to cover all Learn to Swim 56 Program Expenses and Staff. 57 Learn to Swim Program Director 0 0 0 0 0 Learn to Swim Instructors Hourly,$18/hr.-Year 0 is training. Instructors = approximately 28%of gross lesson 58 revenue. 59 Payroll Expenses/benefits/taxes 0 0 0 0 0 0 Assume part-time instructors 60 Travel,Staff Development Staff development and Training Marketing and Promo Materials 1,000 1,000 1,000 1,000 1,000 Still include some Rec Center marketing and 61 promo materials. 62 Other Program Expenses 0 0 0 0 0 63 Postage Fees-Registration/CC/On-Line Anticipate registration through Aquatic 64 Partner. Scholarships 3,750 3,750 3,750 3,750 3,750 Split between City and Aquatic Partner. This 65 line item reflects 50%of total budget. 66 LEARN TO SWIM PROGRAM SUBTOTAL 0 4,750 4,750 4,750 4,750 4,750 67 68 69 Camp and Clinic Programs Camp Director 0 0 0 0 0 Program management and supervision in full- 70 time staff in Operational Expenses. 71 All Camp Staff 14,400 24,000 24,960 25,958 26,997 Wages calculated at 32%of gross revenue 72 73 Payroll Expenses/benefits/taxes 0 2,880 4,800 4,992 5,192 5,399 Marketing and Promo Materials May include some advertising and direct mail 74 campaign 75 Other Program Expenses 3 of 5 6/1/2021 APPENDIX C3d Program Expenses Hybrid Management Model A B G H I I J K L M 16 ISG Projections 17 Category Year Zero* Year 1 Year 2 Year 3 Year 4 Year 5 Comments 76 Postage Fees-Registration/CC/On-Line 1,800 3,000 3,120 3,245 3,375 Showing in Operational Expenses-Bank 77 Charges Other Camp Expenses 2,000 2,300 2,484 2,608 2,739 Outfitting/Specific Equipment/Audio visual, 78 etc. 79 80 81 CAMP and CLINIC SUBTOTAL 0 21,080 34,100 35,556 37,003 38,509 82 83 Aquatic Team Programs US Masters Swimming Team Exploring as in-house or outsourced rental 84 program. 85 86 87 Coach Travel and Entertainment 88 Other Swim Team Expenses 89 Fees-Registration/CC/On-Line 90 Marketing and Promo Materials 91 Payroll Expenses/benefits/taxes 92 Masters Team Subtotal 0 0 0 0 0 0 93 Summer Recreation Swim Team Potential for summer rec team as program 94 grows-nothing factored in at this point. Coaches Payroll 0 0 0 0 0 Part time coaches-wage based on XX%of 95 total team revenue. 96 Coach Travel and Entertainment 97 Other Swim Team Expenses 0 0 0 0 Fees-Registration/CC/On-Line Showing in Operational Expenses-Bank 98 Charges 99 Marketing and Promo Materials 100 Payroll Expenses/benefits/taxes 0 01 0 0 0 0 No benefits 101 Summer Rec Team Subtotal 0 0 0 0 0 0 102 103 AQUATIC TEAMS SUBTOTAL 0 0 0 0 0 0 4 of 5 6/1/2021 APPENDIX C3d Program Expenses Hybrid Management Model A B G H I J K L M 16 ISG Projections 17 Category Year Zero* Year 1 Year 2 1 Year 3 Year 4 Year 5 Comments 156 168 169 Scholarship and Student Support Expenses related to all programs 5,000 5,000 5,000 5,000 5,000 All Programs except learn to swim which has 170 its own financial aid budget. 171 172 173 SCHOLARSHIP&SUPPORT SUBTOTAL 0 5,000 5,000 5,000 5,000 5,000 174 175 Miscellaneous 176 Expense Contingency 3,750 3,000 2,500 2,500 2,500 Expense Contingency. ISG like to include a miscellaneous contingency. Contingency decreases each year as history better guides budgeting. Partnerships reduce expense 177 contingency. Reduced by 50%. 178 179 180 MISCELLANEOUS SUBTOTAL 0 3,750 3,000 2,500 2,500 2,500 181 182 TOTAL-PROGRAM EXPENSES 1 01 47,8801 67,5501 69,1821 71,384 73,676 F183 184 Program Staff Wages&Benefits Subtotal 1 01 27,0001 45,1801 46,9401 48,8181 50,771 5 of 5 6/1/2021 APPENDIX C3e--Program Net Revenue Hybrid Management Model A B G I H I I I J I K M 1 Lino Lakes Recreation and Community Center 2 Financial Forecast Pre-Opening Year Through Year 5 3 4 OPTION Existing Facility Hybrid Management Model Membership Scenario #2 5 NOTES: 6 Hybrid Management/Program model includes a Fitness Program Partner and Centennial Community Ed Swim Lesson/Aquatic Partnership 7 *Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility 8 Initially assumes management by City with many programs outsourced. 