HomeMy WebLinkAbout2015-05-12 Park Board PacketAGENDA
CITY OF EDINA, MINNESOTA
PARK BOARD MEETING
CITY COUNCIL CHAMBERS
Tuesday, May 12, 2015
7:00 p.m.
"THIS MEETING WILL BE TELEVISED"
CALL TO ORDER
II. ROLL CALL
III. APPROVAL OF MEETING AGENDA
IV. ADOPTION OF CONSENT AGENDA
A. Approval of Minutes — Regular meeting on Tuesday, April 14, 2015
V. COMMUNITY COMMENT
During "Community Comment, " the Park Board will invite residents to share relevant
issues or concerns. Individuals must limit their comments to three minutes. The
Chair may limit the number of speakers on the same issue in the interest of time and
topic. Generally speaking, items that are elsewhere on tonight's agenda may not be
addressed during Community Comment. Individuals should not expect the Chair or
Board Members to respond to their comments tonight. Instead, the Board might refer
the matter to staff for consideration at a future meeting.
VI. REPORTS/RECOMMENDATIONS
A. Staff Introduction —Amanda Holle, Recreation Supervisor
B. Braemar City of Lakes Figure Skating Club and Edina Hockey Association
Memorandum of Understanding
C. Braemar Golf Course Master Plan
D. Park, Recreation and Trails Strategic Plan
VII. CORRESPONDENCE AND PETITIONS
A. Council Updates
VIII. CHAIR AND BOARD MEMBER COMMENTS
IX. STAFF COMMENTS
X. ADJOURNMENT
The city of Edina wants all residents to be comfortable being part of the public process. If you need
assistance in the way of hearing amplification, an interpreter, large -print documents or something,
please call 952-927-8861 72 hours in advance of the meeting.
MINUTES
OF THE REGULAR MEETING OF THE
EDINA PARK BOARD
HELD AT CITY HALL
May 12, 2015
7 p.m.
1. CALL TO ORDER
Chair Gieseke called the meeting to order at 7:02 p.m.
11. ROLL CALL
Answer roll call were Members Jacobson, Good, Jones, McCormick, Gieseke, Cella, Segreto, Strother
Absent: Members Steel and Greene
Absent: Student Members Chowdhury and Colwell
III. APPROVAL OF MEETING AGENDA
Member Segreto made a motion, seconded by Member Cella, approving the meeting
agenda.
Ayes: Jacobson, Good, Jones, McCormick, Gieseke, Cella, Segreto, Strother
Motion carried.
IV. ADOPTION OF CONSENT AGENDA
Member Cella made a motion, seconded by Member Good, approving the consent agenda
as follows:
W.A. Approval of Minutes — Regular Park Board Meeting of Tuesday, April 14, 2015
Ayes: Jacobson, Good, Jones, McCormick, Gieseke, Cella, Segreto, Strother
Motion carried.
V. COMMUNITY COMMENT
None
VI. REPORTS/RECOMMENDATIONS
VI.A. Staff Introduction — Amanda Holle, Recreation Supervisor
Ms. Kattreh introduced Amanda Holle.
Amanda Holle gave her background to the Park Board.
VI.B. Braemar City of Lakes Figure Skating Club and Edina Hockey Association
Susie Miller, Braemar Arena and Braemar Field General Manager, gave a presentation to the Park
Board on the Memorandum of Understanding.
Member Jones stated there is no mention of a per player fee. Ms. Miller indicated that is included in the
contract on an annual basis, and it has been in the works for the past two years and will continue to be
in the works for both groups. They charge the $20 user fee and is not a part of the understanding.
Member Jones thought that was something that they, as a board, were going to discuss a little further,
considering that the player fee was instigated when the Hornet's Nest was built. She asked that be put
on a future agenda for discussion, whether it is appropriate to be charging the skating organization for
that. Ms. Miller stated the skating club is supportive of that and one of the reasons being is they have
other use in the facilities so both groups have different facility uses. At this point, everyone feels like
they are getting a benefit.
Member Jones asked with the new ice, does the skating association get any of the ice time. Ms. Miller
noted if the figure skating association wanted it, they could request it but have not had a desire for it.
Member Jones asked if the ice is all going toward the Hockey Association. Ms. Miller stated the Hockey
Association committed to 40 hours a week in order for it to be approved but last year they bought 44 to
46 hours a week.
Member Jones asked as far as reporting, is the new ice rink going to be considered a part of Braemar Ice
Arena Enterprise or is that going to be a different enterprise for financial bookkeeping. Ms. Miller stated
the backyard rink is a part of the Braemar Arena Enterprise and Braemar Field and Dome are a separate
enterprise.
Member Jones stated it doesn't look like the High School is part of this type of agreement and she
wondered how the city handles scheduled ice for the High School. Ms. Miller stated the High School has
always been scheduled after school and was not part of the initial discussion.
VI.C. Braemar Golf Course Master Plan
Joe Abood, Braemar Golf Course General Manager, gave a presentation to the Park Board.
Member Good asked if Mr. Abood could explain why the 27 -hole course option drives no increase in
operating revenue. Mr. Abood stated it will increase eventually, but it is a three -stage process.
• Member Good stated he meant relative to the 18 -hole course option why would it drive no increase in
operating revenue. Mr. Abood stated what they have to look at is they did 55,000 rounds in 2014 which
can be accommodated on an 18 -hole golf course and they did not project out a huge increase in people
coming back to the facility because there are other options out there. There are not a lot of new golfers
out there so any round they would have to get would have to be stolen from different facilities around
the area and other facilities are also updating their assets as well. It is a very tough market and only
based on the fact that the amount of rounds they have now is similar to what would be on a 27 -hole
course.
Member Jacobson stated they were under the assumption that if they were going to close Fred Richards
they would move the usage over to the nine -hole extra. Mr. Abood noted they will still have the nine -
hole executive par three golf course and did increase the rounds over there. Between the Fred Richards
and the existing nine executive holes, they did 30,000 rounds. They projected to bring half of those
rounds over to Braemar.
Chair Gieseke stated that when they decided as a city to close down Fred Richards Golf Course, there
was concern about having full access for everyone in trying to serve the full community. What issues
would be foreseen if they decided to go with 18 holes? Will that limit them somehow in trying to serve
youth, senior groups and everyone else? Mr. Abood thought they will be able to accommodate all of
the golfers on an 18 -hole property. They are improving the city's golf asset and making it better and
more sustainable, going into the future.
Chair Gieseke asked if they were going too far with not enough capacity for the course. Mr. Abood did
not think so, to get to capacity on an 18 and a nine -hole course they will need to get to 80,000 rounds so
it is a long way away.
Member Good asked on the six options that were shown, was there a meaning behind the "best" word
in the presentation. Mr. Abood stated when they say the best 18, they are going to take the entire
property and hole 16 may not be the same hole 16 that it was before because they are going to use the
entire golf course to make the best 18 holes that they can.
Member Cella stated they have a lot of golfers that like to play nine holes and they are going to an 18 -
hole course, will that still accommodate people who only want to play nine holes? Mr. Abood stated
what they are seeing right now is those nine -hole rounds are on the 18 -hole golf course.
Member Cella asked if they are going to be upgrading and making the 18 -hole course better will they
still be able to accommodate people who only want to play nine holes. Mr. Abood noted it's a matter of
programming.
Member Strother stated when looking at the 27 -hole versus the 18 -hole option, it does state that an 18 -
hole option would force staff to financially favor 18 holes over nine and they would likely lose most of
the golfers. Mr. Abood indicated that's one of the task force observations and he did not necessarily
agree with that. He did not think they would lose those golfers. He thought it was just a matter of
managing.
Member Jacobson asked who would use the four -hole practice course. Mr. Abood stated it would be
used heavily by the High School and people who want a quick outing of golf. He could see that being
used heavily but did not see a return on the investment as much and is more of an amenity for the
constituents.
Member Jones stated she wanted to speak a little bit about the 18 -hole course and make sure that it
does not go into the Oak Savannah. She wondered if the rest of the Park Board has gone out to see
exactly what it looks like. She indicated it is a gorgeous area that is natural and if they were to do option
4, they would be cutting a swath 60 feet wide and at least 500 yards, maybe more through it, which she
was against. Mr. Abood stated it is going up into the hill and is a fantastically designed golf hole and
would be a great golf hole but it is up to the Park Board and City Council whether to go up into that area.
Member Jones indicated she has walked up there and there is quite a bit of elevation change and felt
this might be a challenge for elderly players and should be considered as not necessarily an
improvement. She did not understand why that would make sense to add onto the golf course. Mr.
Abood stated it's a very good golf hole that would be designed, whether it is the best use of the
property is another decision to make. He thought the golf hole itself would be very nice. Member
Segreto noted from an environmental standpoint it would be a disaster.
Member Jones stated there are trails there and they need to look at this property, not just the golfers
that could use the entire Braemar so this is changing the use of the park that will affect the
neighborhood that is currently using it as a trail. On the needs assessment, the number one item
residents want is additional trails. She was not sure where the course came into play on the needs
assessment but it was not anywhere near as high. She would listen to what the residents would want
and recommend that they do not increase the footprint of the golf course into that area.
Member Jacobson asked if there were plans to improve the trails in any of the options. Mr. Abood
stated that's where the next step would be going to the Braemar Master Plan entire park area. Some
trails were put into the plan but they are not that far designed out. That would need to be something
that would be done in the future.
Member Segreto stated the staff recommendation is option 5 and she wondered if they were looking for
the Park Board to make a motion supporting one of the options. Chair Gieseke thought what the City
Council was looking for was to have the Park Board take a roll call vote stating opinions so the City
Council can weigh those.
Member McCormick updated the Park Board on the financials on this project.
Member Segreto stated on the irrigation system, she noticed on the chart there was a long distance, up
to 30 years, for useful life of the irrigation system. She wondered why an irrigation useful life would
vary so much. Mr. Tom Swenson, Braemar Golf Course Maintenance Superintendent, stated that is just
a matter of how long they want to try to stretch it out. If they shorten the amount of time, they will use
less labor and if stretched towards 30 years they will continually be replacing irrigation parts.
Member McCormick stated the other thing she was going to mention was the increases they were
assuming in the models. It is a one percent increase on the pricing side, which is pretty conservative but
it does line up with what the National Golf Foundation suggested and the cost is actually increasing by
two percent. In that model they should probably have them going up the same rate but at least it is
consistent in both of the different models so the two can be compared pretty easily. Another thing she
wanted to mention is they have not maintained this course and that is why they are at this stage. She
looked at it as the 18 -hole is allowing them to have some cash flow that they can put back into the
course so they are not in the same situation 30 years from now.
Mr. Paul Presthus, member of the Braemar Task Force, gave his comments to the Park Board. He stated
out of the six options he would suggest either number 1 or 4. Number 1 is the best 27 -hole option and
number 4 is the best 18 -hole option. Either of these options would add tremendously to the golfing
experience at Braemar and position them competitively to compete with anybody in the Metro and
Regional areas. He noted he favored the 18 -hole option over the 27 -hole option because there is less
risk. He felt there is more uncertainty with the 27 -hole option and with proper management they can
come close to satisfying the accessibility needs. He stated he would endorse the 18 -hole option because
of the financial concerns but they have two wonderful options to consider based on the work done by
Richard Mandell.
Chair Gieseke asked what Mr. Presthus' opinions are on the four -hole practice loop. Mr. Presthus
believed that the best plan is for the city to make a selection on which option they want, 18 or 27 -hole
first. Mr. Mandell has done some other options and discussed golfing and non -golfing options for that
area. If they did not have the par three, he would say it is a great idea. They will not be able to get any
revenue out of it and he thought it sounded quirky to him. It is worth considering but as an alternative
to the four -hole, they have the opportunity to do some short game practice type things that can be
welcomed to go with what is going to be a state of the art driving range and other things there and they
have the ability on some of the other golf options such as a three -hole green configuration. They need
to do some creative thinking while looking at the options. They can generate some revenue out of the
non -golf course type amenities they will put on the course and everyone will benefit. He noted the four -
hole is not a favorite of his but he is not dead set against it.
