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HomeMy WebLinkAbout1998 04-20 CCP Work Session • AGENDA CITY COUNCIL WORK SESSION APRIL 20,1998 CONFERENCE ROOM B 1. Update on Police Department - Chief Downer 2. Weed Spraying on Twin Lake - discussion 3. Publication of Goals - discussion 4. Earle Brown Heritage Center - discussion of- - grant process for parking lot etc. - discussion of setting time for discussion of Marquette Report and scope of discussion - discussion of crew chief position request for benefits - miscellaneous 5. Discussion of development issues 6. Discussion of future work sessions - budget - EBHC - general - special topics 7. Miscellaneous MEMORANDUM DATE: April 17, 1998 TO: Michael J. McCauley FROM: Jim Glasoe SUBJECT: Additional Information - Transportation At the March 16, 1998, City Council study session, I presented a report on transportation providers, services and issues in the Brooklyn Center area. At that time, Council requested additional information in several areas. Metro Transit - City Wide Collector Metro Transit was contacted regarding the availability of local transportation options in Brooklyn Center. They indicated that they currently operate four routes (81,82,83,84) running through high population areas of the city and/or complete runs at shopping areas, i.e., Target and Brookdale. Metro transit contracts with Laidlaw Transportation to operate these routes using smaller vehicles. Routes are being continually monitored for ridership numbers and are changed as demand dictates. Metro Transit estimates that the cost of providing these routes is approximately $281,293 for 1998. Cost of a Brooklyn Center Circulator The Council requested information regarding the cost of providing a circulator or transportation loop with various stops throughout the city. Laidlaw Transit Services was contacted regarding the cost of providing a circulator type transportation system for Brooklyn Center. They indicated that they currently operate a very similar system in Plymouth. The program uses one 17- passenger vehicle with two wheelchair lifts. The vehicle is owned by the State of Minnesota and was granted to Plymouth for use in the program. The vehicle is maintained, stored and operated by Laidlaw transit Services. The trip structure is a circulator, on demand service with (group trips available if scheduled in advance. V The program budget for the service is $145,465 for fiscal 1998. Their cost per ride is anticipated to be $9.85 and the subsidy needed per ride is $7.79. The number of one way rides provided in 1997 was 14,768. Transportation Options for Medical Appointments At the 3/16 study session, Council noted that several of the senior transportation providers used for comparison provided some transportation for medical appointments. They requested neighboring programs be contacted regarding the possibility of providing similar services for Brooklyn Center residents. Senior Transportation, which operates in the Brooklyn Park, Champlin and Maple Grove areas and Elder Express, that operates in Crystal, New Hope, and Golden Valley were contacted were contacted regarding the possibility of providing medical transportation services for Brooklyn Center residents. Both indicated that they were operating at capacity and had no ability to expand in Brooklyn Center. However PRISM, (People Responding to Issue's in Social ministry) has indicated that they might be interested in expanding their transportation service area to include Brooklyn Center. PRISM is a consortium of approximately 15 churches in the Crystal, New Hope, Robbinsdale, Golden Valley and Eastern Plymouth area. They currently operate a food shelf, a clothes closet and support groups in addition to the transportation services. PRISM has historically not served Brooklyn Center residents because CEAP was providing similar services. However, as CEAP no longer provides any transportation services, PRISM is interested in talking to the City and area churches regarding the possibility. Although contacted in March, PRISM has recently undergone some restructuring and has hired a new Executive Director. April 28 was the earliest date all parties could meet to further discuss PRISM providing transportation in Brooklyn Center. After School Grant Program Transportation Costs. The city of Brooklyn Center has used various bus companies as a part of our after school grant program. Fees are typically based on a per hour rate (avg. $25.00/hr) plus a per mile vehicle charge (avg..50 /mile.) Based on a four hour trip. Fees have ranged from $125- 200.00 depending on destination. Using an average trip of 5 hours and a cost of $200, the City would be able to provide transportation services only once each week using the same monies currently allocated to the Five Cities program. This figure does not include staff time to coordinate the trips and schedule the individual riders. Five Cities capacity Issues Rita DeBruyn, Five Cities Transportation Coordinator was contacted regarding the issue of waiting lists and service turn downs for the Five Cities program. She indicated that although they had experienced some of these issues as recently as two years ago, with schedule adjustments and route changes they currently do not have a waiting list of Brooklyn Center residents and have not had to turn down any residents that have requested service. Metro Mobility eligibility requirements Metro Mobility indicated that their services are only available to certified riders. Certification is only possible by the completion of an Americans With Disabilities Act application. This application does require the signature of an authorized health care provider. This application process takes up to 21 working days once the completed application is received. Once certified, customers are sent a Metro Mobility identification number and rider information guide. Area Clinics Providing Transportation Area clinics were surveyed regarding transportation of patients to medical appointments. ents. With i Y g g p p o PP the Exception of North Memorial Health Services none are currently providing transportation YP g P service for medical appointments. North Memorial, does have contract agreements with several gr se a al transportation providers including Senior Transportation and d Elder Express to reimburse them for a portion of the costs of transporting patients to their service P roviders. As part of their examination of providing medical transportation runs in Brooklyn Center, Prism will be contacting North Memorial regarding similar reimbursements. Census Data - Households Without Vehicles. Attached is a copy of 1990 census information regarding vehicles per household in Brooklyn Center. As you will note, 8.1% or 913 households indicated that they had no vehicle. Northwest Hennepin Human Services Council - Transportation Consolidation Project As stated in the study, the established goals and vision for the project are to plan for the development of a transportation program that will coordinate and/or consolidate existing transportation services in order to reduce needless duplication in services, give comprehensive transportation coverage to the entire fifteen city area, deliver superior service, and make significant cost savings through efficient planning. The project consultant SRF has completed the consolidation recommendations report and it is being reviewed by NHHSC staff. NHHSC will schedule a public meeting to present the findings and take feedback on the recommendations. Summary As you know, there was a great deal of information covered and many questions generated at the March 16, City Council study session. I hope I have addressed the Council's questions adequately. As always, please let me know if you have questions or would like additional information. NWHHSC Demo, hic D4,. ALL HOUSEHOLDS WITH 0, 1, OR 2 VEHICLES Residence All HH / 0 veh % of Total HH All HH /1 veh % of Total HH All HH / 2+ veh % of Total HH Brooklyn Center city 913 8.1% 3,651 32.5% 6,655 59.3% Brooklyn Park city 1,077 5.3% 5,693 27.8% 13,735 67.0% Champlin city 88 1.6% 830 15.3% 4,507 83.1% Corcoran city 11 0.7% 164 10.7% 1,362 88.6% Crystal city 402 4.3% 2,875 30.9% 6,015 64.7% Dayton city 27 2.0% 156 11.5% 1,176 86.5% Golden Valley city 470 5.7% 2,216 26.8% 5,588 67.5% 1 lanover city 6 2.3% 36 13.6% 222 84.1% Hassan township 6 1.0% 55 9.5% 518 89.5% Maple Grove city 88 0.7% 2,142 17.1% 10,281 82.2% New Hope city 877 10.4% 2,581 30.5% 5,006 59.1% Osseo city 79 8.0% 344 34.8% 565 57.2% Plymouth city 302 1.7% 4,369 24.0% 13,542 74.4% Robbinsdale city 793 13.2% 2,144 35.6% 3,089 51.3% iiuijc:r;, city 13 5.2% 67 27.0% 168 67.7% TOTAL 5,152 4.9% 27,323 26.0% 72,429 69.0% 1/231/97 NWHHSC Den iphic Data NUMBER OF 1, 2, 3, AND 4+ PERSON HOUSEHOLDS WITH 0 OR 1 VEHICLE Residence 1 P HH / 0 veh % Total HH 2 P HH / 0 veh % Total HH 3 P HH / 0 veh % Total HH 4+ P HH / 0 veh % Total HH Brooklyn Center city 544 4.8% 162 1.4% 98 0.9% 109 1.0% Brooklyn Park city 478 2.3% 249 1.2% 189 0.9% 161 0.8% Champlin city 50 0.9% 33 0.6% 5 0.1% 0 0.0% Corcoran city 5 0.3% 0 0.0% 0 0.0% 6 0.4% Crystal city 272 2.9% 58 0.6% 44 0.5% 28 0.3% Dayton city 24 1.8% 3 0.2% 0 0.0% 0 0.0% Golden Valley city 393 4.7% 36 0.4% 16 0.2% 25 0.3% Hanover city 6 2.3% 0 0.0% 0 0.0% 0 0.0% lassan township 4 0.7% 0 0.0% 0 0.0% 2 0.3% Maple Grove city 43 0.3% 25 0.2% 6 0.0% 14 0.1% New Hope city 690 8.2% 60 0.7% 82 1.0% 45 0.5% Osseo city, 65 6.6% 12 1.2% 2 0.2% 0 0.0% Plymouth city 173 0.9% 68 0.4% 38 0.2% 23 0.1% Robbinsdale city 643 10.7% 114 1.9% 36 0.6% 0 0.0% Rogers city 8 3.2% 2 0.8% 2 0.8% 1 04% TOTAL 3,398 3.2% 822 0.8% 518 0.5% 414 0.4% Residence 1 P HH /I Veh • % Total HH 2 P HH / 1 veh % Total HH 3 ° P HH / 1 veh /° Total HH 4+ P HH / 1 veh Total HH Brooklyn Center city 1,649 14.7% 1,324 11.8% 381 3.4% 297 2.6% Brooklyn Park city 3,000 14.6% 1,321 6.4% 780 3.8% 592 2.9% Champlin city 407 7.5% 193 3.6% 111 2.0% 119 2.2% Corcoran city 96 6.2% 28 1.8% 16 1.0% 24 1.6% Crystal city 1,445 15.6% 1,005 10.8% 228 2.5% 197 2.1% Dayton city 73 5.4% 26 1.9% 29 2.1% 28 2.1% Golden Valley city 1,218 14.7% 696 8.4% 142 1.7% 160 1.9% Hanover city 21 8.0% 11 4.2% 0 0.0% 4 1.5% Hassan township 28 4.8% 6 1.0% 7 1.2% 14 2 'P' Maple Grove city 1,119 8.9% 475 3.8% 244 2.0% 304 2.4% New I-lope city 1,375 16.2% 797 9.4% 204 2.4% 205 2.4% Osseo city 177 17.9% 102 10.3% 48 4.9% 17 1.7% Plymouth city 2,679 14.7% 1,078 5.9% 309 1.7% 303 1.7% Robbinsdale city 919 15.3% 887 14.7% 168 2.8% 170 2.8% Rogers city 47 19.0% 11 4.4% 3 1.2% 6 2.4% TOTAL 14,253 13.6% 7,960 7.6% 2,670 2.5% 2,440 2.3% 1/23/97 Uwwil I. Luz t �IUJ l \ \ C L1W11[ " \l LI CUti tU .UI �,U ....141 - . J) ?Vjetr0TraMjt * Route Schedule Index * Fare Info * Public Transit Homepagc 'a Downtown Meg olis * -Downtown St. Paul r oute Minneapolis Express i Serving these areas: Downtown Minneapolis, Brookdale Shopping Center, Hennepin Tech., Bass Lake Rd., Boone Ave. �T c Co. fid.113GS ookiyn Blvd. • i 3nd Ave. N. storm. C-W" t� * sa a &*M1 wr) Nownftsand Dr. �ttc d * m < c 3 581h + Ave. N x Co. Rd. 10 68tH Saes Lake Pd SStl1 0 &rookdale C*nter New Napo m ° z °% � � p ac '0 471h "Ch Crystal o Ave. NORTH <' <' ■ Park end Hkie ■ a ! ❑ Tithe Point n .J ■ u. a vw .••�•• Ooe Lim own Zone it ' t CC ■ ! I norl efiP Service ■ • Limited Senate ■ Minneapolis ■ i �f: ec�r► a� �d 3rd streets Dawntovm Minneapolis View the Time Schedult:s for this route. Route Schedule Index ; Fare Info. I Public Transnortation Homepaa_e ! Big NIap Downtown Vinneapolis I povntotin St. Paul lofl 02/0593 09:39:= * Route Schedule Inde-, * Fare Info * Public Transit Home 3. e t I��roTransit * Big i L * Downtown Nfinnea * Downtown St. UW Minneapolis •; Serving these areas: Brookdale, Shingle Creek Pkwy., Brookdale Library, Brooklyn Center City Hall, 69th & Humboldt, Brooklyn Center AV*. 851h A � ►uu F- -k a Ride C. , I Park H4141111. Ce1L l8 Rt. " Brodcdela Dr. Mt 81vd. ataa5l� Coma is Rts. 14. I 73rd Ava. 81 as 0 caw np Br00lClyif 2 N $91h GIh Ave. �� _ ❑ Tim Paint AVe, Freawsy -- 0 Paint ot ireerest d. 6%h Dr. A Perk mxf was 63rd Aw S. .'i x �vU Tnwd Trans' Nts sti 94ti x ° � —' Downtown Tore Lmn Raure a2 5 81h An. Bess Lake F d M Routo a3 05�h Ave. . Reuroa< of I ¢eeokdslo MS. s. m Lam Sang 32t4 a,. 