HomeMy WebLinkAbout11-30-2020 Special Council Packet EXPANDED AGENDA
CITY COUNCIL AGENDA
Monday, November 30, 2020
***********
5:45 p.m.
(Broadcast live: http://northmetrotv.com/local-
meetings/lino-lakes/)
City Council: Mayor Rafferty, Councilmembers Cavegn, Lyden, Ruhland and Stoesz
City Administrator: Sarah Cotton
CITY COUNCIL MEETING, 5:45 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)
No comments
Setting the Agenda: Addition or Deletion of Agenda Items
The agenda was approved as presented
1. CONSENT AGENDA
No report
2. FINANCE DEPARTMENT REPORT
No report
3. ADMINISTRATION DEPARTMENT REPORT
No report
4. PUBLIC SAFETY DEPARTMENT REPORT
No report
5. PUBLIC SERVICES DEPARTMENT REPORT
No report
6. COMMUNITY DEVELOPMENT REPORT
A) Consider Resolution No. 20-146, Accepting Professional Services Proposal with
Isaac Sports Group to Prepare Recreation and Aquatic Center Feasibility Study,
Michael Grochala
Action Taken: Motion by Ruhland, seconded by Lyden, to approve
Resolution No. 20-146 as presented, was adopted
7. UNFINISHED BUSINESS
None
Council Agenda -2- November 30, 2020
8. NEW BUSINESS
None
Adjournment
Following adjournment of the regular meeting, the City Council will reconvene for the
purpose of holding a special work session to discuss the 2021 Budget.
Community Calendar – A Look Ahead
November 30, 2020 through December 7, 2020
Monday, November 30 6:00 pm, Council Chambers Special Council Work Session
Wednesday, December 2 6:30 pm, Zoom Park Board
Monday, December 7 6:00 pm, Council Chambers Council Work Session
CITY COUNCIL
AGENDA ITEM 6A
STAFF ORIGINATOR: Michael Grochala, Community Development Director
MEETING DATE: November 30, 2020
TOPIC: Consider Resolution No. 20-146, Accepting Professional
Services Proposal with Isaac Sports Group to Prepare Recreation
and Aquatic Center Feasibility Study, Michael Grochala
VOTE REQUIRED: 3/5
INTRODUCTION
Staff if requesting City Council consideration to Accept Proposal and enter into a Professional
Services Agreement with Isaac Sports Group to prepare a Recreation and Aquatic Center
Feasibility Study related to the YMCA.
BACKGROUND
In July of 2020, the Y notified the City that they would not be reopening the Lino Lakes facility
pending further evaluation of the operation. As the City Council is aware, Lino Lakes provided
considerable financial resources to make the YMCA a reality for our residents. The City
provided land, infrastructure, and cash as part of the original agreement.
The development agreement does include requirements for the YMCA to continue to operate a
recreational facility. While the YMCA has indicated a need to diversify the programming at
this location, the City Council has been clear that continued operation of the wellness center is
our primary concern. A default, on the Y’s part, does provide the City with the right to reenter
and take possession of the property.
On September 8, 2020 the City Council directed staff to distribute a Request for Qualifications
(RFQ) to prepare a study to evaluate options for possible operation of the YMCA facility. Staff
received responses from Isaac Sports Group and Baker Tilly. Following interviews with each
firm staff selected Isaac Sports Group (ISG) to proceed with a detailed proposal. ISG is based
out of Ann Arbor, Michigan, but with the team leader based locally in the Twin Cities.
ISG provided a comprehensive scope of services and strong background expertise in the
recreation and aquatics field. ISG is proposing to complete the study by the target date of
March 21, 2021 in the amount of $24,000 plus expenses.
RECOMMENDATION
Staff is recommending acceptance of the proposal and authorization to enter into a Professional
Services Agreement with Isaac Sports Group.
ATTACHMENTS
1. Resolution 20-146
2.ISG Scope of Services.
CITY OF LINO LAKES
RESOLUTION NO. 20-146
AUTHORIZING EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT
WITH ISAAC SPORTS GROUP TO PREPARE A RECREATION AND AQUATIC
CENTER FEASIBILITY STUDY
WHEREAS, In July of 2020 the City was notified that the Chain of Lakes YMCA would not be
reopening; and
WHEREAS, the City, as a financial partner in the establishment of the YMCA, retained certain
rights under the development contract to take possession of the property should it's use as a
recreational facility cease, and
WHEREAS, the City Council finds that the YMCA facility is an important community asset
and that it is in the best interests of the community to evaluate options for it’s continued
operation as a community center.
NOW, THEREFORE, BE IT RESOLVED by th e City Council of the City of Lino Lakes that
the proposal provided by Isaac Sports Group is hereby accepted.
BE IT FURTHER RESOLVED, that the City Attorney is directed to prepare a Professional
Services Agreement for execution by the City.
Adopted by the City Council of the City of Lino Lakes this 30th day of November, 2020.
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
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SCOPE OF SERVICES AND ACTION PLAN
Submitted by
Isaac Sports Group, LLC
November 23, 2020
Based on initial discussions with Lino Lakes City management ISG has refined the Scope of
Services and developed a more detailed Action Plan for the initial Services. The refined Scope
of Services builds on the Scope of Services and methodology included in the ISG RFQ
Submission. This updated Scope of Services document also includes a fee proposal for the
Scope of Services.
SCOPE OF SERVICES
ISG proposes the following refined Feasibility Study Scope of Services to meet the City needs
and provide additional enhancements relevant to the project. ISG understands that the current
COVID Pandemic and the upcoming holiday season may interfere with the Action Plan, so the
Action Plan is structured to move quickly to assemble information that ISG can then review and
analyze independently over the holidays. The Action Plan timeline is subject to modification
based on any further disruptions caused by pandemic restrictions and any delays created by the
holidays or challenges in timely receipt of hoped for information from the YMCA.
DISCOVERY PHASE: November 24-December 31, 2020
Immediate Action: November 24-December 4, 2020
• Develop initial information request and questions for City and Stakeholders: Nov. 24
• City-ISG Meeting: November 24
o Review updated Scope and Fee proposal
o Present and review info request and questions to City
• Review of Existing Facility
o Walk through of current facility: December 1-4
Review and understand facility features and spaces as they relate to
programming, activities, and user needs and opportunities
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Assess overall facility condition and any obvious building or facility
issues that may need action in the near future
• NOTE: Not to include detailed engineering or mechanical system
analysis.
Explore options on how to handle site visit in safest fashion
• Engagement with City management and staff: December 1-3
o Target meeting mid-week December 2-3 if possible
o Follow up on information requests and questions
o Begin assembling initial information
• Key Community and Stakeholder Identification
o Identify and develop key interview/virtual meeting list: Nov. 30-Dec. 4
Determine if there is a need to meet with any elected City leadership
Current YMCA management and/or Lino Lakes based YMCA Board of
Directors if possible
Members of current YMCA Steering Committee
Potential Partners, user groups, or program providers
• Centennial School District
• Great Wolf Swim Team
• Basketball program
• Community organizations
• Senior living centers
• Current YMCA user groups or renters
• Health care providers
• Other?
o Begin attempting to schedule any interviews/virtual meetings that we may be able
to set up prior to the holidays.
Discovery Phase-Ongoing: December 7, 2020-January 8, 2021
• Ongoing review of information and questions with City management and staff
• Conduct interviews and virtual meetings as possible
• Continue collecting information
• Review of existing and historic Facility, Programming, and Management Model (pending
receipt of information)
o Engagement with current YMCA management, Board, and members of steering
committee as possible
o Programming and Schedules
o Program partnerships and user groups
o Fees, including membership, program, rental and other fees
Based on other YMCAs in the YMCA of the North regional chapter
o Evaluation of pre-Covid YMCA Membership
What percentage of City residents utilize the YMCA?
• Are their underserved segments of the Lino Lakes population that
the YMCA does not service or reach?
Percentage of YMCA membership from outside the City
o Annual budgets
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o Capital maintenance expenses over past five years (at least)
• Market Research
o Review and analysis of other area facilities and programs
o Demographic analysis
Focusing on changing demographics impacting community needs and
opportunities relevant to the Recreation and Aquatic Center
ANALYSIS PHASE: January 11 to February 12, 2021
Program Analysis and Development
Based on City and community input, evaluation of current YMCA programs and market analysis
develop an updated program model.
• Identify unmet needs and new opportunities
• Use and program fees
• Explore greater integration with existing City Parks and Rec programs; including youth,
senior and special needs programming
• Explore expanded programming partnerships with organizations such as school district,
community organizations, user groups, health care providers, senior living centers and
organizations, special needs providers, etc.
o Specifically engage current or potential user groups such as Great Wolf Swim
Team or basketball program and other local sport organizations
• Develop full range of multi-generational and intergenerational programing in aquatics,
fitness, wellness, recreation and special needs
• Identify needs for support for underserviced and economically disadvantaged segments of
the community
• Develop sample schedule matrix for facility elements
• Develop membership and usage model
o Potential options to broaden overall community use and access
General Community Engagement
• Based on engagement with key stakeholders, City staff, and interviews determine the
need for any general community engagement: Focusing on input and education
• If needed, set up community engagement/communication
o Review need for public survey and execute survey if appropriate
o Community focus groups and educational/public input sessions
Virtual or in person pending pandemic safety
Mid study to review initial findings
Facility Updates and Expansion: Needs and Opportunities
• Identify and evaluate potential facility upgrades and expansion opportunities to support
program expansion and enhancement, better serve residents, and improve operating
financials
o Updates of existing facility elements
o Potential for future expansion
Page 4 of 8
Suggest phasing priorities based on impact on impact on City and
community needs and opportunities
• Further review and analyze the existing facility physical structure as requested and
relevant
o NOTE: We understand this is a lower priority than the facility space program and
use analysis. This section can be further refined during the Study as needed.
o Building
o Mechanical Systems
o Pool specific issues
o Projected near future and long term capital replacement or maintenance issues
Priorities and lifespan analysis
Capital Costs
Impact on operating budget (focus on operating expense reduction)
Management and Operational Assessment and Options
Research, develop, and analyze Management and Operational Models
• Pros and Cons of each option
• Examples of each in comparable or relevant communities and facilities
o ISG to draw on several client examples and national best practice facilities
• Outside Management Organization
o For-profit management companies
o Not-for-profit community management entities
• Management of specific areas of the facility or programs by outside organizations or
program providers
• City Management
o Risks
o Challenges
o How can the City do a better job than the YMCA?
• Creation of new independent management entity
o ISG has worked with several projects that have established new operating entities
set up as separate 501c3 not-for-profit or regional public entities or authorities
Explore relevance to Lino Lakes Recreation and Aquatic Center
• Partnership entity
o Explore potential partnership entity
School District and City
City and Health Care System
Other hybrid partner combinations
o ISG would draw from several projects where ISG has helped develop partnerships
and develop new governance, management, and financial models
• YMCA Partnership
o Explore if there is any new opportunity for a restructured operating agreement
with the YMCA
• Identify key strategic, tactical, financial, and structural elements of each relevant option
Management and Staffing Analysis
Based on the Management Options, develop staffing needs for the facility in each option.
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• Full time management
• Part-time: instructors, front desk, trainers, etc.
• Outside service providers
• Custodial and Maintenance
• Staff training and Staff Development
• Based on existing City staffing guidelines combined with best management practices
• Staffing costs
Financial Operating and Budget Projections
Based on market research, program model, and management options develop a five-year
financial operating budget and a long term 20-year capital replacement and maintenance
projection for each Management Model deemed relevant.
• Identification and analysis of current budget and operating challenges facing the YMCA
o Why do they plan to stop operating the facility?
o Identify the issues that were caused by coronavirus pandemic and what issues are
integral to the operation historically and ongoing
• Budgeting format based on current City budgeting format with format and line item
updates based on ISG facility budget template models based on actual management
budget models used by best practice facilities
o Provide both a PDF and a working Excel file of budget projections
Excel file provides an ongoing tool for the City as financial projections
and budget is updated post study
• Format includes:
o Operational Expenses
o Program Expenses
o Facility Revenue (includes membership, rental, use, sponsorship, other)
o Program Revenue (classes and program fees)
o Program net profit/cost analysis
o Long Term Capital Replacement and Maintenance projections
• Evaluation of impact of any facility renovation or component updates or replacements
identified
o Impact of new technology
o Capital Cost versus reduced annual operating costs
o Return on Investment
o Pay back cycle
o Energy and water savings-and other environmental impact
• Identify and address any future coronavirus pandemic and future infectious health
considerations that need to be taken into account in the financial and management
analysis
o Projected elements that may become new code elements or risk management best
practices
o Design and infrastructure needs
o Management, staffing, and operational needs
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REPORT PHASE: February 15-March 31, 2021
Draft Report
• Draft Report presented to City for review: March 8, 2021
o Includes initial versions of all back-up documentation
o Meetings with City Management
o Presentation of draft to City elected leadership if needed
• Identify any need to present draft report to project stakeholders or potential partners
• Identify and execute any community engagement needed as part of Draft Report review
• Input from City and stakeholders
• Update Draft Report as needed
Final Report
• Present Report: March 31, 2021
o Includes all final deliverables
o Meetings with City management, leadership, stakeholders
o Public presentations of Report and findings as needed.
• Work with City to develop Next Steps
NEXT STEPS: Coordinated with Review of Final Report
• Provide recommendations on next steps and further strategic project development
• Work with City management and staff to determine how to best use the information and
findings in the Study and Report
PROJECT TIMELINE
The overall Timeline for this Study is projected to be four months, taking into account the
holidays. This four month timeline would begin once a consulting agreement is executed. The
four month timeline assumes prompt responses from the City and hopefully the YMCA on
information requests. Starting the Scope of Services by December 1, 2021 should allow ample
time to complete the Study by the targeted date of March 31, 2021. See details of
Timeline/Action Plan in Scope of Services section.
Key Timeline elements:
• Discovery Phase
o Immediate November 24 to December 4, 2020
o Ongoing December 7, 2020 to January 8, 2021
• Analysis Phase January 11-February 12, 2021
• Report Phase
o Draft Report February 15-March 8, 2021
o Final Report March 8-March 31, 2021
• Next Steps Coordinated with Review of Final Report
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DELIVERABLES
• Draft Report mid-study
• Full Final Report with supporting documentation
• Executive Summary
• Summary PowerPoint presentation suitable for customization for presentations to
different audiences and constituencies
• Back up materials
o Detailed line item budget analysis
o Facility updates and maintenance and costing analysis spreadsheets
o Facility schedule matrices based on updated program and operational models
o Examples of best practice comparable facilities and relevant management models
o Management document samples from relevant best practice facilities
Joint Use Agreements
Priority Use Documents
Partnership agreements
FEE STRUCTURE
Based on the RFQ, ISG would likely use a project based fee plus expenses for this project, to be
negotiated with the City. For reference, here is a summary chart of specific ala carte fees and
expenses.
Overall Study Fee: $24,000 plus expenses
Payable as follows:
Completion of Phase Payable
Discovery (40%)
Immediate Portion $3,000
Ongoing Discovery $6,600
Analysis (40%)
50% complete $4,800
100% complete $4,800
Report (20%)
Draft Report Complete and Submitted $2,400
Final Report Complete and Submitted $2,400
Includes Next Steps
Expenses
Travel Expenses:
ISG anticipates incurring minimal expenses in the execution of the Scope of Services. Most
meetings with be virtual throughout the process. If the COVID pandemic eases and State and
City meeting and travel restrictions are eased it is conceivable that some meetings may be in
person, particularly the presentation of the Draft and Final Reports. The only currently
anticipated on site meeting will be the facility walk through initially planned for the week of
November 30. If in person meetings are required, the City will be responsible for travel costs,
Page 8 of 8
including personal auto mileage, economy airfare, hotel, meals, ground transportation, and any
reasonable documented miscellaneous expenses. Expenses for ISG project leader Duane Proell
will be minimal based on travel from his office in Minnetonka and not requiring any hotel stays.
If Stu Isaac travels to Lino Lakes for any of the report presentations or key meetings his
expenses traveling from Ann Arbor will need to be covered by the City. Any trip to Lino Lakes
by Stu Isaac would need to be approved in advance by the City.
Overall, ISG estimates that even with a visit by Stu Isaac included, total travel expenses would
be approximately $1,750 for the entire project.
Additional Expenses:
ISG does not anticipate any additional non-travel expenses. If any non-travel expenses are
anticipated these would need to be approved in advance by the City.
Additional Services
Should the City require any additional Services from the ISG Team during the Term of this
Agreement ISG will present an estimate of the costs of the additional Services. Additional
Services will not be undertaken by ISG without the express written approval from the City and
agreement on the cost of these Services. Additional Services can be billed on a task specific fee
or an hourly basis. Hourly fees are as follows:
Lead Consultants: $185 to $200/hour
Associate Consultants: $150 to $165/hour
Administrative: $ 75 to $ 85/hour