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Member Good asked if Mr. Presthus would use the four -hole practice round. Mr. Presthus indicated he
• would probably not at this stage.
Member Good stated the flip side to that is if they put the four -hole loop in, the 18 -hole course would
be shorter, would that impact Mr. Presthus' view if it were a little shorter. Mr. Presthus stated that's a
very good question, what every option they go with they will have a new set of tees on each hole,
widened fairways, fewer if any, forced carries so they have to provide a challenging opportunity for
golfers of all abilities and if they do the 18 as proposed, they can have a seven thousand yard from the
tips and that is going to appeal to the younger, better golfers. It is nice to have the distance option and
there are certain events that could be brought to the course with the longer distance.
Chair Gieseke wondered what the corporate activity and revenue generation would be from that. Mr.
Abood indicated there is a lot of potential and it goes back to how they manage the rounds they
presently have. They do not have a lot of opportunity there right now based on the way they have it
programmed out and that would need to change. There is a lot of potential for corporate outings that
do generate a lot more revenue than the daily fee golfers, which helps keep the greens fees down for
the daily golfers.
Chair Gieseke asked if they were potentially losing out on that by choosing 18 over 27 holes. Mr. Abood
did not think so. He thought they will still have to limit it to a certain number of days based on the
league schedules they have so they do not really have an opportunity to do it if they keep the
programming they have in place. They can change the programming in any scenario.
Member Jacobson asked what the pros and cons were to adding a four -hole loop in regards to corporate
outings. Mr. Abood thought it helps with junior golf to have the different options. He did not think it
would give them a better market advantage on any of the corporate outings. It is always good for junior
golf to have more practice areas without a high cost to it.
Chair Gieseke stated it was his understanding with the economic downturn and the addition of so many
alternative things for the youth to do in the last 10 years, would it be beneficial to have the four -hole
loop to bring in non 18 -hole youth to get an introduction into golf? Mr. Abood stated it will definitely
draw people in. It will not be huge and Edina has a great junior golf program already; it is one of the
largest in the state.
Ms. Pacy Erck, member of Braemar Task Force, gave her comments to the Park Board.
Chair Gieseke asked what option Ms. Erck would choose. Ms. Erck stated number 1 or number 4 would
be her options. She stated the Oak Savannahs have not been taken care of and would be even more
beautiful if they were taken care of better.
Mr. Hulbert, member of Braemar Task Force, gave his comments to the Park Board. He thought it was
automatic they would be looking at a 27 -hole rerouting coming into the review of this course but when
the designs came back for the 18 -hole course he thought it was really cool. He stated some of the things
in the park should have been repaired years ago and now is the time to correct the issues. They should
be striving to fill the tee sheet and should be hard to get on this course. If they do this, they need to go
back to the way it was 20 years ago and have a resident patron card. He noted he was excited about
option 5. He supported the closing of the Fred because he felt there was a give and take and this is the
opportunity to get back. He thought the four -hole practice loop was a waste of parkland and money.
He thought there were other things they could do with the land.
R
Member Jacobson wondered why Mr. Hulbert chose option 5 and not option 4. Mr. Hulbert stated it is
a change of use in that hill and he did not think they needed to go into that hill to create a spectacular
18 -hole routing. He did not believe the will from the public is there to do that either and he thought
there were other uses that could be done in that area such as biking and walking and should not be left
the way it is. Chair Gieseke agreed and thought the area is an underused gem in the city.
Mr. Bob Kojetin, resident, 5016 William Avenue, stated he did a lot of research by visiting a lot of
courses in the city. He gave a history of how the Braemar Golf Course came about.
Chair Gieseke stated with Mr. Kojetin's special history with the city what option would he choose and
why. Mr. Kojetin stated he would go with the 18 -hole. Either option 4 or 5 are good ones. He thought
if they built the 27 -hole there is not that much difference in price and the city is not going to make the
money to pay for it so the residents will need to pay for it. The driving range has always been the key to
making money for the golf course and the regular golf course has never made that amount of money. If
the driving range is improved, people from all over the Minneapolis area will come to it. They have to
look at that as a revenue maker.
Member Good wondered if there was any directive they can take from the work that has been done on
the Strategic Plan that would help them with this decision.
Member McCormick thought there was one clear direction, which was the enterprise facilities were
supposed to pay for themselves, which was one of their key financial objectives.
Member Jacobson thought they need to invest in that site in general and she thought they needed to
improve the walking trails.
Member McCormick stated other things she has been considering are they need a separate initiative on
controlling the buckthorn and other invasive species with the city parks. They should have a
maintenance plan.
Member Jones stated with respect to the strategic plan, one of the pieces of that would be that all of
their parks would have a Master Plan. She thought this goes hand-in-hand with how they would use the
entire park.
Member Good liked the framework that Mr. Presthus offered up for the Task Force which was golf,
environmental, financial but as he thought about their Strategic Plan he would flip those around
because he felt their charge was to think financial, environmental and golf and yet still have a golf
course they are proud of as a community and better than what they have today. They have to answer to
those first two items because that is where their strategy is driving them and yet still have the best golf
course they can have for Braemar.
Chair Gieseke stated he would echo that and hoped as part of the discussion and design with all of the
groups that they can strike a pretty neat balance between those three items and they are all important
and he would hate to sacrifice a spectacular golf course if they do not have to. He did lean against going
into the woods or harming any trees but if there is a real reason for it and they can replace them
somewhere he might be open to that as well but he thought those three elements were the key.
Member Jacobson indicated she liked option 5 as part of the Strategic Plan would like to consider the
woods land as one of many lands they are going to talk about across the city and address that separately
and try to optimize the golf course to be as great as it can be on the land it currently is on.
6
Member Good preferred 18 over 27 holes and felt the financial aspect of it drives the city in that
direction. He preferred option 5 over option 4 because he thought it was the most environmentally
friendly.
Member Jones echoed everything just said and preferred option 5. She agreed with the ability to be
financially prudent so they will have money to reinvest in their golf and to reinvest in the rest of the
parkland so she would stick with an 18 -hole golf course and would keep within the footprint of the
current golf course. She would like to consider the year-round usage of that park so making sure they
have the ability to have winter activity there that would fit other people is preferred. She would also
recommend that once this piece gets settled, they do a Master Plan once the golf course is even
designed because it is a puzzle and they need to figure out where all of the pieces need to go and what
they may be.
Member McCormick stated one thing she would mention is the passion and the amount of work the
Task Force has put in has been really outstanding and have really put all of their best work into this. She
stated she would prefer option 5, 18 -hole, because she felt it was the best decision financially and she
also felt like they should be managing the woodlands area from an environmental perspective and not a
golf perspective. She felt option 5 really improves the course.
Chair Gieseke stated his opinions were pretty well known and he preferred option S for all of the
reasons previously stated. He would like to have a little more discussion on a pitch and putt.
Member Cella thought the financial favor is for option 5. She thought it was difficult to promote 27
holes. She thought they needed to have a Master Plan for Braemar from a park perspective.
Member Segreto stated an 18 -hole option is the most financially responsible option to take. She was in
favor of option 5 because she was really concerned about going into the hillside and would like the City
Council to be very careful in looking at the options with the labels the golf consultant has been putting
on the options. She would like the City Council to step up its role as being a steward of the land for
future generations. Member Strother agreed that option 5 would be the best option for the park.
Ms. Kattreh thanked the Task Force for the hard work they have put into this the past year. She thanked
all of the members that were not at the meeting as well.
VI.D. Park, Recreation and Trails Strategic Plan
Terry Minarik from Confluence, Jeff Bransford from Pros Consulting and Brad Aldrich
Mr. Minarik provided a presentation on the Strategic Plan.
Member Jacobson stated as reading through the entire report, she realized that they have a very narrow
view as a park being only a park but then they start talking about the woods above Braemar and looking
at the creek and they have a lot of land and it almost feels like they are getting so narrow that they are
only looking at the parks but they have so much land in the city. Mr. Minarik noted in part of the
document they have tried to identify some of those areas, the leftover woodland areas and the edges of
the creek. They are not necessarily considered Edina parks but they are part of that overall system and
how they can tie them together. He thought that could be looked at to determine how they can bring
more of a focus to those types of things.
CI
Member McCormick indicated there is a lot of activity in the topic of natural resource and sustainable
parks and the resource really does not come on until 2017. She wondered if they have staff that can
handle all of the prework up to that point or is there still a piece of this that still needs to determine how
they resource. Ms. Kattreh agreed and stated they still have a little bit of work they need to do on the
implementation years in the plan.
Member McCormick noted the other thing was on the priority projects in the strategic plan but it would
be nice to somehow match it to the implementation plan and how the board can help support it. Chair
Gieseke agreed with that.
Member Good stated he wanted to add to that and recommend this replace the key recommendations
from the assessments.
Mr. Minarik reviewed the Goals and Strategies for Parks and Open Space and Trails with the board.
Member McCormick noted in regards to adding 15 miles of trails, they need to match into their funding
piece and how that will get funded.
Member Jones felt this is a wonderful goal of the city but did not know how the Parks Department will
be able to manage a goal that touches on transportation and public works to the extent it does and was
a little uncomfortable with it being in the Park Strategic Plan when it maybe should be in a different plan
because she was not sure it should be the parks money going towards creating this because if it is
streets, it should not be a part of their budget. Ms. Kattreh did not know if it would come out of the
Park Department's budget and she noted they have a great relationship with the both the Public Works
and Engineering departments and anytime they are looking at reconstruction projects they are now
looking at how they can connect and improve park trail systems throughout.
Mr. Minarik stated he could see priorities being to places like Braemar, if they created a trail system
through there and the wooded areas, which would take priority status in the Park Strategic Master Plan.
Member Jones asked if the goal was in the plan that they would be putting paths within the parks. Mr.
Minarik indicated they could clarify that if it was not.
Member McCormick noted there is an area on safety and she wondered where the data or general
feedback comes from. Mr. Minarik thought it was more of a polling and getting feedback from the
residents to find out where they felt safety issues were located at and if more lighting were needed,
more policing and more open spaces were needed to maintain safety of the residents.
Member Jones stated she looked into the Edina Level of Service Standards chart and thought there was
room for discussion and possible revision on that. Mr. Minarik stated the section on purpose, goals and
strategies for recreational facilities deals specifically with recreational facilities and some of the
enterprise facilities Edina has as well. He wondered if there were any questions on that item.
Member Jacobson noted it made her think about how they have gotten the different tiers of parks and
she was not clear on what they should provide in the different levels of parks in the city. Mr. Minarik
stated they could make a more clear definition of what defines the different types of parks in the city.
Member Jones stated she was interested in pursuing the fact that the document does not address
fitness, health and wellness to the extent that Edina is lax. She would like to see some more tactics that
discuss this because it is something that comes up in all of the surveys that they have ever done. She
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would also like to see information on indoor pools and was also what residents had inquired about.
Chair Gieseke stated he would like to see a little something on an Art Center as well.
Member Jones asked if people break out what a recreational community center is. Mr. Minarik did not
think it gives a definition and encompasses a ton of different things so art can be part of that.
Mr. Minarik continued with his presentation on the Strategic Plan for the city.
The managers discussed the pros and cons of having a Natural Resource Manager in the city and the 12
priorities listed in the Strategic Master Plan.
Member Jones stated in regards to the loop trail, she would like to increase the trails in the city and
make sure they have a sustainable way for maintaining the trails they have and have a plan for that. She
would like to also have a plan for increasing the trails within the parks. Mr. Minarik stated the trail plan
listed in the Master Plan is trying to figure out how they can connect the trail system in the city to make
it more accessible. He thought that was part of the initiative to create a trail master plan and begin to
really identify that.
Member Good stated for him the purpose of a strategy is to allow an organization to make choices and a
good test of that is how it allows them to say no to something and yes to something else. How does it
allow them to prioritize?
Ms. Kattreh felt like there is a significant amount of direction in the document. There are going to be a
lot of areas open for conversation and areas that will need long term planning and support from the
board and City Council for funding. In terms of actually going through, the document and prioritizing
what they are going to do first, second or third, she has not had the chance to do that yet. That is where
she looks at how they are going to prioritize the implementation plan and look at some of those years.
