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HomeMy WebLinkAboutMarch 10PARK ADVISORY COMMITTEE MEETING MONDAY, MARCH 10, 2003 MAINTENANCE CENTER 6:00 p.m. 1. Call to Order 2. Approval of Meetinq Minutes a. Approval of February 10, 2003 Meeting Minutes . . . Old Business , _.._. __ ' ' ~,[.--c~1~ New Business a. Discussion and Formulation of Recommendations to the City Council b. Regarding the Dance Studio for the March 17th Public Hearing Athletic Concession Operations Future Meeting Date a. April 14, 2003 6. Adjournment 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER PARKS ADVISORY COMMITTEE MEETING MINUTES FOR FEBRUARY 10, 2003 The meeting was called to order at 6:00 p.m., on Monday, February 10, 2003, at the Maintenance Facility. Members present were Pat McFadden, Tom Borger, Mike Feriancek, Ruth Harris, and Lori Helgestad. Also in attendance were Councilmember Liaison Andrea Blomberg, Parks Maintenance Supervisor Al Friedges, Public Works Director Bud Osmundson, Recreation Supervisor Chris Esser and Assistant City Manager Susan Walsh. City Manager Frank Boyles and Councilmember Joe Zieska were in attendance for the first agenda item. Approval of February 10, 2003 Meeting Minutes: MOTION by Helgestad to approve the minutes. Second by Harris. Ayes: 5. Nays: 0. Status of Dance Studio: City Manager Frank Boyles reported on the status of his gathering information and data to be used in a report to the City Council at a meeting in March. One of the city's 2020 Strategic Plan elements is to identify additional revenue sources and exercise fiscal responsibility. This report will address this element as well as evaluate the current operations of the city's dance program. Until the report is reviewed by the City Council and shared with the Parks Advisory Committee members, Boyles requested that members refrain from discussing the program with residents or parents who have expressed concerns to them on the status of the dance studio. 2003 Trail Projects: Parks Superintendent Al Friedges advised the City Council approved the plans and specs for trail improvements. Friedges discussed the rationale for selecting the locations for the various trails. Adopt-a-Park Program: Makenzie McCormick, Public Works Coordinator, has been assigned to coordinate the city's adopt-a-park program in conjunction with the city's adopt-a-street program and city cleanup day. At the next meeting, a staff will report on the status of these programs. Parking at Crest Avenue Water Tower: At the last meeting, Pat McFadden requested an update on the status of constructing an overflow parking lot at the water tower for vehicle/boat trailer parking. Public Works Director Bud Osmundson advised this was discussed with the City Council last year, and the Council decided not to pursue this project because the cost for improving the lot and for paying a parking attendant was too high for only 10 parking spaces. Skating Rink Issues: Mike Feriancek commented on the high use of the skating rinks. Prior Lake Hockey Association has over 300 kids (5-8 years), and from all feedback he has received, the rinks are well used. Community Sled and Skate Party Update: Recreation Supervisor Chris Esser advised the committee members that this event was well attended. The weather cooperated, and kids (and adults) took to the sliding hill. Also, the horse drawn sleigh, storybook teller and face painting were very popular. Glynwater Park Basketball Court: Members were provided with a petition from the residents on Glynwater Trail and adjacent streets to have half a basketball court installed in Glynwater Park. Friedges advised that the City Council at their February 3 meeting authorized funding to accommodate this request. City staff will ask PLAY to fund some of the costs. Deerfield Trail Petition: Staff distributed a petition from residents who are requesting the city to clear trails (during the winter months) that go from Woodridge Development through the Ponds to Deerfield Park. Friedges advised the Winter Maintenance Policy sets out criteria for sidewalks and trails based upon high, medium and Iow priorities. Currently we maintain and plow 28 miles of trails and sidewalks after snowfalls. Committee members agreed that until the current policy is reviewed or updated, the maintenance department should not maintain any new trails and sidewalks during the winter months. Staff advised they are currently contacting other cities for samples of their policies. Public Works Director Bud Osmundson handed out another petition recently received from several residents who are requesting that city maintenance crews remove snow from the sidewalk on the east side of Fish Point Road, from County Road 44 to County Road 21. Osmundson advised that city crews maintain the west side of Fish Point, but residents are concerned that children have to cross Fish Point. Osmundson noted that residents on the east side are not maintaining the sidewalk per city ordinance. Committee members discussed this request and agreed that residents on the east side should be advised of the city ordinance