94 a Stookdalo t , Hub a7th AVG. �a I 1;'•••••••••••••••••• Q� 441h Ave. Minneapolis sa' erhs� 1.94 Dow6nc downtnrrn • v MlnneapalL ..._.. _ <... (See W"80 View the Time Schedules for this route. Route Schedule Index ( Fare Info. I Public Transportation HomenaQe I Bic Map Downtown Minneapolis. I Downtown St. Paul I of 1 02. 09:39:00 • - '- .. .. .. ..... ,. .,... .... �..... V ..� •.... ..iv.i_. \. \.�.. 11 `. \Utl ll;'.\IJ: � \: :U\ IUl': . a Transit * Rout Schedule Index, * Fare In * Public Trausit Romen= * M9 1—W * Downtown tMinnea olis * - pwntown St. Paul Minneap 1 i Serving these areas: Brookdale, Xerxes Ave., Noble & Brookdale Dr., Zane Ave., North Hennepin Community College, Brooklyn Center '>!•.ittf A1!!!! 85th Ave, A» i Was. KeOfth Brooklyn HOWL . �o , Park Call. 18 aw. y At. 48 Brookdale Dr. SrodclYn Glad. � k 8taaiiter � C NOW m Rts. 14. 77td Ave. �r Brooklyn AV*. �1 Center tVpRTtt Grath Ave. ❑ Tile Pdrtt e Ave. Freewev Q %rd of Imme- t 8&d. S fi51h Ave. A P.* artd wda e3+d Ave. eye t Tined Trarmivr RM 48. 94C -» l "na+.e Zore lima L s M Route a2 581 A,,. W Base Lake Rd. Route a3 SS O Ave . to 1 Qraat� Rcutea4 % At*. 3.14. dal 2'2. I II lnr, - bd Ser ias `te 34K. 81.94K a Brookdale Downtown Minneapolis Inset Hub azth Ave. �a e Minneapolis �* is U. } 1.9410 � � dcrMnOUwn "`'' $ Mlnnaapols • � v (sea met) View the Time Schedules for this route. Route Schedule Index, I Fare Info. I Public Transportation Homepaa_e I Big Map Downtown Minneapolis I Downtown St. Paul loft 0210 09:27:4 •••�.. ., ..v u......, u.> ..... ..VJY. \. \.V IL -A QUO.; 1U IL1LI - I i I/jetMTrarSit * EqA A te Schedule In AU Fare Inf * Public Transit Home age Big Man * Downto Minneapolis * Down St. Paul R oute Allinneapolis i Serving these areas: Downtown Minneapolis, Brookdale Shopping Center, 63rd Ave., Zane Ave., Starlite Center, Brooklyn Center 115th Ave. .Gunn a..k a Cell. 11 A >' W" &Ooklyn �• Brookdale Dr. &=&kiY+'h Blvd, c.et« a Rta. 14. r.W Ave. i1. aS m BrOO1[lyfl a Aw. Nth Ave. CMntsr ❑ Tine Print © Ave. Freeway Q Pdn o/ ItNereeh Md. '� W h Ave. A Perk end Aide sad Ave. x J , Summit Dr. O U Tined Treroia fits, 4t1. 946 X A`Q DawmwnZorm Limit Route 92 5 11t► Ave. Baer Lake Fri. M P"AU99 Ave Route 84 m B►eslte�ile • e � Rta>_ S. 14.22. 111 LkrQwd Service sail. al. 9" Downtown Minneapo inset p � a Hhtb. n 47th Ave. .• e { .................. 441h Ave. St Y •rth � '`" �Q Minneapolis ` F St c a 1-94 io �S � Dow4hp downtown • Annsaodis View the Time Schedules for this route. Route Schedule In is e. I Fare Info. I Public Trar HomepaQe ( Bia Map Downtown Minneapolis I Downtown St. Paul 1 of 1 01!0 - 09:30:03, ti UPOUCE BROOKLYN CENTER POLICE DEPARTMENT MEMORANDUM TO: Michael McCauley, City Manager FROM: Joel Downer, Chief of Police DATE: April 20, 1998 SUBJECT: Council Work Session, April 20, 1998 Police Department Update The department has formed or reactivated committees to review department operations and to recommend improvement. The committees are staffed by all ranks and divisions of the department. Police Department Committees • Safety Committee This committee meets quarterly to assess the equipment and safety practices of the department to assure the safest working environment possible for employees. • Pursuit/Accident Committee This committee has been formed to review employee pursuits and accidents to determine if they were conducted within the olicies and guidelines of the department and to review P g P motor vehicle accidents involving police employees. • Recognition Committee This committee reviews recommendations and recommends the type of awards to be presented to police employees and citizens at an annual awards ceremony. • Technology/Five Year Committee This committee is responsible for reviewing the technological advances of the department and participates in the future planning of department budgets and activities. • Forfeiture Committee This committee meets as needed to review the recommended expenditures of forfeiture funds that are available to the police department. Memorandum to M. McCauley April 20, 1998 Page 2 • Labor Management Committee This committee has not yet been formed, however, the members of the police administration are committed to working cooperatively with labor unions, work groups, and all members of the department. Hiring • Police Captain • Police Officer • Neighborhood Liaison • Police Secretary/Receptionist Community Activities • Humboldt Substation • Brookdale Report Writing • Brookdale Loss Prevention Meetings (monthly) • Community Services Public Appearances 1998 (year to date) 1997 Talks 24 46 Station Tours 20 16 Appearances at Major 2 5 Community Events Communication • The police department is attempting to reestablish relationships with the Hennepin County Sheriff's Department, the Brooklyn Center City Prosecutor's Office, and surrounding police agencies. Crime Strategy Strategy for combating increases in crime • Utilization of computer printouts to determine patterns. • Use of property crime intelligence information sheet. • Deployment of officers in marked and unmarked units to address the problem. e, Memorandum to M. McCauley April 20, 1998 Page 3 1998 Departmental Goals • Continue promoting community policing. • Promote closer ties with community by establishing permanent patrol areas. • Expansion of neighborhood watch programs and crime free multi- housing and promoting coordination by geographic area. • Combined neighborhood watch groups to provide a stronger alliance. • Concentrate traffic law enforcement into specific areas. Increase the number of surveillance details conducted in high crime areas. • Improve the p methods of cataloging and tracking property with the application of the latest technology. • Increase the efficiency and effectiveness of disposable property by implementing the services of an auction house. • Improve the case tracking system to allow all department personnel to check the progress of cases. • Reduce the case load of each detective to a manageable level. • Continue to enhance computer software applications for the communications center and records divisions. Respond to code violations in cooperation with other city p tY P • Publicize the department's mission and goals by speaking to community groups. • Coordinate construction and equipment planning for the new police facility. • Continue to advance the department with current technology. • Implement automated pawn system. • Utilize crime pattern analysis through geographical mapping. • Formulate advisory committees for future planning, employee safety and employee accident review. • Foster cooperation with other city departments and law enforcement agencies. JD /jm wunclwk.mem City of Brooklyn Center A great place to start. A great place to stay. • MEMORANDUM TO: Mayor Kragness, Councilmembers Carmody, Hilstrom, Lasman, and Peppe FROM: Michael J. McCauley, City Manager DATE: April 17, 1998 SUBJECT: Weed Spraying on Twin Lake For the past few years, the City has taken out a permit and sprayed along the shoreline of Upper Twin Lake. During he same period of time the roe owners along Middle Twin Lake have g P � property rtY g obtained their own permit and made joint arrangements for spraying. The issue for discussion is whether the City should discontinue spraying one portion of Twin Lake. The major beneficiaries of this spraying are the property owners along each particular lot. 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300 Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494 An Affirmative Action /Equal Opportunities Employer City of Brooklyn Center A great place to start. A great place to stay. • MEMORANDUM TO: Mayor Kragness, Councilmembers Carmody, Hilstrom, Lasman, and Peppe FROM: Michael J. McCauley, City Manager DATE: April 17, 1998 SUBJECT: Publication of Goals I asked Ms. Knutson to publish the City Council goals in the next City Watch newsletter. She reminded me that the goals were published in the November 1997 issue of City Watch. The question is whether the Council would like to have the goals published again since it has been half a year since they were published. • 6301 Shingle Creek Pkwy, Brooklyn Center, JVN 55430 -2199 • City Hall & TDD Number (612) 569 -3300 Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494 An Affirmative Action /Equal Opportunities Employer 3 City of Brooklyn Center A great place to start. A great place to stay. • MEMORANDUM TO: Mayor Kragness, Councilmembers Carmody, Hilstrom, Lasman, and Peppe FROM: Michael J. McCauley, City Manager DATE: April 17, 1998 SUBJECT: Crew Chief Position Request Ms. Bergeland has requested that two crew chief positions receive full -time benefits and be upgraded to regular full -time status. As indicated in the materials from Ms. Bergeland, the very competitive labor market is making it difficult to staff crew chief positions. There has been a history of turnover in this position, though the last two years have seen more stability. However, I have been informed this week that one of the crew chiefs working a basic full -time schedule has submitted his resignation due to accepting a position providing benefits. Given the materials and history, I would recommend having two full -time positions with benefits. As indicated earlier this year, Ms. • Bergeland has revised staffing patterns at the Inn that should result in an approximate $9,000 labor savings by converting to a continental breakfast during the week. The cost of providing benefits is approximately $10,000. In Ms. Bergeland's memoranda, she refers to the budget containing sufficient funds for benefits. The numbers contained in the budget do reflect that configuration. However, the narratives and budget discussions did not reflect that. Initial budget discussions were had regarding Ms. Bergeland's request. The requested budget and recommended budget reflected Ms. Bergeland's request. However since materials were not developed and ready at the time those budget discussions went forward, this request was not recommended and was not discussed with the City Council. Ms. Bergeland has provided additional information that has been reviewed. Again, the basic impact would be to increase the cost of operations by approximately $10,000 for benefits, which now would be offset by approximately $9,000 of decreased staff costs at the Inn. The decreased staff costs at the Inn were not identified or proposed at the time Ms. Bergeland requested this change. • 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300 Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494 An Affirmative Action /Equal Opportunities Employer MEMORANDUM T0: Michael McCauley and Brad Hoffman FROM: udith Bergeland and Bruce Ballange 0/4 RE: Full -time Crew Chief Position DATE: April 10, 1998 As requested, following is information regarding the budgeted request to make two part -time crew chief positions into two full -time positions: * Anticipated loss of current staff. Current hours covered by the following staff: Gary Curtis - moved to 15 hours weekly from 30 hours Taylor McDonald - looking for full time with benefits because parents can no longer carry him on their coverage. Works 40 hours, frequently on overtime. Jim Lindquist - moved to 15 -20 hours weekly because of painting job he started in February this year. Benefits are issue for Jim. Mike Truesdale - went to 25 evening hours from 40 hour week daytime Bob Jendro - was 20 -25 hours weekly. Found full -time position with benefits. Cut down to 10 hours on Sat /Sun. Anticipate loosing Bob after probation period at new job. * Position has direct on -site supervision of events. * Significant negative client impact when Chief leaves due to relationships built over the years. * Impact when understaffed: Crew Chief hours worked by others (just this week) - Conference Services Manager 21.5 regular and 7.3 comp, full -time maintenance 17.3 regular and one hour over -time, part -time maintenance 4.5 of regular, sales 6 hours of regular time, plus General Manager's additional time. * Conference Services Manager and General Manager also cover Crew Chief shifts creating compensatory time. Never able to take all time accumulated and maintain coverage. * Inability to hire. Current staff have worked here off and on since opening. Refer to 12!4197 memo regarding cost of advertising and lack of response to ads. Outsourcing labor would cost approximately twice current expenditure. Market competition for labor (i.e. Target hired part -time staff at $10.09 start with full paid personal and regular holidays, full medical/dental, and up to $500 cash reimbursement for cc -pays on new hires who have own insurance already.) * New hires, if available, take six to eight months to fully train. Turnover is very costly. * Currently covering three times the number of events with the same number of crew chiefs we originally opened the facility with. Additional meeting space will increase that pressure. * Budget contains funds to pay for labor and benefits for these two crew chiefs plus the part - time still required. Anticipated work schedule for full -time Tuesday through Friday would be 6 a.m. - 2:30 p.m. and 2:30 -11 p.m. Part time would cover Sunday!Monday hours plus sickivacation leave and additional room turn requirements. Attached is copy of position description as well as two earlier memos detailing further the information stated above. Also attached is an article from the most recent City Business publication regarding retention, of staff and the high cost of turnover. 