9 10 May 10,2021 11 Net Program Revenue 12 Partnership: Decreased Revenue Issues to Review 13 Partnership: Decresed Expenses Potential for Increased Revenue 14 Partnership: Increaed Revenue Potential for Loss of Revenue 15 ISG Projections 16 Category Year 1 Year 2 Year 3 Year 4 Year 5 Comments 17 PROGRAM EXPENSES 47,880 67,550 69,182 71,384 73,676 18 19 PROGRAM INCOME 126,639 195,162 210,061 228,759 238,797 20 21 NET PROGRAM REVENUE(DEFICIT) 1 78,759 1 127,612 1 140,879 1 157,374 1 165,121 22 23 PROGRAM BREAKDOWN 24 Community Education Programming 25 Expenses 3,300 5,700 5,856 6,070 6,293 26 Revenue 7,000 13,000 13,390 13,926 14,483 27 Net Revenue (Deficit) 3,700 7,300 7,534 7,855 8,190 28 Profit Margin 53% 56% 56% 56% 57% 29 Aquatic Fitness and Training Programs 30 Expenses 9,000 14,000 14,520 15,061 15,623 31 Revenue 20,000 32,500 33,800 35,152 36,558 32 Net Revenue (Deficit) 11,000 18,500 19,280 20,091 20,935 33 Profit Margin 1 55% 1 57% 1 57% 1 57% 1 57% 1 of 2 6/1/2021 APPENDIX C3e--Program Net Revenue Hybrid Management Model A B G H I I J K M 15 ISG Projections 16 Category Year 1 Year 2 Year 3 Year 4 Year 5 Comments 34 Dry-Side Fitness and Therapy Programs Managed by Outside Fitness Partner 35 Expenses 1,000 1,000 1,000 1,000 1,000 36 Revenue 0 0 0 0 0 37 Net Revenue(Deficit) (1,000) (1,000) (1,000) (1,000) (1,000) 38 Profit Margin #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 39 Learn to Swim Programs 40 Expenses 4,750 4,750 4,750 4,750 4,750 Includes funding of scholarships 41 Revenue 48,639 65,662 75,511 88,827 93,268 Includes grant for scholarships 42 Net Revenue(Deficit) 43,889 60,912 70,761 84,077 88,518 43 Profit Margin 90% 93% 94% 95% 95% 44 Camp and Clinic Programs 45 Expenses 21,080 34,100 35,556 37,003 38,509 46 Revenue 45,000 75,000 78,000 81,120 84,365 47 Net Revenue(Deficit) 23,920 40,900 42,444 44,117 45,856 48 Profit Margin 53% 55% 54% 54% 54% 49 Summer Rec Swim Team 50 Expenses 0 0 0 0 0 51 Revenue 0 0 0 0 0 52 Net Revenue(Deficit) 0 0 0 0 0 53 Profit Margin #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 74 75 76 77 78 2 of 2 6/1/2021 APPENDIX D POOLS OPERATIONAL and MECHANICAL SYSTEMS This ISG Study Report for Lino Lakes includes some operational and mechanical considerations below for the City. Below you will see the operational systems that should be considered at some point in this entire process. The state of the art equipment and systems considerations are based on the following criteria: • Energy efficiency • Low annual operation costs o Savings on electric, natural gas, chemicals, and water o Less staff operational time • Low long term maintenance • Short payback period for premium equipment costs • Extended lifespan • Minimal water usage • Minimize environmental impact • Minimal impact on programming and pool down time due to regular maintenance This technology includes: • Regenerative Media Filters: o Reducing water consumption and waste water by through significantly reduced need to backwash filters and add for replacement water. ■ Approximately a 80%to 90% savings in water use related to traditional backwashing with high rate sand filters o Reducing electrical, natural gas, and chemical use through 80%to 90% less replacement water to heat and treat. o Filters down to particles one micron in size compared to 15 to 30 microns in traditional high rate sand filters in the existing pool facilities o Reduces space needed in pool pump room for filter systems by approximately 30% o Reduces time needed by staff to operate and maintain o The cost of replacement of the existing Sand Filters is estimated at $85,000 to $95,000 ■ The estimated operational cost savings of the Regenerative Media Filers for both pools together is: • Electric: $7,000/year • Water: $5,000/year • Gas: $2000/year • Chemicals $1,000/year • UV water purification system o The existing YMCA Aquatic Facility is equipped with the UV water purification system Page 1 of 3 • Variable Frequency