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HomeMy WebLinkAbout2020-06-16 City Council Work Session Meeting PacketAgenda City Council Work Session City of Edina, Minnesota VIRTUAL MEETING Call 833-360-0793, enter Conference ID 8714369 to listen to meeting Tuesday, June 16, 2020 5:30 PM I.Call To Order II.Roll Call III.Joint Meeting: Parks & Recreation Commission IV.Joint Meeting: Arts & Culture Commission V.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 ampli&cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: June 16, 2020 Agenda Item #: III. To:Mayor and City Council Item Type: Other From:Perry Vetter, Parks and Recreation Director Item Activity: Subject:Joint Meeting: Parks & Recreation Commission Information CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: None. INTRODUCTION: As part of the annual joint meeting of the City Council and the P arks and Recreation Commission staff will provide an operational update and the Parks and Recreation Chair will provide an update to the commissions annual work plan. ATTACHMENTS: Description Staff Report: Joint Meeting with Parks and Recreation Commission 2020 Parks and Recreation Commission Work Plan June 16, 2020 Mayor and City Council Members; Parks and Recreation Commissioners Perry Vetter, Parks & Recreation Director Joint Meeting: Parks and Recreation Commission Information / Background: In mid-March the City of Edina began to implement adjustments to the many offerings and services provided to the residents and patrons due to the COVID-19 pandemic. Governor Walz implemented a Stay At Home Order that limited the type and amount of work that could be conducted in each respective facility. In particular for Parks and Recreation, those adjustments impacted four areas: a. Enterprise Operations b. Recreation Programming c. Parks and Natural Resource Amenities d. Fiscal Position A. Enterprise Operations Enterprise Operations closed to the public on Friday March 13, 2020. At that time, the Braemar Golf Dome, Braemar Sports Dome, Braemar Ice Arena, Centennial Lakes Park, Edinborough Park and the Edina Arts Center were closed to the public. Braemar Golf Course was not yet ready to open for play and practice. At that moment in time, staff began the process of closing for operations until further notice. Shortly after it became obvious that this would not be a short-term interruption in services and therefore staff focused on ensuring the safety and security of our staff, working with our related partners, and focusing on relative fiscal position. Several financial first aid actions were taken. Those included identifying any essential service workers, requiring employees to work from home, adjusting the heating, cooling and amenities available in each facility and furloughing of all part-time and seasonal positions across the department, approximately 160 staff members. As the pandemic progressed additional adjustments were made such as putting the Edinborough STAFF REPORT Page 2 Pool and Braemar Ice Rinks into maintenance modes and draining pool water and melting ice sheets to save energy. As stay at home orders were adjusted, the first enterprise that was given the authorization to open was Braemar Golf Course on April 18 under the Park and Play model created by General Manager Joe Abood. This model allowed golf to be played under a limited offering option that reinforced social distancing, touchless surfaces, and no in-person transactions. These requirements allowed the course to open for play at a restricted capacity from normal operations. As of June 1, Braemar Arena has been authorized to open to only organized youth organizations/programs with limited occupancy and strict protocols. Those restrictions limit no more than two “pods” of 10 users per rink. At this time all three rinks are open for use by Edina Hockey Association, Figure Skating, skate school or other youth organization rentals. As of June 1, Edinborough Park has been authorized to open its indoor pool to only youth organizations/programs with similar limits as the arena. Edina Swim Club plans to use a majority of the pool time for organized youth use. As of June 10, occupancy will increase to allow for more organization use. As of June 10, Centennial Lakes Park putting course will be allowed to open for use. However, at this time the guidance restrictions for that use have not yet been published so we can define a reopen date. In addition, concerts and performances have been allowed at a restricted capacity. However, many of the performance groups have cancelled their performance seasons on their own. Staff will evaluate what a performance series might be for the remainder of the season. At this time indoor rentals are not allowed for groups over 10 persons and therefore the Hughes Pavilion remains closed to rental use. On May 4, we announced that the Edina Aquatic Center would not open for the 2020 season. That decision was made on the protocols around the safety of our patrons and staff, training and certifications of our staff and the restricted capacity that would impact our financial stability. On