Member Good stated as Ms. Kattreh looks through this plan in the next couple of weeks to ask herself if
the rest of the document gives her enough of a framework to defend a priority.
Ms. Kattreh thought one other thing is as she looks at the document, there is a lot of work that will need
to be accomplished with other departments, not just in the enterprise facility but in the Engineering,
Communications, Public Works, and Park Maintenance departments as well. It will take a lot of
coordination and work on their part to make sure they are coordinating work plans and budgets and will
be a significant project moving forward.
Member Jones stated one of the things she was hoping to achieve with the strategic plan was that they
would get more of a schedule or sustainable refunding of their parks programs. She was concerned
about the financial sustainability and wanted to make sure they are working within their budget. Mr.
Minarik stated they actually recommend business plans for ones that have not had business plans done.
Member Good indicated, on page 15 that he liked the fact that they have now embedded a vision and
would like to offer that rather than being the vision of the strategic plan that it is the vision of the Edina
Park & Recreation Department. The strategic plan does not need to have a vision but the department
should have a vision. He also suggested striking the words "one of and state that their vision is to be
recognized as Minnesota's Premier Parks and Recreation and Trail System.
Chair Gieseke also wanted to add on page two when it lists the people listed to list Member Good also.
Mr. Minarik indicated he will clarify those names with staff. The next steps will to be make revisions
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suggested and bring back to the board on June 9 and make the presentation to move forward to the City
Council.
• VII. CORRESPONDENCE AND PETITIONS
VILA. Council Updates
None
VIII. CHAIR AND BOARD MEMBER COMMENTS
Chair Gieseke stated they have determined as a leadership group that the August meeting might be best
for the retreat they have planned. Member McCormick stated they are working on the agenda for that
meeting and if the board has any ideas for it, please forward them.
Member Jones understood that they are working with a parallel process with Grandview and they were
just at a meeting discussing the potential uses of Grandview. So many of their strategic initiatives could
be met in that site or should be discussed with respect to that. She was hearing that there are proposals
out there to move different facilities and they are still, as a board, not talking about that but it looks as if
the City Council will be deciding this in a month or so. She was wondering if it was possible that they, as
a group, ask City Council to include Parks Director Kattreh in the process of designing the public features
of that space. Ms. Kattreh thought that the Park Board is going to be included in this process very soon.
She noted she has been included in the Grandview discussions and it is her understanding that the
project will be turned over to her department and the Park Board to help with that process.
IX. STAFF COMMENTS
Ms. Kattreh gave her staff updates to the Park Board.
• x ADJOURNMENT
Chair Gieseke made a motion, seconded by Member Good, to adjourn the meeting at 9:53 p.m.
Ayes: Jacobson, Good, Jones, McCormick, Gieseke, Cella, Segreto, Strother
Motion carried.
Meeting adjourned at 9:53 p.m.
M
•
To: Park Board
From: Ann Kattreh
Parks & Recreation Director
Date: May 12, 2015
Subject: Staff Introduction - Amanda Holle, Recreation Supervisor
Action Requested:
None
A, � j\
• '`�ORPORA�F� •
I6 fSf)
Agenda Item #: VI.A.
Action ❑
Discussion ❑
Information 0
Information / Background:
Amanda Holle will be present to introduce herself to the Park Board. Amanda joined the Parks &
Recreation Department team as a Recreation Supervisor on April 6, 2015. Amanda replaced Kristin
Aarsvold, whose last day with the city was March 27, 2015.
City of Edina • 4801 W. 501h St. • Edina, MN 55424
w9& A,1�
� oottroixn�6
rears
To: Park Board Agenda Item #: VI.B.
From: Susie Miller Action ❑
Braemar Arena and Braemar Field General Manager Discussion ❑
Date: May 12, 2015 Information
Subject: Braemar City of Lakes Figure Skating Club and Edina Hockey Association
Memorandum of Understanding
Action Requested:
None. Information only.
Information / Background:
In 2013 Braemar Arena re-evaluated the priority use of the facility. At the time Braemar Arena was able to
meet nearly 100% of ice rental needs for Braemar City of Lakes Figure Skating Club (BCLFSC), but was only
able to meet less than 50% of the ice rental needs for the Edina Hockey Association (EHA).
At the July 16, 2013 council meeting staff recommended a priority use agreement which allocated ice to
both groups based on participant residency. At that meeting the City Council directed staff to meet with
BCLFSC and EHA to come up with an agreement for facility usage. Staff conducted three meetings with
representatives of both organizations to attempt to come to an agreement about facility utilization and ice
allocation. After no agreement was reached, staff recommended to City Council at their Aug. 5, 2013
meeting a scenario of ice utilization based on information learned at the previous meetings.
The City Council passed the following motion on Aug. 5, 2013 "159 hour reduction in 2013/2014 during
prime season (Sept. 16 to March 15); 159 hour reduction in 2014/2015 during prime season (Sept. 16 to
March 15), with staff directed to determine a process to evaluate future allocation of ice time to be
recommended by the Park Board and adopted by the City Council, to be completed by the second City
Council meeting in May of 2015".
Since 2013 Braemar Arena implemented the 159 hour reduction. Braemar City of Lakes Figure Skating Club
did not need to purchase additional ice at other facilities during the past two seasons. Braemar Arena also
added a seasonal fourth sheet of ice. This addition has increased Braemar Arena's ability to meet the ice
needs of EHA to just over 60%. Both associations have been happy with the ice scheduling over the past two
seasons.
Attached is a Memorandum of Understanding signed by both parties in agreement of the use of Braemar
Arena. This agreement, while non-binding, shows support of both programs and the importance of Braemar
Arena being their home facility.
City of Edina • 4801 W. 501h St. • Edina, MN 55424
REPORT / RECOMMENDATION
Page 2
This item is presented as information only and will also be presented as information only at the May 19,
2015 City Council meeting. Susie Miller, Braemar Arena and Braemar Field General Manager will be present
at the Park Board meeting to answer any questions.
Attachment:
Memorandum of Understanding — BCLFSC and EHA
BRAEMAR ICE ARE,
MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding ("MOU"), made and entered into this 7th day of
May, 2015, is by and among the City of Edina ("City"), Braemar City
of Lakes Figure Skating Club ("BCLFSC"), and the Edina Hockey Association (`BHA")
(collectively "the Parties").
1. Ice Rental BCLFSC. Subject to the execution of annual ice rental agreements,
BCLFSC may use the Braemar ice arena in accordance with the following schedule:
September 16, 2015 to March 15, 2016:
Monday 3:00 - 6:50 p.m.; Syncro 7:00 to 10:00 p.m.
Tuesday 3:00 - 6:10 p.m.
Wednesday 3:00 - 6:50 p.m.; Syncro 7:00 to 10:00 p.m.
Thursday 6:00 - 6:50 p.m.
Friday 3:00 - 4:30 p.m.
Saturday 7:00 - 10:20 a.m.
Sunday Syncro 2:40 - 7:40 p.m.
The City reserves the right to limit or change the BCLFSC's ice time for special events,
including the Cake Eater, Invitational, Riemann, and the O'Connor tournament.
BCLFSC will use the East Arena with the exception of Monday -Friday during January and
February when Tenant will use the South Arena. This will be reevaluated in April each year by
EHA and BCLFSC. The switch of arenas each year in January and February will occur every
year for the term of this MOU unless BCLFSC and EHA agree otherwise.
BCLFSC is guaranteed the same ice schedule and number of hours each year as they have during
the 2015-2016 season. BCLFSC must turn back ice they do not want prior to November 1 each
year. However, it is not a use it or lose it. For example, if BCLFSC gives up Monday ice for a
year, they still have first rights to those times the following year, but not to exceed the time
allotted in the 2015-2016 season.
2. Ice Rental EHA. EHA has the first right to schedule all other ice not used by
BCLFSC and the Edina High School.
3. Term. The Term of this MOU is September 16, 2015 through March 15, 2020.
The Parties will meet in April of each year to discuss the term of this MOU.
1815820
4. Non -Binding. This Memorandum of Understanding is an expression of intention
and does not create a legally binding obligation upon the Parties. This Non -Binding
Memorandum of Understanding is a guide to the preparation of a contract.
WITNESSETH, the parties hereto execute this MOU on the date and year first above
written.
CITY OF EDINA
By:
Scott Neal, City Manager
BRAEMAR CITY OF LAKES FIGURE
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EDINA HOC Y ASS IATION
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181582vl
To: Park Board
From: Joe Abood
Braemar Golf Course General Manager
Date: May 12, 2015
Subject: Braemar Golf Course Master Plan
Action Requested:
Provide review and comment.
Information / Background:
A,
O le
• /1CORPOIit*iF'P •
18 ftf1
Agenda Item #: VI.C.
Action ❑
Discussion Z
Information
At the March 18, 2014 City Council meeting the council approved a motion to immediately start the master
plan for Braemar Golf Course with funding from the Braemar Memorial Fund.
At the April 22, 2014 City Council meeting the council passed a motion to form a Braemar Master Plan Task
Force to begin the Braemar master planning process.
At the June 17, 2014 City Council meeting the council approved the selection of the Braemar Master Plan
Task Force appointments. Rick Ites, Pacy Erck, Joseph Hulbert, Dick Brozic and Paul Presthus were selected
by an application and interview process as well as Brenda McCormick and David Deeds who were appointed
by the Park Board. The task force has been meeting on a weekly basis since July 2014. Rick Ites was
selected as the chairperson to lead the Master Plan Task Force through the process.
On July 28, 2014 the Request for Proposal for a golf course architect for the Braemar Golf Course Master
Plan was advertised.
On August 22, 2014 twenty-eight (28) consultants from all over the country submitted proposals in
response to the Braemar Master Plan RFP. Of the 28, five were selected by staff to be interviewed and
evaluated by the task force.
In August 2015 an NGF - GolfSAT Survey was conducted. There were 739 Braemar Golf Course patron
responses. This survey helped structure the Master Plan Task Force objectives and mission statement. Key
findings are below.
Master Plan Task Force. Interviews were conducted Sept. 8 - 10, 2014.
City of Edina • 4801 W. 501h St. • Edina, MN 55424
REPORT / RECOMMENDATION Page 2
At the Sept. 16, 2014 City Council meeting Richard Mandell Golf Architecture Consulting Services was
selected to complete the Master Plan at Braemar Golf Course.
In October 2014 Mandell conducted multiple site walks with community residents (over 75 residents
participated), environmental agencies and the Master Plan Task Force as well as held an open house to
gather feedback for the Master Plan.
In January 2015 Mandell once again met with community residents (over 100 residents participated),
environmental agencies and the Master Plan Task Force to discuss preliminary concepts for the future of the
Braemar Golf facility.
Jan. 13, 2015 - Mandell presented the Park Board preliminary concepts for consideration.
Feb. 17, 2015 - Mandell presented City Council preliminary concepts for consideration.
April 14, 2015 - Mandell submitted the final Renovation Business Plan for Task Force and staff review.
May 6, 2015 - Master Plan work session with City Council, Park Board, staff and Master Plan Task Force.
Future Schedule:
May 12, 2015 - Master Plan Task Force and staff will make a recommendation to the Park Board.
June 2, 2015 - Master Plan Task Force and staff will make a recommendation to the City Council.
MASTER PLAN TASK FORCE INFORMATION
The following Master Plan Task Force information was provided to staff by the Master Plan Task Force for
inclusion in this document.
Master Plan Task Force Mission Statement:
To create a premier Minnesota public golf course that provides access to a friendly, enjoyable, and playable golf
experience for golfers of all ages and abilities, now and for future generations.
MASTER PLAN TASK FORCE CONCLUSIONS
Decision Making Attributes
The Task Force looked at several important attributes when evaluating a 27 hole or 18 hole option.
o Accessibility
■ Golf Leagues - Braemar has one of the largest league programs in the state for
both 18 and 9 hole men and women golfers.
■ Youth Program - Braemar is grooming future golfers with one of the most
developed youth golfing programs in the state.
■ Special Needs Programs - Braemar has a very successful program for special
needs golfers.