and their responsibility to maintain the sidewalks. Residents who signed the petition should be informed of the city ordinance requirements and also that their request will be re-evaluated after the new high school opens. Five Hawks Boardwalk: Friedges informed the committee members of a project he and Osmundson have been working on with Jim Huges from Five Hawks Elementary School. The school received a grant and donations totaling $27,000 for construction of a boardwalk in the nature area adjacent to the school. City maintenance staff will be working on the boardwalk this winter. Friedges noted this is an excellent example of partnership between the school and city. Tennis Courts at Knob Hill and Carriage Hills Park: Lori Helgestad advised she would like to have a tennis court constructed at either Knob Hill or Carriage Hill Park advising it would be more convenient for residents in the area. She and her husband have driven to the tennis courts in Lakefront Park only to find out they are filled. She believed it would be a great asset for the neighborhood. Staff estimated the cost to be around $32,000. Helgestad will contact residents in that area to see if they are interested. Off Leash Do.q Run: Pat McFadden requested the status on having an area set aside for residents to take their dog to run off leash. Esser advised that since such an area was recently designated at Cleary Park, he didn't believe there a need to have one in a city park. MOTION by McFadden to adjourn. Second by Helgestad. Motion carried. Respectfully submitted, Susan Walsh Assistant City Manager CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: oa,~ch 3, 2003 ~/.~~ Frank Boyles, City ManagerX,. ' J CONSIDER APPROVAL OF~:~EPORT REGARDING OPERATION OF THE DANCE PROGRAM AND STUDIO. DISCUSSION: History: Since 1982, the City of Prior Lake has offered a dance program as part of its recreation programming. The first program was offered to 17 students in the basement of the old library building. In 1992, because of the growth of the program, the dance studio was moved to the Priordale Mall. A short two years later, the dance program boasted an annual budget of $47,500, employed four teachers and 225 students. The first full-time Recreation Supervisorwas hired in part to supervise the dance director and teaching staff. In February 1997, as part of the $7.8 million Park and Library Referendum, fundingwas set aside to build a new studio as part of the new library. In October 1999, the dance program moved to its new 4634 square foot home located within the 17,867 square foot Library Resource Center. The program had a budget of $68,000, staff of 10, and 302 participants. By 2002, the dance program has an operating budget of $206,745, 12 teachers and 434 participants. Current Circumstances: The purpose of this report is to examine the Dance program operation and determine what course of action to take to assure that the program continues to grow and serve the needs of our community. There are numerous reasons for examining the Dance program at this time. . The 2020 Vision and Strategic Plan, in its financial element directs the staff to seek additional revenue sources and to exercise fiscal prudence in budgeting and fiscal management. , Governor Pawlenty and Finance Commissioner McEIroy have encouraged cities to examine how to deliver services more cost effectively, including joint efforts and privatization. This message was underscored when we learned that Prior Lake would be losing $366,842 state assistance in 2003 and $366,842 in 2004. Modifications in the dance studio operation could be a part of the answer to these shortfalls. . The Dance program is at a crossroads. The existing space is utilized seven days a week. (See Attachment 1 which shows the classes offered, dates, times, age groups, teachers and tuition.)A few years ago, the dance program began participating in dance competitions. On one hand, it is unique for a municipal dance program to participate in competitions. On the other hand, I am told that resource constraints prevent participation in larger, more prestigious competitions. It appears that if the program is to 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 R:~GENDA REPORTS~003 DRAFTS\MARCH 3RD DANCE.DO~ AN EQUAL OPPORTUNITY EMPLOYER ISSUES: grow, it cannot do so as the program is currently administered and funded by the City. . The costs for the program in the recent years are rising faster than the revenues and number of dancers. The result is lower revenues and increased expenses. . Dawn Schulberg, the lead instructor, has confirmed her desire to open her own dance studio. The studio could be the Prior Lake program or completely independent from the City. It is my personal belief that if Ms. Schulberg leaves, a significant number of customers may follow her. The nature of the dance program would change as a result. Conclusion: The purpose of this agenda item is to look at the present dance studio operation to determine if changes should be made to improve the program for all stakeholders. The Existing Dance Proqram Operation The Dance program is a year-round operation with the primary activity period from September to June, approximating the school year. In May and June, registration activities begin. By June/July, tryouts take place so that dancersare placed into classes based upon age, ability and experience. Classes are scheduled from August to June the following year. A total of 434 students participated this year. The 4634 square foot dance studio is divided into two different areas so that two classes can be offered simultaneously. Dance is offered for boys and girls of various ages and abilities. For example, creative movement is offered for 3 and 4 year olds. One of the most popular programs is jazz/tap which is offered to 4 year olds to 18 year olds. Classes in ballet, pointe, lydcal, dance line, Father/Daughter and competitive classes are also offered. For a complete listing of classes and age groups served, see Attachment 1 - Prior Lake Dance Class Schedule. Classes are offered seven days a week. Monday through Friday and on Sundays, with classes taking place in the afternoons and evenings. On Saturday, classes are offered 9am to 1:30pm. Shown below is a table showing the growth in Dance program participants. Also shown are our projections, based upon the growth the program has experienced between 1999 and 2002, and for the next five years. Program growth was 132 participants in the three years from 1999 to 2002, or 44 participants per year. In five years, at this rate of growth, total participation could be 654 in 2007. I# of Students 17 Year 1982 1994 225 I 302 1999 2002 434 2007 654 These numbers may be conservative as the growth in Prior Lake in the last year (2002-2003) is dramatically higher than previous years. We also know that the School District has been adding new students at a rate of 400 per year. Finally, it has been generally recognized that additional students could be added to the program if teachers, time and additional space were available. R:~AGENDA REPORTS~2003 DRAFTStMARCH 3RD DANCE.13,'3~. Existing Dance Studio &taff Resources The present operation and administration of the Dance program involves Recreation Supervisor Chris Esser, Recreation Specialist Heather Carlson, and Recreation Secretary Nancy McGiil. These individuals are responsible for: (1) General administration of the 12 dance studio staff of independent contractors. This includes annual job descriptions, hiring, processing of personnel data, execution of contracts, personnel related, complaints or announcements, and similar personnel functions. (2) Registration for programs. This involves registering and entering the pertinent information about each dancer into our RecTrac software, setting up accounts for billing and processing payments, and associated record- keeping. The Finance Department is involved, as well, in payroll processing, accounts payable for supplies and related expenses. (3) Communication. Dance studio communications include the Steppin'Times newsletter and registration information in the Wavelength together with periodic flyers of special events. (4) Dance Advisory Committee. The committee meets monthly to discuss dance-related issues and parent concerns. These individuals staff this committee. (5) Spring Recital. The annual recital involves the ordering of costumes by the City, taking inventory of the shipments, and obtaining payments. The written recital program and tickets are a significant effort requiring additional staff beginning in March to organize and participate in a large ticket sale event, distribution of tickets, designing and compiling program information, assembly of programs, and providing on-site supervision for rehearsals and at the recital event. Additional staff are also needed to work in the ticket booth during the recital. (6) Maintenance of Studio. The floor of the dance studio requires annual refinishing. Staff members are needed to supervise day-to-day activities to assure that participants do not damage the building or its contents. In addition to having janitorial services, once a week the building is swept and vacuumed by City employees and garbage removed. We estimate that annually, the operation of the Dance program requires 50% of the Recreation Supervisor's time, 80% of the Recreation Secretary's time, and 100% of the Recreation Specialist's time. This does not include time invested by the Assistant City Manager, the Maintenance staff, the Finance department, or other support staff as needed. Dawn Schulberg is the head dance instructor. She is responsible for the day-to day operations of the studio, recommending instructors for hire, assigning classes, approving time cards, arranging dance routines and oversight of the recital. She has 11 dance instructors who work with her (See Attachment 1). Financinq the Existinq Dance Studio Operation The Dance program expenses and revenues are part of our annual General Fund Budget. R:~AGENDA REPORTS~2003 DRAFTS~VIAR~..H 3Rr) I~AN~.I= I'~C)~.. 2°00 2001 2002 Participants: 418 students 407 students 434 students Pro~ram Expenditures: Supplies, Fees, Rentals $ 69,540.00 $83,767.00 $92,999.00 Contractual Teaching Staff: $102,549.00 $110,405.00 $113,746.00 Total $172,089.00 $194,172.00 $206,745.00 Program Revenues: Includes Tuition, Costumes, Shoes, Recital, Competitions. Total $245,349.00 $274,563.00 $276,805.00 'Total Net Revenue $7:J,260.00 $80,391.00 $70,060.00 Administrative Costs' Recreation Supervisor $22,446.00 $23,361.00 $24,603.00 (50% of annual wage) Recreation Secretary $14,404.00 $16,424.80 $17,382.00 (80% of annual wage) Recreation Specialist .... $6,256.00 (80% of annual wage) Total $36,850.00 $39,785.80 $48,241.00 Total Net Revenue Including Admin Costs $36,410.00 $40,605.20 $21,819.00 Recreation Supervisor Chris Esser assembled the above data for the years 2000, 2001 and 2002. The data shows that in program year 2002, the dance program served 434 students. Costs for the purchase of supplies, fees and rentals constitute $92,999 and contractual teaching costs are $113,746. Considering both costs, the total 2002 expenditures for the dance program were $206,745. The revenues associated with the program were $276,805. Revenues in excess of expenditures were $70,060. However, certain operation and capital costs are not charged against the dance program. Wages for the Recreation Supervisor, Recreation Secretary and Recreation Specialist associated with the dance program operation were $48,241 in 2002. In 2003, the cost will be more like $60,486 because the Recreation Specialist fees reflected in 2002 are for a partial year. This does not include employee benefit costs for the Recreation Supervisor, which is a full-time position. Considering that benefits are 40% of the employee pay package, benefit costs on $24,603 in full-time Recreation Supervisor wages would be $9841. Building operating costs (heating, cooling, maintenance, cleaning, etc.) are not included above either. The annual cost of operating the Library building is about $55,000. Considering that the dance studio is about 26% of the building, approximately $14,300 in annual operating costs can be attributed to the dance studio. The capital costs of the building are not included as well. The Library project was $2.5 million. Assuming a 50 year useful life and the fact that the dance studio is about 26% of the building, the annual capital cost is $13,000 ($2.5 million .'-50 x .26). R:~GENDA REPORTS~?.003 DRAFTSkMARCH 3RD DANCE.DOC When taken together, the annual benefit costs, building operating and capital costs total $37,141. Subtracting this amount from the Net Revenue Including Administrative Costs of $21,819 yields an annual program loss of $15,322. An Alternate Approach The City could chose to radically reduce its involvement, and therefore investment, in the dance program while still generating revenues. Such an option would involve preparing a Request for Proposals (RFP) which would allow all interested parties to submit competitive proposals to lease the dance studio. The bid process would be publicized in the official newspaper to encourage the submission of proposals. The RFP would specify that the dance studio is available for lease to those who wish to run a dance program. The RFP would set forth the parameters for all bidders to follow. Hours of operation, insurance requirements, and expectations regarding the dance studio operation can be included in the RFP and enforced through a contract and security. Each bidder would submit a proposal which would quote a lease rate per square foot for each of the three years of the lease. A provision could be included so that at the end of the third year of the agreement, lease rates for the fourth, fifth and sixth years of the agreement would be negotiated. The RFP would also indicate that the Lessee would pay an annual allowance for operating costs (since separate meters do not exist for the dance studio), in this way, the City could recover some of the operating costs of the building. The RFP and contract would also specify that the bidder is responsible for cleaning the space at their own cost or by paying a pro-rata share of the City's building maintenance costs. The City owns a piano and stereo equipment in the studio so they would have to be addressed as well. The floor requires annual stripping, sanding and refinishing. This cost would be borne by the lessee or negotiated into the annual cost. While I have not done extensive surveying, I am aware of a local concern who has 5000 square feet of space available at $9.60 per square foot per year. This is rough space and does not include a dance floor, mirrors or separators. Since the dance studio is finished and ready to use, I would estimate a reasonable annual lease rate to be say $11 per square foot or $50,974 per year. If the lease is properly structured, the $50,974 can be income to the City. Of course, the ultimate lease rate will be based upon the proposals received. If the rate received is too Iow, the Council can always reject the proposal and continue to operate the studio as we presently do. Bene£rts to Alternate Approach There are a number of benefits associated with the alternate approach, including: 1. The dance program could be operated with positive revenue rather than at a loss. The savings could be as much as $88,115 to the City annually. 2. Operating costs for the building would be recouped at least in part. 3. The City's insurance rates may be modestly reduced since we will no longer be operating a dance studio. 4. The significant amounts of staff time presently invested to operate the studio could be re-directed. For example, the Receptionists could take on additional Administration Department typing tasks because the Recreation R:~,GENDA REPORTS~003 DRAFT~MARCH 3RD DANCE,DOC - Secretary can re-assume those responsibilities since her time is no longer demanded by the dance program. 5. The Recreation Supervisor will be able to spend more time in areas of recreation such as scheduling fields or new recreation programming. We have added additional parks and fields which require additional attention. 6. The Recreation Specialist could devote more time to senior programming. While we have initiated the monthly senior social, them are other programs where our senior programs could be expanded to meet the needs of our growing senior population. 7. A new revenue source to defray the costs of the Wavelength could be initiated. The City could offer to publish registration program information or advertisements for the dance studio and gymnastics studio with some sort of disclaimer. 8. The City could be viewed positively by taxpayers and private businesses for seeking to become more cost-effective and discontinue competition with the private sector. 9. If the existing instructor does leave the program, it is likely that our program will be significantly diminished and necessitate changes. Possible Concerns with Alternate Approach 1. The City will have to rely upon the private contractor to provide a program as good or better than the one the City has offered. If the same instructors are involved in the program, this may minimize this concern. 2. The selection of dance program offedngs will no longer be controlled by the City. It would appear that the market will largely determine what the offerings are. 3. The City's name would no longer be associated with the program unless this was mandated in the RFP. I would be concerned about putting the City's name on a program we do not control. 4. Availability of the dance studio for private rental would no longer be available if leased. In the last three years, the facility has been rented by another party nine times. 5. Scholarships have been offered by the City in previous years. Generally, five to six families receive a scholarship annually. The value of the scholarships per family have varied from $146 to $330. The City could continue to offer scholarships or require that the vendor do so on a cost- sharing basis. 6. If the City no longer runs the program, it cannot control the tuition charged. Here again, competition may help mitigate against tuition increases. 7. if private operation of a dance program fails, then the City may need to get back into the dance business at some future time. Process The Council should discuss the contents of this report. If additional information is needed, it would be appropriate to directthe staff accordingly. I am aware thatthe City Council desires to solicit the input of the Park Advisory Committee and the Dance Advisory Committee. For that reason, it would be appropriate to send this report to both bodies. The two groups could discuss the issues attheir respective meetings or at a joint meeting. The Council may also wish to consider whether any sort of meeting is necessary for dance parents or if the meetings referenced above will serve the same purpose. R:~,GENDA REPORTS~003 DRAFTS~MARCH 3RD DANCE.DOC NOTICE OF PUBLIC MEETING TO DISCUSS OPERATION OF THE PRIOR LAKE DANCE PROGRAM Please be advised that the Prior Lake City Council will conduct a public meeting at Prior Lake Fire Station No. 1, located at 16776 Fish Point Road SE (southwest intersection of County Road 21 and Fish Point Road) on: Monday, March 17, 2003 at 7:30pm or as soon thereafter as possible (This meeting will be broadcast live on Cable Channel 15) SUBJECT: The City Council is seeking input from interested parties as it considers the most appropriate course of action to assure that on-going operation of the Dance program will allow it to continue to succeed. The options to be considered are: (1) continue to operate the Dance program as it is currently operated and supported by the City; or (2) privatize the Dance program and allow another party to lease the Dance studio space. If you are interested in participating in the discussion, you should attend the meeting. Questions related to this meeting should be directed to the Prior Lake Administration Department by calling 447-9802 between the hours of 8:00 a.m. and 4:30 p.m. Monday through Friday. The City Council will accept oral and/or written comments. Prepared this 5th day of March, 2003. Frank Boyles, City Manager City of Prior Lake To be published in the Prior Lake American on March 8, 2003 and March 15, 2003