Drives (VFDs) o Controls the pump output power and electrical draw based on filter and circulation needs and demand o Reduces pump electrical use by 20%to 25% o NOTE: Some Utility companies are providing grants or incentive credits for installing VFDs. • State of the art chemical and pool controllers (linked via web access for off-site monitoring and smart control) o Provides more consistent and accurate control of pool systems, chemical levels, water levels, and temperatures o Provides direct alerts to pool operators and management of any problems in order to identify and address problems in a more timely fashion o The existing Lino Lakes Pool Facilities does have currently good Pool Controllers, although the Pool Controller technology does improve each year • High efficiency pool heaters • HVAC Technology • LED lighting o Including zone and intensity controls to manage light levels based on time of day, usage, and specific event needs o NOTE: Grants sometimes are available for converting buildings to LED lights. At this time in the ISG facility analysis, ISG is not recommending any changes to the Aquatic Facility operating equipment since the existing equipment is in good shape and has been well cared for. ISG is only recommending that the City understand the various options that would exist for the Aquatic Facility in the future as the existing equipment grows older, out of date or falters in any way. The cost savings for new upgraded modern technology is significant, however, at this time in the process the pay back period would be too long to make it reasonable. When the systems reach the end of their life cycle, then the pay back would make it reasonable to consider the new technology options available. Examples of State of the Art Pool Mechanical Systems lemur Regenerative Media Filters UV Purification System (Neptune Benson Defenders) Page 2 of 3 oa®a erYe ogys■ Variable Frequency Drives Web-based Chemical/Pool Controller Page 3 of 3 CITY COUNCIL AGENDA ITEM 3B STAFF ORIGINATOR: Sarah Cotton, City Administrator MEETING DATE: June 28, 2021 TOPIC: 2nd Reading of Ordinance No. 06-21, Adjusting Council Salaries VOTE REQUIRED: 3/5 INTRODUCTION The City Council is being asked to consider the 2nd Reading of Ordinance No. 06-21, adjusting the salaries of the Mayor and Councilmembers. BACKGROUND Pursuant to M.S. § 415.11, the compensation of the Mayor and Councilmembers shall be set by ordinance and the change in salary shall take effect after the next succeeding municipal election. During the June 7th work session, staff recommended the City Council adopt an ordinance that would increase council salaries. The Mayor and Councilmembers last received a raise on January 1, 2020. The salary of the Mayor is currently $10,112 and the salary of each Councilmember is $8,500. Per City Code Chapter 203, the Council will consider whether a salary adjustment is warranted every two years. Staff is recommending a 5.3% increase in the salary of the Mayor and Councilmembers. The salary of the Mayor would increase to $10,650 and the salary of each Councilmember would increase to $8,952. This increase is consistent with the total wage adjustment for City employees from 2020-2021. The proposed ordinance would become effective January 1, 2022, and would continue to be reviewed every two years per City Code. RECOMMENDATION Staff is recommending approval of the 2nd Reading of Ordinance No. 06-21, increasing the salaries of the mayor and councilmembers. ATTACHMENTS Ordinance No. 06-21 V Reading: June 14,2021 Publication: 2na Reading: June 28, 2021 Effective: January 1, 2022 CITY OF LINO LAKES ORDINANCE NO. 06-21 AMENDING CHAPTER 203 OF THE LINO LAKES CITY CODE BY ADJUSTING THE SALARIES OF THE MAYOR AND COUNCILMEMBERS The City Council of Lino Lakes ordains: Section 1. That Chapter 203 of the Lino Lakes Code of Ordinances be amended to read as follows: CHAPTER 203: COUNCIL COMPENSATION § 203.01 COMPENSATION OF MAYOR AND COUNCILMEMBERS. (1) Salaries. The