Nine Hole Golfers - Braemar has a very high percentage of 9 hole golfers. The 9
hole rounds last year (29,153) exceeded the number of 18 hole rounds (26,158).
REPORT / RECOMMENDATION
Page 3
o Financial - We looked at how course utilization, expenses, cash flow and profitability might
be impacted by the different options.
o Environment - Braemar is a unique urban golfing experience because of our beautiful
parkland property. We looked at how our re -design options could enhance the current
park environment now, and also how it could impact future generations of golfers.
27 Hole Option
• Accessibility - Accessibility is best addressed by a 27 hole option. Golf leagues, youth programs,
special needs programs would not only be maintained but would also have room to grow.
• "Fix Clunie" - The number one request by most golfers in our listening sessions was "Fix the
Clunie nine!" When existing golfers avoid the Clunie nine, it creates all kinds of problems financially
and operationally for the staff. We believe that the planned re -design of Clunie is such a significant
improvement that it will drive higher course round utilization than what staff has forecasted (68%).
• Nine Hole Golfers - These golfers are often seniors, couples, and parents playing with a child. To
some people, golf is too long a process and 9 holes is all the time they can afford from a busy
lifestyle standpoint. We believe that with the 27 hole option, course utilization increases with
maintaining and growing these 9 hole rounds rather than losing them.
• Financial - Clearly, the 27 hole option is more costly and would never reach the profitability of an
18 hole course option. It takes more staff and resources to manage 27 holes.
• Pace of Play - The re-routing of some holes on I - 18 will equal out the yardages which should
speed up pace of play on those nines. In addition, the re -design of Clunie significantly speeds up
pace of play on this nine by eliminating some of the forced carries and correcting problem holes.
• Corporate Events - The 27 hole option gives Braemar the ability to stage more corporate events
and tournaments to increase course utilization.
18 Hole Option
• Financial - The 18 hole option would have higher utilization resulting in improved profitability and
reduced financial risk. Expenses with 18 holes would be lower because of reduced labor and
supplies.
• Premier Course - A re -designed 18 hole course would be one of the best municipal courses in
the region. Edina residents and patron card holders would be given preferential treatment in terms
of tee -time availability.
• More Amenities - This option would leave more room to provide other amenities like a nature
center and other practice amenities.
• Accessibility - With increased utilization of an 18 hole course, tee time availability to league,
youth, and special need golf programs could place some of these programs at risk.
• 9 Hole Golfers - An 18 hole option would force staff to financially favor 18 hole over 9 hole
golfers. We would most likely lose most of these golfers.
REPORT / RECOMMENDATION
B raemar Goff Task Farce
Key t:onsideration5
B -Apr -0
I -re tawny to off eppror. 77,Wo roLret;for nom 27tgle ww LS -hole o3tim.
-The 2- hoc hole f 52% 5 h0lej, V tkh is em the mo.^t dfident rLmrix Mill.
- The 15 toe optim assumes a spin "" 9 Pyre ny.efds io mde 2971 11e 18 hale your= 7hs mid. c wge Yrill reatr, e1 a morn profteDe W enue -node tv t
requ'rec trangts to wWje pwl-, tirirg or jinia s raining. etc.
I -re his rat expected to otrr again. tr we thought Ear -.word re-nouna rod anex 1! vis.. the is tole optim
'woUd not to eoleto at=,nmoebtee the oer-anc.
V, 7f9: review oat: not mmiCer the vizd it, or the Cnivrinn Fargi%'Par 3 9rojeti or the e.Wrewith the voEta3e :prinHer rattan la.ssurm= to x
mairten r zel
fv She tinstcal rettrtr i5 tigntr deDetdeart on the utialtim pricing arta apense as;Ls ytions. based on Fomes alone tine iB4m*e option is best
0.,ertime, oat„ gx6am wave a IDs: D=Kxe etpenses are aatur ee no grow raster than revenues.
Does Model Z= I= Am
27 hale 1_1 14-;r 1-1
18 We 323 85 13411
The 27 hole model
hc ernelta., mpiml "tired $ :,556
WACC = sit
utils till,
A.—O hkill& Yd lch
Annual Plkinx er"ly-h
fagm. k.
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f k.—I lr vkhl.
Free Cash Raw W27
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%
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90,000
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I -re his rat expected to otrr again. tr we thought Ear -.word re-nouna rod anex 1! vis.. the is tole optim
'woUd not to eoleto at=,nmoebtee the oer-anc.
V, 7f9: review oat: not mmiCer the vizd it, or the Cnivrinn Fargi%'Par 3 9rojeti or the e.Wrewith the voEta3e :prinHer rattan la.ssurm= to x
mairten r zel
fv She tinstcal rettrtr i5 tigntr deDetdeart on the utialtim pricing arta apense as;Ls ytions. based on Fomes alone tine iB4m*e option is best
0.,ertime, oat„ gx6am wave a IDs: D=Kxe etpenses are aatur ee no grow raster than revenues.
Does Model Z= I= Am
27 hale 1_1 14-;r 1-1
18 We 323 85 13411
The 27 hole model
hc ernelta., mpiml "tired $ :,556
WACC = sit
utils till,
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101
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The 2^, -,,nor_ option is criy vimte 'r n {-rer ^xjiz6ton can Y_ es7Jmed alorg wirm
"xe sustained arrf-at 3 of invea e . -7i: option provides mare TIM63 frtt
and l.— [tare in the SW rabic: or the caro ers a reede:d.
The iaitaie option i5less «Ary' finencislty, but regtires a chaW in gorier
habit at the tourx The downside is 01st ICs risky it Soft utiizetim drops or.
This oytim does not praim iledoi by it gaff rebmixt'. a more roLr= mala be
served given the M% assd.ned t kut m rate.
Page 4
BrstLor
Eaa�r
W,...t Lw
as%
as%
tis%
7%fird YNf
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26
The 2^, -,,nor_ option is criy vimte 'r n {-rer ^xjiz6ton can Y_ es7Jmed alorg wirm
"xe sustained arrf-at 3 of invea e . -7i: option provides mare TIM63 frtt
and l.— [tare in the SW rabic: or the caro ers a reede:d.
The iaitaie option i5less «Ary' finencislty, but regtires a chaW in gorier
habit at the tourx The downside is 01st ICs risky it Soft utiizetim drops or.
This oytim does not praim iledoi by it gaff rebmixt'. a more roLr= mala be
served given the M% assd.ned t kut m rate.
Page 4
REPORT / RECOMMENDATION
STAFF CONCLUSIONS
Page 5
Staff recommends Option 5 — New 18 Hole Regulation Golf Course with minimal disturbance - the 18 hole
option that stays within the 27 hole footprint of the existing golf course, with an alternate use for the
remaining park property. The alternate use park concepts include, but is not limited to, recreational trails,
an environmental education area, winter sport use, a four/six hole practice course, a putting course, a foot
golf course, a disk golf course, grass fields and the like. The ability to reinvest profits for future capital
improvements from within the golf enterprise is another substantial reason staff recommends the 18 hole
option. While Richard Mandell has shown an option for renovating the Clunie nine that would expand into
the hill on the east side of Braemar Park, due to the decline in golf locally and nationally, staff is reluctant to
recommend expanding the footprint of the golf course.
Staff findings are based on the directive for 100% cost recovery of the Golf Enterprise facilities and provide
the City of Edina the least amount of financial risk. A 27 hole option is potentially viable; however, there is
substantially more financial risk involved based on the state of the golf industry and Braemar historical
information.
Along with the financial considerations, staff believes that reasonable accessibility can be maintained with
an 18 hole option. In 2014 there were 55,311 rounds played on the Braemar 27 hole regulation courses.
With proper tee sheet management, these rounds can be accommodated on the 18 hole regulation course
with additional room for growth. Additionally, staff believes that an 18 hole regulation course and par 3
course will provide ample opportunities to continue its extensive league participation and continued junior
development programing. Edina residents would be given priority tee times so that access can be achieved
by residents.
The renovation of the Braemar Executive Course to a brand new par 3 course is also expected to provide an
exceptional amenity for golfers of all ages and abilities. The course will be redesigned to provide fewer
forced carries, fewer bunkers, wider fairways, larger greens and several tee boxes on each hole to better
match player ability for success. Staff also intends to provide two pin placements on each green, one of
which will likely be a larger cup for younger or less experienced golfers to have more success and a more fun
golfing experience.
Upon conclusion of the Braemar Golf Course Master Plan process, staff recommends completing a Master
Plan of the entire 450 acre Braemar Park site.
May 6, 2015 Work Session
Richard Mandell was present at the May 6 work session and presented the 18 hole and 27 hole options and
the attached PowerPoint presentation. He will not be present at the May 12 Park Board meeting. Several
members of the Braemar Master Plan Task Force will be present to discuss options and answer questions.
REPORT / RECOMMENDATION
ATTACHMENTS:
A: Staff Pro Forma
B: Customer Demographics and Survey Information
C: Ehlers Report
D: Renderings
E: Brenda McCormick, Braemar Master Plan Task Force — Key Considerations
F: Renovation Business Plan — Richard Mandell Golf Architecture
G: Richard Mandell Work Session PowerPoint Presentation
Page 6
•
C]
REPORT/ RECOMMENDATION
ATTACHMENT A:
Staff Proforma Summary
Page 7
Regulation 27 - Status Quo
Preliminary
2014
Projected 2015
4 Year Average
(2011-2014)
Projected
2016
Projected
2017
Projected
2018
Projected
2019
Projected
2020
Projected
2021
Projected
2022
Total Operating Revenue
$3,229,349
$2,647,477
$2,961,655
$3,148,405
$3,197,592
$3,247,803
$3,299,062
$3,351,398
$3,404,837
Total Operating Expense
$3,217,426
$2,840,765
$2,995,444
$3,118,824
$3,283,886
$3,350,674
$3,419,238
$3,486,587
$3,555,749
Operating Income (Loss)
$11,9231
$193,2891
$33,7891
$29,5801
$86,2931
$102,872
$120,176
$135,1891
$150,912
Estimated Annual Cash Flow
$1,433,9261
$71,0041
$3,7211
$112,0401
$150,2831
$164,837
$87,041
$202,054
$217,777
Regulation 27 - Renovation
Preliminary
2014
Projected 2015
4 Year Average
(2011-2014)
Projected
2016
Projected
2017
Projected
2018
Projected
2019
Projected
2020
Projected
2021
Projected
2022
Total Operating Revenue
$3,229,349
$2,647,477
$2,961,655
$2,513,014
$2,553,771
$2,595,405
$3,432,067
$3,485,598
$3,540,239
Total Operating Expense
$3,217,426
$2,840,765
$2,995,444
$2,570,558
$2,771,482
$2,973,756
$3,719,238
$3,843,550
$3,877,126
Operating Income (Loss)
$11,9231
$193,2891
$33,7891
$57,5451
$217,7111
$378,3511
$287,1701
$357,9531
$336,887
Estimated Annual Cash Flow
$497,5741
$227,5041
$66,2791
$88,0851
$246,3011
$404,9161
$311,6351
$382,4181
$361,352
Regulation 18 - Renovation
Preliminary
2014
Projected 2015
4YearAverage
2011-2014
Projected
2016
Projected
2017
Projected
2018
Projected
2019
Projected
2020
Projected
2021
Projected
2022
Total Operating Revenue
$3,229,349
$2,647,477
$2,961,655
$1,136,974
$3,225,529
$3,276,089
$3,327,703
$3,380,400
$3,434,206
Total Operating Expense
$3,217,426
$2,840,765
$2,995,444
$1,408,805
$2,882,726
$3,094,915
$3,151,049
$3,208,668
$3,267,811
Operating Income (Loss)
$11,923
$193,289
$33,789
$271,831
$342,803
$181,174
$176,654
$171,732
$166,395
Estimated Annual Cash Flow
1 $1,433,9261
$71,0041
$3,7211
$189,3711
$180,7131
$178,6091
$269,1891
$164,2671
$158,930
REPORT / RECOMMENDATION
ATTACHMENT B:
Customer Demographics
Page 8
Survey Data
(739 responses / 61% of which are Edina Residents / 76% male & 24% female / 50% below retirement age)
Satisfaction Factors (What our customers would most like to see improvement in)
1. Pace of Play
2. Overall Quality of Practice Facility
3. Condition of Bunkers
4. Amenities
5. Food & Beverage Service
6. Condition of Tees
Competition (Who we are being compared to)
1. Baker National Golf Course
2.
