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HomeMy WebLinkAbout01/06/2011 CITY OF APPLE VALLEY PARKS AND RECREATION ADVISORY COMMITTEE January 6, 2011 Minutes of the January 6, 2011 Apple Valley Parks and Recreation Advisory Committee. PRESENT: Parks and Recreation Advisory Committee Chair Russ DeFauw, Secretary Lee Strom; Committee Members Cindy Hart, Matthew Mittelsteadt, Darrell Retka, Brenton Schulz and Patrick Sullivan; Parks and Recreation Director Randy Johnson; Recreation Superintendent Scott Breuer; Valleywood Manager Jim Zinck; Department Assistant Dorene Perkins Monn; Finance Director Ron Hedberg; Assistant Valleywood Manager Matthew Bilek; Eastview Athletic Association President Scott Selby. ABSENT: No one ITEM 1. Committee Chair DeFauw called the meeting to order at 7:00 p.m. ITEM 2. Approval of Agenda MOTION: by Darrell Retka, seconded by Lee Strom to approve the agenda as presented VOTE: Yes – 7, No – 0 ITEM 3. Audience – 10 Minutes Total Time Limit – For Items Not on the Agenda No one requested to speak. ITEM 4. Approval of the Minutes for November 2010 MOTION: by Patrick Sullivan, seconded by Darrell Retka to approve the November 4, 2010 meeting minutes as presented. VOTE: Yes – 7, No – 0 ITEM 5.A. Agenda Items –Valleywood Year-End Summary and 2011 Fee Proposal Valleywood Manager Jim Zinck reviewed the golf course operations year-end summary. Staff reports 2010 was a good season, not without its challenges, but they are encouraged by some of the programs they’ve initiated over the last few years and the way they have continued to grow. - 1 of 5 - CITY OF APPLE VALLEY PARKS AND RECREATION ADVISORY COMMITTEE January 6, 2011 The number of rounds continues to increase, and at 33,000+, it is getting close to what Staff sees as an appropriate number for the course. 35,000 would maximize play and still allows them to maintain the course at the highest standards. The condition of the course is important to its success. Staff works to balance that with replacement of needed equipment. Revenue has continued to climb. The significant increases of 2007 and 2008 are more difficult to obtain. There has been little change in the fee structure over those years; the increase has been made up in the rounds of golf and food/beverage operations. Staff projects over $1.1 million in revenue for the overall operation and a $40,000 to $50,000 profit for 2010. 2010 shows an increase in expense, most of which comes from the cost of product for both food/beverage and golf shop operations. Discussion was held as to the process of recording revenue and expense. Finance Director Hedberg noted that items of depreciation include the building, at $7,000 for 2010, and several pieces of equipment. Equipment bought on capital lease are capitalized and depreciated. The adopted fixed asset policy has a varying schedule based on the classification of the property. Manager Zinck commented that Assistant Manager Matthew Bilek does an excellent job of bringing in the appropriate sized outings for the course. Valleywood has three or four big tournaments a year, but focuses in on the 30 to 40 player niche. A few of the challenges going forward are with the building. Staff has been able to apply patchwork over the last few years, but fundamental items are showing their age and need to be addressed: water heater, carpet, doors, and furnishings. Manager Zinck discussed the 2011 Fee proposal and recommendation of a resident patron card. Valleywood staff would like to capture residents’ contact information as a means to distribute promotions and program information for the course. Currently Valleywood offers a resident season pass and a non-resident patron program that provide user contact information; however, the general public is not required to provide the information. Staff proposed offering a patron card program that will offer a $3 discount on 9-hole and 18-hole rounds. Resident rate for the card would be $15 and include a free cart rental. The non-resident rate would be $40. Chair DeFauw commended the Parks and Recreation Advisory Committee for tasking the course and Parks and Recreation management with running Valleywood as much like a business as they can to get a solid business result. He continues to endorse maximum flexibility for management to adjust pricing and promotions to drive to the goal of 35,000 rounds per year. He also noted City Council and the Mayor deserve gratitude for supporting Valleywood’s initiatives. MOTION: by Lee Strom, seconded by Patrick Sullivan, recommending Valleywood Golf Course 2011 Fees for approval as presented. DISCUSSION: Chair DeFauw thanked Jim Zinck, Matthew Bilek, and their staff for their hard work at Valleywood. They’ve helped achieve the financial - 2 of 5 - CITY OF APPLE VALLEY PARKS AND RECREATION ADVISORY COMMITTEE January 6, 2011 goals and the goal of reaching out to the community to build a golf program that is a great success story in a market that is overbuilt with golf courses and many are struggling. VOTE: Yes – 7, No – 0 ITEM 5.B. Agenda Items –Valleywood Clubhouse Update Director Johnson noted that in November the Committee made recommendation to proceed to City Council with a request to make progress on a clubhouse proposal. Parks and Recreation staff have been working with other City staff, architects, and a construction management firm. Previous project work includes tours of various golf operations and discussions held with the Committee regarding renovation, construction, building size, etc. Director Johnson reported that after lots of review, staff believes the latest proposal to be the right sized building. Director Johnson and Manager Zinck reviewed the proposed site plan and facility perspectives to help