June 5, Governor Walz updated guidance that allows pools and aquatic centers to open with restrictions. In evaluating those restrictions our decision to keep the aquatic center remains. The restrictions around the use of PPE and how we would respond to a rescue save emergency would be delayed due to that implementation. That aspect alone is not acceptable for operations. In addition, the capacity restriction limits of attendance would result in around 50% of projected revenue and due to required staffing, budget expenses would remain at 100%. Based on the 2019 season that would result in an approximate $500,000 loss for 2020 to operate. Each community that operates an aquatic center has their own unique situation and their own financial model and will need to determine how this guidance best fits their operations. The updated guidance received does not go far enough to outweigh the combination of safety and financial viability concerns for the Edina Aquatic Center. At this time the Edina Art Center and the Edinborough Park play area remain closed. The Stay At Home Order also impacted partners in addition to city operations. Those included Velocity, General Sports, and Red River Kitchen. To date one tenant partner has asked for a lease modification in response to the pandemic. Staff requested to not negotiate those requests in the midst of the order, but rather wait until we have an overall picture of what the total impacts would be, what federal, state and local STAFF REPORT Page 3 economic relief programs might be available and what impacts would be to enterprise budgets. Before bringing proposals forward for council consideration, staff has continued to bill tenant partners, but has waived all late fees, water and sewer charges and common maintenance expenses during the executive order that restricts operations. Discussion Question: Does the Council desire staff to bring a proposal forward to provide financial relief or lease modifications to Enterprise Tenant partners? B. Recreation Programming During the beginning stages of the Stay At Home Order, program staff created RECtivity boxes to deliver activities directly to residents. These boxes contained supplies to create a variety of themes for kids and families to occupy their time. Staff is still offering them through the summer months, and they remain a popular option. On May 4, staff announced that all programming offerings for the summer would be cancelled and refunds issued. This was based on the knowledge that social distancing and personal protective equipment would be required, and there would be limits on the ability to move a program indoors in the event of severe weather. While this was a difficult decision, the modifications we would have had to make to those programs would have altered them dramatically. For example, a typical playground program at a neighborhood park has registrations of around 60-85 children. The gathering limits of 10 or even up to 25 must include staff, restricting participation of all other children. The modifications to require masks and social distancing make the program ineffective and outside the scope and quality of recreational offerings provided. We pride ourselves on offering high caliber programs and our residents expect that and the modifications required would not have been satisfactory to all involved. Based on revised guidance staff is meeting to create new program offerings and to begin the process to offer those to our residents that follow the latest requirements. While those programs will have modifications, residents would know the guidance requirements prior to registering and determine if that program best fit their needs. The Edina Senior Center, offered through the Programming Division, remains closed per guidance. The restrictions on indoor gathering sizes and the guidelines for At-Risk populations prevent programming from occurring. As an alternative, staff has been engaging senior center members virtually, through the monthly newsletter and through personal connections, such as the Pen-Pal Program. The Hennepin County Library will undergo construction from August through November that will require the center to remain closed and will not allow occupancy of any kind. Representatives from Hennepin County are trying to move up the construction if possible, to start earlier than August. Staff plans at this time to keep the center closed for the summer leading up to and through the construction due to the population served as considered At-Risk. Additionally, staff plans to take this time to revisit the space, rebrand and recreate offerings as more community based and not just an age restricted center. This modification would allow for more child and STAFF REPORT Page 4 adult art, adaptive and general recreation programming to utilize the facility. This model would still include senior programming but widen the use and offerings to the community at additional days and times. Youth Athletics have also been limited by the pandemic modification guidance. To date, youth sports are only able to conduct skill development and practice