compensation of the Mayor and each Councilmember shall be established from time to time by City Council ordinance pursuant to M.S. § 415.11. Effective January 1,24N2022, the salary of the Mayor shall be $10,11�10_650, and the salary of each Councilmember shall be $8—,5008,952. Thereafter, every two years the City Council will consider whether a salary adjustment is warranted. This salary is intended to cover all meetings that may be attended by the Mayor or Councilmembers except as expressly provided in this section. (2) Payment. The salaries established hereby are to be paid monthly. (3) Economic Development Authority (EDA) meetings. The City Council will be compensated for attendance at EDA meetings at the rate of$40 per meeting. § 203.02 WORKER'S COMPENSATION. Pursuant to M.S. § 176.011, Subd. 5, as it may be amended from time to time, all of the City Council members shall be covered by worker's compensation. Section 2. Effective Date. This Ordinance shall be effective January 1, 2022. Adopted by the Lino Lakes City Council this 28th day of June 2021. The motion for the adoption of the foregoing ordinance was introduced by Councilmember and was duly seconded by Councilmember and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: Rob Rafferty, Mayor ATTEST: Julianne Bartell, City Clerk CITY COUNCIL AGENDA ITEM 3C STAFF ORIGINATOR: Sarah Cotton, City Administrator MEETING DATE: June 28, 2021 TOPIC: Amendment #4 to Lease Agreement with NCCC, LLC (New Creations Child Care) VOTE REQUIRED: 3/5 INTRODUCTION The Council is being asked to consider approval of Amendment #4 to the Lease Agreement with NCCC, LLC (New Creations Child Care). BACKGROUND In June of 2014, the City of Lino Lakes entered into a lease agreement with New Creations Child Care. The original term of the lease was from July 1, 2014 to June 30, 2019. A ten-year extension, with an option to terminate after five years was approved by the City Council on June 25, 2018. In the Spring of 2021, New Creations Site Management reached out to inquire as to the possibility of leasing additional space from the City. The City still occupied 290 Sq. Ft. of storage space in the New Creations wing of the Civic Complex. Staff reviewed the request and identified an alternative area for storage and has subsequently cleaned out the room for use by New Creations beginning July 1. Amendment #4 will increase the square footage leased by New Creations from 9,138 Sq. Ft. to 9,428 Sq. Ft. Amendment #4 to the Lease Agreement with New Creations will increase the annual rent received by the City of Lino Lakes by approximately $3,000 per year. RECOMMENDATION Approve Amendment #4 to the Lease Agreement with NCCC, LLC (New Creations Child Care) ATTACHMENTS Lease Amendment#4 LEASE AMENDMENT #4 DATED: July 1,2021 WHEREAS, City of Lino Lakes, A Minnesota municipal corporation, ("LANDLORD") and New Creations Child Care and Learning Center, LLC., Limited Liability Company (Domestic) ("TENANT") entered into a Lease Agreement dated July 1, 2014 ("LEASE") for the property located at 620 Town Center Parkway, Lino Lakes, MN 55014 ("PREMISES); and WHEREAS, effective January 1, 2021 the Lease Agreement was Assigned and Assumed by NCCC, LLC from New Creations Child Care and Learning Center, LLC; and WHEREAS, LANDLORD and TENANT agree to amend the LEASE as follows: 1. The Lease is hereby amended by deleting Article 4, subsection (b) and replacing them with the following: (a) Payment of Gross Rent. Tenant shall pay the annual Base Rent in monthly installments, equal to one-twelfth (1/12ffi) of the then applicable annual Base Rent. Each monthly installment of Base Rent shall be payable in advance without demand and without any reduction, abatement, coun- terclaim or offset, to Landlord on or before the first day of each month(or the next succeeding busi- ness day in the event the first day of such month is not a business day). Tenant shall pay to the Landlord Tenant's "Proportionate Share" of Basic