Board of Commissioners Meetings

The agenda for the July 18, 2024, Regular Board Meeting is available here.

The Board Meeting will begin at 5:00 p.m. in the Board Room of the Three Rivers Park District Administrative Center, 3000 Xenium Lane N., Plymouth, MN.

Superintendent’s Recommendation:

NO ACTION REQUIRED.

Background Information:

Any individual wishing to address the Board on subjects which are not part of the meeting agenda may do so at this time. Such items will typically be referred to staff for review, action and/or recommendation for future board action. The public will also be provided an opportunity to address the Board on items which are on the agenda at the appropriate time.

If you would like to submit written comments in advance of the Board Meeting that will be shared with the Board, you may post them below in the comment box under the agenda item you wish to address or under People Wishing to Address the Board if it's a topic not on the Board Meeting agenda. Comments received by 5:00 p.m. on the Wednesday before the Board Meeting will be shared with Commissioners at the meeting.

Superintendent's Recommendation:

NO ACTION REQUIRED.

Background:

Stacy Chouinard, Recreation Supervisor at the City of Crystal and representative of the Minnesota Recreation and Park Association (MRPA) Awards Committee, will present the Park District with the following MRPA Awards of Excellence:

Superintendent's Recommendation:

NO ACTION REQUIRED; THIS ITEM IS FOR INFORMATION AND DISCUSSION.

Prepared By: Sierra Spicer-Zimmerman, Donor Relations and Volunteer Supervisor

Background:

Commissioners and/or staff are encouraged to report any special matters, awards, recognitions or other acknowledgements at this time.

Acknowledgement of Donations

The Board wishes to acknowledge the following donations to the Park District of $500 or more made in the past month.

• Tribute Bench Donation- $7,200 for a bench on the Dakota Rail Regional Trail in memory of William A. "Bill" Cooper
  • Donors include:
    • Joseph P. Clifford of Marco Island, Florida
    • Thomas Cusick of Naples, Florida
    • Robert E. Evans of Sarasota, Florida
    • Gregory J. Pulles of Edina, Minnesota
    • Earl Stratton of Braden River, Florida
    • R.E. Topoluk of Greenfield, Minnesota
    • Sandra Winslow of Charlotte, North Carolina

Relationship to the System Plan:

The Request for Action supports the following goal(s) of the System Plan:

Goal 1: You Belong Here

Goal 3: Lead by Example

Superintendent's Recommendation:

NO ACTION REQUIRED; THIS ITEM IS FOR INFORMATION AND DISCUSSION.

Background:

• 2024 Proposed Board Meeting and Study Session Calendar attached.
• Calendar of 2024 Meetings and Events attached.

Updates:

• Recreation Pass Plus Highlights

Attachments:

2024 Proposed Board Meeting and Study Session Calendar.pdf

Calendar of 2024 Meetings and Events.pdf

All matters listed under Routine Business are considered to be standard items by the Board of Commissioners and will be enacted by one motion. For background information about any of the items listed below, visit this link.

Item 4A. Receive Mississippi Gateway Regional Park Construction Progress Update

Superintendent's Recommendation:

NO ACTION REQUIRED.

Item 4B. Approve Consultant Agreement for Final Design of Nine Mile Creek Regional Trail Hopkins 11th Ave Trail Reconstruction Project with Stantec Consulting Services, Inc.

Superintendent's Recommendation:

MOTION TO ENTER INTO A CONSULTANT AGREEMENT WITH STANTEC CONSULTING SERVICES TO PROVIDE PROFESSIONAL ENGINEERING CONSULTING SERVICES, INC. FOR THE NINE MILE CREEK REGIONAL TRAIL - HOPKINS 11TH AVENUE TRAIL RECONSTRUCTION PROJECT, WITH A TOTAL HOURLY NOT-TO-EXCEED FEE IN THE AMOUNT OF $186,950.00 INCLUDING REIMBURSABLE EXPENSES, AND TO ESTABLISH A TOTAL CONSULTANT FEE BUDGET IN THE AMOUNT OF $205,645.00 INCLUDING A TEN PERCENT (10%) CONTINGENCY WITH FINANCING FROM THE 2024 CAPITAL IMPROVEMENT PROGRAM.