24 CityBtutness Inside STAFFING & HUMAN RESOURCES m mi n g the tide of t By rth Mattson iorm,cr was affecting their businesses, few of the enuccmenis that companies are Corimbuung writer CU11 pa 11 es met Fnmlo, cc turnover was classified as a major using to attract and retain employees. -, The ample surr".. ', : - '; . :n,cd' .,_ s e he al �crce - o ndents, � "People arc trying all sorts of things, but flooding the Twut Cu,r, c.:, I• r rd Cl ative in effo tS to The aseragc annual tumover rate was 1 there is not one thing that fits all: Tri PP - said. companies to «, +,+ cnq•b..:;. 1r.. percent. but sonic firms reported annual Comparocs have to address the turnover have. 1( '0[1111 e111�7IU1'E'e.S lump cr as hick as 110 percent, according to problem by asking what their employees The record -lur unrn ; r. •, :r _ the Mercer survey. That turnover rate often want, and that varies with each company, pushing the contpe :uo n G •r n: ; ,:" s with a heavy price for many compa- Tnpp said. For example, one retail company new heights. Rut •sh,lr c^ ;; i „r t 7ne Pct ,•nncl Group 1. , ;n tii I inn, 11, of Fnnv• ise percent r r -rp nt�1e`rc had a problem attracting workers during tainly enjoying the :n, n,, r; an c P,:, \rid chat ri.0 re t >n't Inei. to i,,ut -c _r +•tied the : nit__ a _ per- person cost of peak shopping seasons. The retailer recog- options, compame .ur .tr. cci ;,_ iii rov nt nine ,non ” 71cre'.s not .: .t routs;.; r .,,,e• lit i r . th,n eon (xxl nized that the majority of its labor pool was Mize costly turnn,t•r n 01,11 t,r; rc• _ and I. e m rc., r;l ° 1 his is a big topic, and everyone is look- comprised of students. So the store tailored " I sec the rctcnw u __ nq :;;;,1 +I, n,e t. ' �,;rtcr , aid ore for the ,ilver bullet;' said Cathy Tripp, a its incentive program to appeal to that mar - acute than it has horn ni rti_ „ i,� ; NI `.terccr Inc. :n. a:­ nu +r ;nncultant at Mercer. Signing bonus- ket segment, and introduced a tuition -rcim- years," said Wa%m: t'.uir•. _ rig i;::. ;,er.t':. , ur.;•.ce! eNecuc ", ,pit h m' c,, pat raise. and prof sharing are just a bursemeni program. Tnpp said. Another _ __ _ -_ Terser client polled its emplovccs and dis- covered that all it took to satisfy staff was a ^ ^ bigger smoking room and more vending ` J j ` J j (��[ machines, she said. In most cases. the three basic benefits that neopie look for are retirement plans, hr ^.trh - r•,rr rns•c ra�e and vacation time. The ReeoalIZZ111 Q the Twin Cities' rest varies with the pnonties of the individ- ual employee. Larger companies often try to • understand the cause of turnover through methods such as exit interviews, employee n o sunc. s anti focus - ha, . "SomN,tmes }t bane to step hack anJ • listen to emplovccs•" Tnrp said. However, il' ccs arc guurl Io r the e to risk, m ess L e ade rs e mpl v arc g e x lim Btib oing to expect them to fs,l- Inw Ihnwgh J. , she sa, Hard - pressed sectors Companies across the hoard are hemg hit with turnover prohlerix ,n positions ram_ine from entry level in executive. Sonic of the employee gnnrps that hays reported the highest turnover include technology, admin- istrative and sen ice industries. The cunipet- itive nature of the technology industry and homage of key personnel bas caused nnn_y companies to acgresst,cly recruit emplov- ccs away from other firms. In addition. many of the people working in high -tech s industnes are ca_cr to nime from company to company in order to gam a w ide t ariety of technology experience. ­W% very difficult to keep (+eopfe in high -tech jobs or inlonoa- } nun - technology jobs." Carter said. %lorrisccy Hospnaiity Cos. is one firm that has heen aggressively pursuing ways tot t lower its turnover rate among hoth skilled and ttn,k,lled pt,sitiunc- "There are mdn- * nuns, but you have it) look for their and you have to he creative." satd Rill tforrisscv, president of the St. Paul firm, which roan- ' aces hotel and restaurw properties inc lilt] - ing The Saint Paul Hotel and the Minnesota Club. Sonic inccnlives that the St. Patti firm has inirtxluced in recent vears include a - : 0 1 4 k) nlan ••vqh +, tttpineer ntakfun>; sontn= hutions_ •ncenity, r. m snttnn and a Paid S >as+ei:rsts .as,+e k ,.�..a. s,....,, .•„ a +�.: i.. rr: ,•5.,.,,.r. rim -o�m that ne orrinaic% vacation ttm,� c. sicyvs and hnlit n)s "%Vc'%e doubled the size of our human - See who's selected in the Nla�• 22 issue of resour ivc tither than that wq can be . proacuyc rather than rcactivc ;' Morrissey said. And the company is already seeing a BuMness return on its i have e last hlc -digit reductictio ons s in tumo mover for r the last seven cars straieht ;• he said. Last year. Cft it uf'. Tin t' employee turnover dn to 41 percent• which is less than half of the industry aver- , S p()l 1SDYed by age of 100 percent turnover. 1 �"� Staffing services is another niche that has WC i✓ �1CC ' � N e1N5 PW LONDON - • had to be aggressive in maintaining its labor pool. "The nature of our business is such that -` ® TELECOM V I S I .eom The f - I(it: cr(n\'n T�,lttt we work with temporary employees, a large N E '•y n a K percentage of which are pcnFlc in transition. and we arc very focused on doing what we can to retain our temporary employees as TO: Michael McCauley; Brad Hoffman • FROM: Judith Bergeland RE: Crew Chief Position DATE: December 4, 1997 Within the 1998 budget request is rational for moving some of the current crew chief hours into two full - time positions, with the balance of coverage being supplied by part -time crew chief hours. The primary motivators behind this request to move to some full -time hours are: 1. cost of constant advertising to attempt filling this position ($2,300) 2. cost of constant training (new hires not staying on the job) ($640 per person) 3. cost to operations manager for training of new hires ($ 1,552 per person) 4. cost to operations manager in time lost to approach new projects 5. cost in terms of customer service abilities to facility clients 1. For the past two and a half years in particular it has been difficult to compete in the labor market for people to staff these positions, primarily due to lack of benefits available but also due to wage scale. During the 1995 through 1997 period approximately $2,800 was spent in advertising for P eople to fill these part -time positions. When crew chiefs are not available vve must rely on assistance from the sales staff, operations manager, maintenance and general manager. This means taking away the productivity in one area to compensate for needs in another area. 2. Each new crew chief requires a minimum of 72 hours of training. At the current hourly rate of $8.90 that amounts to 5640 per new hire, plus the wages of the operations manager of $1552 per new hire. • 3 and 4. Because the training for this position comes directly from the operations manager of the facility, he must set aside larger projects and daily operations problems in favor of the training required. In addition, larger projects (such as recent de- watering and bids for renovation of space), personnel issues, maintenance issues and client demands either have to wait for time or the manager ends up working many hours overtime. 5. Of primary importance, but practically impossible to place a dollar value on, is the relationship of the staff with the clients. The crew chief position is critical to the success of the facility in that this person is responsible for set -up of the event, supervision during the event, care of any changes required by the client, and the health and safety of the attendees to the event. Also, it is the responsibility of the crew chief to take care of the buildingsand grounds, protecting the City from liabilty for injury to guests, etc. Because relationships with clients is the basis for all repeat business in the facility, the value of clients seeing the same people each time they are in the facility is paramount to our success but difficult to determine a dollar figure. The 1998 budget for part -time crew chief labor is lower than 1997 and previous years because we anticipated the costs of the position in the full -time salaries. The primary increase is a nominal hourly adjustment plus the cost of the benefits supplied to the position - or approximately $7,485 per person. A copy of the request for additional personnel included in the '98 budget is attached. If you have further questions, please don't hesitate to give me a call. �IEti10 RAN DU,vI TO: Nlichael McCauley, Brad Hoffman, Nancy Gohman FROM: Judith Bergeland RE: Full -time Crew Chief Position DATE: January 7, 1997 :attached is the full -time Crew Chief position description. You will find that additional administrative functions are attached to this position. The desire is to hire two Crew Chief personnel (assuming full posting with current staff eligible to apply). The current Crew Chief position would still be viable for the part -time Crew Chief personnel needs. Two primary reasons exist for requesting the move to some full -time personnel in this position. Pay Scale/Lack of Benefits: i From June 1995 until September 1996, we were short two part -time crew chiefs. One person was hired in June only to quit for a better paving position within a week of hire. Finallv in September we were able to fill one crew chief position. The difficulty in filling this position has meant that current staff has worked many weeks with overtime hours. Getting and keeping personnel for this position depends upon being competitive in the current job market. :administrative assistance: The Conference Service iManager has scheduling, training, billing and other administrative work which he is currentl doing alone. The - intention is to have the full -time Crew Chief assist with these functions, freeing the Supervisor for other pressing work and maximizing the York accomplished during the Crew Chief hours on duty. The Crew Chief carries a pager 24 hours daily in case of emergency within the facility and is in charge of the entire complex and its guests when on duty. In both the Hilton and the Mpls Convention Center the equivalent of personnel are salaried starting at 530.000 - $34,000 plus benefits. The benefits cost for 1997 is anticipated within the budget adopted. If you have questions, please giv me a call. CITY OF BROOKLYN CENTER 1998 BUDGET • REQUEST FOR ADDITIONAL PERSONNEL 1. Division Name. EBHC 2. Division Number: 655 3. Position Title: Crew Chief 4. Number Required: ' 2 5. Pay Grade D8 6. Salary or Wage Range From: $10.269 per hour 7. 1 st Year Cost: $ These positions exist on a full time basis staffed with pan -time hourly employees making approximately 58.90 with no benefits. The financial increase of moving to full time is marginal when compared to the difficulty of finding and keeping part -time staff. Salary plus benefits cost bf $7,485.00 per person . 8. Indicate Need for Position(s) ( ) New Operation ( ) Expanded Services () Increased Work 9. List below the job duties to be performed in the requested position(s). The duties would be the same as the current part time crew chief position plus providing help in administration work, scheduling, training, hiring • part time crew, and billing, which the Convention Services Manager currently does. Full time crew chiefs additional responsibility of administration, training and scheduling will relieve the Convention Services Manager's workload. 