in groups pods, while limited by the number per pod and that social distancing remains. A number of associations have determined that they will not offer a program this summer or determined they will not conduct games. Many are still holding out for expanded guidance to play games. The MN Amateur Sports Commission is working on developing additional guidance for youth sports. The City of Edina is not involved in the discussions. However, we have been monitoring guidance from our state association, the Minnesota Recreation and Parks Association. Throughout the pandemic, staff has been in contact with our youth sports associations on a regular basis. Early on in the process we began the planning for a summer season and asked each partner to prepare a COVID-19 management plan for our consideration. Those discussions helped think through the various service level scenarios. At this time, the State of MN has taken over the requirements for developing a return to sports plan that each association must adopt. Youth Sports have also not been immune to the financial implications of the pandemic. Staff has not charged the per participant fee to organizations since they are not playing games. That also impacts field use fees and Braemar Sports Dome fees. To combat those expenses, staff has decided to leave the Sports Dome inflated and not used for the summer season saving approximately $70,000 in expenses related to the take down and reinstallation in the fall. To accommodate youth association practice time lost, staff has negotiated field use for the associations at the Edina School District fields for soccer and lacrosse. C. Parks and Natural Resource Areas By far the biggest source of use to our park system began this spring during the stay at home order. Only certain recreational uses were allowed, such as walking, biking, running and other limited passive opportunities. Several adjustments were made to reinforce that order, and due to the high number of walkers, we signed Bredesen Park as one-way traffic, closing off playground equipment, removal of pickleball nets and eventually closing off basketball courts. Once the order was rescinded and replaced by new guidance, those areas opened up for use. During the Stay At Home Order, staff reassigned employees to assist in the education of the various orders as Park Ambassadors. That program was successful early on when guidance was restrictive. At the current levels the program has been suspended and is not being used at this time. D. Financial Impact As a local government we are not immune to the financial impacts due to the pandemic. On May 19, the City Council adopted a series of recommended budget revisions for the general fund. Those non-enterprise adjustments impacted recreation programming, parks and recreation administration and park maintenance service levels. Some of those reductions will result in the reduction of service levels for the remainder of 2020 while protecting the integrity of the system as a whole. Visible results will be delayed park maintenance due to hiring less seasonal staff, less restroom availability, and a delay to some fixed asset maintenance. Non- STAFF REPORT Page 5 visible reductions include hiring freezes, training reductions and elimination of any discretionary spending. Total reductions to the non-enterprise portions of the Parks and Recreation Department budgets totaled approximately $650,000 for the period of May through the end of the fiscal year in December. Enterprise operation budgets have also been impacted due to the closures and loss of revenue. When reviewing the revised budget forecast it is important to factor in that the enterprise operations collect revenue but are not projected to be financially solvent on their own. Each operation runs on a varying cost recovery model that sets goals for the management of the facility, but also impresses the reality of the operations. Many of the enterprise operations have adjusted and limited fee schedules to ensure that they are accessible to the many organizations, youth and senior patrons at a reasonable price without the need to be supported by the general fund property tax levy. For example, the Braemar Ice Arena has a market rate for an hour of ice but limits annual increases to associations to make the sport accessible. The Braemar Golf Course sets market tee time rates but offers patron rates and special fees based upon age groups. The revised budget forecast for the enterprise operations has improved since the first adjustments after closing. In navigating the fiscal decisions around the enterprise operations staff worked to ensure three things occurred. The first was to ensure that all debt service was paid, second that the restricted fund balance needed to be compliant for the Edina Law was maintained and to not make short-term decisions that impacted our long-term success. In 2019 Parks and Recreation enterprise operations ended the fiscal year losing $1,794,254 and it is projected that for 2020 those enterprises will end the fiscal year with a loss of $4,192,993. Of that projected loss in 