Item 4C. Approve Consultant Agreement for Final Design of Elm Creek Park Reserve Pavement Rehabilitation, Expansion and Accessibility Improvements Project with Stantec Consulting Services, Inc.

Superintendent's Recommendation:

MOTION TO ENTER INTO A CONSULTANT AGREEMENT WITH STANTEC CONSULTING SERVICES, INC. TO PROVIDE PROFESSIONAL ENGINEERING CONSULTING SERVICES FOR THE ELM CREEK PARK RESERVE PAVEMENT REHABILITATION, EXPANSION AND ACCESSIBILITY IMPROVEMENTS PROJECT, WITH A TOTAL HOURLY NOT-TO-EXCEED FEE IN THE AMOUNT OF $249,955.00 INCLUDING REIMBURSABLE EXPENSES, AND TO ESTABLISH A TOTAL CONSULTANT FEE BUDGET IN THE AMOUNT OF $274,950.50 INCLUDING A TEN PERCENT (10%) CONTINGENCY WITH FINANCING FROM THE 2024 CAPITAL IMPROVEMENT PROGRAM.

Item 4D. Award of Construction and Construction Administration Contracts for Boat Ramp Road and ADA Improvements at Hyland Lake Park Reserve

Superintendent's Recommendation:

MOTION TO:

1. AWARD A CONTRACT FOR THE BOAT RAMP ROAD AND ADA IMPROVEMENTS IN HYLAND LAKE PARK RESERVE TO NEW LOOK CONTRACTING, INC IN THE TOTAL BASE BID AMOUNT $524,192;
2. ENTER INTO A CONSULTANT AGREEMENT WITH SHORT ELLIOTT HENDRICKSON, INC. (SEH) TO PROVIDE PROFESSIONAL CONSTRUCTION ADMINISTRATION SERVICES FOR THE BOAT RAMP ROAD AND ADA IMPROVEMENTS IN HYLAND LAKE PARK RESERVE WITH A TOTAL HOURLY NOT-TO-EXCEED FEE IN THE AMOUNT OF $119,065; AND
3. ESTABLISH A TOTAL CONSTRUCTION BUDGET IN THE AMOUNT OF $707,582.70, INCLUDING A 10% CONTINGENCY WITH FINANCING FROM THE 2021 AND 2024 ASSET MANAGEMENT PROGRAMS.

Item 4E. Approve Cooperative Construction Agreement with Minnesota Department of Natural Resources for Cost Share to Redevelop the Lake Auburn Boat Access

Superintendent's Recommendation:

MOTION TO APPROVE COOPERATIVE CONSTRUCTION AGREEMENT WITH MINNESOTA DEPARTMENT OF NATURAL RESOURCES TO COST SHARE CONSTRUCTION OF THE LAKE AUBURN PUBLIC WATER ACCESS IMPROVEMENT AND SHORELINE STABILIZATION PROJECT, WHERE DNR WILL CONTRIBUTE UP TO $500,000 FOR CONSTRUCTION IMPLEMENTATION.

Item 4F. Approve Agreement Amendment for Construction of the Bassett Creek Regional Trail with Plymouth

Superintendent's Recommendation:

MOTION TO ENTER INTO THE FIRST AMENDMENT TO THE JANUARY 12, 2021, BASSETT CREEK REGIONAL TRAIL COOPERATIVE AGREEMENT WITH PLYMOUTH.

Item 4G. Board Minutes of June 20, 2024

Superintendent's Recommendation:

MOTION TO APPROVE THE MINUTES OF THE JUNE 20, 2024, REGULAR BOARD MEETING.

Item 4H. Approval of Claims for the Period Ended July 11, 2024

Superintendent's Recommendation:

MOTION TO APPROVE PAYMENT OF CLAIMS AS RECOMMENDED BY THE SUPERINTENDENT FOR THE PERIOD ENDED JULY 11, 2024, IN THE AMOUNT OF $8,101,852.97.