10. Specify how the above listed job duties are currently performed. The Convention Services Manager does all duties listed above in Item 9. Basically this move to full time status ensures longevity, creating a strong client relationship, which in turn creates the strong rate of repeat business this facility is known for. 11. Explain the need for this position in detail. From June 3. 1995 until June 25, 1996, we could not till two part -time crew chief positions because of pay and benefits not offered. On June 24, 1996, we filled one part -time crew chief position. One week later he quit. In September we filled one again only to loose one to work comp. We have two crew chiefs that work hours equivalent to full time. Retention of or acquisition of these crew chiefs is dependent on making benefits available. The move to full time status is the only option currently available. Business has grown where we need coverage from 7:00 am. To 11:00 pm., Monday through Thursday, and 7:00 am. To 1:00 am., on the weekends, which is hard to do with four and five part -time people. 12. Additional cost associated with requested position(s): • Contractual Services $ 0 Supplies S 0 Capital Outlays S 0 • City of Brooklyn Center POSITION DESCRIPTION Position Identification TITLE: Set -up Crew Chief - Full Time DEPARTMENT: Community Development DIVISION: Earle Brown Heritage Center STATUS: Nonexempt Position Summary Provides on -site supervision of set -up crew both prior to and during event as well as maintaining control of the building and systems. Provides administrative and training assistance to the Conference Services Supervisor. Reports to the Maintenance and Conference Services Supervisor. Essential Duties and Responsibilities • Supervisory • Directs the work of the set -up crew and advises Conference Services Manager of their work performance. • Instructs set-up crew and custodian in cleaning techniques, equipment usage and special projects. • Assists in scheduling part-time set up crew and custodial personnel for events. General • Responsible for accurate set up of all facility rooms as directed by Conference Services Manager including staging, dance floor, audio /visual and miscellaneous ui ment. � P • Represents Earle Brown Heritage Center during set up, event and tear down when Conference Service Manager is not available. • Performs requested administrative tasks such as billing events, equipment logs, inventory, file systems, and set -up crew work orders. • Keeps the cleaning equipment in good working order, reporting repair and replacement needs to the Conference Services Manager. Continuously observes condition of buildings and grounds, making recommendations regarding repairs and any special project needs to Conference Services Manager. • Monitors building heating and cooling, notifying Conference Services Manager of any problems requiring attention. • On -call via pager to assist in any emergency situations. • Performs exterior building duties including gardening, maintenance, set -up and cleaning. • Watches over inventory and supplies for audio visual and cleaning. • Performs other duties as assigned or apparent. • Essential Knowledge, Skills, and Abilities Communications: Must be able to read and understand correspondence, memoranda, and directives, and follow such directives. Ability to read labeling on products in accordance with safety regulations. Decision Making. Must be able to act in a decisive manner, using good judgment. Must be able to assess problems and situations, anticipate needs and evaluate alternatives. Must have a knowledge of the utilization of appropriate resources and the willingness to communicate the use of available resources. Interpersonal Relationships: Must be able to work in cooperation with other staff members. Must be consistent in dealing with people; must have the ability to accept criticism and/or discipline. Must be able to establish and maintain effective supervisory relationships with other employees and positive public service relationships with members of the general public. Must be able to effectively supervise staff. Pmfessional Attitude: Must have commitment to the organization; willingness to take initiative; dependability; maturity in relationships with others; and self confidence. Must represent the organization to other agencies and citizens with a courteous, helpful, and accurate business -like attitude. Must be able to exemplify leadership b encouraging initiative, effective plify p y gang e, a a e completion of t work assignments, and appropriate resource utilization. Must have the ability to keep management informed of matters he/she must know to adequately perform the responsibilities of the position. Ability to work as a team member. Quality of Work: Must be able to operate in an efficient and safe manner all equipment rewired and in accordance with City policy and direction. Must be able to demonstrate initiative and independence in completion of work responsibility. Must be able to produce quality, accurate work, detect and correct errors, utilize work time properly and productively. Technical Knowledge: Must have working knowledge of cleaning methods, materials, and equipment. Must have working knowledge of basic audio visual equipment. Ability to perform manual tasks requiring moderate physical strength. Ability to operate mechanical cleaning equipment. Physical Abilities: Must have the ability to frequently lift objects up to 35 pounds from floor to shoulder height. Must occasionally lift over 35 to 75 pounds from floor to waist. Must be able to infrequently lift items from floor to shoulder height that weigh up to 100 pounds. In order to complete the essential duties, this position requires constant standing, walking, bending, stooping, crawling, reaching above shoulder level and away from body, kneeling, twisting, turning, accurate balance, pushing, pulling, and lifting on a regular basis. Must be able to use hands for simple and firm grasping frequently; occasionally for fine manipulation. Must have the ability to read and • discern visual images and written documentation. May work with a wide variety of equipment essential to complete assigned duties. Frequently uses chemicals in all areas of work. Ability to work varied schedule as assigned. Desired Qualifications • Experience in operating audio /visual equipment. • Experience in cleaning event space. Minimum Qualifications • High School Diploma, GED or equivalent experience required. • Two or three years conference services experience. • One to two years supervisory experience. Position Description Approved By Department Director Date Approved BY City Manager Date Approved Human Resources Rawchf 9s • i MEMORANDUM TO: Michael McCauley FROM: INydith Bergeland RE: Crew Chief Position DATE: March 4, 1998 As you requested, enclosed are copies of the January 7 and December 4, 1997 memorandums regarding the full -time Crew Chief position. Also enclosed is the position description and the request for personnel section of the budget document. You requested information on impact to Bruce Ballanger and myself in terms of additional hours. Bruce's records indicated 211 hours in 1996, 175.9 hours in 1997, and 37.2 to date 1998 (including 6.5 hours worked on energy management proposals while on vacation). In our opening years, I put in as many or more hours than Bruce indicates, but the last three years the figure runs up to 130 hours annually. Of more significance than the number of hours is the type of hours - for instance running the crew on Sunday mornings from 6 a.m. - 2 p.m., coming in to work with a decorator at 1:30 -6 a.m., etc. Working these hours and our regular work hours can be very tiring. After you look over the attached material, please let me know if there is more information needed. JB Enclosures cc: Brad Hoffman Bruce Ballanger • i TO: Michael McCauley; Brad Hoffman • FROM: Judith Bergeland RE: Crew Chief Position DATE: December 4, 1997 Within the 1993 budget request is rational for moving some of the current crew chief hours into two full - time positions, with the balance of coverage being supplied by part -time crew chief hours. The primary motivators behind this request to move to some full -time hours are: 1. cost of constant advertising to attempt filling this position (52,300) 2. cost of constant training (new hires not staying on the job) ($640 per person) 3. cost to operations manager for training of new hires (51,552 per person) 4. cost to operations manager in time lost to approach new projects 5. cost in terms of customer service abilities to facility clients 1. For the past two and a half years in particular it has been difficult to compete in the labor market for people to staff these positions, primarily due to lack of benefits available but also due to wage scale. During the 1995 through 1997 period approximately $2,300 was spent in advertising for people to fill these part -time positions. When crew chiefs are not available vve must rely on assistance from the sales staff, operations manager, maintenance and general manager. This means taking away the productivity in one area to compensate for needs in another area. 2. Each new crew chief requires a minimum of 72 hours of training. At the current hourly rate of $8.90 . that amounts to $640 per new hire, plus the wages of the operations manager of $1552 per new hire. 3 and 4. Because the training for this position comes directly from the operations manager of the facility, he must set aside larger projects and daily operations problems in favor of the training required. In addition, larger projects (such as recent de- watering and bids for renovation of space), personnel issues, maintenance issues and client demands either have to wait for time or the manager ends up working many hours overtime. 5. Of primary importance, but practically impossible to place a dollar value on, is the relationship of the staff with the clients. The crew chief position is critical to the success of the facility in that this person is responsible for set-up f the event supervision i P p during she event, care of any changes required by the client, and the heaWand safety of the attendees to the event. Also, it is the responsibility of the crew chief to take care of the buildingsand grounds, protecting the City from liabilty for injury to guests, etc. Because relationships with clients is the basis for all repeat business in the facility, the value of clients seeing the same people each time they are in the facility is paramount to our success but difficult to determine a dollar figure. The 1998 budget for part -time crew chief labor is lower than 1997 and previous years because we anticipated the costs of the position in the full -time salaries. The primary increase is a nominal hourly adjustment plus the cost of the benefits supplied to the position - or approximately $7,435 per person. A copy of the request for additional personnel included in the'93 budget is attached. If you have further • questions, please don't hesitate to give me a call. MINUTES OF THE PROCEEDINGS OF THE • ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION AUGUST 25, 1997 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in regular session and was called to order by President Myrna Kragness at 8:41 p.m. ROLL CALL President Mvma Kragness, Commission members Kathleen Carmodv, Debra Hilstrom, Kav Lasman, and Robert Peppe. Also present: Executive Director Michael J. McCauley, Assistant City Manager Jane Chambers, City Attorney Charlie LeFevere, and Council Secretary LeAnn Larson. • APPROVAL OF AGENDA AND CONSENT T AGES DA, A motion by Commission member Carmody and seconded by Commission member Lasman to approve the agenda and consent agenda as printed passed unanimously. COMMISSION CONSIDERATION ITEMS FINAL REPO ON THE EARLE BROWN H ERITAGE CENTER James M. Klas, Senior Vice President of Marquette Partners, presented the Economic Development Authority Commission with his final report on the operational study of the Earle Brown Heritage Center. Mr. Klas went over the full report which was distributed to the Commission members prior to the meeting. Attached hereto and incorporated here and by reference as Exhibit A is a complete transcript of the full comments given by )"Ir. Klas regarding the operational study. 