2020, almost $2,000,000 is related to the depreciation of the enterprise fixed assets. With the exception of the Braemar Golf Course, the Braemar Golf Dome, Centennial Lakes Park, Edinborough Park, Edina Aquatic Center, Edina Art Center, Braemar Arena and Braemar Field have a positive cash balance. Braemar Golf Course has a negative cash balance as a result of the multi-season closure for the reconstruction of the course. Actuals 2019 Estimated 2020 Variance Golf Course (279,471.65)$ (658,380.94)$ (378,909.29)$ Golf Dome (38,493.36)$ 163,631.91$ 202,125.27$ Centennial Lakes (302,743.47)$ (641,998.66)$ (339,255.19)$ Edinborough Park (181,820.03)$ (603,774.12)$ (421,954.09)$ Aquatic Center 30,529.99$ (403,219.32)$ (433,749.31)$ Art Center (268,809.33)$ (395,062.75)$ (126,253.42)$ Braemar Ice Arena (455,316.41)$ (1,184,146.26)$ (728,829.85)$ Braemar Field (298,130.19)$ (470,043.03)$ (171,912.84)$ Total (1,794,254.45)$ (4,192,993.17)$ (2,398,738.72)$ STAFF REPORT Page 6 Staff proposes to manage the budget forecast model to ensure the enterprise operations are solvent by the following methods. 1. Open operations when there is limited risk to incurring additional financial losses. As an example, Braemar Ice Arena opened for limited use by organizations as of June 1. That opening was reliant that the operations could utilize all three ice rinks for use. Had the guidance limited the operations to one rink, further analysis would have been required. 2. Review additional revenue capturing opportunities that can be accommodated without large investments. As an example, staff is negotiating with a daytime ice user that could become a viable tenant to utilize non-prime daytime ice. 3. Limit expenditures on required capital asset investments to those that protect the safety and well being of our staff and patrons. Many of the facilities have unfunded capital investment needs that will have to be postponed until a later time. 4. Utilize existing cash fund balances to offset the operating losses. 5. Reprioritize proposed transfers from the Edina Liquor profits to Braemar Golf Course, Edina Art Center and Braemar Arena for 2020. By taking these steps and operational discipline to alleviate the negative budget forecast the enterprise operations can be solvent for the 2020 fiscal year without reliance on the general fund tax levy. Parks and Recreation Commission The Parks and Recreation Commission last met in March of 2020 and their meetings have been since paused due to the pandemic. Since they have not had any statutory business items, like the planning commission, they have not held virtual meetings. The commission will resume meetings in July, either in person or more likely virtually. This has caused a delay in updates to the commission work plan. However, the commission has been continuing discussions and meeting virtually in assigned work groups where appropriate. In review of the commission’s work plan, if there is anything the council desires the commission to focus on for the remainder of the work year that input would be appreciated. Discussion Question: Are there certain work plan items the Parks and Recreation Commission should focus on for the remainder of the year. Parks & Recreation 2020 Approved Commission Work Plan Template Initiative 1 Initiative Type Completion Date Council Charge New Dec-20 2 (review and comment) Lead Commissioners Budget Staff Support NA Initiative 2 Initiative Type Completion Date Council Charge Continue Dec-20 3 (review and recommend) Lead Commissioners Budget Staff Support Staff Liaison NA Review and Comment Progress Report: City Council is scheduled to meet with the Flood Risk Reduction Task Force at the March 4, 2020 Work Session to discuss their progress. Staff will provide an updates to lead commissioners. Review and comment on the Flood Risk Reduction Strategy and Climate Action Plan.McAwley (lead), Lelas, Nelson Review and Recommend Co-chair a cross-commission committee (HRRC & PARC) in partnership with communities of color to identify barriers for participation in programming by creating a plan to reach communities of color through different modes, structure of feedback, and how data will be used. (R&E 20.B.) Committee will be comprised of no more than 2-3 members from each commission and one member from each commission will serve as co-chair. Strother (lead), Osborne Progress Report: Initiative 3 Initiative Type Completion Date Council Charge New Dec-20 4 (review and decide) Lead Commissioners Budget Staff Support Staff Liaison NA Initiative 4 Initiative Type Completion Date Council Charge New May, 2020 3 (review and recommend) Lead Commissioners Budget Staff Support Staff Liaison NA 25-35 Initiative 5 Initiative Type Completion Date Council Charge New September, 2020 4 (review and decide) Lead Commissioners Budget Staff Support Funds not available Staff Liaison 2017 Est. $2,200,000 Review and Decide Review and Recommend Develop criteria that incorporates sustainability and equity for prioritizing capital improvements for park infrastructure needs, including playground equipment, warming houses and core