Operating Costs, without any reduction, abatement, counterclaim or offset,within ten(10) days of receipt of the billing for such Basic Oper- ating Costs from Landlord. The term "Proportionate Share" means a fraction, the numerator of which is the square footage of the Leased Premises and the denominator of which is the total square footage of the Building, or the percentage identified in Exhibit B for utility costs. The Proportion- ate Share is as follows: Rent per Months Sq. Ft. Sq. Ft. Annual Rent 1 to 12 9,138 $8.91 $81,419.58 13 to 24 9,138 $9.18 $83,886.84 25 to 36 9,428 $9.45 $89,094.60 37 to 48 9,428 $9.74 $91,828.72 49 to 60 9,428 $10.03 $94,562.84 61 to 72 9,428 $10.33 $97,391.24 73 to 84 9,428 $10.64 $100,313.92 85 to 96 9,428 $10.96 $103,330.88 97 to 108 9,428 $11.29 $106,442.12 109 to 120 9,428 $11.63 $109,647.64 If any Gross Rent is not paid within ten (10) days of the due date, Tenant shall pay a late penalty of Five Hundred and No/100 Dollars($500.00). All other terms, conditions and covenants of this LEASE shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written. Landlord: Tenant: City of Lino Lakes: NCCC, LLC: By: By: Its: Mayor Its: By: Its: City Clerk CITY COUNCIL AGENDA ITEM 3D STAFF ORIGINATOR: Sarah Cotton, City Administrator MEETING DATE: June 28, 2021 TOPIC: Consider Resolution No. 21-64, Authorizing Execution of Amendment No. 1 to the License Agreement with the State of Minnesota for the Lino Lakes COVID-19 Vaccine Site VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting City Council consideration to authorize execution of an amendment to the license agreement with the State of Minnesota to operate a COVID-19 Vaccine site at the former YMCA building. BACKGROUND City staff was contacted in late May by the State of Minnesota regarding an extension of the license agreement to use the former YMCA facility as a COVID-19 vaccination site. The State of Minnesota is requesting an extension of the current license agreement through July 31 st, with an option to extend through August 31St, if the intent to extend is communicated in writing no later than July 15, 2021. The license agreement continues to provide for State use of the facility as a COVID-19 vaccination site and includes a base rent of$13,083.33 per month and a not to exceed amount to cover building operations. These include utility costs, cleaning, and other service fees. Reimbursement for utility and service fees will continue to be based on actual billings. RECOMMENDATION Staff is recommending approval of Resolution No. 21-64. ATTACHMENTS 1. Resolution No. 21-64 2. Amendment No. 1 to License Agreement CITY OF LINO LAKES RESOLUTION NO. 21-64 RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF AMENDMENT NO. 1 TO THE LICENSE AGREEMENT WITH THE STATE OF MINNESOTA FOR THE LINO LAKES COVID-19 VACCINE SITE WHEREAS,the State of Minnesota proposed to use the former YMCA Facility (the "Property"), for the purpose of a temporary COVID-19 Vaccine site; and WHEREAS,the City of Lino Lakes entered into a License Agreement with the State of Minnesota for a period commencing April 5, 2021 and continuing through June 30, 2021; and WHEREAS,the State of Minnesota proposes to extend the terms of the license through July 31, 2021, with an option to renew through August, 31, 2021; and WHEREAS,the City of Lino Lakes continues to review options associated with a City managed Recreation and Community Center. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes as follows: 1. The City Council hereby authorizes the Mayor and City Clerk to execute Amendment No. 1 to the License Agreement. 