8,''_'5,'97 -1- • Transcript of IMr. Klas Marquette Advisors P q r1 tsors Exhibit A staff at Brookdale Center and increasing their relationship with the Earle Brown complex. It is certainly conceivable and would be easy to create coupons or other marketing shopping incentives to entice people attending functions at the complex or staying at the Inn to go over to Brookdale. This is obviously not a major impact on either facility, but it is one area which could be improved. ... the complex and the surrounding community and clarifying its purpose to the surrounding community that would be considering a change for the name of the complex and taking whatever steps are viable within zoning and other ordinances to improve its highway signage. It is in a fairly visible location, never - the -less its signage is not entirely clear, it is not immediately obvious what you are driving past, you can easily see it but you don't know what you are looking at. Of even gr eater importance though is the name of the facility, and I'll freely relate to you that even today I was at a function before coming here and I mentioned that I was coming here and what I was coming to do and I was speaking with a woman who owns a travel agency here within the City and is obviously very aware of travel- related businesses, hotels, convention facilities, restaurants, etc. and she had no idea. She assumed that this was some sort of a historical society type of function and had no idea that this was a convention facility just by virtue of the name and by lack of awareness. I understand that obviously the name was chosen when it was created and there may be some capital in that and it may not be something you are willing to do and that there may be some limitations on signage and I'm simply telling you that there is to this day yet some lack of awareness as to exactly what that complex does and what it has to offer, and there is a limit to the funds available to explain that to the general public, and there is one very easy step to take which could help improve that. What exactly the name would be, I don't know, but presumably it would be some sort of a name that would more clearly define what the function is and the example that we used in the report was that you already have the Inn on the Farm which is obviously far more clear in terms of what people are coming to see and some sort of similar name particularly for the convention facilities for the consideration. It's not a recommendation that is listed in our report specifically as a recommendation but we have separated and discussed. I alluded earlier that we looked at the interaction between the convention center and the hotel industry in the community. It was our finding and recommendation that the hotel industry is fairly vibrant at this point, it's very active in terns of new development and that given its operating performance as it stands now and the degree of interest in private development within the community, that taking steps as a commission or as the City to offer extraordinary assistance to specifically entice additional lodging development immediately adjacent to that complex or as a part of that complex was not something that we would recommend. We felt that it would be placing undo pressure on private development within the City and that it was not the benefit that you would obtain in terms of improved performance at the convention center was not worth that level of impact at this point. What I want to be very specific about though is that I am not discouraging lodging development near the complex or at the complex if in the course of normal market events a private business or private developer shows interest in creating such development, I would not 8/25/97 -8- • Transcript of Mr. Klas, Marquette Advisors Exhibit A discourage such development and it would not at all be inappropriate. I'm vying for the City to take the types of steps that it would normally take for similar type of private lodging development elsewhere. The extent of our recommendation and conclusion pertains specifically to an aggressive effectively marketing program for the City to try to entice a developer and to provide them with more than what the City would normally provide in order to jet them specifically to go to that location. That's really the summary of our conclusions and recommendations and again I think they are very much similar to what we originally provided you back in April or May. I hope you have had an opportunity to go through the report, and I'm very much willing to take any questions or deal with any issues that have arisen from reading that. • • 8/25/97 -9- EARLE BROWN HERITAGE CENTER OPERATIONAL STUDY FINDINGS, CONCLUSIONS & RECOMMENDATIONS AUGUST 1997 • 410 YOUN6 BUILDINI; ,;L S -7 Ni.\Tf • �L\\` :.a[>I \It\\E I,r "a 55402 1'n F: tllsrrr.\1.rry Glcln r 10- :. \t•t'I.F: rliF: t'l .\Nll [N \E.'i'MEN'r G1,01-1- 'rill-. A\l.\'rioN GROU1 Brooklyn Center Economic Development Authority City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 5430 Pursuant to our engagement letter dated November 4, 1996, we are pleased to present the accompanying report entitled "Earle Brown Heritage Center - Operational Study: Findings, Conclusions and Recommendations." This report presents a summary of the tasks which we performed in studying the operations of the Earle Brown Heritage Center; the conclusions which we have drawn from our analysis; and our recommendations to improve future performance. As in any study of the operations of an on -going business, the operating profile continues to change and evolve, even as the study and reporting process are underway. Indeed, operations at the Earle Brown Heritage Center continue to be steadily improved and refined by city and facility management. As a result, various recommendations presented in this report may either • already be in place or under consideration. Such recommendations are included to reinforce the importance of the actions which management has taken or which they may be about to take. We would like to thank the management and staff of the Earle Brown Heritage Center and the representatives of the Brooklyn Center Economic Development Authority and the City of Brooklyn Center who provided assistance in this study for their ready cooperation and candor. Au 1, 1997 VIARQUETTE ADVISORS James M. Klas Senior Vice President Hospitality Group • 410 Y, I ter, Q1 r 3 :35-SSSS F-.. \: i 61_ 1 :3:33-4 -:30 EARLE BROWN HERITAGE CENTER OPERATIONAL STUDY Letter of Transmittal TABLE OF CONTENTS PAGE INTRODUCTION.............................................................................. ..............................1 EYECUTIVESUMMARY ............................................................... ..............................3 REVIEWOF 1993 STUDY ............................................................... ..............................7 ANALYSIS OF COMiMUNITY INTERACTION ......................... .............................17 RECOMMENDATIONS................................................................ ............................... 23 • • • INTRODUCTION • • Earle Brown Heritage Center Operational Stu* -August 1997 INTRODUCTION The Earle Brown Heritage Center is a public landmark in the City of Brooklyn Center, providing catered conference facilities, rental office space, a boutique inn and a small, newly added restaurant while preserving the structures and grounds of an important part of the City's heritage. While the Heritage Center is an important asset to the community, it is not without cost. The Center has been incapable of covering capital costs and has required operating subsidies on an on -going basis. This is by no means unusual for facilities of this type. However, the EDA has a continuing interest in eliminating or minimizing such subsidies and evaluating the benefits of the Center against its costs. Marquette Advisors (then Marquette Partners) conducted an operations and marketing review of the Earle Brown Heritage Center in 1993. Since that time improvements in operating performance have occurred and some of the recommendations made in our report have been implemented. However, it is recognized by all parties that room for further improvement exists and that several facility and operational issues remain to be fully addressed. In addition, current EDA directors were not involved in the process during the 1993 study. Consequently, Marquette Advisors was engaged to complete an updated study of the operations of the Earle Brown Heritage Center and to develop updated recommendations to further improve the financial success of the facility. To accomplish this objective, our engagement was divided into four key areas: ., Y • A review of the recommendations from our 1993 study to determine the extent to which they have been implemented. • Analysis of the interaction of the Earle Brown Heritage Center with other community development, including, in particular, the market implications of additional hotel development in connection with the Heritage Center. • Preparation of preliminary recommendations and presentation to the EDA at a - working session. • Preparation of revised recommendations and completion of a final written report and presentation. The recommendations which we have developed are presented in summary form in the following section. A detailed discussion of our findings, conclusions and recommendations for various facility components and operational issues is presented in the body of this report. Pa; e 2 • EXECUTIVE SUMMARY • • Earle Brlvwit '�Herita!Ye Ceiiter'Oneratioiidt �'ttidl -- Ar "�rrst 199? EXECUTIVE SUMMARY The Earle Brown Heritage Center has made significant strides since our 1993 study, achieving better than break -even operations for the first time in 1996. That improvement is reflected in the graph of historic net operating profit presented on the following page. Through the first five months of 1997, the Center has fallen below 1996 performance levels. However, this is due almost entirely to an increase in capital expenditures (primarily carpet replacement in the Carriage Hall), which, despite their name and long -term use are full e when u y p n p rchase d. Many of our 1993 recommendations have been implemented in some form and other changes /improvements have been made which have enhanced performance. The Inn remains unprofitable. However, it has a positive impact on the complex as a whole. Bond related legal restrictions limit options for changing the basic operating structure of the Inn. Interaction between the Heritage Center and the surrounding community is generally positive. Brooklyn Center hotels in particular receive benefits from conferences at the Heritage Center and do not generally experience any significant competitive impact from the Inn. However, current market conditions, including already highly active private sector • hotel development, discourage use of city funds to effect development of significant additional lodging at or near the Heritage Center. RECOW IENDATIONS Based upon our analysis of current operations, review of our prior study and input from facility management, city management and the EDA, we have prepared the recommendations listed below. These recommendations are described in greater detail in the body of the report. • CONTINUE7 TO PURSUE WAYS TO IMPROVE INN/EARLE'S OPERATING PERFORMANCE UNDER CURRENT STRUCTURE: REDUCE EVENING LABOR COST CLOSE PORTIONS OF FACILITY DURING SLOW PERIODS • CONDUCT NEGOTIATIONS WITH HILTON OR OTHER AREA HOTEL FOR JOINT MANAGEMENT OF INN • INCREASE AVAILABLE MEETING SPACE AS OFFICE SPACE BECOMES AVAILABLE • Pa; e 4 Ii }oad lenuuy ■ 9666 5664 b666 E666 2666 666 0666 (005$) (OOb$) — — (OOZ$) o e OM W Q N IIAO J1�IIZV2IAd0 IAX DHHI "Earle Brown Heritage Cutter Onerational Studv -A maust 1997 v RECOMMENDATIONS (cont.) • COMPLETE IMPROVEMENTS TO LOWER LEVEL MEETING ROOMS • INCREASE ACCOUNTABILITY OF FACILITY MANAGEMENT FOR MEETING BUDGET GOALS • CREATE A RESERVE FUND FOR CAPITAL IMPROVEMENTS: HOTEL TAXES FROM NEW PROPERTIES TIF FUNDS OTHER SOURCES • CONDUCT A JOINT EDA/NLANAGEMENT WORKSHOP TO CREATE "MISSION STATEMENT" FOR CENTER • INCREASE PARKING AS FUNDS BECOME AVAILABLE • • IMPORVE COMMUNICATION WITH BROOKDALE CENTER • LNIPROVE HIGHWAY SIGNAGE /CONSIDER NAME CHANGE • Pal-, e 6 • REVIEW OF 1993 STUDY • • I axle Brown Heritage Center Qperational Studv - Au3 ust 1997 • REVIEW OF 1993 STUDY In our 1993 study of operations and marketing at the Earle Brown Heritage Center, a number of recommendations were made to improve performance at the complex and improve communication between facility management, city management and the EDA. Our review of that study and of the current status of operations at the Heritage Center found that many of the recommendations had been implemented (indeed some were already in progress when the 1993 study was completed). However, others have either been implemented on only a partial basis or not at all. A variety of reasons exist for the incomplete implementation of the 1993 recommendations. Each of the major recommendations from the 1993 study is discussed below with a summary of its current status. Citv Pavment for Facility Use: Our 1993 report pointed out that certain "expenses" of the Earle Brown Heritage Center are effectively paper transfers within City accounts rather than actual cash costs. Only a fraction of the 552,832 overhead allocation budgeted for the complex for 1997 for City administrative services represents actual increased cash costs to the City. In other words, if the Center did not exist, City administrative costs would change very little. Any payment to the City or expense allocation not based on a cash outlay is a transfer only. The City is effectively covering a portion of its administrative costs from revenue generated by the Heritage Center. This is in addition to any positive income generated by operations as in 1996 or in partial substitution for any operating subsidy required in prior years. The accounting method is common and entirely appropriate. However, in evaluating the true incremental cash costibenefit of the Center for City finances, this reality needs to be recognized. It remains true to this day. In 1993, usage of the Center by the City was treated in the opposite manner from the administrative allocations. The City did not then pay for use of space at the Center. Payment by the City for space used is essentially a paper transfer in the same manner as the costs described above. Money would only be moving from one City account to another. However, the lack of payment, was inconsistent with the way that intra -city expenses are handled. We recommended that consistency be established in dealing with transfers, either by eliminating them entirely or by charging the City for the use of space at the Center. The latter method has since been adopted, providing a more consistent and accurate picture of Center finances. • Page 8 Earle , Brawn „ H-erita e C'ejtter Oner zti tt � t tcly -K�f � ►ng -97 Sale or Lease of the Inn or ,N irine of a h ive -in Manager In our 1993 study, we determined that the Inn was not capable of operating at a break -even performance level under City ownership due to the extremely low cost structure generally r for such a facility e profitable. Most such facilities are family owned g y q itytob r pof b yo dand operated, greatly reducing overhead payroll and providing compensatory benefits for other costs which cannot be duplicated. Sale or lease of the facility, assuming an interested party could be found, was recommended as the only viable means of eliminating the losses at the Inn if such a goal was desired. An alternative recommendation we made which would allow the City to retain somewhat greater control would be a permanent live -in manager. This, however, would only reduce, but by no means eliminate operating losses. Since our 1993 study was completed, the City has not acted on the recommendations regarding the sale, lease or changed management structure at the Inn. It has since been determined that legal constraints relating to the bonds which financed the complex may make such a recommendation impossible to execute. However, significant strides have been made in improving the operating performance of the Inn. In the study we pointed out that successful boutique inns have restaurants which provide another source of revenue, in addition to room rental. Without a restaurant, the Inn could not compete effectively with boutique inns in the area which • have fine restaurants that complete the "getaway" experience. A restaurant has since been added with a moderate degree of success, although it is small by competitive standards. Reallocation of marketing dollars and other cost containment measures recommended in our 1993 study have been implemented with positive results. Nevertheless, operating performance at the Inn remains below break -even levels. While further improvement may yet occur, that condition is not expected to change. While the Inn is not a money maker in its own right, it does provide benefits to the complex as a whole which enhance overall performance and mitigate the negative financial impact of Inn operations. In 1995 and 1996 combined, a total of 56 percent of the wedding functions accommodated by the Center also booked rooms at the Inn. The 56 weddings generated a combined total of $335,287 in catering and facility revenue for the Center, not including rooms revenue generated at the Inn itself. This amounts to 10 percent of total functions at the Center during that period and eight percent of total facility and catering revenue. During this same period, a total of 58 companies used rooms at the Inn while holding functions at the Center. Functions held by these companies comprised nine percent of total functions with total facility and catering revenue from these functions equaled $1,582,788 or approximately 38 percent of all facility and catering revenue during the period. Of the 58 companies mentioned above, 29 first used the Inn at the complex before booking a catering /meeting function. The information described above is presented graphically on the following page. Pa; e 9 (uui ay ; ;e senn asn ;sai ;) as ;u00 96e;iaaH ay; o; paonpoa ;ui sey uul aye s ;uailo a ;eaodaoo as ;uaO uoi ;uanuo:D aL; Je s ;uana fuip1014 ajiynn suaooa uul asn oynn s ;uailo a ;eaodaoo swooa uul au ; loped ao lle Guisn s6uippa/N ■ OZ 0£ — 05 09 P"VJ IHI NO NN'l_, Earle BroiOz Herita3 e Center Onerational Studv - Auatist 1997 The total amount of facility and catering revenue tied to concurrent usage of Inn rooms amounted to 46 percent of total facility and catering revenue in 1995 and 1996 combined, according to statistics provided by management. While it is impossible to determine the number of weddings and corporate functions described above which would have not used the Center if the Inn had not been available, it is clear that the Inn is a valuable amenity and sales tool for the convention center. It also appears that functions which use Inn rooms are typically among the most lucrative since the proportion of revenue generated by such functions is much greater than their proportion of total functions accommodated. Reduction and Reallocation of Advertising Costs As alluded to above, our 1993 study recommended a reduction and /or reallocation of marketing expenditures. Specifically, a reduction in total marketing costs was recommended, particularly in the production cost of new material, and a reallocation of advertising expenditures away from the Inn which could receive no sufficiently commensurate benefit. Total marketing costs have been reduced by approximately $95,000 since 1993. During the same period, total facility revenue has increased and overall operating performance has significantly improved. Increase Sales Staff Efforts A related recommendation in the 1993 study was to place greater reliance on the then recently expanded sales staff and to focus in general more heavily on direct sales efforts and public relations events to build revenue. The effective implementation of this recommendation has been one of the primary reasons for the increased revenue despite decreased marketing dollars mentioned above. Improve Hiehwav Sienaee The Earle Brown Heritage Center has good visibility from the highway system which carries thousands of cars past its facilities each day. Unfortunately, due to its name and outward appearance, it is not readily apparent exactly what types of facilities the Heritage Center has to offer. In our 1993 study, we discovered that awareness of the Center was relatively low, particularly outside of Brooklyn Center. We recommended that highway signage be improved on and around the property to enhance its visibility and recognition. Existing signage ordinances have restricted the ability of the Center and the City to act on this recommendation. • Page 11 Rerita e Center Streamline Booking's and Create Packaee Prices Our 1993 study found that pricing at the Center was generally competitive. However, the need at that time for separate catering and function contracts and the policy of charging on an "a la carte" basis for virtually all A./V equipment created a false perception of high prices and a significant deterrent to potential patrons used to dealing with the inclusive package pricing which is the norm for the industry. This was one of the most significant impediments to increased function business. We recommended consolidation of the contract process into a single document for both catering and function space and creation of several package pricing options. These recommendations have been fully implemented. Increase Meetines Business Our 1993 study identified additional capacity for function business, particularly from the corporate and social segments, and encouraged a focus on further building that business base. Through the increased sales staff efforts and improved booking policies previously described, along with the maturing of the Heritage Center's position in the competitive market, total function business has increased significantly. Indeed, increased function and catering business are the primary reason for the positive operating performance of the complex in 1996. The graph on the following page shows room rental income by month for the years 1993 through 1996. With the sole exception of December, 1996 was the strongest year in every month. Change the iVame of the Facilitv A significant factor in the lack of awareness of the complex cited previously is the name Earle Brown Heritage Center. The name does nothing to suggest the primary facility offerings of the complex. Indeed it suggests a different type of facility entirely, a living history museum, an historic preservation site or a cultural center. Although we recognized that such a change could be a sensitive issue, we recommended consideration of a name change to more accurately reflect the facilities and services offered by the complex. No change in the name has yet been made. - - - Budget Process Our 1993 study recommended improved formal communication during the preparation of the annual budget and subsequent monitoring of performance as the most effective means of identifying costs which can be reduced and ensuring appropriate margins as utilization increases. Informal communication takes place on a frequent basis within the full -time, on -site staff and between the staff and the City. However, because of the gap between the time the annual budget is first prepared, the time it is finalized and the actual operating year, specific formal communication policies were recommended: Pa; e 12 9 66 966G s V66� £66 aap nON 1:30 jdaS Gny Aink aunt Aew add aew qa j uer - - - - - - - - 0£$ 0 - - -- - - - - - _ Off,$ - -- - - — - 05$ v — - 09$ W 09$ 966 1 E661 HINOW AET IVININ WOON Earle Brown Heritn e Center Operational Stu* A u3 uSt 1997 • 0 Facility management should be fully responsible for developing an initial budget with an agreed upon bottom line performance level based upon all relevant data, including planned wage rates as well as hours • Facility management should formally present the budget to representatives of the City and Economic Development Authority, with full documentation for each major cost and revenue category and with sufficient time to allow the City and Economic Development Authority adequate time for review • Following review, comments, questions, required changes in overall targets and suggested adjustments in individual categories should be discussed between the City and facility management, prior to any actual changes in the proposed budget Following final budget approval, facility management should prepare forecasts on a monthly basis, reflecting current conditions and