amenities for expansion and replacement. Parks and Recreation Commission will create the criteria and both Energy & Environment commission and Human Rights & Relations commission will appoint up to 2 members for feedback on final criteria before it goes to Council. Nelson (lead), Ites, McAwley, Strother, Lelas, Osborne Develop an approach to build community by proactively connecting with neighborhood groups, community athletic groups and underserved members of the community. Nelson (lead), Ites, Osborne Progress Report: Progress Report: Progress Report: Initial meeting held on Feb. 27, 2020. Review and Decide Asssit staff with the pursuit of funding opportunities for Braemar Park Master Plan Ites and Miller (leads), Willette, Good Initiative 6 Initiative Type Completion Date Council Charge New September, 2020 4 (review and decide) Lead Commissioners Budget Staff Support Funds not available Staff Liaison 2017 Est. $13,700,000 Initiative 7 Initiative Type Completion Date Council Charge New Dec-20 1 (study and report) Lead Commissioners Budget Staff Support Staff Liaison, Other NA 20-25 Parking Lot Review and Decide Assist staff with the pursuit of funding opportunities for Fred Richards Park master plan.Dahlien and Willette (leads), Ites Progress Report: Study and Report Study and report on the strategic goal of 15% of Edina land dedicated to parks and green spaces. Good (lead), Dahlien, Miller Progress Report: Date: June 16, 2020 Agenda Item #: IV. To:Mayor and City Council Item Type: Reports / Recommendation, Other From:Susan Tarnowski, Edina Art Center General Manager Item Activity: Subject:Joint Meeting: Arts & Culture Commission Information CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: None. INTRODUCTION: Chair Russ Rubin and Vice Chair Margaret Martin of the Arts & Culture Commission will briefly review the Commission's progress on their 2020 work plan. As part of the joint meeting, Parks and Recreation/Art Center staff will provide an operational update to the Commission annual plan. ATTACHMENTS: Description Staff Report: Joint Meeting with Arts & Culture Commission Arts & Culture 2020 Workplan June 16, 2020 Mayor and City Council Members; Arts and Culture Commissioners Perry Vetter, Parks & Recreation Director Joint Meeting: Arts and Culture Commission Information / Background: I. Impacts of the COVID-19 Pandemic on Edina Arts Center operations Parks and Recreation Enterprise Operations closed to the public on Friday March 13, 2020. At that time, the Braemar Golf Dome, Braemar Sports Dome, Braemar Ice Arena, Centennial Lakes Park, Edinborough Park, Senior Center and the Edina Arts Center were closed to the public. At that moment in time, staff began the process of closing for operations until further notice. Shortly thereafter it became obvious that this would not be a short-term interruption in services and therefore staff focused on ensuring the safety and security of our staff, working with our related partners and then focused on relative fiscal position. Several financial first aid actions were taken. Those included identifying any essential service workers, requiring employees to work from home, adjusting the heating, cooling and amenities available in each facility and the furloughing of all part-time and seasonal positions across the department, approximately 160 staff members. To date the executive guidance orders on occupancy and social distancing do not allow for the opening of the Edina Art Center for practical use due to the indoor gathering limits and inability to social distance. Prior to the impacts to the pandemic, staff was working on two important aspects to the future of the facility. The first was the completion of a building code and structure analysis of the current Art Center. That analysis reviewed required Americans with Disability Act (ADA) compliance improvements, building code compliance (fire and egress safety) and building envelope (roofing, heating, cooling, ventilation) requirements for investment. In reviewing the necessary investment, the center would require an immediate need for approximately $800,000 to make it code compliant. In addition, an additional $600,000 would need STAFF REPORT Page 2 to be invested in building envelope items that have been extended past their lifecycle and could fail at any time. Knowing that investing approximately $1.4M would need to occur and not realizing any visual, programming or learning improvements was troubling. In respect to the financial investment needed, staff began researching an alternative. Staff toured available commercial/industrial property that could become an interim home to the Art Center until such a time that a decision on a future facility can be known. In touring locations in Edina, it was determined that such a vacant building could house a majority of art center activities on an interim basis to continue having space for a variety of programs. However, these discussions were taking place as the impacts of the pandemic were being realized and placed on hold due to the ability to expend resources to plan for the conversion of