visualize more of what the building could look like and how it could function. This is what will be taken forward to the City Council January 13 work session. The work session is open to the public. Lee Strom will act as Committee representative and other members of the Committee were invited to attend. ITEM 5.C. Agenda Items –Apple Valley Family Aquatic Center and Redwood Pool Year-End Report and 2011 Fee Proposal Recreation Superintendent Breuer reviewed the year-end reports for both Apple Valley Family Aquatic Center and Redwood Outdoor Pool. The 2010 season was June 11 through August 29. An overview of Apple Valley Family Aquatic Center 2010 summary shows revenue at $612,328, expenses at $554,575, and a net gain of $57,753. Season attendance was 69,512. Water walking and lap swimming will be available at Apple Valley Family Aquatic Center beginning in 2011. Redwood Outdoor Pool season summary (June 11 through August 29, 2010) shows revenue at $50,757, expenses at $75,085, and a net loss of $24,328. Season attendance was 6,170. Superintendent Breuer noted that Redwood is a neighborhood pool and an excellent teaching facility. The 2010 aquatic program shows higher revenue and lower expenses than the past three years, with a net profit of $33,000. Staff recommended no increase in fees at either facility. MOTION: by Darrell Retka, seconded by Matthew Mittelsteadt, recommending approval of the 2011 Aquatic Fees as presented. VOTE: Yes – 7, No – 0 - 3 of 5 - CITY OF APPLE VALLEY PARKS AND RECREATION ADVISORY COMMITTEE January 6, 2011 ITEM 5.D. Agenda Items – Sports Arena and Hayes Park Arena Fee Structure for 2011 Arena Manager Gary Pietig led discussion on the 2011 Fee Structure. Staff proposed increasing the prime-time ice rental fee $5 per hour, from $190/hour to $195/hour, and maintaining the non- prime time ice rental fee at $170/hour. Staff is aware that they need to generate revenue, but also need to keep fees competitive and affordable. Their goal is to break even. Hayes Park Arena’s debt service will end in 2015. Chair DeFauw noted as a rule ice arenas in Minnesota don’t make money. They’re strongly in demand five or six months, but not long enough to generate enough cash to pay expenses for twelve months. MOTION: by Matthew Mittelsteadt, seconded by Brent Schulz, recommending approval of the 2011 Arena rates as presented. VOTE: Yes – 7, No – 0 ITEM 5.E. Agenda Items – Hayes Arena Skate Park Discussion Arena Manager Pietig and Director Johnson led discussion on the tier 2 skate park hosted at Hayes Park Arena during the summer months over the past ten years. Tier 2 designation means the ramps are more than four ft. tall. Hayes is one of only four tier 2 parks in the State of Minnesota. Included in the agenda packet was Gary Pietig’s memo outlining the skate park’s history. Reports show participation has slowly declined over the years. Staff proposed, due to an increase in insurance rates of $2,500 or more and the time involved in setting up and taking down the equipment, it may be time for the City to consider closing Hayes and consolidating a majority of the equipment into the tier 1 Teen Center skate park. The four large (over 4 ft.) ramps could potentially be disposed of by auction. Staff requested input from the Committee. Chair DeFauw stated that this is basically a management issue. He concurred that the staff needs to meet the needs of the community, but if there clearly is an activity that has declined in popularity, resources should be reallocated. Committee Member Sullivan questioned whether there is an option to leave the building empty during the summer months. Director Johnson responded that staff has discussed the option and if it’s purely a financial point, probably one of the best things to do is turn off the lights and lock the doors, but staff is attempting to reach out and believe they can capture some indoor soccer and perhaps lacrosse usage. Committee Member Hart questioned the possibility of expanding the Sports Arena tennis program. Manager Pietig answered that there isn’t enough demand for both arenas, the floor at Hayes Park is not laid out for tennis, and the cost of a tennis floor is prohibitive. Committee - 4 of 5 - CITY OF APPLE VALLEY PARKS AND RECREATION ADVISORY COMMITTEE January 6, 2011 Member Hart stated this issue is just a logical evolution of interest and staff is looking for ways to use the facility. Committee Member Strom noted there will still be opportunity for kids to skateboard at the Teen Center. Chair DeFauw suggested staff give it their best shot this year, keep careful track of costs vs. revenue generated, and at the end of the year have a good idea, absent some new opportunity, whether it is more beneficial to the department and tax payers overall to simply shut it down. Director Johnson stated staff will inform City Council that they’ve discussed it with the Committee and this will be the plan unless instructed differently. ITEM 6.A. Other – Mid-Winter Fest Reminder Director Johnson reminded the Committee that Mid-Winter Fest is scheduled for February 5 and 6, 2011. A new activity added this year is a boot hockey tournament. Committee was invited to attend. Mid-Winter Fest motto is Don’t Hibernate, Celebrate! ITEM 6.B. Other – Next Meeting Date Next Parks and Recreation Advisory Committee meeting is scheduled for Thursday, March 3, 2011. ITEM 7. Adjourn There being no further business, the Parks and Recreation Advisory Committee meeting was adjourned. MOTION: by Lee Strom, seconded by Darrell Retka to adjourn the meeting at 8:25 p.m. VOTE: Yes – 7, No – 0 Respectfully Submitted, Dorene Perkins Monn, Dept. Assistant Approved by the Apple Valley Parks and Recreation Advisory Committee on - 5 of 5 -