adjust the operating profile of the facility based upon revised forecasts to ensure performance approximates overall budget goals as closely as possible • • Development of budgets for the following year should expressly consider actual and forecasted operating performance Our recommendations were based upon the expectation that a clearer definition of bottom line responsibility for facility management and a more formalized process for budget development, adjustment and monitoring should aid both management and the City in achieving ultimate performance goals. Since our study was completed and, in particular, within the past year, several enhancements have incurred in the budget process along the lines of the 1993 recommendations. Budgets prepared -by management now have a specific facility profile, statement of departmental goals and description of personnel levels for each major department. A long -term capital needs budgeting process is also now in place. In addition, administrative costs, which are common to the complex as a whole, are now budgeted and tracked separately, rather than being allocated proportionally to each of the operating departments. These enhancements not only improve the ability of facility and city management to identify and execute further cost savings programs, they will allow the City and the EDA to make better more informed judgments during the budget approval process. • Pad e 14 Earle Brawn Heritage Center Oneratioiza[ Sttrriv - A ti list 199 7 In order to illustrate the value in identifying administrative costs separately, the graph on the following page shows the marginal operating performance by component for the complex using the 1997 budgeted expense figures, with administration broken out separately, set against actual revenue for 1996. Also shown for comparison purposes is actual 1996 performance for the various revenue centers for the complex, which includes allocated administrative overhead. Budget recommendations from the 1993 study not fully implemented include the development of formalized, on- going, forecasting and performance review and greater facility management accountability for setting and achieving specific line item budgetary goals within the overall parameters set by city management and the EDA. SUNEWARY A number of recommendations made in the 1993 study have been fully implemented. Other enhancements have also been made by city and facility management. In combination with the maturing market position of the complex, these various enhancements resulted in the first net operating profit in the history of the facility in 1996. Some recommendations from the 1993 study have been implemented only partially or not at all. Those • which remain potentially valuable are incorporated in our Recommendations section at the conclusion of this report. Pave 15 MARGINAL OPERATING PERFORMANCE BY COMPONENT $400,000 -� $300,000 E - -- : $200 $1 00,000- $0 ($100 i i Mr - - - - -- -- -_ - -- - - - - -- - ($200 ------- ---T 1997 Budget 1996 Actual vs. 1996 Revenue Convention Center , Catering inn ■ Earles office Rental Total • ANALYSIS OF COMMUNITY INTERACTION • • Eatle Brown H &itag e Center Operational Stu* - Auf'ust 1997 ' v ANALYSIS OF COMMUNITY INTERACTION In addition to updating our 1993 study, we were asked to explore the level of interaction between the Earle Brown Heritage Center and private commercial development in the City of Brooklyn Center. In particular, the general level of hospitality development in the City of Brooklyn Center was evaluated to explore the level of synergy with the Heritage Center and the market implications of additional lodging development in connection with the complex. Retail and Restaurant Interaction The Earle Brown Heritage Center appears to have a positive, if relatively limited impact on restaurants in the surrounding community. Since the complex makes a considerable proportion of its money from catering events, the positive impact is limited to non -food functions. Patrons at non - catered functions may eat at area restaurants before or after the function itself or even during breaks, although day -long meetings generally include catered lunches. Inn patrons also use area restaurants on occasion, particularly when Earle's is not open. Comments obtained from operators indicated no serious competitive impact from Earle's on area restaurants. Since local restaurants do not have substantial cateringibanquet facilities, no serious • competitive impact is felt from convention center functions either. In addition, to exploring interaction with local restaurants, we interviewed management at Brookdale Center to determine the degree of interaction between the two complexes. Brookdale Center management is unaware of any notable interaction between the two complexes, Q p xes, either positively or negatively. Consumer shows housed at the Heritage Center have not had a negative competitive impact on similar types of functions accommodated by the mall. Consumer shows at the mall are arranged through a national booking agreement with touring events that visit several malls around the region and around the country. Consequently, the mall and the Heritage Center do not compete to rouse the same events. While Brookdale Center management acknowledged the possibility that visitors to the HeritaQe Center may also visit the mall, there is no formal program in place to draw or track Heritage Center visitors and the volume to date has not been sufficient to be noticeable in the absence of such programs. Brookdale management has not actively pursued any joint or cross marketing efforts with the Heritage Center. However, they did express some degree of interest in the concept. • Page 13 Earle Brown Herita- e Center Onerational Studv August 1997 Interaction with Area Hotels Interviews with Brooklyn Center hotel managers indicate that the Earle Brown Heritage Center is a welcome addition to the community which provides a positive impact on the local lodging industry. Functions at the Heritage Center frequently generate overnight rooms demand at local hotels, including both limited service properties such as the Super 8 and the full service Hilton. While specific numbers or percentages of rooms business were not available, hotel managers were uniformly positive about the degree of impact. One function alone scheduled for October of this year was cited as providing 200 roomnights of demand for the Hilton. To put this one event into context, when Marquette Advisors conducts hotel feasibility studies, a demand source capable of generating even as little as 200 roomnights for an entire year is considered valuable. In no instance did any of the hotel managers interviewed indicate any negative competitive impact from the Inn. While it is likely that some Inn guests might otherwise stay at local hotels, particularly the Hilton, if the Inn did not exist, the size of the property and its unique market position are such that it does not detract from the performance of privately operated hotels in the community. For the Hilton, which has significant banquet/meeting space of its own, a certain degree of competitive interaction with the Heritage Center for banquets and meetings was • identified, primarily for weddings and other social events. Again, however, differences in size and market position limit the overall degree of competition present. Hilton management was clear in indicating that the net impact of the Heritage Center was definitely positive toward their business. Market Implications of Additional Lod 'n? Development Both the City of Brooklyn Center and the north -metro area in general have active lodging industries which are currently undergoing expansions in the competitive supply. In Brooklyn Center proper, 1997 brings the opening of the 84 -room Country Inn & Suites, the renovation and reopening of the former Days Inn as a Holiday Inn and a proposal to develop a new 80 -room An}erichm. Other proposed or newly opened developments in the region include a proposed Sleep Inn in Brooklyn Park, a new Hampton Inn and a new Extended Stay America in Maple Grove, a new Holiday Inn Express and proposed AmericInn in Coon Rapids along with the Fairfield Inn which opened in August of 1996, and an expansion of the Holiday Inn Express in Golden Valley. Altogether, these properties represent over 800 new rooms proposed, under construction or opened within the past year. • Page 19 Earle Brown erita Ce tt&Whneht al & # A rest 1997 y i v Information on the occupancy and average rate performance of hotels in Brooklyn Center and in the north -metro area in generally was compiled by Marquette Advisors. Additional information was obtained from Smith Travel Research, a Tennessee company which is the leading source of lodging industry performance data in the United States. The graphs on the following two pages compare the estimated market wide occupancy level and average daily room rate for Brooklyn Center hotels and for the entire north -metro area by quarter for the past three years. Although the supply of hotel rooms is growing in Brooklyn Center and the surrounding north -metro area, indeed, in large part because of such growth, overall marketwide occupancy levels have remained between 50 and 60 percent in Brooklyn Center and between 60 and 70 percent in the north -metro area on an annual basis. Supply growth has essentially outpaced growth in demand resulting in low overall occupancy levels. Typically, new hotel development or expansion is considered when occupancy levels surpass 70 percent on an annual basis, although there are numerous exceptions where individual projects make economic sense even when market occupancies are lower. There is no question that additional lodging development adjacent to the Heritage Center would have a positive impact on the financial performance of the Center itself. However, if such development • were operated by the City it would also increase the negative impact of publicly operated businesses on surrounding privately operated competitors, while reducing the positive flow of rooms business to private hotels currently generated by the Center. If, as is more likely, such development were privately owned and operated, it would still have a competitive impact on existing Brooklyn Center hotels, even as it helped to increase the utilization of the Center. Given the current competitive environment, with a burst of private lodging development already in progress and a relatively low market wide occupancy, it is likely that a private developer would seek financial assistance from the EDA to complete a new hotel project adjacent to the Heritage Center. Carried one step further, it is very likely that the EDA would need to offer such assistance in order to generate interest in the private sector to under take such a development. SUMMARY Interaction between the Heritage Center and the surrounding community is generally positive. Brooklyn Center hotels in particular receive benefits from conferences at the Heritage Center and do not generally experience any significant competitive impact from the Inn. Current market conditions, including already highly active private sector hotel development, would likely require use of city funds to effect development of significant • additional lodging at or near the Heritage Center. Pale 20 JBIUOO UA110043 96 40 4117 96 a1D PUZ 96 J1D 4117 96 X10 PUZ 176 a10 MV 176 SID PUZ 96 40 PJ£ 96 J101SL.. 96 40 PJ£ 96 40 4s6 176 40 Pa£ 176 401st 0 0� OZ 0£ n Oil z� i1J 05 C) OL 08 06 ADNV 11 Jejueo UApjooJB 96 J10 (1117 96 40 PUZ S6 a10 4117 96 110 PUZ 176 40 41V 176 40 PUZ 96 J10 PI£ 96 J101S1, 96 J10 PI£ 96 J10 1SL 176 X10 PI£ V6 alb IS 0 0� OZ OE OV rm 09 " OL 08 11" al)"aAV 1110H • RECOMMENDATIONS • • Earle Browft Heritn (Ye C'ejtter nneratiotral Studv - Aica rrst 1997 RECOMMENDATIONS Based upon our analysis of the on -going operations of the Earle Brown Heritage Center and its various components, our review of the status of recommendations made in our 1993 study of the Center and our analysis of the interaction between the Heritage Center and other private sector businesses in Brooklyn Center, we have developed a series of recommendations which we believe will further enhance the performance of the complex, enabling it to more fully achieve the goals of the EDA and city management, within the context of the unique