Superintendent's Recommendation:

MOTION TO:

1. AMEND THE 2024 ASSET MANAGEMENT PROGRAM TO INCLUDE THE LAKE INDEPENDENCE REGIONAL TRAIL REALIGNMENT PROJECT WITH A BUDGET OF $635,000; AND
2. APPROVE THE LAKE INDEPENDENCE REGIONAL TRAIL REALIGNMENT PROJECT GRANT SG-24P4-09-08 AGREEMENT TOTALING $635,000 OF FUNDING THROUGH THE STATE OF MINNESOTA.

Prepared By: Katie Warner, Project Manager

Background:

A segment of the Lake Independence Regional Trail along County Road 19 and immediately adjacent to Baker Park Reserve is experiencing slope failure/landslide conditions. The location is shown on the attached location figure. The paved trail has been removed and replaced with an interim gravel trail. Geotechnical experts were brought in to assess cause and to identify solutions. The preferred recommended repair was to reroute the paved trail into Baker Park Reserve along an abandoned horse trail alignment, shown on the attached project site location map. The existing trail will be returned to its pre-trail conditions.

Staff is requesting that this project be added to the 2024 Asset Management program so that design work can commence in 2024 with construction completed in 2025. The estimated project cost is $635,000.

Funding of $635,000 is proposed through Board approval of Grant SG-24P4-09-08 (attached), which uses previously unencumbered 2024 Minnesota Parks and Trails Legacy Funds for the project.

The trail was originally designed and constructed by Hennepin County in 2009 and was then conveyed to Three Rivers. Staff is in discussions with the County on cost participation for the project.

Relationship to the System Plan:

The Request for Action supports the following goal(s) of the System Plan:

Goal 2: Parks Matter

Attachments:

Lake Independence RT Project Location-Baker Park.pdf

Lake Independence RT- Project Site Location.pdf

Grant Agreement SG-24P4-09-08 Lake Independence Regional Trail-Realignment.pdf

Superintendent's Recommendation:

MOTION TO APPROVE THE FOLLOWING AMENDMENTS TO RESERVE SECTION OF THE FINANCIAL MANAGEMENT PLAN:

• RENUMBER POLICY 2B - GENERAL FUND ASSIGNMENT FOR WORKING CAPITAL TO POLICY 2C.
• RENUMBER POLICY 2C - GENERAL FUND ASSIGNMENT FOR CONTINGENCIES TO POLICY 2B.
• INCREASE THE MINIMUM FOR THE RISK MANAGEMENT FUND (POLICY 3B) FROM $500,000 TO $750,000.
• REPLACE POLICY 3D - PARK PRESERVATION AND REHABILITATION FUND IN TOTAL WITH THE FOLLOWING:
  • REHABILITATION AND MAINTENANCE FUND - A MINIMUM OF $1,000,000 IN ADDITION TO A RESERVED BALANCE EQUAL TO LOTTERY-IN-LIEU-OF FUNDS COLLECTED AND INCLUDED IN SUBSEQUENT YEAR'S ASSET MANAGEMENT PROGRAM PLUS ANY UNSPENT LOTTERY-IN-LIEU-OF FUNDS FROM PAST ASSET MANAGEMENT PROGRAMS.
• INCREASE THE MINIMUM FOR THE GLEN LAKE GOLF FUND (POLICY 3F) FROM $150,000 TO "$1,500,000 ASSIGNED FOR INFRASTRUCTURE REPLACEMENT AND IMPROVEMENTS."
• CHANGE THE MINIMUM FOR THE DEBT SERVICE FUND (POLICY 3G) TO AN AMOUNT EQUAL TO THE PRINCIPAL AND INTEREST DUE IN THE FIRST SIX MONTHS OF THE SUBSEQUENT YEAR.

Background:

The Park District’s Financial Management Plan was originally adopted by the Board in September of 1989 and has been amended twelve times. The Plan is designed to provide the basic framework for managing and accounting for the Park District's assets in order to provide financial stability and avoid fiscal problems and emergencies. It consists of 71 policies covering the following 12 areas:

• Capital Improvements Planning and Funding (9 policies)
• Vehicle and Equipment (4 policies)
• Revenue (6 policies)
• Golf and Alpine Operations (6 policies)
• Gifts and Donations (4 policies)
• Debt (8 policies)
• Reserves (6 policies)
• Investments (5 policies)
• Accounting, Auditing and Financial Reporting (4 policies)
• Risk Management (6 policies)
• Operating Budgets (10 policies)
• Special Assessments (3 policies)

The policies are based on a combination of recommended practices, state law, requirements from other governments, Board direction and professional judgment. This Board Action will only be recommending amendments to the six policies in the Reserve section of the Financial Management Plan.

Policy No. 1 -The Park District will commit a portion of fund balance in the General Fund and other appropriate funds for the payment of compensated absences. The amount committed will be the liability for accrued vacation, severance pay and associated benefits. This commitment will be recorded prior to all other commitments.

No change is recommended to this policy since it ensures the Park District's liability is properly valued and recorded.

Policy No. 2 - The Park District will, to the extent of the available fund balance, make the following assignments of the General Fund balance in the following order:

a. Assignment for subsequent year's budget equal to 100% of the state operations and maintenance funding received in the current year which will be used to fund the ensuing year's operations.

No change is recommended to this policy since funds are received in August and the amount is not known until they are received.

b. Assignment of working capital equal to 22% of the ensuing years budget to ensure availability of adequate funds for the ensuing year's budget until property tax and park use revenues are received.

The percentage in this policy was determined when the major source of revenue was from Park Patron passes (parking fees were discontinued in 2005). The Park District has struggled over the years to meet this percentage since the amount required goes up each time the annual budget increases. Over the last six years, the Park District has met this requirement three times. Since the General Fund has avoided running out of cash due to its other fund balance amounts, staff is not recommending a change in this policy until there is a better track record of meeting this requirement.

c. Assignment for contingencies equal to $1,000,000.

No change is recommended for this policy since these funds are reserved for emergencies and unforeseen circumstances and allow the Park District to carry a very low contingency in the operating budget ($32,500 in a $50,841,662 budget) since these funds can be accessed if needed (with Board approval).

It is being recommended that the order of Policy 2c (Assignment for contingencies) and 2b (Assignment for working capital) be switched so that the amount for contingencies is funded before the amount for working capital since funding the amount for contingency is more important.

Policy No. 3 - The Park District will maintain an undesignated and unreserved minimum cash balance in the following funds:

a. Equipment Internal Service Fund - $500,000

This balance is designed to provide for cash flow during the year and provide a reserve for unexpected equipment replacement. This minimum balance is sufficient and therefore no change is recommended.

b. Risk Management Fund - $500,000

The Risk Management Fund accounts for property, liability, workers compensation and dental insurance costs claims for the Park District. Revenues in 2023 totaled $1.20 million while expenses totaled $1.54 million. The minimum fund balance was set in 1989 when the Park District was self-insured for property, liability and workers compensation insurance. The Park District now buys insurance to cover most property and liability risks and limits its worker's comp losses to $400,000 per claim through stop-gap insurance. Rising costs of insurance and medical and repair claim costs have also impacted Risk Management costs. Staff is recommending the Risk Management Fund minimum balance be increased to $750,000 to ensure it has adequate funds at all times to cover losses and premium increases.

c. Land Acquisition, Development and Betterment Fund (LADB) - $500,000

No change is recommended for this amount since the vast majority of land purchases include a 75%/25% cost share with Met Council meaning that the minimum balance would allow for the purchase of property up to $2 million if needed. Maintaining the minimum balance ensures that as the balance approaches $500,000 the District has time to evaluate potential funding options since the LADB does not have an annual funding source other than interest revenue.

d. Park Preservation and Rehabilitation Fund - $1,000,000

The Park Preservation and Rehabilitation fund no longer exists. It was replaced with the Rehabilitation and Maintenance Fund. Therefore, staff is recommending policy 3d be replaced with the following:

"Rehabilitation and Maintenance Fund - A minimum of $1,000,000 in addition to a reserved balance equal to Lottery-in-lieu-of funds collected and included in subsequent years Asset Management Program plus any unspent Lottery-in-lieu-of funds from past Asset Management Programs."