2. City staff are authorized and directed to take all other actions necessary to carry out the intent of the resolution and the amended license agreement. Adopted by the City Council of the City of Lino Lakes this 28th day of June 2021. The motion for the adoption of the foregoing resolution was introduced by Councilmember and was duly seconded by Councilmember and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: Rob Rafferty, Mayor ATTEST: Julianne Bartell, City Clerk STATE OF MINNESOTA AMENDMENT OF LICENSE Amendment No. 1 License No. L-447 THIS AMENDMENT No. 1 to License No. L-447 is by and between City of Lino Lakes, hereinafter referred to as LICENSOR, and the State of Minnesota, Department of Administration, hereinafter referred to as LICENSEE, acting for the benefit of the Minnesota Department of Health. WHEREAS, LICENSOR and LICENSEE entered into License No. L-447, dated April 5, 2021, involving the License of approximately fifteen thousand seven hundred (15,700) usable square feet of space at the Lino Lakes Recreation Center, located at 7690 Village Drive, Lino Lakes, Minnesota 55014; WHEREAS, the parties deem certain amendments and additional terms and conditions mutually beneficial for the effective continuation of said License; NOW THEREFORE, LICENSOR and LICENSEE agree to substitution and/or addition of the following terms and conditions, which shall become a part of License No. L-447 effective as of the date set forth herein. 1. RENEWAL TERM This License shall be renewed for a period of one 1 month, commencing July 1, 2021 and continuing through July 31, 2021 ("Renewal Term"), at the same terms and conditions as set forth in the License, except as otherwise provided herein. 2. LICENSE FEE 2.1 Fee LICENSEE shall pay LICENSOR based upon a fee of thirteen thousand eighty three and 33/100 dollars ($13,083.33) per month. The License Fee shall be paid to LICENSOR at the end of each month. LICENSEE and LICENSOR acknowledge the License Fee is a gross rate which includes the use of the Premises and all services identified in the License Agreement and pursuant to Section 10 of the License. L-447 Amend 1 Page 2 of 3 2.2 Fee Billing Address LICENSOR shall mail or personally deliver all original bills and statements to LICENSEE at the following address: Finance and Facilities Management Minnesota Department of Health 625 Robert St N # 2C PO Box 64975 St Paul MN 55164-0975 2.3 Fee Payment Address LICENSEE shall mail, deliver or pay Landlord via electronic payment the monthly rent set forth above at the end of the applicable calendar month to LICENSOR at the following address: City of Lino Lakes 600 Town Center Parkway Lino Lakes MN 55014 3. OPTION TO RENEW 3.1 LICENSOR grants and LICENSEE accepts the right to one (1) option to renew this License for a period of one 1 month, commencing August 1, 2021 and continuing through August 31, 2021 ("Option Period") at the same terms, conditions and rental amount as this License. 3.2 To exercise the above noted Option to Renew, Tenant must indicate in writing its intent to exercise the option no later than July 15, 2021. 4. EXECUTION IN COUNTERPARTS This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts of this Amendment taken together shall constitute but one and the same Amendment. Delivery of an executed counterpart of this Amendment by facsimile or email or a PDF file shall be equally as effective as delivery of an original executed counterpart of this Amendment. 5. Except as modified by the provisions of this Amendment, said License is ratified and confirmed as originally written. NO ATTACHMENTS IN WITNESS WHEREOF, the parties have set their hands on the date(s) indicated below intending to be bound thereby. LICENSOR: LICENSEE: CITY OF LINO LAKES STATE OF MINNESOTA LICENSOR certifies that the appropriate person(s)have executed the DEPARTMENT OF ADMINISTRATION License on behalf of LICENSOR as required by applicable articles, COMMISSIONER bylaws,resolutions or ordinances. By By Real Estate and Construction Services Title Date Date APPROVED: By STATE OF MINNESOTA DEPARTMENT OF HEALTH Title By Date Title Date STATE ENCUMBRANCE VERIFICATION Individual signing certifies that funds have been encumbered as required by Minn. Stat.§16A.15 and§16C.05. By Date SWIFT P.O. Contract No. L-447 Amend 1 Page 3 of 3 CITY COUNCIL AGENDA ITEM 3E STAFF ORIGINATOR: Meg Sawyer, Human Resources Manager MEETING DATE: June 28, 2021 TOPIC: Consider Appointment of Police Officer VOTE REQUIRED: 3/5 INTRODUCTION The Council is being asked to approve the appointment of Yecheng"Eric"Heu to a vacant Police Officer position in the Public Safety Department. BACKGROUND There are currently two vacant Police Officer positions within the Public Safety Department. At this time, staff has completed a recruitment process, provided a conditional offer, and is recommending the approval of Eric Heu for the position. Eric Heu has a degree in Law Enforcement and meets all POST mandated requirements to be a Police Officer in the State. The hourly rate of pay would be $35.85, which is the Starting Step of the union wage schedule. The wage schedule has six steps. With the Council's approval, Eric Heu would start in the position of Police Officer on July 5, 2021. RECOMMENDATION Approve the appointment of Yecheng Eric Heu for the Police Officer position. CITY COUNCIL AGENDA ITEM 4A STAFF ORIGINATOR: John Swenson, Public Safety Director MEETING DATE: June 28, 2021 TOPIC: Acceptance of Donated Gift Cards VOTE REQUIRED: 3/5 INTRODUCTION The Lino Lakes Public Safety Department is requesting council approval to accept gift cards as a donation from Lino Lakes' community members. BACKGROUND Over the last several months there was been many community members that have dropped off gift cards and food in appreciation of our police and fire staff. The gifts cards have a monetary value of more than $5.00 and cannot be given to staff members directly. If Council accepts the donation of these gift cards, staff will use the cards to provide public safety staff with food and refreshments at department meetings, department trainings, and shift or station meetings or the gift cards will be passed on to our Pay It Forward program. Here is list of gift cards donated to date: 40 4/22/2021 Kwik Trip 10.00 400.00 16 5/12/2021 Dunn Bros. 10.00 160.00 1 5/31/2021 Caribou 25.00 25.00 The total value of the gifts cards is $585.00. RECOMMENDATION Staff recommends approval of the gifts cards as presented. ATTACHMENTS None CITY COUNCIL AGENDA ITEM 6A STAFF ORIGINATOR: Diane Hankee PE, City Engineer MEETING DATE: June 28, 2021 TOPIC: Consider Resolution No. 21-65, Approving Change Order No. 1, 2021 Street Improvement Projects VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting council approval of Change Order No. 1 for the 2021 Street Improvement Projects. BACKGROUND On February 8, 2021, the City Council awarded the bid for the 2021 Street Improvement Projects to T.A. Schifsky& Sons, Inc. in the amount of$2,180,005.23. Construction of the project has been begun in the Stage Coach Trail, Post Road, and Forsham Lake Drive neighborhood. The project included replacement of 10 water service connections in this neighborhood due to the potential for corroded services. The City has been including exploratory water service replacements on our annual street improvement projects since 2019. On the 2020 project, the services did not need replacement. On this year's project, during one of the replacements, the water service failed before the contractor completed excavation of it. Other services replaced were corroded increasing early failures. Accordingly,project staff, including Public Services Utility Department, are recommending replacement of the additional 44 water services within the neighborhood. For Council consideration, WSB along with City staff have drafted Change Order No. 1 in the amount$248,215.42 to repair all of the water services in the neighborhood. The service work on this project is funded through the Water Fund. The 2021 Street Improvements Projects contract with T.A. Schifsky& Sons, Inc. with Change Order No. 1 would be increased to $2,428,220.65. RECOMMENDATION Staff is recommending approval of Resolution No. 21-65 for Change Order No. 1 in the amount of$248,215.42 for the 2021 Street Improvement Projects. ATTACHMENTS