Braemar Customer Demographics
3.
12,685
4.
Dwan Golf Club
12,000
Bluff Creek golf Club
6.
Deer Run Golf
10,000
8,000-7,37-3
6,000
3,919
4,000
2,000
1,044 768
510 351 326 182 170 155 151 144 139 109 102 102 101 87 87 62
0
azo N\e \`'`°t a�0 `'moored
&
e10 �t`°O �e LC`� ra5 ��S �aJ a�F° a�Q +Ce \°tom
,o
Survey Data
(739 responses / 61% of which are Edina Residents / 76% male & 24% female / 50% below retirement age)
Satisfaction Factors (What our customers would most like to see improvement in)
1. Pace of Play
2. Overall Quality of Practice Facility
3. Condition of Bunkers
4. Amenities
5. Food & Beverage Service
6. Condition of Tees
Competition (Who we are being compared to)
1. Baker National Golf Course
2.
Chaska Town Course
3.
Brookview Golf Course
4.
Dwan Golf Club
5.
Bluff Creek golf Club
6.
Deer Run Golf
Attachment C
EHLERS
LEADERS IN PUBLIC FINANCE
The City of Edina Parks Department and Finance Department have requested that Ehlers review
pro forma financial assumptions for the City of Edina's Golf Enterprise (the "Enterprise") as prepared by
City staff and offer comments regarding the financial projections. The basis for our comments are actual
historical revenue and expense results for the Enterprise, review of planning documents from peer
municipally managed golf courses, and our experience with budgets for municipal recreational
enterprises. Generally, we find the City's projections to be based upon reasonable assumptions with the
caveats and clarifications raised below.
General Pro Forma Models
In preparation for reviewing various capital investments proposed within the Braemar Golf Course
Master Plan, City staff prepared baseline annual financial projections through 2020 to update the City's
2014 Golf Operations Study to incorporate recent changes to the Enterprise with the closing of Fred
Richards and new contract with Tin Fish. City staff included reductions in revenues related to
concessions and greens fees, with more modest adjustments to reflect streamlined expenditures within
retail operations, commodities, personnel and contractual services. The City then created three
additional models to incorporate the impact of selected Master Plan changes to the course:
- Adding $2.4 million course, driving range and par 3 renovations in 2015,
- $8.4 million 27 -hole course renovation with the new driving range and par 3, and
- $6.4 million 18 hole full course renovation in 2017 with the new driving range and par 3.
It should be noted that these models do not assume any substantial price or fee increases and do
not include any cash transfer support from external funds. Our evaluation also does not incorporate
review of the proposed construction costs, related contingencies, or time horizons.
Status Quo Model
The status quo model's projected revenues for 2015 of just over $2.9 million are adjusted from
recent history for the closure of Fred Richards and outsourced grill operations with Tin Fish. Revenues
for concessions and alcohol sales are conservatively reduced to reflect the contract in effect starting in
the summer of 2015 which shows lower revenues but also lower expenditures. Green Fees revenue in
2015 reflects a onetime modest increase in number of rounds of 10% for 9 -hole rounds and 25% for
executive course rounds to offset the closure of Fred Richards. These baseline revenues assume no
change to current pricing levels. In general, 2016 to 2020 year -over -year projected general revenues
assume 3% growth in combined pricing/usage and green fee and range utilization revenues assume a
1 % growth, which are reasonable assumptions. See the detailed chart below which also shows a
baseline comparison to recent historical operating performance:
To: Ann Kattreh and Eric Roggeman, City of Edina
O
C
GW
From: Nick Anhut and Mark Ruff, Ehlers
Date: February 26, 2015
2
Re: Braemar Golf Pro Forma Review
The City of Edina Parks Department and Finance Department have requested that Ehlers review
pro forma financial assumptions for the City of Edina's Golf Enterprise (the "Enterprise") as prepared by
City staff and offer comments regarding the financial projections. The basis for our comments are actual
historical revenue and expense results for the Enterprise, review of planning documents from peer
municipally managed golf courses, and our experience with budgets for municipal recreational
enterprises. Generally, we find the City's projections to be based upon reasonable assumptions with the
caveats and clarifications raised below.
General Pro Forma Models
In preparation for reviewing various capital investments proposed within the Braemar Golf Course
Master Plan, City staff prepared baseline annual financial projections through 2020 to update the City's
2014 Golf Operations Study to incorporate recent changes to the Enterprise with the closing of Fred
Richards and new contract with Tin Fish. City staff included reductions in revenues related to
concessions and greens fees, with more modest adjustments to reflect streamlined expenditures within
retail operations, commodities, personnel and contractual services. The City then created three
additional models to incorporate the impact of selected Master Plan changes to the course:
- Adding $2.4 million course, driving range and par 3 renovations in 2015,
- $8.4 million 27 -hole course renovation with the new driving range and par 3, and
- $6.4 million 18 hole full course renovation in 2017 with the new driving range and par 3.
It should be noted that these models do not assume any substantial price or fee increases and do
not include any cash transfer support from external funds. Our evaluation also does not incorporate
review of the proposed construction costs, related contingencies, or time horizons.
Status Quo Model
The status quo model's projected revenues for 2015 of just over $2.9 million are adjusted from
recent history for the closure of Fred Richards and outsourced grill operations with Tin Fish. Revenues
for concessions and alcohol sales are conservatively reduced to reflect the contract in effect starting in
the summer of 2015 which shows lower revenues but also lower expenditures. Green Fees revenue in
2015 reflects a onetime modest increase in number of rounds of 10% for 9 -hole rounds and 25% for
executive course rounds to offset the closure of Fred Richards. These baseline revenues assume no
change to current pricing levels. In general, 2016 to 2020 year -over -year projected general revenues
assume 3% growth in combined pricing/usage and green fee and range utilization revenues assume a
1 % growth, which are reasonable assumptions. See the detailed chart below which also shows a
baseline comparison to recent historical operating performance:
Excluding debt service and non-recurring capital expenditures, the status quo projected 2015
budget for expenditures is over $360,000 less than recent historical levels. This is primarily due to
reductions in commodities, staffing, and contractual services spending related to Fred Richards, along
with contracting with Tin Fish for operation of the Grill. Including 2015, the City's projected expenditures
include 2% inflationary factor for all line items except for personal services at 3% to be consistent with
the City's budgetary practices for other departments. The City's 2015 status quo budget has a sound
basis given the City's experience and is in line with the level of expenditures of similar municipal golf
enterprises within the metro area.
Despite the projection of a slight positive operating performance in 2015, aging of the course will
likely create larger negative cash flows in the short term prior to payment of non-operating expenditures
like existing debt and capital replacement needs. For example, the status quo scenario will require at
least $2,000,000 in irrigation improvements by 2017 plus annual improvements of over $200,000 per
year which exceed projections for depreciation expense.
Status Quo
EHLERS
Status Quo Model
2016
Revenues
LEADERS IN PUBLIC FINANCE
Excluding debt service and non-recurring capital expenditures, the status quo projected 2015
budget for expenditures is over $360,000 less than recent historical levels. This is primarily due to
reductions in commodities, staffing, and contractual services spending related to Fred Richards, along
with contracting with Tin Fish for operation of the Grill. Including 2015, the City's projected expenditures
include 2% inflationary factor for all line items except for personal services at 3% to be consistent with
the City's budgetary practices for other departments. The City's 2015 status quo budget has a sound
basis given the City's experience and is in line with the level of expenditures of similar municipal golf
enterprises within the metro area.
Despite the projection of a slight positive operating performance in 2015, aging of the course will
likely create larger negative cash flows in the short term prior to payment of non-operating expenditures
like existing debt and capital replacement needs. For example, the status quo scenario will require at
least $2,000,000 in irrigation improvements by 2017 plus annual improvements of over $200,000 per
year which exceed projections for depreciation expense.
Status Quo
Status Quo Model
2016
Revenues
2011-2014 Compiled
2015 Proposed
2020 Stabilized
Concessions/Sales
$
580,974
$
303,075
$
260,760
Golf Dome
$
326,276
$
332,801
$
385,808
Green Fees
$
1,534,510
$
1,468,535
$
1,543,445
Driving Range
$
243,625
$
246,061
$
258,613
Miscellaneous
$
559,437
$
582,000
$
632,178
Total Revenue
$
3,244,821
$
2,932,472
$
3,080,804
Expenditures
2011-2014 Compiled
2015 Proposed
2020 Stabilized
Cost of Goods Sold
$
313,477
$
180,024
$
171,700
Personal Services
$
1,521,625
$
1,340,175
$
1,553,630
Contractual Services
$
544,356
$
493,703
$
545,088
Commodities
$
337,851
$
288,945
$
319,018
Capital Outlay
$
3,355
$
3,422
$
3,778
Central Services
$
134,809
$
137,505
$
151,817
Depreciation
$
411,470
$
456,000
$
556,000
Total Expenditures
$
3,266,942
$
2,899,773
$
3,301,031
Operating Income (Loss)
$
(22,121)
$
32,699
1 $
(220,227)
Excluding debt service and non-recurring capital expenditures, the status quo projected 2015
budget for expenditures is over $360,000 less than recent historical levels. This is primarily due to
reductions in commodities, staffing, and contractual services spending related to Fred Richards, along
with contracting with Tin Fish for operation of the Grill. Including 2015, the City's projected expenditures
include 2% inflationary factor for all line items except for personal services at 3% to be consistent with
the City's budgetary practices for other departments. The City's 2015 status quo budget has a sound
basis given the City's experience and is in line with the level of expenditures of similar municipal golf
enterprises within the metro area.
Despite the projection of a slight positive operating performance in 2015, aging of the course will
likely create larger negative cash flows in the short term prior to payment of non-operating expenditures
like existing debt and capital replacement needs. For example, the status quo scenario will require at
least $2,000,000 in irrigation improvements by 2017 plus annual improvements of over $200,000 per
year which exceed projections for depreciation expense.
Status Quo
2015
2016
2017
2018
2019
2020
Revenues
$
2,932,472
$
2,897,815
$
2,942,181
$
2,987,452
$
3,033,652
$
3,080,804
Expenditures
$(2,899,773)
$
32,699
$(2,937,050)
$
(39,236)
$(3,000,475)
$
(58,294)
$(3,165,583)
$
(178,130)
$(3,232,419)
$
(198,767)
$(3,301,031)
$
(220,227)
Operating Income
Add: Depreciation
$
456,000
$
456,000
$
456,000
$
556,000
$
556,000
$
556,000
Less: Existing Debt
$
(84,215)
$
(97,490)
$
(95,540)
$
(93,590)
$
(96,565)
$
(94,465)
Capital Expense
$
(849,500)
$
(191,000)
$(2,208,000)
$
(298,000)
$
(293,000)
$
(200,000)
New Debt
$
-
$
-
$
2,000,000
$
(158,400)
$
(158,400)
$
(158,400)
Annual Cash Flow,
$
(445,016)
$
128,274
$
94,166
$
(172,120)
$
(190,732)
$
(117,092)
Page 12
EHLERS
LEADERS IN PUBLIC FINANCE
Driving Range and Par 3 Improvement Model
Projections for revenues adding the impact of improvements to the range and par 3 during the
summer of 2015 build upon the status quo model. Key differences are the impacts of proposed
construction starting in July, 2015. This event is expected to limit utilization of the range and executive
course for the remainder of the season. Upon completion, staff expects increased driving range and par
3 stabilized revenues, and modest increases in membership revenue due to improved amenities. The
proforma anticipates range revenues nearly doubling from historical levels once stabilized after
construction, and Par 3 green fees recovering by 2017 to a stabilized level 14% higher than the status
quo projections. Conservatively, the model does not assume any increase in 9 -hole or 18 -hole
regulation course utilization during Par 3 construction, nor any increases above status quo levels
afterward.