This new wording will provide for a minimum of $1,000,000 available for park repairs and maintenance and will ensure there are adequate funds should Lottery-in-lieu-of funding decrease and fall short of anticipated amounts.

e. Noerenberg Trust Fund - $1,200,000

No change is recommended since the original donation requires that $1.2 million cannot be expended and must be held to generate interest to fund operations and improvements for Noerenberg Gardens.

f. Glen Lake Golf Course Fund - $150,000

The current agreement with Hennepin County includes a minimum fund balance of $150,000. Park District and County staff have discussed increasing this amount so that future irrigation and netting improvements can be funded by this fund. It is estimated that a $1.5 million fund balance would be sufficient to fund these improvements. Therefore, staff is recommending this funding reserve be increased from $150,000 to $1,500,000.

g. Debt Service Fund - an amount equal to the principal and interest payable in the subsequent year.

Staff recommends changing this reserve to "an amount equal to the principal and interest due in the first six months of the subsequent year." This change will bring the policy in line with the Securities and Exchange Commission definition of a bona fide debt service fund.

h. Scott County Partnership Fund - Minimum fund balance of $150,000 should be maintained. Use of this amount requires approval of the Three Rivers Park District Board of Commissioners.

Fund balance in excess of $150,000 must be discussed by the policy committee and reported at the annual joint meeting of the Three Rivers Board and the Scott County Board. Any excess fund balance should not be used as a funding source for recurring expenditures but rather to fund one time expenditures within the partnership facilities including:

1. Purchase of equipment

1. Partial or full funding of improvements to park district facilities or acquisition/construction of new facilities and trails.

1. Funding one-time start up expenditures associated with a new program or new service.

1. Funding a limited pilot program prior to making the program or service part of the operating

1. Responding to an unexpected operating budget deficit.

No changes are recommended as this policy relatively new and is working as intended.

Policy No. 4 - The Park District will maintain reserve funds for bond issues in the amount required by the covenants with respective bondholders.

This policy does not need to be changed. Occasionally, bond agreements will require the Park District to set aside funds to guarantee future bond payments. Policy 4 states that the Park District will comply with these requirements when they exist.

Policy No. 5 - The Park District will spend restricted resources before unrestricted resources. In addition, when committed, assigned and/or unassigned resources are available, the Park District will use resources in the following order; committed, assigned and finally unassigned.

This policy does not need to be changed. The policy is required by accounting principles to define in what order funds will be spent. The policy ensures that funds will be used in an order that provides the most flexibility for the Park District.

Policy No. 6 - Fund Balance in excess of the reserves outlined in the financial management plan may be spent on the following one-time costs with board approval:

1. Repayment or refinancing of debt.

1. Restore reserves to minimum levels.

1. Purchase of equipment.

1. Partial of full funding of improvements to park district facilities and trails or acquisition/construction of new facilities and trails.

1. Funding for projects in the approved asset management plan thereby reducing the amount of debt to be issued.

1. Funding one-time start-up expenditures associated with a new program or new service.

1. Funding a limited pilot program prior to making the program or service a part of the operating budget.

No change to this policy is needed since it requires board approval while providing maximum flexibility regarding using excess fund balance without creating future costs.

Relationship of Board Action to the Budget

The Park District's budget process is a six to eight month process that includes a number of steps and board actions to complete. The following graphic will be used to easily show how this board action fits into the budget process and where the District is in the process. The blue information on the timeline shows where we are in the budget process.

Relationship to the System Plan:

The Request for Action supports the following goal(s) of the System Plan:

This Board Action supports the goals of the System Plan by ensuring the Park District handles its financial resources in a deliberate and professional manner.

Attachments:

Financial Managment Plan Revisions December 2018.pdf

Superintendent's Recommendation:

NO ACTION REQUIRED; THIS ITEM IS FOR INFORMATION AND DISCUSSION.

Background:

Commissioners are encouraged to share announcements and discuss ideas for future topics of interest.

Attachments:

Board Proposed Discussion Topics.pdf

Superintendent's Recommendation:

MOTION TO CLOSE THE REGULAR BOARD MEETING TO EVALUATE THE SUPERINTENDENT’S ANNUAL JOB PERFORMANCE IN ACCORDANCE WITH MINNESOTA STATUTES SECTION 13D.05, SUBD. 3.

Background:

The Board Chair will review the Superintendent’s Annual Job Performance Evaluation with Commissioners.

Following the Closed Meeting, the Board will reconvene in open session to summarize its conclusions regarding the evaluation. These procedures comply with Minn. Stat. §13D.05 subd. 3.