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07-23-2024 WS City Council Agenda W ORK SESSION RICHFIELD MUNICIPAL CENTER, BARTHOLOMEW ROOM JULY 23, 2024 5:45 PM Call to order 1.Wood Lake Building Project Update with presentation by HGA and Local Option Sales Tax Ballot Language Discussion. Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9739. AGENDA SECTION:Work Session Items AGENDA ITEM #1. STAFF REPORT NO. 20 WORK SESSION 7/23/2024 REPORT PREPARED BY: Karl Huemilller, Recreation Services Director DEPARTMENT DIRECTOR REVIEW: Karl Huemiller, Recreation Services Director 7/17/2024 OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 7/17/2024 ITEM FOR WORK SESSION: Wood Lake Building Project Update with presentation by HGA and Local Option Sales Tax Ballot Language Discussion. EXECUTIVE SUMMARY: Wood Lake Nature Center Building Project Since the selection of HGA as the architectural firm, the building project team and HGA have been working together to engage the community in the design process, tour similar facilities and develop a schematic design. As part of the engagement process a three-hour open house was held at Wood Lake Nature Center, a survey was conducted receiving 949 responses, and three targeted engagement sessions were held. Staff toured five facilities with HGA to discuss floor plans, operations, displays, and mechanical systems. These facilities were Eastman Nature Center in Maple Grove, Spring Brook Nature Center in Fridley, Westwood Hills Nature Center in St. Louis Park, MWMO building in Minneapolis, and the Fraser facility in Woodbury. The feedback from the engagement sessions and information from the facility tours was used to develop an initial schematic design. During this time staff began assembling the team of contractors needed to complete the Wood Lake Nature Center building project. Survey - Sunde Land Surveying was contracted to perform a survey and wetland delineation. The survey included identifying any trees greater than four inches in diameter. The wetland delineation was completed in May and reviewed by a technical evaluation panel consisting of watershed district, city, county, and state representatives. Construction Manager at Risk – A rigorous open RFQ process was completed followed by an invitation only RFP process. Mortenson Construction was the highest-scoring firm showing a site-appropriate approach to the project, a strong team, and the ability to bring significant resources to support the project. They have also successfully completed similar projects and have experience working with HGA Architects. The City is currently in contract negotiations. Interpretive Display Designer - An RFP process was completed with two proposals submitted. The Science Museum of Minnesota in partnership with Blue Rhino Studios submitted a joint proposal which was selected. These two Minnesota-based firms bring a unique, creative approach and years of experience creating engaging interactive interpretive displays across the country. The City is currently in contract negotiations. Geotechnical and soil testing – AET was selected to provide geotechnical services to be used in the development of the design documents. These services should start in September. Local Option Sales Tax Ballot Language Staff had been working with Rapp Strategies on a communication plan for the Local Option Sales Tax question on the November ballot. City Council must review and approve the ballot language. Ballot Language for the Local Option Sales Tax questions must be submitted to Hennepin County 74 days prior to the election, Friday, August 23rd, 2024. The language must be reviewed and approved by City Council prior to this date. The current schedule is to review the language at the July 23, 2024 work session and approve final language at the August 14, 2024 City Council Meeting. Sample ballot language: Richfield residents are being asked to authorize the City of Richfield to impose a one-half of one percent (0.5%) sales and use tax to fund three separate parks and recreation projects that would restore natural habitat and enhance recreational facilities in the city. Residents must consider each project individually. City Question 1 SALES AND USE TAX FOR NEW COMMUNITY CENTER Shall the City of Richfield be authorized to impose a sales and use tax of one-half of one percent (0.5%) for up to 20 years, for $45 million plus the cost of interest and of issuing bonds, to build a new community center? Yes No By voting "yes" on this question you are voting to use a local sales tax in Richfield to pay for a new building that provides wellness and recreational activities, replacing the current Community Center. If any of the other questions are approved along with this question, the maximum total sales tax by the city would be 0.5%. The length of time may vary based on which other questions are approved, with a maximum of 20 years. City Question 2 SALES AND USE TAX FOR VETERANS PARK IMPROVEMENTS Shall the City of Richfield be authorized to impose a sales and use