New Driving Range & Par 3 Model
Revenues
2015 Proposed
Stabilized 2020
Concessions/Sales
$
303,075
$
260,760
Golf Dome
$
383,953
$
385,808
Green Fees
$
1,300,489
$
1,577,118
Driving Range
$
77,960
$
433,740
Miscellaneous
$
582,000
$
641,636
Total Revenue
$
2,647,477
$
3,299,062
Expenditures
2015 Proposed
Stabilized 2020
Cost of Goods Sold
$
180,024
$
171,700
Personal Services
$
1,297,597
$
1,552,192
Contractual Services
$
493,703
$
545,088
Commodities
$
272,515
$
318,662
Capital Outlay
$
3,422
$
3,778
Central Services
$
137,505
$
151,817
Depreciation
$
456,000
$
676,000
Total Expenditures
$
2,840,765
$
3,419,238
Operating Income (Loss)
$
(193,289)
$
(120,176)
Expenditures are expected to decline slightly in 2015 compared to the Status Quo model due to
reorganization and temporary closure of the range and Par 3 during construction. However, City staff
expects to carry forward this level of expenditures with only inflationary adjustments mentioned above,
as well as a projected $120,000 increase in an accounting depreciation expense directly related to the
new capital improvements. Not including depreciation, the projections for total operating expenditures
are at or below Status Quo projections.
0 Page 13
•
is
EHLERS
LEADERS IN PUBLIC FINANCE
Range/Par3
2015
2015 Proposed
2016
Concessions/Sales
2017
303,075
2018
260,760
2019
$
2020
Revenues
$
2,647,477
$
2,961,655
$
3,148, 405
$
3,197, 592
$
3,247,803
$
3,299,062
Expenditures
$(2,840,765)
$
$(2,995,444)
$
(33,789)
$(3,118,824)
$
29,580
$(3,283,886)
$
(86,293)
$(3,350,674)
$
(102,872)
$(3,419,238)
$
(120,176)
Operating Income
$ (193,289)
Add: Depreciation
$
456,000
$
516,000
$
576,000
$
676,000
$
676,000
$
676,000
Less: Existing Debt
$
(84,215)
$
(97,490)
$
(95,540)
$
(93,590)
$
(96,565)
$
(94,465)
Capital Expense
$(2,649,500)
$
$
(191,000)
$(2,208,000)
$
(298,000)
$
(293,000)
$
(200,000)
New Debt
$
2,400,000
$
(190,000)
$
1,810,000
$
(348,400)
$
(348,400)
$
(348,400)
Annual Cash Flow
$
(71,004)
$
3,721
$
112,040
$
(150,283)
$
(164,837)
$
(87,041)
27 -hole Regulation Course Renovation Model
The next model builds upon the range and Par 3 improvements, and includes projections for
revenues assuming 27 -hole renovation to occur in three 9 -hole phases from 2017-2019 to allow for
continuous 18 -hole operations during construction. City staff expects green fee, cart rental and retail
revenues to temporarily decline due to 33% reduction in utilization during the construction period.
Revenues return to stabilized levels in 2020, with green fee revenues recovering to a level 5.7% higher
than the status quo projections. Membership revenue also declines during course renovation, but does
not fully recover to stabilized levels immediately afterward. Similar to the previous model, the model
conservatively does not assume any increased utilization of the Par 3 course during construction of the
27 -hole regulation course.
27 Hole w/ New Driving Range & Par 3
Revenues
2015 Proposed
Stabilized 2020
Concessions/Sales
$
303,075
$
260,760
Golf Dome
$
383,953
$
385,808
Green Fees
$
1,300,489
$
1,651,666
Driving Range
$
77,960
$
433,740
Miscellaneous
$
582,000
$
653,188
Total Revenue
$
2,647,477
$
3,385,161
Expenditures
2015 Proposed
Stabilized 2020
Cost of Goods Sold
$
180,024
$
171,700
Personal Services
$
1,297,597
$
1,552,192
Contractual Services
$
493,703
$
545,088
Commodities
$
272,515
$
318,662
Capital Outlay
$
3,422
$
3,778
Central Services
$
137,505
$
151,817
Depreciation
$
456,000
$
976,000
Total Expenditures
$
2,840,765
$
3,719,238
Operating Income (Loss)
$
(193,289)
$
(334,076)
The proposed 27 -hole renovation model builds in reduced operating expenditures related to
limited operations during the 2017-2019 phased construction, however stabilized expenditures are
expected to be identical to previous models save for the added depreciation expense related to the over
$8 million project.
Page 14
EHLERS
LEADERS IN PUBLIC FINANCE
27 -Hole Ren.
Par 3
2015
Revenues
2016
Stabilized 2020
2017
$
2018
$
2019
Golf Dome
2020
Revenues
$
2,647,477
$
2,961,655
$
2,513,014
$
2,553,771
$
2,595,405
$
3,385,161
Expenditures
$(2,840,765)
$
(193,289)
$(2,995,444)
$
(33,789)
$(2,570,558)
$
(57,545)
$(2,771,482)
$
(217,711)
$(2,973,756)
$
(378,351)
$(3,719,238)
$
(334,076)
Operating Income
Add: Depreciation
$
456,000
$
516,000
$
576,000
$
726,000
$
876,000
$
976,000
Less: Existing Debt
$
(84,215)
$
(97,490)
$
(95,540)
$
(93,590)
$
(96,565)
$
(94,465)
Capital Expense
$(2,649,500)
151,817
$
(191,000)
$(8,556,383)
$
$
(98,000)
$
(93,000)
$
3,151,049
New Debt
$
2,400, 000
$
(190, 000)
$
8,158, 383
$
(864, 000)
$
(864, 000)
$
(864, 000)
Annual Cash Flow
$
(71, 004)
$
3,7211
$
24,915
$
(547, 301)
$
(555, 916)
$
(316, 541)
18 -Hole Regulation Course Renovation Model
The final revenue model exchanges the 27 -hole renovation for an 18 -hole renovation that includes
the elimination of 9 holes from the golf facility. Construction is expected to occur in 2017 and cause a
full shutdown of the regulation course that year. In addition to zero 18 or 9 -hole green fee revenue, City
staff expect 90% reductions to rental and retail revenues during the year-long construction period.
Revenues return to stabilized levels 2018, with green fee revenues recovering to a level 7.8% higher
than the status quo projections. Membership revenue also declines during course renovation, but
stabilizes immediately afterward with modest increases. As with prior models, the pro forma
conservatively does not assume any increased utilization of the Par 3 course during construction of the
regulation course.
18 Hole w/ New Driving Range &
Par 3
Revenues
2015 Proposed
Stabilized 2020
Concessions/Sales
$
303,075
$
260,760
Golf Dome
$
383,953
$
385,808
Green Fees
$
1,300,489
$
1,679,416
Driving Range
$
77,960
$
429,445
Miscellaneous
$
582,000
$
670,508
Total Revenue
$
2,647,477
$
3,425,937
Expenditures
2015 Proposed
Stabilized 2020
Cost of Goods Sold
$
180,024
$
171,700
Personal Services
$
1,297,597
$
1,241,754
Contractual Services
$
493,703
$
436,070
Commodities
$
272,515
$
254,930
Capital Outlay
$
3,422
$
3,778
Central Services
$
137,505
$
151,817
Depreciation
$
456,000
$
891,000
Total Expenditures
$
2,840,765
$
3,151,049
Operating Income (Loss)
$
(193,289)1
$
274,888
The proposed 18 -hole renovation model also assumes reductions in expenditures related to the
regulation course closure in 2017 for construction. Upon reopening in 2018, City staff expects a
reduction in stabilized expenditures related to personnel, maintenance and commodities attributed to the
Page 15
z EHLERS
LEADERS IN PUBLIC FINANCE
elimination of 9 regulation holes. The leaner operating budget is estimated to be $480,000 less than that
of the 27 -hole models prior to inclusion of depreciation.
18 -Hole Ren.
2015
2016
2017
2018
2019
2020
Revenues
$
2,647,477
$
2,961,655
$
1,136, 974
$
3, 321,826
$
3,373,349
$
3,425,937
Expenditures
$(2,840,765)
$
(193,289)
$(2,995,444)
$
(33,789)
$(1,408,805)
$
(271,831)
$(2,882,726)
$
439,101
$(3,094,915)
$
278,435
$(3,151,049)
$
274,888
Operating Income
Add: Depreciation
$
456,000
$
516,000
$
576,000
$
733,500
$
891,000
$
891,000
Less: Existing Debt
$
(84,215)
$
(97,490)
$
(95,540)
$
(93,590)
$
(96,565)
$
(94,465)
Capital Expense
$
(2,649,500)
$
(191, 000)
$
(6,566,179)
$
(98, 000)
$
(93, 000)
$
-
New Debt
$
2,400, 000
$
(190, 000)
$
6,168,179
$
(704, 000)
$
(704, 000)
$
(704, 000)
Annual Cash Flow,
$
(71,004)1
$
3,721
$
(189,371)1
$
277,011
$
275,870
$
367,423
Revenue Considerations:
Coupled with national trends in declining golf participation, the marketplace for golf in the
metropolitan area during the limited spring, summer and fall seasons is fairly competitive with the
majority of pressure coming from alternative recreational activities. Regional weather patterns also
induce volatility into annual golf enterprise revenue performance. While price is an important factor, the
most significant a risk of flight from core users is to a superior product because of limited supply with
recent course closures throughout the metro area. Within its relative control, maintaining Enterprise
revenue levels will primarily depend upon the ability of the City to provide a competitive product to
maintain a variety of core golf users and successfully market the product to ultimately grow utilization.
It is our understanding that the majority of miscellaneous and sales revenue projections also
reflect limited year round use of the golf amenities. The City expects to explore opportunities to promote
more year round use of the facilities in the future. Also, it is assumed Golf Dome revenues will stabilize
at current levels due to recent improvements and performance.
We are relying on statements from staff that there is capacity available within all models to support
current utilization levels while reducing from a 27 to 18 -hole regulation course. However, the City should
consider its reliance on increases to green fees revenue within the renovation models. While it may be
reasonable to set an expectation of no drop off in rounds purchased once operations are stabilized, it is
inconsistent with the City's overall conservative approach to rely on the higher levels of projected
revenue within the 18 -hole model without engaging in a more detailed market analysis to validate it.
Expenditure Considerations
While the City models project a reduced operating footprint from historical levels, it is reasonable
to assume a sustainable level of reductions can be obtained due to recent changes within the golf
enterprise. The pro forma also includes a 3% inflation on personnel costs, despite its reliance on part-
time and seasonal labor whose costs may not historically increase at that rate. One consideration is de-
coupling when reductions in operating costs will occur relative to reductions in course use during periods
of construction. It is absolutely reasonable to assume that commodity, goods, some personnel and
maintenance expense will be reduced during these time frames, however a cash flow consideration
Page 16
should be given to whether a lag will exist between when reductions in revenues and expenditures are
realized.
Non -Operating Pro Forma Considerations
In addition to the operating assumptions, City staff has also anticipated non-operating
expenditures for existing debt on the Braemar Golf Dome, new debt service related to the proposed
Master Plan improvements, and planned capital outlays to evaluate annual cash flow activity. The City
has incorporated a long-term plan for capital improvements for the golf enterprise within its 5 -year
Capital Improvement Plan. The plan includes detailed line item expenses identified for equipment
replacement, repairs and facility renovations. Prior to any renovation, the status quo capital outlays
average $674,000 per year primarily identifying major irrigation upgrades needed within the 3-5 year
horizon.
Under a special legislative authority, the City has considered the issuance of General Obligation
Bonds to finance major capital improvements to selected recreational enterprises like the Golf Dome
and Braemar Ice Arena. This debt requires a pledge of existing enterprise revenues, but is backed by
the City's levy authority which ensures low interest costs relative to other forms of debt. The City's
existing golf debt service averages $94,000 per year. Using current market "AAA" rates inflated by half
a percent, Ehlers estimates annual debt service at $190,000 for the range improvements, $674,000 for
the 27 -hole renovation, and $514,000 for the 18 -hole renovation. These estimates are based on a 15 -
year term of repayment.
The City has utilized options to pay for operating deficits, capital and non-operating expenses
using operating cash, capital reserves, Braemar Memorial Funds and transfers from either of Liquor or
General Fund surpluses. These projections do not assume any income related to transfers or potential
interest earning, and are included for illustrative purposes. The City should consider funding long-term
capital improvements through use of a capital reserve for the Enterprise. Future capital costs are difficult
to predict, but additional attention should be placed on maximizing revenues and/or reducing operating
expenses in order to accrue additional funding for this Enterprise's capital reserve.
Comparison to Peer Municipal Golf Operations
When comparing the Enterprise to similar municipal golf operations, the total projected revenues
are achievable but are on the higher end of what we see within the metro area. Comparable golf
facilities operated by municipalities in the metropolitan area perform in the range of $2.0 to $2.8 million in
annual gross revenues. However, Edina's Golf Enterprise is larger than most due to operating a domed
golf practice facility, driving range and 36 -hole golf course. Other like municipally operated facilities
typically contain only a single 18 to 27 -hole course and outdoor range. Operation of the Golf Dome
alone enables Edina's revenues to be potentially $300,000 higher than a typical municipal golf operation.
We have no reason today to doubt the ability of the City to achieve $3.0 to 3.4 million per year revenues
for its operation, but we believe that examining revenues from other facilities is helpful to provide context
for risk and sensitivity analysis.
0 Page 17
E H L E R S
LEADERS IN PUBLIC FINANCE
should be given to whether a lag will exist between when reductions in revenues and expenditures are
realized.
Non -Operating Pro Forma Considerations
In addition to the operating assumptions, City staff has also anticipated non-operating
expenditures for existing debt on the Braemar Golf Dome, new debt service related to the proposed
Master Plan improvements, and planned capital outlays to evaluate annual cash flow activity. The City
has incorporated a long-term plan for capital improvements for the golf enterprise within its 5 -year
Capital Improvement Plan. The plan includes detailed line item expenses identified for equipment
replacement, repairs and facility renovations. Prior to any renovation, the status quo capital outlays
average $674,000 per year primarily identifying major irrigation upgrades needed within the 3-5 year
horizon.
Under a special legislative authority, the City has considered the issuance of General Obligation
Bonds to finance major capital improvements to selected recreational enterprises like the Golf Dome
and Braemar Ice Arena. This debt requires a pledge of existing enterprise revenues, but is backed by
the City's levy authority which ensures low interest costs relative to other forms of debt. The City's
existing golf debt service averages $94,000 per year. Using current market "AAA" rates inflated by half
a percent, Ehlers estimates annual debt service at $190,000 for the range improvements, $674,000 for
the 27 -hole renovation, and $514,000 for the 18 -hole renovation. These estimates are based on a 15 -
year term of repayment.
The City has utilized options to pay for operating deficits, capital and non-operating expenses
using operating cash, capital reserves, Braemar Memorial Funds and transfers from either of Liquor or
General Fund surpluses. These projections do not assume any income related to transfers or potential
interest earning, and are included for illustrative purposes. The City should consider funding long-term
capital improvements through use of a capital reserve for the Enterprise. Future capital costs are difficult
to predict, but additional attention should be placed on maximizing revenues and/or reducing operating
expenses in order to accrue additional funding for this Enterprise's capital reserve.
Comparison to Peer Municipal Golf Operations
When comparing the Enterprise to similar municipal golf operations, the total projected revenues
are achievable but are on the higher end of what we see within the metro area. Comparable golf
facilities operated by municipalities in the metropolitan area perform in the range of $2.0 to $2.8 million in
annual gross revenues. However, Edina's Golf Enterprise is larger than most due to operating a domed
golf practice facility, driving range and 36 -hole golf course. Other like municipally operated facilities
typically contain only a single 18 to 27 -hole course and outdoor range. Operation of the Golf Dome
alone enables Edina's revenues to be potentially $300,000 higher than a typical municipal golf operation.
We have no reason today to doubt the ability of the City to achieve $3.0 to 3.4 million per year revenues
for its operation, but we believe that examining revenues from other facilities is helpful to provide context
for risk and sensitivity analysis.
0 Page 17
EHLER - S
LEADERS IN PUBLIC FINANCE
•
Likewise, comparable golf enterprises share recent history of operating expenditures at or
exceeding operating revenues. Typical operating margins range from levels of -10% to 4% of revenues
due primarily to reduction in rounds purchased and the inability to adjust costs commensurate with
reduced utilization. .
Background on Ehlers
Ehlers is a financial advisory firm experienced in assisting local governments with the financing of
a variety of assets, including recreational facilities. Ehlers is not an accounting firm nor was this report
prepared by certified public accountants or according to general accepted accounting principles. This
report is not intended to be construed as an appraisal, a feasibility study, nor as a review of the City's
capacity/business plan for the Braemar Golf Improvements. We are engaged in a limited scope
primarily to raise questions about the proposed operating and capital budget, and offer insights given our
experience with the City's finances generally and with operating budgets for other recreation enterprises.
0 Page 18
REPORT /RECOMMENDATION Attachment D Page
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Attachment E
Braemar Golf Task Force
Key Considerations
8 -Apr -15
I The expected utlilzation of the course is expected to be approx. 55,000 rounds for both 27 -hole and 18 -hole option.
- The 27 hole option assumes similar level of play (50% 18 hole / 50%9 hole), which is not the most efficient revenue mix.
The 18 hole option assumes a shift from 9 hole rounds to more profitable 18 hole rounds. This mix change will result in a more profitable revenue model, but
requires changes to league play, timing of juniors training, etc.
II The historical high for number of rounds was 67,000 -This is not expected to occur again. If we thought golf would rebound to these levels, the 18 hole option would
not be able to accommodate the demand.
III This review does not consider the viability of the Driving Range/Par 3 Projector the expense associated with the upgrade sprinkler system (assumed to be
maintenance)
IV The financial return is highly dependent on the utlization, pricing and expense assumptions. Based on Finances alone the 18 -hole option is best.
Overtime, both options have a loss because expenses are assumed to grow faster than revenues.
Joe's Model 2020 2025 2030
27 hole (185) (401) (604)
18 hole 328 89 (341)
The 27 hole model
Incremental Capital Required
WACC = 5%
Utlizatioi
Annual Pricing 18 -hole
Annual Pricing 9-hoh
Expenseln
NP
IRI
Financially viably
Free Cash Flow 202!
$ 6,556
Capacity
Utlllization
%
27 hole capacity
80,000
54,500
68%
18 hole
50,000
27,500
55%
9 hole
30,000
27,000
90%
18 hole
65,000
55,050
85%
18 hole
45,000
40,050
89%
19 hole
20,000
15,000
75%
Current
80000
52000
65%
18 hole
50000
25000
50%
9 hole
30000
27000
90%
II The historical high for number of rounds was 67,000 -This is not expected to occur again. If we thought golf would rebound to these levels, the 18 hole option would
not be able to accommodate the demand.
III This review does not consider the viability of the Driving Range/Par 3 Projector the expense associated with the upgrade sprinkler system (assumed to be
maintenance)
IV The financial return is highly dependent on the utlization, pricing and expense assumptions. Based on Finances alone the 18 -hole option is best.
Overtime, both options have a loss because expenses are assumed to grow faster than revenues.
Joe's Model 2020 2025 2030
27 hole (185) (401) (604)
18 hole 328 89 (341)
The 27 hole model
Incremental Capital Required
WACC = 5%
Utlizatioi
Annual Pricing 18 -hole
Annual Pricing 9-hoh
Expenseln
NP
IRI
Financially viably
Free Cash Flow 202!
$ 6,556
The 18 hole model
Incremental Capital Required
W ACC = 5%
Utlizatioi
Annual Pricing 18 -holy
Annual Pricing 9 -holy
Expenseln
Joe's
Best Case
Moderate
Estimate
78%
71%
68%
7% First YR/
7% First YR/
1% First YR/
3% annually
3% annually
1% annually
3% First YR/
3% First YR/
1% First YR/
2% annually
2% annually
1% annually
2%
2%
2%
$ (5,034)
(6,358)
(7,505)
10%
NA
NA
Maybe
NO
NO
237
56
(101)
The 18 hole model
Incremental Capital Required
W ACC = 5%
Utlizatioi
Annual Pricing 18 -holy
Annual Pricing 9 -holy
$ 4,358
Best Case
Expenseln
Worst Case
NP'
Estimate
IR
85%
Financially viabl
65%
Free Cash Flow 202!
$ 4,358
Best Case
Joe's
Worst Case
Estimate
85%
85%
65%
7% First YR/
1% First YR/
1% First YR/
1% annually
1% annually
1% annually
5% First YR/
1% First YR/
1% First YR/
1% annually
1% annually
1% annually
2%
2%
2%
(1,283)
(11808)
$ (21027)
0%
4%
NA
OK
Maybe
NO
376
304
26
The 27 -hole option is only viable if higher utlizaiton can be assumed along with
more sustained annual price increases. This option provides more flexibility
and less chane in the golf habits of the customers is needed.
The 18 -hole option is less risky financially, but requires a change in golfer
habits at the course. The downside is alos less risky if golf utilization drops off.
This option does not provide flexibilty if golf rebounds a more rounds could be
secured given the 85% assumed utilization rate.
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To: Park Board
From: Ann Kattreh
Parks & Recreation Director
Date: Tuesday, May 12, 2015
Subject: Park, Recreation and Trails Strategic Plan
Agenda Item #: VI -D.
Action ❑
Discussion
Information ❑
Action Requested:
Provide feedback on the Park, Recreation and Trails Strategic Plan, specifically the Implementation Plan.
Information / Background:
Terry Minarek from Confluence and Jeff Bransford from Pros Consulting will be present to review with Park
Board the Implementation Plan section of the Strategic Plan and answer any questions about the entire
document. Staff is requesting feedback on the entire plan, but most importantly the Implementation
Sections. Any changes recommended by the Park Board will be included in the final draft which will be
presented at the June 9 Park Board meeting. The Implementation Plan is designed to be a summary of what
the Strategic Plan identifies as key initiatives and projects to improve and maintain a successful park system
in the City of Edina. Please focus your review on this section for discussion at the May 12 meeting.
The City Council provided feedback on the implementation plan at the May 6 work session. Those comments
are reflected in this version of the Implementation Plan. Originally the Park Board was going to be asked to
approve this final draft plan at the May 12 meeting. This approval will be delayed until the June 9 meeting.
The final draft presentation will be made to the City Council on June 16for adoption.
Staff requests any feedback on the entire plan by May 22 in order to be included in the final draft.
Attachment:
Park, Recreation and Trails Strategic Plan
City of Edina • 4801 W. 501h St. • Edina, MN 55424
•
To: Park Board
From: Ann Kattreh
Parks & Recreation Director
Date: May 12, 2015
Subject: City Council Updates
Action Requested:
No Action is Necessary.
Information / Background:
�• ���'oRraKAI�'�
IBftB
Agenda Item #: VII.A.
Action ❑
Discussion ❑
Information
Please see the City Council updates from their April 21 and May 6, 2015 City Council Meetings.
City of Edina • 4801 W. 50th St. • Edina, MN 55424
City Council Updates
April 21, 2015
• Accepted a gift of a futsal court from the Edina Soccer Club and approved an agreement with
the club of for use of the court in the future.
May 6, 2015
City Council Members began their evening with a work session to consider two matters: the
proposed Park Strategic Plan and the proposed Braemar Golf Course Master Plan. The Council
Members provided feedback to the staff, consultants and task for members on both proposed
plans, which will be amended and presented to the Park Board a review alter this month.
• Accepted the gift of three life-sized bronze statues for Centennial Lakes Park.
0
Capital Improvement Plan 2015 thrtt 2019
City of Edina, MN
Project # 15-115
Project Name City Hall Workout Area
Type Expansion Department Public Works
Useful Life Contact Tim Barnes
Category Buildings Priority 7 Desirable
Status Active
Description
The intent of this funding is to provide a workout area and related locker room area at the City Hall facility.
ENVIRONMENTAL CONSIDERATIONS:
This project would utilize LED Lighting in the lighting of the proposed area. Leading to a reduction of energy consumption.
Justification
The City of Edina has a comprehensive customer service plan called IQS, and studies have shown the related strategic health benefits of
regular exercise and good emotional and physical health. Good emotional and physical health lead to better opportunities for fulfilling the IQS
standards and increasing employee retention. The overall increase in employee wellness also leads to a reduction in associated health costs and
insurance costs that the City might have to incur. As we all know, obesity and the lack of physical fitness training is an epidemic in the United
States. The employees of the City of Edina are no different than the general public. Our employees have become increasingly sedentary in
their busy lives. The employee is less prone to health problems such as heart disease and high blood pressure. Healthy employees use less sick
time and are less likely to be injured on the job.
Even our city leaders recognize the importance of a regular exercise program and a healthy lifestyle. They have emphasized its importance by
partnering with several of our surrounding cities to encourage residents to live a more active life style. Edina has even coined the phrase,
"We're a do.Town... working to make the healthy choice the easy choice!"
Expenditures Prior 2015 2016 2017 2018 2019 Future Total
Construction/Maintenance 2,000 216,000 218,000
Total 2,000 216,000 218,000
Funding Sources Prior 2015 2016 2017 2018 2019 Future Total
Construction Fund 2,000 2,000
Construction Fund - Unfunded 216,000 216,000
Total 2,000 216,000 218,000
Page 292 Monday, September 22, 2014
0
- DRAFT -
Edina Community Center
A place to gather as a
and increase individual wellness
A vvhole community, whole person center for Edina.
100% PUBLIC
PUBLIC
GRANDVIEW
DRAFTlicGrandview.com /contact@PublicGrandview.com
MIL"11.31-PILIRPOSE COMMUNITY CENTER
Serve the entire community through wellness, arts and a community gathering area.
d
. .�► � � iii. � _.;,.��:.
Framework's Vision Establish a community commons as a multi-pur-
pose facility for a wide audience (e.g., whole body,
whole life, health and wellness) and as a focal point
and central gathering space...
A Single Destination
As a single
destination, the
Community Center will
become the community
"Living room"that
promotes civic pride
and enhances the
quality of life for all
residents...
THE COMMUNITY'S LIVING ROOM
A community center is the heart of the community. It
is a public place, one we all built, where we directly feel the
city's commitment to our well-being. It is the place you go for
personal enrichment, and discover you are part of an active
and welcoming community...
The Community Center will become the gathering place for
citizens of all ages and abilities: a place to learn, play, create, grow,
laugh, experience and just hang out with friends.
Community Center Proposal
www.PublicGrandview.com / contact@PublicGrand
� DRAFT
PUBLIC
GRANDVIEW 11
Give Edina citizens what they have repeatedly requested via public feedback mechanisms
Value Statements 11
ec
L L
Grandview Resident
Survey
February 2014
93%
-i rn unity
Community Needs
Assessment Survey
November 2014
73%
supportive of an indoor
community space
55% 58%
want walking and jogging
track
A.. 111�.
68%
-,�portLjnities
33-34%
�O year olds; aerobics, fitness'
dance space: weiaht room
Pa 4q Undc4iouN
food/Retaffale
ec- en
Co M U nit telf
lublic-Soilce/galh I eiing-Space/Plaza/S
T11 Ad/Culluial-Centeiffhe,,
een-space
Public Engagement
December 2014 - Present
86%
Of public responses at Dec. 4
meeting congruent with this
COMI-IlUnity center proposal
80%
are congruent with this
community center proposal
74%
supporta, , t',—; i-
a public element on Speak Up,
Edina!
Community Center Proposal 3
PUBLIC
G R A N D V I E W_ D RAFTI�'
licGra dview.com / contact@PublicGrandview.com
A facility that can be used by all residents.
Community Spaces
Arts and Culture
Activity Spaces
Community spaces are the heart of the
community center including multi-
purpose room(s), informal gathering
spaces, study spaces, classes, special
events/parties. Restrooms are included
in this category. WIFI would be
included.
Supporting Spaces
Arts and culture space includes the
visual arts as well as the performing
arts. The community performance
space could also be used for other
community events.
Restaurant
Activity spaces would promote health
and wellness. Included inactivity
spaces would be group fitness studio, a
walking/jogging track, weight room,
lap pool and recreatioinal pool and a
gymnaisum..
Outdoor Spaces
These spaces are required to support
the community center - the reception
area, storage spaces, mechanical rooms
and other operational spaces.
The community center would host
a restaurant, similar to Tin Fish at
Braemar. It would be preferable to use
a restaurant that will attract teens and
young residents, but is still healthy and
appealing to other generations.
Create a prominent green space that
acts as a community commons and
could include uses such as: sculpture
garden, outdoor ampitheatre or ice
rink in winter.
in addition, use / reserve space for
transit.
Outdoor spaces are not covered in this
proposal.
4 Community Center Proposal
PUBLIC
DRAFT
www.PublicGraridview.com/contact@PublicGrand GRANDVIEW
A comparison of developer scenaior #2 and Public Grandview's community center vision
MILE bmuma-wo
.<<.
DEVELOPER
SCENARIO #2
�-011111;Iunity Building
60,000 SF
Programming of community building
Density $38M
Privatization of public land
Unveri by ueveiopers - inotivateu by prol t.
PUBLIC GRANDVIEW'S
VISION
105,000 SF
Programming of community building
Green space: a place to relax and play
Public land preservation
DEVELOPMENT COST
esimate
$ 27.5 M
Community Center Proposal 5
PUBLIC
GR A N D V I E W _ DRAF-T-blicGrandview.com/contact@PublicGrandview.com
Places to gather, to learn, to work and to hold special events
Space
Casual activities lounge area
Teen area and senior area @ 1000 SF
Game room
Community Room - flexible space
Multi-purpose classroom - flexible space
Community /caterer kitchen
Special events / party room
Meeting room / conference room
Two unisex restrooms
Classroom and events room storage
Workroom and general storage
TOTAL COMMUNITY SQUARE FOOTAGE:
A place for everyone. For
seniors, teens, families
and singles. A community
center would provide a
place to meet, to work
together and to play
together.
Square footage Cost per SF Cost
1,200 SF 205.00 $ 246,000
1,000 SF
3,000 SF
1,000 SF
800 SF
700 SF
600 SF
600 SF
180 SF
350 SF
11,430 SF
215.00
230.00
230.00
355.00
255.00
205.00
305.00
165.00
204.00
$ 215,000
$ 690,000
$ 230,000
$ 284,000
$ 178,500
$ 123,000
$183,000
$ 30,000
$ 71,400
$ 2,660,600
Community Center Proposal
PUBLIC
wvvw.PublicGratidview.com / contact@Public® nd w.cR ACT G R A N D V I E W
A Ty a tT
Create an activity center that benefits all residents of Edina
Provide a fitness center
that attracts all ages.
Square footage Cost per SF
WIN
, vel,.. "�"�::, .
Gymnasium 6,000 $195.00
Walking /jogging track 8,000 $225.00
2 multipurpose group exercise 4,400
Cardio / weight room 6,000
Fitness studio 1,000
Wellness center / fitness assessment
Climbing structure
Childcare
Gym storage
Multi-purpose, cardio/weight and childcare storage
TOTAL ACTIVITIES SQUARE FEET
Community Center Proposal
cost
$1,170,000
$1,800,000
$210.00
$924,000
$225.00
$1,350,000
$215.00
$215,000
1,000
$225.00
$225,000
1,600
$210.00
$336,000
1,000
$200.00
$200,000
300
$154.00
$46,200
(500
$165.00
$99,000
29,900
$6,365,200
PUBLIC
GRAN®VIEW
AQUATIC CENTER
A family -friendly pool and lap pool
T-b
licGrandview.com /contact@PublicGrandview.com
RA
F
i
t
} Aquatic center that is open
Y,
year around.
�- ,
Space
Square footage
Cost per SF
Cost
Recreational pool
6,000
$345.00
$2,070,000
Lap pool
7,500
$345.00
$2,587,500
Pool mechanicals and aquatics storage
1,600
$189.00
$302,400
Hot tub/jacuzzi area
250
$500.00
$125,000
Pool sanitation storage
140
$145.00
$20,300
First aid office
80
$214.00
$17,120
Pool construction
$1,260,000
Recreational pool equipment
$885,000
TOTAL AQUATICS SQUARE FOOTAGE:
15,570
$7,267,320
Community Center Proposal
www.PublicGrandview.com /
PERFORMING ARTS
Create a performing arts center
PUBLIC
GRANDVIEW
FT -
Space
Community performance room (flexible /
movable seating)
Two dressing rooms @300 SF
Rehearsal rooms (2@ 1200 SF)
Storage
TOTAL PERFORMING SQUARE FOOTAGE:
Performing arts.
A performance space that
can be utilized in multiple
ways.
Square footage
Cost per SF
Cost
3,500
$250.00
$875,000
600
$200.00
$120,000
2,400
$210.00
$504,000
800
$165.00
$132,000
7,500
$1,631,000
The performing arts and visual arts can share spaces such as restrooms, front of house (lobby).
Community Center Proposal
PUBLIC
GRANDVIEW
N I]
Create a new home for the Edina Art Center
icGrandview.com / contact@PublicGrandview.com
Space
VISUAL ARTS
Square footage Cost per SF Cost
THIS IS AN ESTIMATE. Went with a high cost per square foot as a guess
Current size 10,150 SF
Estimated size based on current size 12,000 SF 300.00 $ 3,600,000
TOTAL ART CENTER SQUARE FOOTAGE: 12,000 SF $ 3,600,000
Community Center Proposal
www.PublicGrandview.com/contact@Public=randDRAFT
_
Miscellaneous spaces required to run a community center
Space
Lobby
Reception bay/access
Vending area
Locker room - women
Locker room - men
Locker room - family
4 offices - manager and coordinators
3 staff offices
Maintenance / receiving offices
Supporting spaces / storage
TOTAL GENERAL SQUARE FOOTAGE:
Community Center Proposal
PUBLIC
j GRANDVIEW
Square footage
Cost per SF
Cost
1200
$230.00
$276,000
300
$205.00
$61,500
150
$255.00
$38,250
1,700
$255.00
$433,500
1,500
$255.00
$382,500
300
$230.00
$69,000
480
$189.00
$90,720
240
$194.00
$46,560
500
$168.00
$84,000
480
$180.00
$86,400
6,850
$1,568,430
PUBLIC
GR A N D V I E W DRAFT"blicGrandview.corn / contact@PublicGrandview.com
—
Mechanical, circulation, etc.
Space Square footage
Pool circulation 4201
Building circulation 20,391
TOTAL OPERATIONAL SQUARE FOOTAGE: 20,508
Cost per SF
$205.00
$185.00
Cost
$861,246
$ 3,772,335
$ 3,855,320
112 Community Center Proposal
www.PublicGraridview.com / contact@PublicGra
RESTAURAN_.
A private food provider that is healthy and appealing to all ages.
Space
Restaurant space
TOTAL RESTAURANT SQUARE FOOTAGE
PUBLIC
GRANDVIEW
Square footage Cost per SF Cost
1,500 $355.00 $ 532,500
1,500 $ 532,500
NOTE: ESTIMATED SIZE AND COST PER SQUARE FOOT. COST PER SQUARE FOOT WAS
ARRIVED AT USING COST PER SQUARE FOOT OF KITCHEN AREA.
Community Center Proposal 13
PUBLIC
GRANDVlEW
e
DRAFT licGra dview.com/contact@PublicGrandview.com
ESTIMATED square footage and costs. Subject to change upon further study.
Space
Square footage
Cost
Gathering spaces
11,430
$ 2,660,600
Activity spaces
29,900
$ 6,365,200
Aquatics space
15,570
$ 7,267,320
Performing space
7,500
$ 1,631,000
Art center
12,000
$ 3,600,000
General space
6,850
$1,568,430
Operations
20,508
$ 3,855,320
Restaurant
1500
$ 532,500
TOTAL
105,258
$27,480,370
Thanks to Opsis Architecture for use of their photographs, graphics and estimated square footage costs.
14 Community Center Proposal