environment within which the complex operates, the benefits it provides to the community and the legal constraints imposed by the bonds used to finance its development. The Earle Brown Heritage Center has made significant strides since our 1993 study, achieving better than break -even operations for the first time in 1996. Many of our 1993 recommendations have been implemented in some form and other changes /improvements have been made which have enhanced performance. The Inn remains unprofitable. However, it has a positive impact on the complex as a whole. Bond related legal restrictions limit options for changing the basic operating structure of the Inn. Interaction between the Heritage Center and the surrounding community is generally positive. Development of additional lodging at or near the Center would likely require financial support from the city to be • successful at this time. Based upon these considerations and the other factors described in the previous sections we recommend the following: 1. MARKET CONDITIONS DISCOURAGE USE OF CITY FUNDS TO EFFECT DEVELOPMENT OF SIGNIFICANT ADDITIONAL LODGING AT OR NEAR THE HERITAGE CENTER: The same market conditions which make such funds necessary discourage their use at this time. The active level of privately sponsored development, low occupancy levels among existing properties and positive benefits produced by the Center for existing hotels would all experience a negative impact from further lodging development at the Center. If, as the result of a competitive market place, private entities seek such development, the negative impacts listed would be a natural and acceptable consequence. For the city to actively encourage such development, however, and to offer city assistance beyond that which is normally available would inject a new and unwelcome element into the marketplace which other projects likely would not have anticipated and may not be able to overcome. 2. CONTINUE TO PURSUE NAYS TO IVIPROVE OPERATING PERFORINIANCE AT THE INN AND EARLE'S UNDER THE CURRENT STRUCTURE: Although they are not expected to break -even under such a structure, there appears to be further room for improving the combined performance of the Inn and Earle's restaurant. Options for further improvement include a reduction of labor costs by eliminating or altering night. time desk • coverage, consolidating other operating tasks amongst the manager and other staff to Pag e 24 Earle Brown Her tna e Center Operational Studv Artr rest 1997 • reduce periods of multiple staffing and closing of the facilities either during standard non- peak periods or on an ad hoc basis when advance bookings are insufficient. We consider the Inn and Earle's to be a valuable addition to the complex as a whole which warrant a degree of marginal operating loss in exchange for the enhancement of the convention/catering business. Within that context, the operating focus of the facility should shift from an attempt at independent success to the most cost effective means of achieving the desired benefits for the convention center. A degree on on -going regularly scheduled operations is likely to be necessary to maintain those benefits, even beyond periods when the specific beneficial functions occur. The key will be to find the proper balance between cost saving changes and continued beneficial and sustainable operation. 3. CONDUCT NEGOTIATIONS WITH THE HILTON OR OTHER AREA HOTEL FOR dOINT.MA1INAGEMENT OF THE INN: Although the sale or lease of the Inn is restricted by bond related legal requirements, discussions with city officials indicated that a form of outside management for the Inn may be obtainable on a contractual basis which could reduce or possibly eliminate the marginal operating loss produced by the facility while maintaining its beneficial impact on the remainder of the complex. Whether there is interest from a private parry in such an arrangement and under what terms it can be negotiated remains to be determined. However, we consider it to be worth pursuing further. Care must be taken that such an arrangement preserves the ability of the City and Heritage Center management to ensure adequate quality control and smooth coordination and cooperation with patrons of the balance of the complex. 4. INCREASE AVAILABLE MEETING SPACE AS OFFICE SPACE BECOMES AVAILABLE: Certain office leases will soon expire which could free additional space for meetings and banquets with a relatively limited amount of renovation. The growth in meetings business at the Center over the past four years was discussed in our analysis of our 1993 study recommendations. In addition, catering business is the most profitable component of the complex as a whole. Based upon a review of denials due to lack of space /prior bookings, considerable additional demand could be accommodated with additional meeting space. Converting the vacated office space is the most cost effective means of adding such space. The graph on the following page presents a breakdown of denials due to prior booking of the desired space. 3. COMPLETE IMPROVEMENT TO LOWER LEVEL MEETING ROOMS: Related to the same issue of increasing usable meeting /banquet space, improvements proposed for the lower level meeting rooms in the convention center will significantly increase the demand which that space can accommodate. The issue here is not the size of the space, which would not change, but its quality and appeal to the customer. In particular, the improvements will render the lower level space considerably more attractive for banquets • and social functions which are among the most lucrative events held in the complex. Page 25 v I - mI ul im m U Q F I v G:7 = x U Q Q Earle Brown Herita?e Center nnerational Studv - Aug ust 1997 6. IMPROVE COMMUNICATIONS WITH BROOKDALE CENTER: Although improved communications with Brookdale Center are not expected to generate dramatic benefits for either complex, they also would not cost a great deal in terms of time or money and could easily produce some modest positive effect. Direct communication between the marketing staff at the mall and at the Heritage Center could evolve into cross marketing efforts, coupon or shopping package programs and other initiatives which could provide a small added amenity to patrons of the convention center and /or the Inn while increasing the likelihood that patrons of the Heritage Center would visit the mall. 7. IMPROVE HIGHWAY SIGNAGE AND CONSIDER NAME CHANGE: City regulatory restrictions notwithstanding, creative means of making improvements to the signaQe of the Center visible from the highway should still be explored to raise overall awareness. A change in the name of the complex would also aid considerably in improving awareness of the actual facilities and services the complex has to offer. An example of an alternative name is already in place: the "Inn on the Farm." A similarly descriptive name for the convention facility (i.e. "The Convention Center at Earle Brown Commons ") would call the attention of unfamiliar residents and businesses to the facilities available. S. INCREASE ACCOUNTABILITY OF FACILITY MANAGEMENT FOR MEETING • BUDGET GOALS: As discussed in the our review of the 1993 study, significant improvements have been made in the budgeting and accounting process. Added to these improvements, we recommend that facility management maintain on -going tracking of revenue and key expense items on a quicker turn around basis than is possible from the regular monthly statement produced by the City accounting department. The tracking mechanism should be coupled with on -going forecasting of performance for the remainder of the given operating year to allow for adjustments in the operating profile of the complex in the event of substantially better or worse performance than originally anticipated. Management should also be held accountable for the proper expenditure of monies within the limits approved by the EDA without continual recourse to City management on a case by case basis. City management should still retain direct oversight of expenditures for capital improvements and other large dollar items. 9. CONDUCT A JOINT EDAIMANAGEMENT WORKSHOP TO CREATE A "iVIISSION STATEIVIENT" FOR THE CENTER: The mission statement of the Earle Brown Center has never been explicitly defined. This is particularly difficult for the EDA whose composition changes over time, as new members are not familiar with the overall goals and objectives set in prior years. Although facility management has been stable for several years, the same would be true for management if changes occur in the future. A joint workshop between the EDA and facility management with effective facilitation by an independent party could produce a mission statement to guide and inform all parties in the • future, as well as the community as a whole. Page 2 7 Earle Brown Heritaa e Center Operational Studv - Au3 ust 1997 • 10. CREATE A RESERVE FUND FOR CAPITAL IMPROVEMENT: The Earle Brown Heritage Center finally achieved better than break -even operations in 1996. However, it is unlikely to ever be capable of independently supporting all of its on -going capital needs, particularly given the historic nature and alternative usage of the original buildings in which it is housed. This is not unusual for facilities of this type. Indeed, it is the norm. Rather than dealing with capital needs, which can fluctuate dramatically in cost on a year to year basis, as they arise, creation of a capital reserve fund is recommended which would receive a steady stream of payments to buttress against expensive capital projects in the future. The long -term capital budgeting process already in place provides an ideal foundation to initiate such a fund. Excess operating profits from the complex can certainly be used to help fund such a reserve. However, additional funding is likely to be necessary. Other sources for such funding could include TIF funds, hotel taxes from the new properties opening in Brooklyn Center or other specifically designated funds. It is important to point out that the establishment of such a fund takes no more money from other areas of city government than will ultimately be needed in any case. It simply takes the money in a more steady, orderly and dependable manner to avoid unpleasant surprises. 11. INCREASE PARKING AS FUNDS BECOME AVAILABLE: Although not specifically covered by our review of the 1993 study or analysis of community interaction, additional • parking at the complex is becoming of greater importance as meetings and banquet business increases. Disputes have occurred over parking areas used by the Center which have been taken by tenants of visitors to the neighboring office tower. For large scale functions, parking often spills on to the access road, which requires a long trek for patrons, particularly unpleasant in the winter. Additional parking will be of even greater importance if additional meeting space is added as previously recommended. Unfortunately, despite the need, cost and space constraints make further parking expansion difficult. However, further exploration of expanded parking options is recommended to prevent parking from becoming a serious obstacle to further revenue growth. • Paae 28 City of Brooklyn Center A great place to start. A great place to stay. • To: Mayor Kragness and Council Members Carmody, Hilstrom, Lasman and Peppe From: Michael J. McCauley City Manager Date: April 17, 1998 Re: Work Session Dates I would suggest the following dates as possible work session dates: Monday May 18th - preliminary budget identification of Council issues /goals - Brookdale - other items? A general June work session on: • Monday June 1 st or Monday June 15th Current schedule of meetings: April 20th Work Session April 21 st Joint Informational Meeting with Housing Commission April 27th Regular City Council Meeting April 29th City Council public meeting on Senior Cooperative Housing proposal May 4th Board of Review May 1 lth Regular City Council meeting May 26th Regular City Council meeting June 8th Regular City Council meeting June 16 -19 League of Minnesota Cities Conference June 22nd Regular City Council meeting 6301 Shingle Creek Pkwy, Brooklyn Center, kfN 55430 -2199 • City Hall & TDD Number (612) 569 -3300 Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494 An Affirmative Action /Equal Opportunities Employer