a space to facilitate art activities. We are now at a crossroads from delayed investment and decisions on the future of the Edina Art Center. As the evaluation of the building concludes, there are code and compliance issues that need to be addressed. The facility does not support the existing ventilation requirements and cannot meet current guidance of social distancing and recommended ventilation to combat the COVID-19 virus. Local governments and the City of Edina have not been immune to the fiscal implications and we are unable to invest in use planning on an alternate space. The budget position of the center is and will be a long-term challenge. An analysis of the budget forecast for the Art Center concludes that due to the facility condition needs a long-term structural change is needed. For 2019, the Art Center operated at a loss of $268,809 and was supported by a combination of an increased transfer from Edina Liquor Store profits and use of existing fund balances. A contributing factor to the operating loss was due to a large increase of repair and replacement needs in the third and fourth quarter of 2019 to repair kilns, HVAC systems and other repairs. The downtime to the facility also contributed to a reduction in revenue for the areas being offline to students and instructors during the repairs. For 2020, the Edina Art Center has a projected loss for 2020 of $395,063. To assist in combating the 2020 revenue losses we would again utilize existing cash fund balances and transfers from Edina Liquor profits. After 2020, there is projected to be limited existing fund balance cash for future use. Because of these factors staff recommends taking an alternate approach at this time. Rather than focus on arts in a facility, to implement a plan for arts as a program in the community. By utilizing existing available city spaces within the community to continue to offer a portion of the art center programs until a facility decision can be reached. Staff could program spaces at the current senior center, the Hughes Pavilion at Centennial Lakes, the rooms at Braemar Golf Course, etc. While this option does not reopen the art center it does allow for a continued presence of art programs being offered in the community, with the exception of pottery. When the financial position of the city allows the continued evaluation of an alternate commercial or industrial space as an option, staff would resume the planning for that project. It may be determined that a vacant space leads to an option that is more permanent in nature to service future art needs withing the community. STAFF REPORT Page 3 II. Fall into the Arts Festival On May 27, the Edina Crime Prevention Fund Board made the difficult decision to cancel the 2020 Edina Fall into the Arts Festival. The health and safety of the sponsors, artists and volunteers is of highest priority and the issues related to the limits on gatherings presented by COVID-19 led to this decision. III. Public Art Plan Update The Arts and Culture Commission has been working on a public art program as part of their annual work plan. A draft was presented to the City Council last November in the joint work session. The ACC has invested time and effort on this program. The working group for this topic plans to present to the full ACC in July an update to that plan to take a broader approach than the past focus on public sculpture. This would include experiences such as in-person and virtual events, performing and literary arts, installations, and experiences. This would require continued work with the Human Rights and Relations Commission on the diversity and inclusion rubric for the city. Arts & Culture 2020 DRAFT Commission Work Plan Template Initiative #1 Initiative Type Completion Date Council Charge Ongoing 20-Dec 4 (review and decide) Lead Commissioners Budget Staff Support Funds available $10,000 in public art fund IT/Communications - 20 Staff Liaison - 40 hrs Initiative:#2 Initiative Type Completion Date Council Charge New Dec-20 2 (review and comment) Lead Commissioners Budget Staff Support NA NA Initiative #3 Initiative Type Completion Date Council Charge New Dec-20 1 (study and report) Lead Commissioners Budget Staff Support NA Staff liaison - 4 hrs Initiative #4 Initiative Type Completion Date Council Charge New Dec-20 1 (study and report) Lead Commissioners Budget Staff Support Review and Decide Progress Report: Implement year one of the Public Art Plan. Consult with the HRRC on incorporating the city art and décor assessment rubric. Assist staff with collecting data and conducting inventory on current public art. Study and Report Study and Report Study and report on past program and facility assessments and studies completed on the Art Center. Assemble all components into one final report for Council review. Progress Report: Review and Comment Appoint up to two members to provide feedback on HRRC's initiative (#4) to create an assessment rubric / recommendation process for City facility artwork and décor before final recommendation goes to Council. Progress Report: NA Liaison - 20 hrs Progress Report: