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CR 2003-028 Recommending Approval For Ballfield Lighting At Maetzold Field . . . CITY Or: February 5, 2003 ~ Council Report 2003-028 HOPKINS RECOMMENDING APPROVAL FOR BALLFIELD LIGHTING AT MAETZOLD FIELD Proposed Action Staff recommends adoption of the following motion: Move to approve the addition of ballfield liqhtinG to Maetzold Field #2 and to authorize City staff to enter into an aGreement with Hopkins Area Little Leaque for project financinq. This action will allow the ballfield lighting project (estimated to be $45,000) to proceed this spring. Overview This project was reviewed by the Hopkins Park Board as presented by HALL at the January 27, 2003 meeting. A motion was passed recommending to the City Council that the project be approved with an agreement for financing between HALL and the City. This project is identified in the 2004 Capital Improvement Plans as project #01-CIP-P209; Maetzold Field Ballfield Lighting. This project was ranked by the Hopkins Park Board in April of 2001. The project will design, purchase and install ballfield lighting on the Maetzold Field #2 youth ballfield. The funding identified for this project was to have been $17,500 from general fu nd current revenues and $17,500 from private sector funds. Hopkins Area Little League has presented a plan to the City to accelerate this project to the spring of this year, 2003. The total project price (approximately $45,000) will be paid by HALL. Concerns by HALL that City funding for this project in 2004 may be in jeopardy have helped this organization's decision to fund the project in its entirety and to move the project forward at this time. Primary Issues to Consider . Is the neighborhood aware of the project? . What are the details of the financing desired by HALL? . What City funds will be used for this project? Supportinq Information . Park Board minutes (January 27,2003) . Resident notification letter (January 31 , 2003) . Hopkins Area Little League letter (January 1 g, 2003) . CIP jZ01-CIP-P209 tl ((. Ray tman, Parks/Forestry Superintendent v v Financial Impact: $ 0 Budgeted: Y/N N Source: N/A Related Documents (CIP, ERP, etc.): Hopkins 2003-2007 CIP Proiect #01-CIP-209 Notes: Primary Issues to Consider o Has the neighborhood been notified of the proposed project? . The residents on 1 ih Avenue North, 13th Avenue North and 14th Avenue North immediately adjacent to Maetzold Field were included in a mailing that detailed the project and gave a venue for public comment. HALL also has approached some of the area residents with an informal review of the project. Opposition to the project has been very limited. Staff received two phone calls prior to the meeting at City Hall on Thursday, January 13th. Both calls were opposed to the project. o What are the details of the financing requested by Hall? HALL will be asking the City to enter into a four-year loan agreement for about $30,000. HALL is prepared to spend $17,500 for this project now, with another $7,500 in August of 2003 as the first payment on the four-year loan. City staff has indicated that such a loan is possible from the Park Dedication Fund. o What other City funds may have to be used for this project? It is possible that some City funds may be expended to upgrade the electrical main panel in the concession room to accommodate the upgrade required for the new lights. These costs are expected to be under $3,000. The project is identified for 2004 in the CIP; with $17,500 coming from general fund current revenues. This proposal will actually free up those projected dollars in the CIP. All other costs are expected to be included in the project and paid by HALL. . . . CITY OF HOPKINS PARK BOARD MEETING MINUTES JANUARY 27, 2003 A regular meeting of the Hopkins Park Board was held on January 27,2003. 1. CALL TO ORDER Staff Liaison Ray Vogtman called the meeting to order at 6:30 p.m. II. ROLL CALL Present were Park Board members: Bill Gullickson, Dave Specken, Katie Boarder, and Ron Helgeson. Absent was Park Board member Richard Niemann. Also present was Hopkins Staff Liaison Ray Vogtman. lli. APPROVAL OF MINUTES FOR NOVEMBER 18, 2002 B. Gullickson moved and D. Specken seconded a motion to approve the minutes for the November 18, 2002 meeting. On the vote: B. Gullickson, D. Specken, K. Boarder and R. Helgeson voted yes. The minutes were approved 4-0. . IV. BUSINESS A. SECOND READING OF ORDINANCE 2002-86 Staff member R. Vogtman reviewed the memo dated January 3,2003. The second reading of the ordinance amending the Park Board term limits and City Council representation on the Park Board was on January 7,2003. The ordinance changes were published and became effective on January 16,2003. No further action is necessary on this item. B. HIAWATHA OAKS The Park Board reviewed the Minnehaha Oaks Association's latest update from December 24, 2002. No further action was required on this item. MAETZOLD FIELD #2 LIGHTING c. . Kevin Thomas (president of Hopkins Area Little League) and Craig Gallop (Musco Sports Lighting, Inc.) were in attendance to present HALL's request and proposal for the addition of ballfield lighting on Maetzold Field #2. Park Board members reviewed memos from Steve Stadler and Steve Mielke. K. Thomas reviewed the lighting proposal. HALL is requesting formal approval to proceed with a contract to install Musco Sports Lighting on Maetzold Field #2. As a part of this project, HALL will be asking the City to enter into a loan agreement with HALL for approximately $30,000 over four years. HALL is prepared to spend about $17,500 now, with another $7,500 in August of 2003 as the first payment on the four-year loan. K. Thomas indicated that this project would result in about a $45,000 capital expenditure endowment to the City. The project is listed as project # OI-CIP-P209 in the 2003 - 2007 City of Hopkins Park Board Meeting Minutes January 27, 2003 eag .2 f1f 1 Capital Improvement Plan. Scheduled for 2004, funding sources were identified as $17,500 current revenues and $17,500 as private sector funds. HALL's intent is to duplicate the lighting fixtures and poles found on Maetzold Field # 1. Staff Liaison R. V ogtman informed the Park Board members that a public meeting would have to be held to aUow for public comment on the project. City staff could do the necessary mailing and set an early date for the meeting. Hopefully, February 12 or 13 will be used. After a brief discussion, B. Gullickson moved and K. Boarder seconded a motion that recommended to Council that the lighting project for Maetzold Field #2 be approved and the City enter into an agreement with HALL for the financing. On the vote: B. Gullickson, D. Specken, K. Boarder and R. Helgeson voted yes. The motion was approved 4 - O. . E. . D. DOWNTOWN PARK CONCEPT PLANS At the last Park Board meeting on November 18,2002 a motion as passed endorsing the gazebo type structure (Concept A); if staff could research and approve the acoustics of this shelter. After additional discussions with user groups it was determined by staff that Concept A would not meet the acoustics expected by the user groups. The Park Board then reviewed the alternative concepts of the revised (smaller) structure in Concept B. 8taffLiaison R. Vogtman discussed the site plan and possible location for the park structure. Based on these finding and discussions a motion was made to recommend the Concept B park structure of approximately 800 square feet be located in the south half of Downtown Park. On the vote: B. Gullickson, D. Specken, K. Boarder and R. Helgeson voted yes. The motion was approved 4 - O. PAVILION RATE INCREASES The Park Board members reviewed the D. Olson memo dated January 15,2003 and the City Council Report 03-014. Discussions on the proposed rate increases centered on the portion of the request to raise prime time ice rental rates $10.00 to $150.00 from $140.00. The rate comparison indicated that the 2003 - 2004 average will be about $153.50. B. Gullickson indicated that our immediate neighbors; Minnetonka, S1. Louis Park and Plymouth will still be at $145.00. He felt strongly that the costs associated with organized youth hockey were getting to be prohibitive to some area youth. He compared the Hopkins Pavilion to some of the older, smaller rinks and did not think we should be charging a premium for our facility. D. Specken indicated he would support staff's recommendation for both the turf and ice rate increases. A motion was made by D. Specken to increase the Hopkins Pavilion hourly prime ice and turf rental rates as documented in Resolution 03-006. The motion failed for lack of a second. Staff liaison R. V ogtman led a further discussion on the history of and need for the rate increases. The increases were based on staff input that the additional revenue is needed for the . enterprise fund budget to meet or exceed expenses. A second motion was made by D. Specken and seconded by B. Gullickson that the prime time ice rental rates be increased $5.00 to $145.00 and the turf rental rates be increased $10.00 to $75.00. On the vote: B. Gullickson, D. Specken, K. Boarder and R. Helgeson voted yes. The motion was passed 4 - O. F. DOG PARK DISCUSSION Park Board member K. Boarder asked if it would be a Park Board action to ask Eden Prairie to ptrrsue a dog park. Staff Liaison R. Vogtman indicated that it would be better to approach the City of Minnetonka. The two cities have a joint recreation agreement, so this topic could be placed on the $ City of%pkins Pu6{ic Wor/& 11100 'E;rceCsior 13{va. . l{opKlns, M9{ 55343-3435 . Pnone: 952-939-1382. 'FWV' 9_"2-939-1381 We.6 aaaress: www.fiopKlnsmn.com January 31, 2003 Subject: Maetzold Field Ballfield Lighting Dear Resident: The City of Hopkins would like to take this opportunity to notify you of a proposed Capital Improvement Project to Maetzold Field. Identified in the 2004 Capital Improvement Plan is project # 01-CIP-P209; Maetzold Field Ballfield Lighting. This project was ranked by the Hopkins Park Board in April of 2001. The project would design, purchase and install ballfield lighting on the Maetzold Field #2 youth ballfield. The funding identified for this project was to have been $17,500 from general fund current revenues and $17,500 from private sector funds. . Hopkins Area Little League has presented a plan to the City to accelerate this project to the spring of this year, 2003. The total project price (approximately $45,000) will be paid for by HALL. Concerns by HALL that City funding for this project in 2004 may be in jeopardy have helped this organization's decision to fund the project in its entirety and to move the project forward at this time. The Hopkins Park Board has recommended approval of this proposal to the City Council. Prior to any formal City Council action, public input is desired. City Staff has reserved Thursday, February 13, 2003 at 7:00 P.M. in the Raspberry Room at City Hall. You are invited to attend to briefly review the project and comment. Representatives from HALL, Musco Lighting and City Staff will be available for additional information or public comment. We look forward to meeting you on February 13. If you are unable to attend and wish to comment, you may contact me at 952-939-1372, or email at rvoQtman@hopkinsmn.com. Re(~uIIY, i11/f9~ Ray Vog1man Parks Superintendent . Partnering with the Community to 'Enhance the Qyafity of Life . Inspire. 'Educate. Invo(ve . Communuate · . . . Hopkins Area Little League P.O. Box 62 Hopkins, MN 55343 1954-2003 ~ -' January 19, 2003 To: The Hopkins Park & Recreation Board Re: Approval -Two Requests - Lights on Maetzold Field # 2. . At the December '02 Park & Recreation Board Meeting, the Hopkins Area Little League submitted it's preliminary request for approval, to proceed with purchasing and installing lights for '03 Spring / Summer Little League Season. We're ready to move forward. . HALL is pursuing this course of action now because we need lights on the 2nd field to handle increased enrollment. And frankly speaking, we have grave reservations that the funding will be available to the league in 2004, even though it is listed as a budget item to be voted upon in 2004. . We have qualified bids from two qualified locat suppliers: Musco Lighting, represented by Craig Gallop, based in Golden Valley, and Pulse Products, represented by Dwight Engen, based in Minnetonka. A general description of the work to be performed by each company is included in this report. Musco Lighting: Their project price is $44,673.00 (Material of $27,873 + Installation of $9,300 + plus en estimated additional electrical expense from $7,500 - $10,000 * For the sake of this report I have used the $7,500 figure for electrical. At the writing of this report we were still soliciting bids for this work. Pulse Products: Their project price is $38,960, which includes a firm number for electrical work. . Neither company requires a contribution of labor or material from the City of Hopkins. First Request: HALL is requesting formal approval to enter in to contract with either vendor for installation of lights on Maetzold Field #2. . Aside from the project price differences, the two company proposals differ in one major respect: Musco offers financing whereas Pulse Products does not. . Musco would finance just the material portion of the bid ($27,823 - a 15% down payment of $4,181 = $23,692 over 4 years at a 6.25 0/0 interest rate - 4 annual payments. This would add an additional $3.856.00 in interest cost, and raise the cost of the Musco plan to $48,559. The advantage to HALL with the Musco plan, is that no HALL board member would be personally at risk for the loan because Musco would retain a security interest in the equipment until the loan is paid in full. The disadvantage is that the plan costs more, and Musco retains the right to remove the lights should HALL fail to meet is obligation. · In order to make this project, happen this year, by mid-April, by the start of our '03 Spring/Summer season, HALL has to go in debt. We will be able to allocate, no more than a maximum of $25,000 toward this project this year. February: $ 4,500 from existing account reserves April: $13,000: $9,000 from existing account reserves, team sponsorships, and $4,000 from a corporate partner, Coke Aug ust: $ 7,500 from '03 concession stand profit . COMMENT: Obviously the present and future board members of HALL have every intent and purpose to meet this financial obligation; we are mortgaging our future on this commitment. But this plan, as being presented, essentially represents a $39,000 to $49,000 capital expenditure endowment to the City Of Hopkins and its Park Board, at no cost and no risk. Second Request: That the City of Hopkins loans HALL up to $21,500 to finance the project at an interest rate between 0 and 60/0. HALL would pay the City it's first installment of not less than $7,500 on or before 8/15/03. HALL would repay the balance in annual installments in August '04, 05, and '06. or sooner If the City of Hopkins would loan HALL the money for the balance of the project, it would (1) retain security interest in the lights rather than with Musco Lighting, (2) allow HALL to procure a less expensive option with Pulse or others which would (3) lower the amount and the risk of the loan. Example: Under the Pulse plan, at $39,000, HALL will borrow $21,500 in April but will have paid back $7,500 of that, just 4 months later with its first installment in August '03. Ironically, the remaining balance of $14,000 plus interest, due the City in 2004, 2005, and 2006, would be less than $17,000, an amount already listed as a Maetzold Lights- Capital Budget item for 2004. . . Background financing information: · In return for HALL signing a 3-year purchasing agreement, Coke has committed to giving HALL $4,000 in April '04, and '05, as well as it's first check in February '02. The entire Coke deal is worth $12,000 over 3-years. Notwithstanding the business details of this arrangement, Coke is doing this to help HALL fund its lights. So of the . remaining $14,000 plus interest listed in the above example, Coke has covered $8,000 of it. · Musco has reviewed our financial and bank statements and has judged HALL to be credit worthy of a $23,929 loan at 6.25% over 4 years. Our annual payment, with them, under their finance plan would be $6,946. · HALL projects to earn an annual profit of at least $10,000 a year off its concession stand in 2003. We earned $15,000 last year. It is very conceivable that we could payoff the loan by August '05, and perhaps even earlier if we continue to maintain our sponsorship base, keep enrollment up, and maintain a profitable concession stand. . · The Hopkins Area Little League has been in continuous operation since 1954, is a charter member of Little League Baseball, identification number 123-0109, and is registered as a 501 c3 Trust. Credit references, bank, and financial statements are available upon request. SUMMARY: HALL'S intent is to duplicate the lighting structure on Maetzold #2, that is currently in place on Maetzold # 1. In short, the pole placement, light fixtures count and type, light spill shields, bulbs, and light output will for all intent and purposes be identical to that which is already in place at field #1. Again, we have two requests before you. 1. Approve our plan to purchase the lights and have them installed. 2. Approve our request for a loan from the City of Hopkins. Regardless of the Board's decision to act on our loan request. HALL is committed to move forward on the purchase of lights. We need to place our order in early February with either vendor, Musco or Pulse so that installation can be completed by mid-April, prior to the start of our '03 Spring /5ummer season. Respectfully submitted by: . Stephen Hacker for the HALL Board of Directors. CAP IT AL PLAN City of Hopkins, MN . Projecl# Ol-CIP-P209 Project Namc Maetzold Field Ballfield Lighting 2003 thru 2007 Contact PW Director Deplll"tment Public Works: Parks Type Improvement Useful Life 15 years Category Parks/Forestry/Pavilion: Com Priority J Important Total Project Cost $35,000 Description Design, purchase, install ballfield lighting on Maetzald Field, #2 youth ballfield Justification , , __ ____-,---_____, ___I ______ Endorsed by Hopkins Area Little League. Used for evening play and tournaments. . Design: 2003 Purchaselinstall: 2004 Ranked Category #3 in Park Board projects list, April 2001 Expenditures Conslru ctionJMai n Ie nance 2003 2004 35,000 35,000 2005 2006 2007 Total 35,000 35,000 Total Funding Sources 2003 2004 2005 2006 2007 Total CR - Current Revenues - Gene 17.500 17.500 PF - Private Sector Funds 17,500 17,500 Total 35,000 35,000 . 107