tax of one-half of one percent (0.5%) for up to 20 years, for $9 million plus the cost of interest and of issuing bonds, to enhance and restore facilities at Veterans Park including the outdoor pool, park trails and ice arena? Yes No By voting "yes" on this question, you are voting to use a local sales tax in Richfield to pay for the repairs and improvements of the pool, trails and pavilion, ice arena, bandshell and minigolf building at Veterans Park. If any of the other questions are approved along with this question, the maximum total sales tax by the city would be 0.5%. The length of time may vary based on which other questions are approved, with a maximum of 20 years. City Question 3 SALES AND USE TAX FOR NEW WOODLAKE NATURE CENTER BUILDING Shall the City of Richfield be authorized to impose a sales and use tax of one-half of one percent (0.5%) for up to 20 years, for $11 million plus the cost of interest and of issuing bonds, to build a new Wood Lake Nature Center building? Yes No By voting "yes" on this question you are voting to use a local sales tax in Richfield to pay for a new educational facility and site updates, replacing the current Wood Lake Nature Center building. If any of the other questions are approved along with this question, the maximum total sales tax by the city would be 0.5%. The length of time may vary based on which other questions are approved, with a maximum of 20 years. DIRECTION NEEDED: Staff is asking council to provide feedback and ask questions on the building design and site layout. Staff is also looking for feedback and questions on the draft language for the Local Option Sales Tax ballot question. BACKGROUND INFORMATION: A.HISTORICAL CONTEXT Wood Lake Nature Center Background Wood Lake Nature Center (WLNC) is a public facility that opened in 1971 and has always been free of charge. The center serves anyone who enters and helps connect them to the natural world through both passive and programmed learning opportunities. Currently, 60-70% of all site visitors are from the region and 30-40% visit from Richfield. We also are a short 10-minute drive to the Minneapolis International Airport and frequently host visitors from around the country and the world. Wood Lake Nature Center serves as the gateway for guests to explore the 150-acre park that surrounds it. There are over 3 miles of gentle hiking and cross-country ski trails for all to experience the many benefits of nature in three native Minnesota biomes: the forest, wetland, and prairie. People of all ages and abilities are served at WLNC and a large focus has always been on student education. WLNC has had an invaluable 50-year partnership with the local Richfield Public School District; each student from preschool through 5 th grade participates in 2-3 free environmental education field trips a year. Approximately 70% of the district’s students are of color and have a 60-80% free and reduced lunch rate. Currently, 7% of Richfield residents live at or below the federal poverty line. We also annually host dozens of other school groups from across the region, including schools such as Lucy Laney in North Minneapolis where the students have accessed the center via the Metro Transit Bus System. We regularly host SciTechAcademy, a Somali school. In previous years, we have been fortunate to secure grant funding for Little Earth schools to come to multiple environmental education programs throughout the academic year. Being an accessible and affordable site has always helped the center to attract a large diversity of schools from across the 7-county metropolitan area. We anticipate more space with a new building will allow for several groups at a time to schedule programs; with our current building, we are very limited by space. The additional space will also serve as valuable space for community groups and residents to utilize for meetings and special events. Also, educational exhibits and learning spaces are not fully accessible and are dated. A new building would afford the needed opportunity to design a fully accessible building that includes an inclusive multimodal approach to exhibits. Project Pre-Design A project team was formed in February of 2021 that included City of Richfield staff (Amy Markle, Dave Conrads, Paul Smithson, and Rachel Lindholm), and a group from the local architectural firm, HGA. The project team took a field trip to the new Westwood Hills Nature Center and learned about their process as well as worked for months on the pre-design of a new building. The pre-design process identified community needs for the new building, a general preliminary design, and a cost model. Following the pre-design process, the city was able to use the materials developed to raise funds for the project. In 2023 the City secured $15 million in funding, $12 million in state bonding money, and $3 million in federal funding. In the 2023 legislative session, the City also received authorization for a local sales tax referendum that could provide the final $11 million needed for the