I. Resolution 21-65 2. Change Order No.1 CITY OF LINO LAKES RESOLUTION NO. 21-65 RESOLUTION APPROVING CHANGE ORDER NO. 1 2021 STREET IMPROVEMENT PROJECT WHEREAS,pursuant to resolution 21-07 of the Council adopted on February 8, 2021, awarding the contract for the 2021 Street Improvement Projects to T.A. Schifsky& Sons; and WHEREAS, a complete summary of costs are detailed in Change Order No. 1; NOW, THEREFORE, BE IT RESOLVED by the City Council of Lino Lakes, Minnesota that Change Order No. 1 is approved in the amount of$248,215.42. BE IT FURTHER RESOLVED Adopted by the Council of the City of Lino Lakes this 28t'day of June, 2021. The motion for the adoption of the foregoing resolution was introduced by Council Member and was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: Rob Rafferty, Mayor ATTEST: Julianne Bartell, City Clerk m1 STATE AID FOR LOCAL TRANSPORTATION Rev. February2018 ARTMENT OF THE P- IATI ;HANGE ORDER Page 1 of SP/SAP S.A.P. 210-103-003 Minn. Project No. Change Order No. 1 Project Location: 2021 Street Improvement Projects Local Agency: City of Lino Lakes Local Project No. Contractor: T. A. Schifsk & Sons, Inc. Contract No. 017006-000 Contractor Address: 2370 East Hwy. 36 North St. Paul, MN 55109 Total Change Order Amount: $248,215.42 Description: In accordance with the terms of this Contract, you are herby authorized and instructed to perform the work as altered by the following provisions. The Engineer in concurrence with the City of Lino lakes, have agreed that all of the water service saddles need replacing due to the deteriorated conditions of the materials. Due to this work, the pavement reclamation will now be stockpiled onsite in the cul- de-sacs to avoid contamination from the underneath soil that will be piled up during watermain work. It has also been decided that increasing the aggregate base section to 7.5" is favorable to help prolong the life expectancy of the roadway. Excavation of 3"-5"to the existing sand section is now necessary to accommodate the new increased aggregate base section. Included in the work, the Contractor shall provide 1400 CY of reclaim material to the Tower Park location. The Engineer in concurrence with the City of Lino lakes, have agreed that adding in two 6" gate valves is necessary to help control watermain shut down areas. This work will be considered "Contract Revisions" as provided for Specification 1402. Payment for this work will be a contract prices and negotiated prices. Estimate Of Cost: (include any increases or decreases in contract items, any negotiated or force account items.) Group/Funding + or— + or— Category** Item No. Description Unit Unit Price Category** Quantity Amount$ Local 2021.501 MOBILIZATION LS $7,500.00 1 $7,500.00 Local 2215.507 H V)L FULL DEPTH RECLAMATION C Y $18.00 5349 $96,282.00 Local 2504.602 6" GATE VALVE & BOX EACH $5,083.49 2 $10,166.98 Local 2504.602 INSTALL WATER SERVICE SYSTEM EACH $3,051.51 44 $134,266.44 Net Change This Change Order $248,215.42 *Includes Prime Contractor 10% Markup **Group/funding category is required for federal aid projects Due to this change, the contract time: (check one) (X) Is NOT changed ( ) May be revised as provided in MnDOT Specification 1806 Number of Working Days Affected by this Contract Change: Number of Calendar Days Affected by this Contract Change: Approved By Project Engineer: Date: Print Name: Phone: Approved By Lino Lakes: Date: Print Name: Phone: Approved By Contractor: Date: Print Name: Phone: m1 STATE AID FOR LOCAL TRANSPORTATION Rev. February2018 ARTMENT OF CHANGE ORDER Page 2 of 2 TRANSPORTATION DSAE Portion: The State of Minnesota is not a participant in this contract. Signature by the District State Aid Engineer is for FUNDING PURPOSES ONLY and for compliance with State and Federal Aid Rules/Policy. Eligibility does not guarantee funds will be available. This work is eligible for: _Federal Funding _State Aid Funding _Local funds District State Aid Engineer: Date: