Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
City Council Packet 02-12-2013 Special
CITY OF PLYMOUTH AGENDA SPECIAL COUNCIL MEETING FEBRUARY 12, 2013, 5:30 p.m. MEDICINE LAKE CONFERENCE ROOM 1. CALL TO ORDER 2. TOPICS A. Discuss Park Replacement Funds B. Set Future Study Sessions 3. ADJOURN Special Council Meeting 1 of 1 February 12, 2013 City of Plymouth Iridin, Qphty da Life SPECIAL COUNCIL MEETING February 12, 1013 Agenda 2ANumber: To: Laurie Ahrens, City Manager Prepared by: Dave Callister, Administrative Services Director Item: Discuss Park Replacement Funds 1. ACTION REQUESTED: Discuss park replacement funds. 2. BACKGROUND: On August 21, 2012, staff presented to Council the attached Park Replacement Plan report. The report updated an earlier report prepared in 2009. The report outlines park replacement projects in the next 40 years, detailing each project's cost, scheduled date for completion and identifies funding sources in order to determine whether or not the projects can be funded as scheduled or if adjustments are needed to delay or eliminate projects or increase funding sources. The Council increased the Park Replacement levy for 2013 from $130,000 to $330,000 annually. This action will fund identified replacement projects through 2020. The Park Replacement Plan has not historically included capital improvements for either the Plymouth Ice Center (PIC) or the Plymouth Creek Center (PCC). Staff has created a capital improvement plan for the Plymouth Ice Center's and analyzed the operation's cash flow needs for the next 20 years in the attached report. Staff will be preparing a similar report for the Plymouth Creek Center in the coming year. One concept that has been identified as a potential revenue stream to assist with the PIC's operations, is to construct a dry land training facility on the east side of the PIC that would be leased out to a private party who would operate the facility. Please see the attached report outlining the concept. 3. SUMMARY: Staff is looking for Council discussion and direction regarding all park replacement funds. 4. ATTACHMENTS: Park Replacement Plan Plymouth Ice Center Fund Plymouth Ice Center Dry Land Training Facility Concept Page 1 Park Replacement Plan City of Plymouth, MN Updated August 2012 Original Study June 2009) I,Plymouth Adding Quality to Life Page 2 I. INTRODUCTION In June of2009, the City of Plymouth partnered with Ehlers to undertake a review ofthe City's Park Replacement Plan. The primary objective was to review options and make recommendations as to funding scenarios to ensure the program's long-term financial viability. Since 2009, many things have changed and the need was apparent to update the original plan to track changes in costs and timelines associated with park replacement projects and to identify potential funding sources that may be available. The following report is an update to the original 2009 plan. I I. BAC KG RO U N D The City of Plymouth has a long-term capital replacement schedule for parks. Unlike most cities which focus on the next five to ten years, Plymouth's plan extends through the next forty years. The Park Replacement Fund is strictly a capital project fund. It finances the replacement of existing capital assets and does not include expenditures related to the operation or maintenance ofthe parks. Further, this fund does not include capital asset expenditures related to future parks. Park dedication fees obtained from new development are kept separate in the Park Construction Fund (Fund 408) and are used for new parks and park facilities. Over the next 40 years, capital expenditures related to the replacement of existing park assets are estimated to total $59.4 million. Under the current funding scenario, revenues are not sufficient to cover the expected expenditures, and the Park Replacement Fund's cash balance would be depleted by 2020. We have provided several alternatives to address the financing gap created by the updated Park Replacement Plan. Option 1: Includes the current levy amount of $130,000 increased at three percent annually. Using the existing Park Replacement Plan, the Fund would have a negative cash balance in 2020 and an $11.2 million funding gap by 2031. Option 2: Includes current Park Replacement Levy of $130,000 plus approximately one half of the expiring debt levy for the Activity Center/Field House bonds of $200,000. The total annual levy for Park Replacement Fund would be $330,000 beginning in 2013 with three percent annual inflationary increases thereafter. Using the existing Park Replacement Plan, the cash balance would go negative in 2020 and the funding gap would be $6 million by 2031. This option was adopted by the City Council as a part of the 2013 budget. Park Replacement Plan Update P Pa August 2012 ggei Option 3: Includes the current Park Replacement Levy of $130,000 plus an additional 400,000 from the expiring debt levy for the Activity Center/Field House bonds. The total annual Park Replacement Levy under this scenario would be $530,000 beginning in 2013. The estimated cash balance under Option 3 stays positive until 2031. All options include a one-time transfer from the Recreation Fund of $500,000 in 2012 and annual transfers of $20,000 from the Recreation Fund, inflated at three percent annually beginning in 2013. The rationale for this transfer is that park facilities are being used by participants of the recreation programs and that a portion of the recreation fees should be set aside for replacement ofthe facilities. The current year-to-date fund balance in the Recreation Fund is $661,000. Overview of the Park Replacement Fund Cash: The Park Replacement Fund has a cash balance of $4,784,674 at the end of 2011. This does not include the loan to the Ice Arena which is shown on the plan as annual revenue 154,892) received through 2019. Current principal balance on the loan as of 12/31/2011 is 991,062. Expenditures: Staff estimates that the capital expenditures for the next 40 years would total 59.4 compared to $96.8 million projected in the 2009 Study. Revenue: The Park Replacement Fund has several main sources of income including: Annual Levy Interest Earnings (estimated at two percent) Other revenue options include: Issuance of Bonded Debt (referendum required) One time or annual transfers in from other city funds None of the three options currently includes the issuance of bonded debt which would require a voter referendum. If Options 1 or 2 are followed, capital expenses will need to be reduced or delayed or other sources will need to be considered to close the funding gap. Park Replacement Plan Update Page 2P August 2012 g Current Funding Projections Cash projections were formulated based on the following assumptions that apply to all options: 1. Beginning cash balance of $4,784,674. 2. $59.4 million in future projects through 2052. 3. One-time transfer from the Recreation Fund of $500,000 in 2012. 4. Beginning in 2013 annual transfers of $20,000 from the Recreation Fund, inflated at three percent annually. 5. The projected expenditures are based on the City's existing Park Replacement schedule which excludes: a. Plymouth Ice Center b. Plymouth Creek Center and Fieldhouse 6. The analysis reviews the replacement schedule for capital assets only. It does not reflect operating costs or new parks or facilities. 7. All project costs utilize 2012 numbers and are inflated at three percent annually. Based on these assumptions, the cash balances of all three options from 2012 to 2031 are outlined on the graph below. Park Replacement Fund QbPIyriiciuttl c o s 2 4 2 Q 2)- 4i f01 tQ} 12) 14) P .yo 0tX pyo 4 o o 01 ' ti° fo Oo 4 '01'0 'o 41pyo v 400K levy+ 3% annually $200K levy+ 3% annually 3% annual levy increase only includes one time transfer in from Recreation of $500k in 2012 and annual transfers in of $20k Park Replacement Plan Update Page.3P August 2012 g The total cost of park replacement projects from 2012 through 2052 is $64,454,705. As with any capital plan the project costs vary from year to year and as such there needs to be adequate cash flow to fund these projects. The total capital expenses are listed and categorized below. 10 NC0 9 8 7 6 5 4 3 2 1 Park Replacement Fund Capital Expenses (2012-2052) Athletic Field Lights 10,148,048 Bleachers 291,458 Fencing 2,421,070 Irrigation 4,381,630 Tennis Courts 2,528,763 Parking Lot Lighting 747,205 Asphalt Pavement 8,675,569 Park Name Signs 160,785 Park Shelter Buildings 9,288,144 Skating Rinks 3,637,955 Playgrounds 17,700,322 Picnic Shelters 2,005,436 Bridges/Boardwalks/Docks 2,226,696 Miscellaneous 241,625 Tota 1 64,454, 705 Park Replacement Fuad Plcity.4ymoth Capital Expenses 2012 to 2052M1 u. Park Replacement Plan Update P Pa4 August 2012 gge 6 III. FUNDING SCENARIOS OPTION 1: Minimal Changes to Current Funding Strategy Beginning cash balance of $4.8 million. Assumes $130,000 annual levy inflated by three percent annually. Includes one time transfer of $500,000 from Recreation Fund. Includes new transfer of $20,000 from Recreation Fund in 2012 and inflated at three percent annually. Under this scenario, the cash reserve goes negative by 2020, with a projected funding gap of 11.2 million in 2031. Pros: No additional upfront cash contributions Minimal future levy impacts Recreation Fund assists in capital replacements Cons: Not a viable long-term solution given current capital needs Park Replacement Fund Cash Balance - No additional levy - No dent s C 6 0 4 2 2 0 2) Ll 4) 6) 1Q) 12) 14) 0' lh fP ry0 nP y1 ( P ,1$ IN ^q, yD VP `Q[P P h If, 10 1 ( q. 1P nPi [P TIf, i [P 1 Park Replacement Plan Update Pa e.5P August 2012 g OPTION 2: Redirect $200,000 to Park Replacement Levy Assumes an additional $200,000 to the park replacement levy to replace half of the maturing debt service levy for a total levy of $330,000 in 2013. Includes one time transfer of $500,000 from Recreation Fund in 2012. Includes a new transfer from Recreation Fund of $20,000 per year inflated at three percent annually. Under this scenario, the cash balance is negative in 2020 with a funding gap of $6 million in 2031. Pros: No additional upfront cash contribution New capital levy represents approximately 50% of maturing debt levy Cons: Should be viable in the short term but not a long-term solution to meet capital needs without reducing projects, increasing levies, issuing debt or finding other one time sources of money. Park Replacement Fund Cash Balance - Increase levy by $200k - No debt f-; J G 0 F1 Li 2) 4) 10 NN' Nb N ,O c`L ry` , Lk ,X43 r rig Park Replacement Plan Update Page BP isAugust2012g OPTION 3: Redirect $400,000 to Park Replacement Levy Assumes an additional $400,000 to the park replacement levy to replace the maturing debt levy for a total park replacement levy of $530,000. Includes one time transfer of $500,000 from Recreation Fund in 2012. Includes a new transfer from Recreation Fund of $20,000 per year inflated at three percent annually. Under this scenario, the cash balance decreases but does not go negative until 2031. This option allows for full funding of capital plan for 20 years. Pros: Capital Plans for the next 20 years can be financed without issuing debt No additional upfront cash contribution required Future residents pay more of the future replacements/improvements Cons: Fully funded Plan requires significant resources over the next 40 years Heavily reliant on property tax levies to fund capital improvements Competing demands for future levies Current residents pay for costs of future improvements Park Replacement Fund Cash Balance - Increase by $400k - No debt s 0 5 2 1 0 1) 2) Park Replacement Plan Update Pa e.7P August 2012 g 9 IV. SUMMARY The City has practical long-term visioning and planning. The Park Replacement Plan extends 40 years, well beyond comparable cities. The variables impacting financial forecasts are dependent on assumptions outside of the City's control and subject to greater swings. Ten- to twenty-year pro -formas are typical. This analysis uses a twenty year pro -forma, which is the long end of the range. The average annual capital expenditure from 2012 to 2031 is $3.4 million. We recommend a target cash balance of $1 million to be achieved and maintained through 2031. This amount provides a degree of investment return and, importantly, a cushion for unexpected capital demands. While current low interest rates reduce the benefit of investment returns in the near term, borrowing costs benefit with lower debt service payments should the need arise to issue future debt. V. CONCLUSIONS Option 1 - The current funding strategy is not a viable long-term option, as cash is depleted by 2020 even with the one-time transfer of $500,000 and the annual transfers of 20,000 from the Recreation Fund. Option 2 is a step in the right direction providing additional funding to meet the capital needs. The policy concern is that by 2020 there will be major decisions to be made that could include levy increases, debt issuance, the elimination or delay of capital projects or additional one-time cash infusions. Since there is adequate time between now and 2020, this should be used to review this fund, its cash balances and capital projects on a semi- annual basis so that additional steps can be taken now to minimize any future impacts. This is the adopted Option. Option 3 The City would retain more control over revenues and be able to provide for gradual revenue increases, rather than erratic adjustments. Option 3 allows the current capital plan to maintain a positive cash balance until 2030. The remaining policy issues for the City to consider: o Generational Equity. Should future assets be paid by current or future users? o Establish Cash Balance Targets. o Competing levy and long-term needs (beyond the current five year levy needs) o Ongoing transfers from the Recreation Fund o Use of debt to minimize year to year variations o Transfer of cash from other funds Park Replacement Plan Update August 2012 gegPaM 1 City of Plymouth 2 Parks Replacement CIP 3 4 5 ATHLETIC FIELD LIGHTS 6 Musco Loan Repayment (10 yr) 2012 240,000 7 Musco Loan Repayment (10 yr) 2013 240,000 8 Musco Loan Repayment (10 yr) 2014 240,000 9 Musco Loan Repayment (10 yr) 2015 240,000 10 Musco Loan Repayment (10 yr) 2016 240,000 11 Musco Loan Repayment (10 yr) 2017 240,000 12 Musco Loan Repayment (10 yr) 2018 240,000 13 Musco Loan Repayment (10 yr) 2019 240,000 14 Musco Loan Repayment (10 yr) 2020 240,000 15 Musco Loan Repayment (10 yr) 2021 240,000 16 Lacompte Playfield 2027 50,000 17 Zachary Playfield 2042 600,000 18 Plymouth Creek Playfield 2042 475,000 19 Oakwood Playfield 2042 475,000 20 Plymouth Playfield 2042 530,000 21 Ridgemount Playfield 2042 115,000 22 Bass Lake Playfield 2042 320,000 23 Parkers Lake Playfield 2042 285,000 24 Elm Creek Playfield 2042 360,000 25 BLEACHERS - 20 year life 26 Elm Creek Playfield 2020 48,000 27 Bass Lake Playfield 2021 15,000 28 Oakwood Playfield 2021 15,000 29 Parkers Lake Playfield 2022 18,000 30 Plymouth Creek 2022 9,000 31 Plymouth Playfield 2022 9,000 32 Zachary Playfield 2022 24,000 33 Greenwood Playfield 2024 18,000 34 Skate Park (relocated) 2024 3,000 35 Zachary Playfield 2026 2,000 36 Elm Creek Playfield 2040 6,000 37 Bass Lake Playfield 2041 3,000 38 Oakwood Playfield 2041 3,000 39 Parkers Lake Playfield 2042 3,000 40 Plymouth Creek 2042 3,000 41 Plymouth Playfield 2042 3,000 42 Zachary Playfield 2042 3,000 43 Greenwood Playfield 2044 3,000 44 Skate Park 2044 3,000 45 Zachary Playfield 2046 2,000 46 Fencing 47 Lions 2016 10,000 48 Lions 2016 6,000 49 Queensland 2016 2,500 50 LaCompte 2016 8,125 51 Mission Hills 2016 6,000 52 Oakwood 2016 13,750 53 Plymouth Playfield 2017 17,000 54 Plymouth Playfield 2017 16,800 55 Ridgemount 2017 5,200 56 Zachary 2017 93,000 57 Zachary 2017 5,000 58 Parkers Lake Tennis 2018 26,000 59 Plymouth Creek Playfield 2018 70,000 60 Shiloh 2020 2,000 61 Sunrise 2020 2,000 62 Swan Lake 2025 2,000 63 Bass Lake Fencing 2027 37,500 64 Bass Lake Fencing 2027 33,800 65 Bass Lake Fencing 2027 6,500 66 Parkers Lake Playfield 2027 100,000 67 Parkers Lake Playfield 2027 6,200 68 Heather Ponds 2029 2,500 69 Zachary Tennis 2029 30,000 70 Oakwood Tennis 2029 28,000 71 Gateway 2030 1,400 72 South Shore 2030 2,000 73 Timbershores 2030 3,000 74 Ridgemount 2030 24,000 75 LaCompte 2031 12,000 76 Oakwood Baseball 2031 8,000 77 Oakwood Softball 2031 12,000 78 Plymouth Tennis 2031 26,000 79 Zachary Baseball 2032 8,000 80 Plymouth Creek Playfield 2033 12,500 Page 11 81 Plymouth Creek Playfield 2033 12,000 82 Elm Creek 2033 122,500 83 Skate Park 2036 6,000 84 Greenwood 2037 77,500 85 Southwood Green 2038 6,800 86 Oakwood 2039 5,000 87 Zachary (new) 2041 59,950 88 Bass Lake Baseball 2042 12,000 89 Bass Lake Softball 2042 8,000 90 Parkers Lake Baseball 2042 25,000 91 Parkers Lake Softball 2042 6,000 92 Elm Creek 2043 10,600 93 Elm Creek 2048 24,000 94 Fencing - Life #2 (multiple years) 95 Zachary Tennis 2032 28,000 96 Parkers Lake Tennis 2042 26,000 97 Lions 2048 10,000 98 Lions 2048 6,000 99 Queensland 2050 2,500 100 LaCompte 2051 8,125 101 Mission Hills 2051 6,000 102 Oakwood 2051 13,750 103 Plymouth Playfield 2052 18,000 104 Plymouth Playfield 2052 17,500 105 Ridgemount 2052 5,000 106 Zachary 2052 90,000 107 Zachary 2052 5,000 108 Irrigation 109 Lifetime Fitness/Ice Center 2015 140,000 110 Parkers Lake Park 2018 15,000 111 Parkers Lake Playfield 2019 155,000 112 Bass Lake Playfield 2020 130,000 113 Elm Creek Playfield 2023 180,000 114 Plymouth Creek Center 2024 100,000 115 Plymouth Creek Playfield 2030 155,000 116 Ridgemount 2031 155,000 117 Greenwood Playfield 2033 105,000 118 Southwood Green 2033 27,000 119 Oakwood 2034 165,000 120 Plymouth Playfield 2035 130,000 121 Zachary Playfield 2037 200,000 122 Lacompte Playfield 2037 62,500 123 Irrigation - mulitiple lifespans 124 Plymouth Creek Playfield 2040 105,000 125 Ridgemount 2043 110,000 126 Parkers Lake Playfield 2044 105,000 127 Bass Lake Playfield 2045 110,000 128 Parkers Lake Park 2048 10,000 129 Elm Creek Playfield 2049 152,000 130 Tennis Courts 131 Bass Lake Playfield 2014 190,000 132 Parkers Lake Playfield 2016 190,000 133 Ridgemount Playfield 2020 190,000 134 Oakwood Playfield 2028 190,000 135 Zachary Playfield 2032 190,000 136 Plymouth Playfield 2032 190,000 137 Tennis Courts 138 Zachary Playfield 2039 182,000 139 Bass Lake Playfield 2041 182,000 140 Parkers Lake Playfield 2045 18,200 141 Oakwood Playfield 2053 182,000 142 Parking Lot Lighting 143 Parkers Lake Playfield (Ornamental) 2013 125,000 144 Transistion to LED Shoebox Lights 2015 25,000 145 LaCompte Playfield (Shoebox) 2023 15,000 146 Ridgemount Playfield (Shoebox) 2023 15,000 147 Zachary Playfield (Shoebox) 2023 25,000 148 Plymouth Playfield (Shoebox) 2023 25,000 149 Plymouth Creek Playfield (Shoebox) 2023 35,000 150 Parkers Lake Playfield (Shoebox) 2024 40,000 151 Bass lake Playfield (Shoebox) 2032 55,000 152 Parkers Lake Park (Ornamental) 2038 70,000 153 Parking Lot Lighting 154 Parkers lake Playfield 2032 69,000 155 Ashphalt Pavement 156 Trails (21,120 Linear Feet/4 m Yly repair/overlay to handle 136 mi. trail 2014 190,000 157 Trails (21,120 Linear Feet/4 m Yly repair/overlay to handle 136 mi. trail 2015 190,000 158 PIC/LifeTime (shared cost with LifeTime Fitness) 2015 250,000 159 Trails (21,120 Linear Feet/4 m Yly repair/overlay to handle 136 mi. trail 2016 190,000 160 Trails (21,120 Linear Feet/4 m Yly repair/overlay to handle 136 mi. trail 2017 190,000 161 Trails (21,120 Linear Feet/4 m Yly repair/overlay to handle 136 mi. trail 2018 190,000 Page 12 162 East Beach (Lot) 2018 150,788 163 Lions Park (Lot) 2018 24,415 164 Trails (21,120 Linear Feet/4 m Yly repair/overlay to handle 136 mi. trail 2019 190,000 165 Zachary Playfield (Lot) 2019 381,774 166 Trails (21,120 Linear Feet/4 m Yly repair/overlay to handle 136 mi. trail 2020 190,000 167 Plymouth Creek Playfield (Lot) 2020 392,308 168 Trails (21,120 Linear Feet/4 m Yly repair/overlay to handle 136 mi. trail 2021 190,000 169 Mission Hills Park (Lot) 2021 15,040 170 Plymouth Playfield (South lot) 2021 83,994 171 Timber Shores Park (Lot) 2021 27,871 172 Trails (21,120 Linear Feet/4 m Yly repair/overlay to handle 136 mi. trail 2022 190,000 173 Lake Camelot Park (Lot) 2022 43,683 174 Trails (21,120 Linear Feet/4 m Yly repair/overlay to handle 136 mi. trail 2023 190,000 175 Trails (21,120 Linear Feet/4 m Yly repair/overlay to handle 136 mi. trail 2024 190,000 176 LaCompte (Lot) 2024 59,710 177 Queensland Park (Lot) 2024 5,811 178 Parkers Lake Park (Lot) 2026 271,163 179 Heritage Park (Lot) 2027 21,570 180 St. Marys Park (Lot) 2028 19,756 181 Bass Lake Playfield (Lot) 2032 342,126 182 Parkers Lake Playfield (Lot) 2032 521,069 183 Heather Ponds Park (Lot) 2034 18,572 184 West Beach (Lot) 2037 228,083 185 Swan Lake Park (Lot) 2038 41,958 186 Nature Canyon Park (Lot) 2042 2,340 187 Ridgemount Playfield (Lot) 2043 206,141 188 Greenwood (Lot) 2046 96,260 189 Legacy Greenway 2046 40,000 190 Plymouth Dog Park (Lot) 2050 152,101 191 Greenwood (Lot) 2046 96,260 192 Park Name Signs 193 Timber Shores 2023 1,000 194 Heritage 2023 1,000 195 Plymouth Dog Park 2023 1,000 196 Legacy Greenway 2023 1,000 197 Elmhurst Gardens 2023 1,000 198 East Medicine Lake (4 X 6 Custom) 2023 2,000 199 West Medicine Lake (4 X 8 Custom) 2023 4,000 200 Shenandoah Park 2026 1,500 201 Camelot Park 2028 1,000 202 Southwood Green Park 2028 1,500 203 Elm Creek Playfield 2029 2,000 204 Gleanloch Park 2029 1,200 205 Gleanloch Park 2029 1,000 206 Green Oaks Park 2029 1,200 207 Green Oaks Park 2029 1,500 208 Plymouth Creek Playfield 2029 2,000 209 Reserve Park 2029 2,500 210 Turtle lake Park 2029 1,200 211 Turtle lake Park 2029 1,500 212 Zachary Playfield 2029 2,000 213 Zachary Playfield 2029 1,200 214 Bass Lake Playfield 2030 1,200 215 Bass Lake Playfield 2030 2,000 216 Heather Ponds Park 2030 1,000 217 Imperial Hills Park 2030 1,500 218 Kilmer Park 2030 1,000 219 Lions Park 2030 1,000 220 Mission Hills Park 2030 1,000 221 Oakwood Playfield 2030 1,500 222 Plymouth Playfield 2030 1,200 223 Plymouth Playfield 2030 1,200 224 Ridgemount Playfield 2030 1,000 225 Rolling Hills Park 2030 1,000 226 Schmidt Lake Park 2030 1,000 227 Shiloh Park 2030 1,500 228 South Shore Park 2030 1,000 229 Sunrise Park 2030 1,000 230 Greewood Playfield 2030 2,500 231 LaCompte Playfield 2031 1,200 232 Circle Park 2031 1,000 233 Hemlock Park 2031 1,000 234 Nature Canyon Park 2031 2,000 235 Queenland Park 2031 1,000 236 Swan Lake 2031 1,500 237 Hilde Performance Center 2032 500 238 Hilde Performance Center 2032 1,500 239 Parkers Lake Park 2032 2,000 240 Parkers Lake Park 2032 1,200 241 Parkers Lake Park 2032 6,000 242 St Mary's Park 2032 1,500 Page 13 243 Three Ponds 2032 1,000 244 Woodland Trails Park 2032 1,500 245 Park Name Signs 246 Timber Shores 2048 1,000 247 Heritage 2048 1,000 248 Plymouth Dog Park 2048 1,000 249 Legacy Greenway 2048 1,000 250 Elmhurst Gardens 2048 1,000 251 East Medicine Lake (4 X 6 Custom) 2048 2,000 252 West Medicine Lake (4 X 8 Custom) 2051 4,000 253 Park Shelter Buildings 254 Plymouth Creek Playfield 2020 325,000 255 East Medicine Lake 2021 300,000 256 Oakwood Playfield 2022 300,000 257 LaCompte Playfield 2031 145,500 258 Plymouth Playfield 2031 223,488 259 Zachary Playfield 2031 225,000 260 Parkers Lake Park 2036 485,000 261 Bass Lake Playfield 2042 353,080 262 Parkers Lake Playfield 2042 232,800 263 Elm Creek Playfield 2047 349,200 264 Log Cabin ( Parkers Lake) 2047 87,300 265 Elm Creek Garage 2048 91,200 266 Hilde Performance Center 2052 962,500 267 Skating Rink Replacement 268 Ridgemount Playfield 2017 275,000 269 Oakwood Playfield 2018 250,000 270 Plymouth Creek Playfield 2030 225,000 271 Zachary Playfield 2031 240,000 272 Elm Creek Playfield 2033 275,000 273 LaCompte Playfield 2036 275,000 274 Skating Rink Replacement - 2nd Life 275 Plymouth Creek Playfield 2042 225,000 276 Zachary Playfield 2043 240,000 277 Playground Replacement Costs 278 Plymouth Creek 2013 145,000 279 Schmidt Lake 2014 100,000 280 Mission Hills 2014 100,000 281 Hemlock 2015 42,000 282 Heather Ponds 2015 83,000 283 Circle 2015 130,000 284 Three Ponds 2016 105,000 285 Sunrise 2016 105,000 286 Gateway 2017 100,000 287 Imperial Hills 2017 105,000 288 East Medicine Lake 2018 125,000 289 West Medicine 2018 145,000 290 Green Oaks 2019 105,000 291 Swan Lake 2019 92,000 292 LaCompte 2020 105,000 293 Nature Canyon 2020 100,000 294 Zachary 2021 120,000 295 Turtle Lake 2021 100,000 296 Heritage 2021 100,000 297 Shenandoah 2022 80,000 298 St. Mary's 2022 100,000 299 Camelot 2022 100,000 300 Elm Creek 2023 120,000 301 Parkers Lake 2023 140,000 302 Southwood Green 2023 50,000 303 Rolling Hills 2023 100,000 304 Lions 2024 80,000 305 Reserve 2025 110,000 306 Glenloch 2026 125,000 307 Queensland 2026 80,000 308 Shiloh 2027 120,000 309 Bass Lake 2027 100,000 310 South Shore 2028 90,000 311 Timber Shores 2028 95,000 312 Woodland Trails 2028 50,000 313 Parkers Lk Playfield 2029 84,000 314 Maple Creek 2029 100,000 315 Kilmer 2029 80,000 316 Parkers Lake Playfields 2030 40,000 317 Legecy Greenway 2030 110,000 318 Playground Replacement Costs - 2nd life 319 Plymouth Creek 2030 140,000 320 Shiloh 2031 120,000 321 Parkers Lk Playfield 2031 120,000 322 South Shore 2032 90,000 323 Hemlock 2032 40,000 Page 14 324 Heather Ponds 2032 80,000 325 Schmidt Lake 2033 100,000 326 Mission Hills 2033 100,000 327 Maple Creek 2034 100,000 328 Circle 2034 120,000 329 Three Ponds 2035 100,000 330 Sunrise 2035 100,000 331 Gateway 2036 80,000 332 East Medicine Lake 2036 120,000 333 Imperial Hills 2037 100,000 334 Green Oaks 2037 100,000 335 LaCompte 2038 100,000 336 West Medicine 2038 140,000 337 Zachary 2038 120,000 338 Turtle Lake 2039 100,000 339 Shenandoah 2039 80,000 340 St. Mary's 2039 100,000 341 Elm Creek 2040 120,000 342 Parkers Lake 2040 140,000 343 Swan Lake 2040 90,000 344 Nature Canyon 2040 100,000 345 Heritage 2041 100,000 346 Glenloch 2043 125,000 347 Camelot 2043 100,000 348 Southwood Green 2043 50,000 349 Rolling Hills 2044 100,000 350 Lions 2044 80,000 351 Reserve 2045 110,000 352 Queensland 2045 80,000 353 Bass Lake 2045 100,000 354 Timber Shores 2046 95,000 355 Woodland Trails 2046 40,000 356 Kilmer 2046 80,000 357 Parkers Lake Playfields 2047 40,000 358 Taryn Hills 2047 110,000 359 Playground Replacement Costs - 3nd life 360 Glenloch 2047 125,000 361 Shiloh 2048 120,000 362 Parkers Lk Playfield 2048 120,000 363 South Shore 2049 90,000 364 Plymouth Creek 2049 140,000 365 Hemlock 2049 40,000 366 Heather Ponds 2050 80,000 367 Schmidt Lake 2050 100,000 368 Mission Hills 2051 100,000 369 Maple Creek 2051 100,000 370 Circle 2052 120,000 371 Three Ponds 2052 100,000 372 Picnic Shelter Replacement Costs 373 Circle (20 X 20) 2014 25,000 374 Imperial Hills (18 X 20) 2014 26,000 375 Queensland (23 X 24) 2014 31,000 376 Zachary (30 X 30) 2019 35,000 377 Sunrise (12 X 24) 2020 31,000 378 Lions (16 X 20) 2022 20,000 379 Parkers Lake Playfield 2027 225,000 380 South Shore (24 X 24) 2030 30,000 381 West Medicine (16 X 20) 2032 250,000 382 Three Ponds (30 X 30) 2033 34,000 383 Turtle Lake (20 X 26) 2034 22,000 384 Shenandoah (16 X 16) 2036 13,000 385 Zachary (16 X 16) 2036 13,000 386 Plymouth Creek (20 X 30) 2037 32,000 387 Parkers Lake (16 X 20) 2038 25,000 388 Rolling Hills (14 X 20) 2038 16,500 389 Parkers Lake (30 X 40) 2039 45,000 390 Camelot (20 X 30) 2039 64,000 391 Reserve Park 2040 60,000 392 Woodland Trails (16 X 20) 2043 20,000 393 Picnic Shelter Replacement Costs - 2nd Life 394 Lions(16X20) 2049 20,000 395 Circle(20X20) 2049 25,000 396 Imperial Hills (18 X 20) 2049 26,000 397 Bridges Boardwalks and Docks Repair/Replace 398 Zachary Lane South Of RR Ti West Boardwalk 2013 14,000 399 East Boardwalk 2018 4,000 400 Plymouth Creek Elementary Boardwalk/Bridge 2018 3,600 401 6th Avenue & Queensland Boardwalk/Stairs 2032 1,000 402 Rolling Hills Bridge 2040 27,500 403 Shiloh Bridge 2040 37,500 404 Plymouth Disc Golf Bridge 2013 1,900 Page 15 405 Bridge 2013 1,100 406 Bridge 2013 1,300 407 Bridge 2013 5,400 408 Bridge 2013 1,300 409 Bridge 2036 2,975 410 Fazendin Bridge 2030 27,500 411 Black Oak & Cty Rd 6 Bridge 2018 2,000 412 Camelot North Boardwalk 2033 15,000 413 East Boardwalk 2033 2,660 414 South Boardwalk 2034 54,100 415 Plymouth Dog Park North Boadwalk 2035 17,200 416 South Boardwalk 2035 3,350 417 Heather Ponds Boardwalk 2014 7,000 418 Kimberly Lane Boardwalk 2014 25,000 419 Maple Creek North Bridge 2035 34,000 420 Southeast Bridge 2035 27,500 421 Millenium Garden Bridge 2013 2,400 422 West Medicine Fishing Pier 2029 25,000 423 Boat Dock 2030 13,000 424 North Bridge West Side Of Road 2036 3,400 425 South Bridge West Side Of Road 2036 2,200 426 Covered Bridge 2049 90,000 427 Three Ponds Park Stairs & Boardwalk 2013 3,850 428 Floating Boardwalk 2016 31,000 429 Floating Boardwalk 2016 7,200 430 Floating Boardwalk 2017 17,000 431 Pier 2018 16,500 432 Bridge 2038 38,000 433 Timber Shores Fishing Pier 2015 25,000 434 Floating Boardwalk 2017 28,000 435 Nature Canyon Boardwalk 2015 8,200 436 Parkers Lake Beach Fishing Pier 2019 18,000 437 Roll In Dock 2023 5,700 438 Roll In Dock 2023 5,700 439 Super Deck Boardwalk 2033 1,120 440 East Medicine Lake Super Deck Boardwalk 2015 800 441 Roll In Dock 2023 5,700 442 Green Tree Island Bridge 2040 37,500 443 St. Mary's Floating Boardwalk 2031 8,000 444 Bridge 2040 27,000 445 Turtle Lake Four Seasons 2038 27,500 446 Bridge 2040 37,500 447 Bridges Boardwalks and Docks 2nd Life 448 Zachary Lane South Of RR Ti West Boardwalk 2043 14,000 449 East Boardwalk 2048 3,000 450 Plymouth Creek Elementary Boardwalk/Bridge 2048 3,600 451 Plymouth Disc Golf Bridge 2043 1,900 452 Bridge 2043 1,100 453 Bridge 2043 1,300 454 Bridge 2043 5,400 455 Bridge 2043 1,300 456 Heather Ponds Boardwalk 2039 7,000 457 Kimberly Lane Boardwalk 2044 25,000 458 Millenium Garden Bridge 2043 2,400 459 Three Ponds Park Floating Boardwalk 2043 31,000 460 Stairs & Boardwalk 2046 3,850 461 Bridge 2046 38,000 462 Floating Boardwalk 2047 7,200 463 Floating Boardwalk 2048 17,000 464 Timber Shores Floating Boardwalk 2045 28,000 465 Fishing Pier 2047 25,000 466 Nature Canyon Boardwalk 2045 8,200 467 Parkers Lake Beach Roll In Dock 2039 5,700 468 Roll In Dock 2043 5,700 469 Super Deck Boardwalk 2053 1,120 470 East Medicine Lake Roll In Dock 2035 5,700 471 Super Deck Boardwalk 2043 800 472 MISC. BUILDING REPAIRS 473 Bass Lake Roof 2013 75,000 474 Oakwood Roof 2015 12,000 475 Bass Lake Air Conditioner 2015 25,000 476 Misc. Roof/Building Rapair 2017 20,000 477 Misc. Roof/Building Rapair 2018 20,000 478 Misc. Roof/Building Rapair 2019 20,000 479 Misc. Roof/Building Rapair 2020 20,000 Total Capital Expenses 34,755,283 Total Expenses Present Value (2012) 34,755,283 Total Expenses Future Value (Includes 3% annual inflation) 64,454,705 Page 16 City of Plymouth Plymouth Ice Center Fund February, 2013 Page 17 INTRODUCTION The following report provides an overview of the Plymouth Ice Center (PIC) operation including historic information, current amenities, user groups and other operational data. Overall, PIC has proved to be a valued community asset serving almost 500,000 visitors per year and operating as an enterprise fund (for 16 years) without any operating subsidy from the general fund — which is an anomaly in the ice arena world. As we look to the future, and as PIC continues to age, the City will be faced with some decisions in regard to mandated and necessary improvements to this facility. HISTORY The Plymouth Ice Center (PIC) is one of the busiest ice facilities in Minnesota. The facility services as home ice to Wayzata High School (boys & girls), Providence Academy (boys), Armstrong/Cooper Youth Hockey and Wayzata Youth Hockey Association, one of the largest programs in the nation. In addition PIC is also home to numerous regional and state hockey tournaments and events. In the past, PIC also served as home ice to Armstrong High School Hockey (boys & girls). In 2012, Robbinsdale School District made the decision to move their hockey programs to the New Hope Ice Arena. Opened in 1997 - 9 million (total cost) Financial support provided by— o $8,000,000 — Community Improvement/Administrative funds (voter approved) o $250,000 - Mighty Ducks Grant o $250,000 - Wayzata High School o $250,000 - Wayzata Youth Hockey Association o $250,000 — Other contributions 85,000 square feet 2 sheets of ice - Olympic Rink & Profession Rink In 2004, Providence Academy and Wayzata Youth Hockey Association requested the addition of a third sheet of ice at PIC. Both groups financially contributed to the project. Page 18 Expanded in 2004 — 5,375,000 Financial support provided by— o $1,600,000 — Park Dedication Fund o $1,800,000 - Park Replacement (loan- Pay off in 2019) o $725,000 - Wayzata Youth Hockey Association o $1,250,000 - Providence Academy 35,000 square feet Third sheet of ice added - Professional Rink Providence Academy - paid $500,000 towards the project at the time of the bid award and an additional $500,000 within 180 days. The last $250,000 was paid to the City at the completion of the project. Providence also agreed to purchase a minimum of 225 hours of ice time from October 1St to March 31St for the next 15 years. The ice rental minimum was necessary to underwrite construction costs. Wayzata Youth Hockey Association (WYHA) - paid $175,000 at the time of bid award and an additional $550,000 on December 31St, 2007. As part of the agreement, the City will attempt to provide WYHA an additional 22-38 hours of ice time each week between October 15 and March 15 on the third sheet of ice. The agreement also stipulates that the City Council remains in control of all scheduling of the facility. Today 14.3 million investment 120,000 square feet 1) Olympic Rink & (2) Professional Rinks PIC AMENITIES 1) Olympic Rink: (200X100) 0 Sand floor Refrigerant — R22 Seating for 1,000 1) Professional Rink: (200X85) 0 Concrete floor Refrigerant - R22 Seating for 200 1) Professional Rink: (200X85) Concrete floor Refrigerant -Ammonia Seating for 500 Page 19 16) Locker rooms All (3) High School teams have private 210,076 2011 locker rooms 2) Meeting rooms 0 Blue Line - seats 39 1,212,657 Center Ice Room — seats 125 8) Restrooms 0 Upper — men's & women's Lower Level — men's & women's 3) Zamboni 0 Electric Parking 0 900 vehicles Shared with LifeTime Fitness Other amenities Concessions and vending areas Figure skating room 2) Hockey officials rooms Ice Skate rental Skate sharpening room BUDGET The Plymouth Ice Center operates as an Enterprise Fund and does not receive a General Fund subsidy to sustain operations. Revenue is generated at the facility through user fees (hourly ice rental), concession sales, and advertising. PIC also receives generous donations and support from user groups for facility improvements and enhancements. A significant portion of operating expenses in this fund is depreciation on capital assets that are already funded. The fund revenue is developed to cover general operating expenses and repairs. The table below provides an overview of the operating budget without depreciation. EXPENSES (ACTUAL) REVENUE (ACTUAL) NET 2010 1,199,285 1,409,361 210,076 2011 1,265,650 1,478,491 212,841 2012* 1,212,657 1,573,854 299,197 unaudited estimate Comparing other ice facilities, most arenas operate as enterprise funds that require financial support from the general fund to sustain general operations. As shown above, PIC is able to operate without an operating subsidy. Page 20 OPERATING FUND COMPARISON FACILITY AMENITIES FUND TYPE PROJECT FUNDING Burnsville 2) Ice sheets Enterprise Fund w/ annual subsidy General Fund, Bonds, Woodbury 481 200,000-$300,000) Internal Funds Eden Prairie Wayzata High School 255 429 Brooklyn Park 2) Ice sheets Special Revenue Fund w/ subsidy Providence Academy 0 269 200,000-$300,000) 2,357 Edina, 3) Ice sheets Enterprise Fund w/ annual subsidy General Fund, Donations, Bloomington 200,000-$300,000) Bonds, Internal Funds New Hope 2) Ice sheets General Fund General Fund, Bonds, Grants 200,000-$300,000) PIC USAGE (HOURS) The facilities largest user group is Wayzata Youth Hockey Association who schedule over 2800 hours per year. Because of the facility size and layout, PIC is able to attract many regional and state user groups. MAJOR USER GROUPS 1998 Hours I 2011 Hours Wayzata Youth Hockey Association 1,945 2,815 Public Open Skating 390 481 Minnesota Showcase Leagues and Tournaments 280 535 Wayzata High School 255 429 Minnesota All-Star Hockey Leagues 158 214 Providence Academy 0 269 All others 2,357 2,104 TOTAL HOURS 5,385 6,847 PIC ICE RATES (PER HOUR) WINTER RATE SUMMER RATE 2012* 190 175 2009* 180 165 2008* 170 155 2005* 145 120 2002 140 110 1998 130 110 S surcharge is included in the fee to help cover the cost ofthe 3rd sheet of ice. Wayzata School District does not pay the surcharge because they are not scheduled on the 3rd sheet of ice. Page 21 ICE RATE COMPARISON (PER HOUR) WINTER RATE SUMMER RATE Burnsville 210 175 Woodbury 205 145 Brooklyn Park 200 165 Edina 200 200 New Hope 197 170 Bloomington 190 190 Eden Prairie 190 175 Plymouth 190 175 FUTURE FACILITY IMPROVEMENTS As PIC ages we will be faced with some decisions in regard to financing improvements to the facility. The PIC fund has a cash balance that should sustain the day-to-day operations of the facility (i.e. carpet replacement and minor equipment). Replacement and/or repair of the larger capital items will deplete the fund. The more significant capital replacement amenities are listed below. AMENITY COMMENTS YEAR EST. COST Refrigerant Conversion State mandated conversion from R22 2015 800,000 Roof Replacement The roof is getting old and the rubber membrane is starting to leak 2016 (Rink A) 2018 (Rink B) 700,000 550,000 Olympic Rink Conversion Change Olympic to professional size and remove sand floor 2015 650,000 Total 2,700,000 Also for consideration is the addition of a 7,200 square foot Training Facility at PIC. Please see the separate report that provides more information regarding the project. Page 22 In order for PIC to remain an attractive and viable operation both internally and externally the facility must stay current with trends to compete with other ice facilities. ICE CENTER TRENDS Dry Land Training Area An important amenity to improve the conditioning, training and safety of athletes. Currently Blaine; Braemar; New Hope; Eagan have facilities. Eden Prairie; Bloomington; Burnsville are considering facilities. All Electric Facility To ensure safe indoor air quality and to meet new Health Department mandates, sport facilities are transitioning to all electric equipment. (i.e. Zamboni machines and ice edger's). Refrigerant R22 Freon conversion to ammonia. EPA has enacted a 40% cut-back in production of R22 for 2012, with total reproduction to cease in 2020. Olympic Rink Conversion Savings of 15% electrical energy use. Youth and girls would prefer a smaller to Professional sheet of ice, making the professional size more attractive for rentals. The speed skating group prefers the Olympic sheet. Retail Space Possible future retail space, specifically for Sports store outlets. Magnify Locker rooms Trend to upgrade high school locker rooms. Most venues do not have space to enlarge, but are remodeling instead. Concrete Floor Concrete allows for 1 to 2 inches less ice thickness, which equates to 25% in energy savings. Also saves on maintenance and adds the possibility for dry floor use. FUND ANALYSIS In 2012 PIC completed a Capital Improvement Plan (CIP) that provides a 10-12 year schedule of capital replacement needs. Currently, the Plymouth Ice Center Fund does not have a sufficient cash balance to sustain the necessary replacement needs included in the CIP. In order to complete the major facility improvements, there will need to be some type of city investment. This could be in the form of a one-time capital contribution or annual payments to cover debt issued to complete the improvements. Page 23 We are also continuing our efforts to look at grants, low or zero interest loans, or state bonds to reduce the costs of financing. Because most of the improvements are energy related and will result in annual energy cost savings, we may have more options to consider. There are many potential options to fund the major facility improvements. In order to review the financial feasibility, we have developed three scenarios for the Council to discuss. CASH FLOW SCENARIOS: All scenarios include the assumption that the 2005 internal loan for the third sheet of ice is refunded from an interest rate of 5.25% to 1.5%, reducing current payments by $20,280 per year. This item has been placed on the Consent Agenda for approval on February 12, 2013. Scenario A: Current cash flow projections Assumptions: 5.5% hourly rate increase every 3 years Results Cash balance goes negative beginning in 2015 with an accumulated negative cash balance in 2025 of $3.6M. Not feasible. renario B: Cash flow with Rate Increase Assumptions: 6.0% hourly rate increase beginning in 2014 and continuing every year through 2025 Requires temporary cash flow for capital purchases beginning in 2015 of $2.5M for a 15 year repayment term. This action avoids negative cash balances from 2015 through 2022. Rate increase will not be accepted in market to remain competitive Results Cash balance remains positive with low reserves until 2022. Not feasible due to market sensitivity with hourly rates and commitments with partners/customers. Scenario C: Cash flow with Internal Loan and subsidy payments from Levy Assumptions: 5.5% hourly rate increase every 3 years Internal loan of $2.5 million in 2015 — repayment term of 15 years Internal loan of $1.0 million in 2018 — repayment term of 15 years Internal loan of $500,000 in 2022 — repayment term of 10 years Interest rate of internal loans 1.5% Levy Subsidy — varies 2015 — 2032 averaging $262,000/year The source for the internal loans could be the Community Improvement Fund or other city funds. Page 24 Results Cash balance remains positive with year-end reserves remaining consistent averaging $600,000. 4 3 2 Plymouth Ice Center Pb OiashFlowScenarios1`" Plymouth 2011 to 2025 kdd,nqQW41V(0Uft 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Existing _=date Increases 8 Intemal Loan/Subs 1dy C There are many variations of these scenarios that staff could explore after obtaining feedback from the Council. Internal Loan Refunding Summary Net Income/Cash Balance Graph Ice Center Capital Improvement Plan Page 25 Third Sheet of Ice Interfund Loan From Park Replacement (Fund 405) to Ice Center (Fund 540) AMENDED INTEREST RATE EFFECTIVE JANUARY 2013 Remaining Loan: $888,200 Outstanding Principal Remaining Term: 7 years Interest Rate: 1.5% per annum Total Payment: $134,612 annually REFUNDING Interest Rate: Interest Rate: 5.25% 1.5% jr Plymouth Savings 20,280 20,280 20,280 20,280 20,280 20,280 20,280 Total Savings: 1 $141,960 Page 26 Beginning Principal Interest Paid Principal Paid Total Payment Ending Principal Old Payment New Payment 2013 888,200 13,323 121,289 134,612 766,911 154,892 134,612 2014 766,911 11,504 123,109 134,612 643,802 154,892 134,612 2015 643,802 9,657 124,955 134,612 518,847 154,892 134,612 2016 518,847 7,783 126,829 134,612 392,018 154,892 134,612 2017 392,018 5,880 128,732 134,612 263,286 154,892 134,612 2018 263,286 3,949 130,663 134,612 132,623 154,892 134,612 2019 132,623 1,989 132,623 134,612 0 154,892 134,612 jr Plymouth Savings 20,280 20,280 20,280 20,280 20,280 20,280 20,280 Total Savings: 1 $141,960 Page 26 Plymouth Ice Center City of Net Income Cash Balances r;b Plymouth 2005 to 2012 Addiog Qu°riey to Life 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 — — 2005 2006 2007 2008 2009 2010 2011 2012 2005 2006 2007 2008 2009 2010 2011 2012 Cash Balance 357,434 527,560 454,012 483,415 605,256 668,713 656,521 741,439 Net Income 82,961 101,278 60,455 118,413 284,064 1 210,076 212,838 299,197 Page 27 PLYMOUTH ICE CENTER - ASSET MANAGEMENT 2013-2025 PROJECT INFORMATION 2013 2014 2015 2016 2017 2018 CIP items 2019 2020 2021 2022 2023 2024 2025 TOTALS CARRIER ROOF TOP HVAC UNITS (3) INSTALLED IN 1997; 2016- 3 UNITS/ 2021-4 UNITS) RUBBER FLOORING LOWER LEVEL Et STAIR TREADS INSTALLED IN 1997 - 15 YEAR LIFE) 40,000 Lower Level 75,000 A & 8 (3 units) 45,000 locker rooms 100,000 Rink C (4 units) 175,000 85,000 BUILDING CARPET INSTALLED IN 1997 - REPLACE OFFICE & CENTER ICE RM CARPET) 25,000 40,000 65,000 DEHUMIDIFIER REPLACE DSICCANT WHEELS) 27,000 Rink A 28,000 Rink B 30,000 Rink C 85,000 ROOF REPLACEMENT (RINKS A, B Et C) REPLACE RUBBER MEMBRANE) ZAMBONI'S (RINK A, B Et C) i REPLACEMENT 5 YR LIFE/ 15 YEAR LIFE) DASHER BOARDS (RINKS A, B Et C) INSTALLED 1997 - 20 YEAR LIFE -REDUCED IF RETROFITTED -2015) SCOREBOARDS RINK A REPLACED IN 2012 @ $50,000; REFRIGERANT CONVERSION TO AMMONIA EJB & B RINK MANDATED BY 2020) OLYMPIC RINK CONVERSION EJB RINK FROM OLYMPIC TO PROFESSIONAL) 700,000 Rink A & Lobby 550,000 Rink B 800,000 Rink C 2,050,000 52,000 Refurb A 130,000 Replace -B 130,000 Replace -A 140,000 Replace -C 170,000 Replace -B 622,000 170,000 800,000 650,000' 70,000 Rink A 75,000 Rink B 25,000 Rink c 32,000 Rink B 32,000 800,000 650,000 TRAINING FACILITY (Hen. Co Grant -$700,000 project) PARTNERSHIP-ACCELERATION/WAYZATA YOUTH HOCKEY) 600,000 600/400) 600,000 RUPP ROOF AIR -EXCHANGER HANDLER (A Et B) LOCKERROOM REPLACEMENT) COOLING TOWERS 28,000 28,000 80,000 Rink c 80,000 100 HP COMPRESSOR MOTOR FOR REFRIGERATION PLANT REPLACEMENT - DON'T NEED IF CONV.) 16,500 Rink C 16,500 AUTO SCRUBBER REPLACEMENT- current unit 16 yr. old) 8,000 8,000 PICK-UP TRUCK USED -PURCHASED 2002) 16,000 16,000 JOHN DEERE SNOWBLOWER/BLADE REPLACEMENT - ORIGNIALLY PURCHASED IN 2000) 20,000 20,000 ZAMBONI BATTERIES BATTERIES- ABOUT 5 YR LIFE SPAN) 10,000 Rink C 10,000 Rink A 10,000 Rink 8 10,000 Rink C 40,000 MISC. REPAIR/ REPLACEMENT MEZZANNINE & RINK B EXITS/SIGN/ETC) 11,000 Doors 11,000 Doors 15,000 Neon sign 25,000 Electronic sign 62,000 CONCESSION EQUIPMENT FREEZER & POPCORN MACHINE) 2,000 2,000 4,000 SIDEWALK REPAIR - FRONT ENTRANCE COORDINATE WITH PARKING LOT REPAIR) VARIABLE FREQUENCY DRIVE (VFD) EFFICIENCY FOR CONDENSER) RINK SOUND SYSTEM/SPEAKERS SPEAKERS IN 2012 & 12 IN 2013) 15,000 15,000 8,000 Rink C 8,000 12,000 12,000 ENERGY MANAGEMENT SYSTEM CONTROL FACILITY OPERATION SYSTEM) 30,000 30,000 TOTALS 5683,000 $252,000 $1,546,000 $834,000 $115,000 $722,000 $225,000 $46,500 $180,000 $825,000 50 550,000 $195,000 Page 28 Plymouth Parks Et Recreation Adding Quality to Life PLYMOUTH ICE CENTER DRY LAND TRAINING FACILITY CONCEPT The City of Plymouth, in partnership with Wayzata Youth Hockey Association, is exploring the concept of constructing a dry land training facility by expanding the Plymouth Ice Center. Currently there is no separate area for off -ice physical activity. Skaters and teams are utilizing common areas (i.e., lobby, stair, and bleacher areas) not meant for physical activity to conduct their off -ice pre- game/practice warm-ups and skills training. More often than not, those same areas are occupied by other facility users such as family members and spectators, increasing the risk for accidents and injury to both persons and property. In addition, the dry land training facility would enhance local opportunities for youth to participate in athletic skills and fitness training for multiple sports and increase camps and tournaments. The addition would be constructed on the east side of Rink B of the PIC. There would be a separate outside entrance for the training facility and because the expansion area is currently a grassy strip of land, there would be no loss of parking spaces due to the expansion. PROJECT VISION Construct a 7,220 square feet expansion of the Plymouth Ice Center for athletic skills and fitness training as well as pre -game and practice warm up. This is not a fitness center — rather an athletic focused skills and fitness training area. The City of Plymouth would partner with a third party through a long-term lease agreement/covenant. The training facility would provide valuable off -ice income ($55,000-$65,000 per year). More importantly, the off -ice revenue will help to fund future improvements and needed repairs to the Plymouth Ice Center (PIC). Without a new source of revenue, it will be more difficult for the PIC enterprise fund to operate in the black in the long term. The City of Plymouth Parks is responsible for the operation and maintenance of (PIC) It is the City of Plymouth's intention that this project be fully sustained and used for youth dry land training and pre -game or practice warm-up activities for a minimum of 15 years. Supply youth access to health and wellness guidance (i.e. nutrition, concussion awareness, etc.). r 3400 Plymouth Boulevard * Plymouth * MN 55447 Ph: 763-509-5200 • Fax: 763-509-5207 www.plymouthmn.gov Plymouth parks are tobacco -free! Plymouth Parks Et Recreation Adding Quality to Life Enhance and increase local opportunities for youth to participate in athletic skills and fitness training for multiple sports such as hockey, baseball, soccer, football, basketball and lacrosse. Help alleviate safety concerns for both persons/property due to the facility's limited space. Expand opportunities for youth to participate in ice and hockey sports camps and tournaments. Reduce organizational training costs for youth (i.e., eliminate/reduce transportation costs, discounted training fees for major partners and referrals). Wayzata Youth Hockey Association has provided letters of support and monetary commitment. FUNDING Staff has reviewed the financial terms of a potential lease with a third party based on market rents and have prepared a 10 year cash flow to outline how the project could be funded. Preliminary terms of the project financing include: Total project cost estimated at $1 million 10 year lease agreement with private entity at $9 per square foot, inflated at 3% per year. Lease terms would require private entity to pay all utilities, taxes and interior improvements. Up -front cash contribution from Wayzata Youth Hockey Association of $100,000 with an additional $75,000 per year in years 2 through 5. Project financing includes internal loan of $900,000 at 1.5% interest rate for a term of 10 years. Payback of internal loan in eight years. Lease revenue after the eighth year would be available for other purposes including assisting with paying off debt for major facility improvements. A preliminary project pro -forma is attached outlining the annual cash flow. We have not included any grant funds in the pro -forma. If grant funds are obtained, the payback period would be reduced accordingly. ACTION The proposal is conceptual at this time and staff is looking for Council feedback and direction. ATTACHMENTS Preliminary Project Pro -Forma Letter from WYHA 3400 Plymouth Boulevard * Plymouth * MN * 55447 Ph: 763-509-5200 • Fax: 763-509-5207 www.plymouthmn.gov Plymouth parks are tobacco -free! PLYMOUTH ICE CENTER EXPANSION DRY LAND TRAINING AREA Revenue Assumptions Loan Assumptions Leaseable s.f. 7,220 Rate Lease Rate 9.00 Term Inflator 3% Amount Dated Date 75,000 First Payment WYHA Contributions ribCity ©f Plymouth Adding QuoUty to Life 1.50% 10 900,000 Includes $100,000 upfront WYHA contribution 1/1/14 Assumes no accrued/capitalized interest 12/31/14 Project cost estimate is $1,000,000. Page 31 2013 100,000 2014 75,000 2015 75,000 2016 75,000 2017 75,000 Total 400,000 Beginning Interest Principal Ending Year Revenue Balance Payment Payment Payment Balance 2014 139,980.00 900,000 13,500.00 126,480.00 139,980.00 773,520 2015 141,929.40 773,520 11,602.80 130,326.60 141,929.40 643,193 2016 143,937.28 643,193 9,647.90 134,289.38 143,937.28 508,904 2017 146,005.40 508,904 7,633.56 138,371.84 146,005.40 370,532 2018 73,135.56 370,532 5,557.98 67,577.58 73,135.56 302,955 2019 75,329.63 302,955 4,544.32 70,785.31 75,329.63 232,169 2020 77,589.52 232,169 3,482.54 74,106.98 77,589.52 158,062 2021 79,917.20 158,062 2,370.93 77,546.27 79,917.20 80,516 2022 82,314.72 80,516 1,207.74 81,106.98 82,314.72 591) 2023 84,784.16 591) 8.86) 84,793.03 84,784.16 85,384) Project cost estimate is $1,000,000. Page 31 Wayzata Youth Hoy Association 4300 Niagara Lane Plymouth, MN 55446 Ms. Diane Evans Plymouth Ice Center 3650 Plymouth Blvd Plymouth MN 55446-3201 February 5, 2013 Subject: Training Center at Plymouth Ice Center Dear Diane: The Wayzata Youth Hockey Association Board has unanimously approved supporting the construction and use of a training facility at the Plymouth Ice Center at its February 5, 2013 meeting. It would be very valuable to the members of Wayzata Youth Hockey to have a training facility on site at Plymouth Ice Center. Training and development are the key ingredients for successful hockey players. Additionally the WYHA Board is of the opinion that the training center addition will enhance the Plymouth Ice Center's reputation as a year round destination arena for games, practice and training for WYHA members and other groups/persons seeking athletic training. With that in mind the Wayzata Youth Hockey Association has approved a 100,000 donation and 4 - $75,000 annual payments totaling $400,000 to the construction of a PIC Training Center. Wayzata Youth Hockey is proud and privileged to once again work with the City of Plymouth on a collaborative project that will enhance youth activities in our community. Please contact me at ggibson@gkservices.com or 612-221-2176 if you have any further questions regarding Wayzata Youth Hockey's support and financial commitment of a training facility at Plymouth Ice Center. Sincerely N, Greg Gibson President Wayzata Youth Hockey Association Page 32 rp)City of Plymouth Adding Quaky to Life SPECIAL COUNCIL MEETING February 12, 2013 Agenda 2BNumber: To: Mayor and City Council Prepared by: Laurie Ahrens, City Manager Item: Set Future Study Sessions 1. ACTION REQUESTED: Set future study sessions and amend the pending study session list, as desired. Calendars are attached to assist with scheduling. Pending Study Session Topics at least 3 Council members have approved the following study items on the list) Domestic Partner Registration (after conclusion of 2013 legislative session) Discuss Human Rights Committee Other requests for study session topics: Update with City Manager - spring Page 1 r Plymouth Adding Quality to Life February 2013 Modified on 02105113 CHANGES ARE NOTED IN RED Page 2 1 2 2:00 PM FIRE 8 ICE FESTIVAL Parkers Lake 3 4 5 6 7 95:30 PM 7:00 PM SPECIAL COUNCIL PLANNING MEETING COMMISSION Meeting with Area MEETING Legislators Council Chambers Medicine Lake Room 10 11 12 7:30 AM 13 14 15 16 STATE OF THE CITY 7:00 PM Council Chambers PARK ft REC ADVISORY5:30 PM SPECIAL COUNCIL COMMISSION MEETING* PRAC) MEETING Medicine Lake Room Council Chambers 7:00 PM REGULAR COUNCIL MEETING Council Chambers Ash Wednesday 17 18 19 20 21 22 237:00 PM 7:00 PM PLANNING ENVIRONMENTAL PRESIDENTS COMMISSION QUALITY DAY MEETING COMMITTEE Council Chambers EQC) MEETING Council Chambers CITY OFFICES CLOSED 24 25 26 27 7:00 PM 28 6:00 PM7:00 PM PLYMOUTH ADVISORY SPECIAL COUNCILREGULARCOUNCILCOMMITTEEONMEETINGMEETINGTRANSIT (PACT) Tour of Firearms RangCouncilChambersREGULARMEETINGLawEnforcementC Medicine Lake Room 11370 89th Ave NN Maple Grove 7:00 PM HRA MEETING Discuss Park Replacement Funds Mpriirinp I aka Rnnm Modified on 02105113 CHANGES ARE NOTED IN RED Page 2 City of Plymouth Adding Quality t0 Life March 2013 Modified on 01/31/ 13 Page 3 1 2 3 4 5 6 7 8 97:00 PM PLANNING COMMISSION MEETING Council Chambers 10 11 12 13 14 15 167:00 PM 7:00 PM 5:30 PM 9:00 AM - REGULAR ENVIRONMENTAL COMMITTEE AND 12:00 PM COUNCIL MEETING QUALITY COMMISSION CITY SAMPLER Council Chambers COMMITTEE (EQC) RECOGNITION Plymouth City Hall MEETING EVENT Council Chambers Plymouth Creek Center Daylight Savings Time Begins 17 18 19 207:00 PM PLANNING 21 22 237:00 PM REGULAR COUNCIL COMMISSION MEETINGMEETINGCouncilChambersCouncilChambers 7:00 PM PLYMOUTH ADVISORY COMMITTEE ON TRANSIT (PACT) STUDY SESSION Good FridayMedicineLakeRoom 24 25 26 27 28 29 307:00 PM HRA MEETING 31 Medicine Lake Room aster Sunday Passover Begins at Sunset Modified on 01/31/ 13 Page 3 r Plymouth Adding Quality to Life April 2013 Modified on 01/31/ 13 Page 4 1 2 3 7:00 PM 4 5 6 PLANNING COMMISSION MEETING Council Chambers 7 8 9 6:00 PM 10 7:00 PM 11 12 5:00-9:00 PM 13 BOARD OF ENVIRONMENTAL 5:00-9:00 PM PRIMAVERA Plymouth Fine 10:00 AM -4:00 P. EQUALIZATION Council Chambers QUALITY PRIMAVERA Arts Council Show PRIMAVERA Plymouth Fine ArtCOMMITTEEPlymouthFinePlymouthCreekCouncilShow Immediately(EQC MEETING Arts Council Center Plymouth Creek Cent( Following BOE Council Chambers Show 6:00-8:00 PMREGULARCOUNCILPlymouthCreekYARDEtGARDEN 9:00 AM -1:00 PM MEETING CenterEXPO YARD Et GARDEN Council Chambers Plymouth Creek EXPO Center Fieldhouse Pl mouth Creek Cent( y 14 15 16 17 7:00 PM 18 19 20 1:00-4:00 PM 10:00 AM -4:00 PM PLANNING PRIMAVERA 7:00 PM -8:30 PM COMMISSION Plymouth Fine PRIMAVERA MEETING Arts Council Plymouth Fine Council Chambers Show Arts Council Plymouth Creek Show Center Plymouth Creek Center 21 22 23 24 25 26 276:00 PM 7:00 PM 7:00 PM BOARD OF PLYMOUTH HRA MEETINGEQUALIZATIONADVISORYMedicineLakeRoomRECONVENED If necessary) COMMITTEE ON Council Chambers TRANSIT (PACT) STUDY SESSION Immediately Medicine Lake Room Following BOE REGULAR COUNCIL MEETING Council Chambers 28 29 30 Modified on 01/31/ 13 Page 4 r Plymouth Adding Quality to Life May 2013 Modified on 02106113 Page 5 1 7:00 PM 2 3 4 PLANNING COMMISSION 7:30 AM -2:00 PM MEETING SPECIAL Council Chambers DROP OFF DAY Public Works Maintenance Facility 5 6 7 8 7:00 PM 9 7:00 PM 10 11 8:00 AM -1:00 PM ENVIRONMENTAL PARK Et REC Plymouth QUALITY ADVISORY Fire Department COMMITTEE COMMISSION Annual Waffle EQC) MEETING PRAC) MEETING Breakfast Council Chambers Council Chambers Fire Station 3 12 13 14 15 16 17 187:00 PM 7:00 PM REGULAR COUNCIL PLANNING MEETING COMMISSION Council Chambers MEETING Council Chambers 19 20 21 22 7:00 PM 2 3 5:00-8:00 PM 24 25 PLYMOUTH ENVIRONMENTAL ADVISORY QUALITY FAIR COMMITTEE ON Zachary Lane TRANSIT (PACT) Elementary School REGULAR MEETING Medicine Lake Room 7:00 PM HRA MEETING Medicine Lake Room 26 27 28 7:00 PM 29 30 31 REGULAR COUNCIL Memorial Day MEETING Council Chambers CITY OFFICES CLOSED Modified on 02106113 Page 5