project. Architect Interview Process On October 13, 2023, the Wood Lake Nature Center Building Project Team put out an invitation-only RFP for architectural and engineering services for the design and construction administration of the new nature center building at Wood Lake. Six firms who have done similar work in the region were invited to submit proposals outlining their experience with similar projects, members of their project team, and approach to the project including community engagement and design schedules. Of the six firms invited, five submitted proposals, and three were invited to interviews based on the content of their proposals. Staff took into account the firms' understanding of the project, technical competence, experience with similar buildings, and the cost of their services. An interview panel was formed, consisting of members of the Wood Lake Nature Center Building Project Team as well as technical experts including the city engineer and a community development planner. In the interviews, the three firms introduced their teams, presented their project schedules, design development process, and technical expertise, and answered questions from staff. Following the interviews staff contacted references for each of the design firms. Architect Selection Out of this process, HGA was selected as the best firm for the Wood Lake Nature Center Building Project. HGA has the expertise to design and administer the construction of a building on a site with the complexities of Wood Lake Nature Center. They have experience working on municipal nature centers and community buildings having recently provided similar services for the construction of Westwood Hills Nature Center in St. Louis Park, MN, and the Plymouth Community Center in Plymouth, MN. HGA is a large firm with in-house staff for all aspects of design and construction administration, creating a strong and cohesive project team. They were the only firm to have an equity coordinator as part of the project team. The City also has experience working with HGA from the predesign process and HGA was the most cost-effective option among the firms interviewed with a cost of 9.4% of the building construction cost. Local Option Sales Tax The City of Richfield was granted the authority by the Minnesota Legislature this past session to bring Local Option Sales Tax to Richfield voters in the next two years at a general election. There are three regional park projects that will be placed individually on the ballot including: the Wood Lake Nature Center Building Project, Veterans Park Complex (including major aquatics improvements), and a new Community Center. The City Attorney has advised that the local option sales tax questions should go on the 2024 ballot as it is a general election. City staff has worked with Rapp Strategies, Inc., to develop an educational campaign for a 2024 referendum. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Equity: The public engagement process during the design phase of the project has focused on connecting with disadvantaged communities that are currently underrepresented in the users of Wood Lake Nature Center. Design also includes the goals of including feedback from a variety of community stakeholders, including the disability community, the Latine community, low-income residents, residents who live close to Wood Lake, visitors to Richfield, students who visit, and many more groups. Overall, the new building will provide increased accessibility to more groups and current ADA guidelines will be met which currently are not. Community engagement and a focus on designing a space welcoming to all are key pillars of the design process. Strategic Plan: This project best aligns with the strategic plan priority of Sustainable Infrastructure addressing all sub-initiatives of asset management, comprehensive funding, and sustainability efforts. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): The building design must comply with SB2030 and B3 standards, which are requirements as a part of receiving state bonding funds. The construction manager at risk selection must follow the process outlined in Minnesota Statues, section 471.463 D.CRITICAL TIMING ISSUES: Ballot Language for the Local Option Sales Tax questions must be submitted to Hennepin County 74 days prior to the election, Friday, August 23rd, 2024. The language must be reviewed and approved by City Council prior to this date. The last City Council meeting prior to the submission deadline is August 14, 2024. E.FINANCIAL IMPACT: Total Project Cost: $26 million 1 AGENDA | SECTION LAYOUTS 2 •HGA Project Team •Paul Smithson (WLNC Manager) •Karl Huemiller (Recreation Services) •Rachel Lindholm (Sustainability) •Dave Conrads (Building Operations) Ongoing meetings with project leadership: Interactive workshops with key groups •WLNC Staff •MIRA + Outdoor Latino •Richfield Public Schools •Fraser/People with disabilities Survey and open house •Richfield community •WLNC Visitors • • • • • • • • 3 AGENDA | SECTION LAYOUTS • • • • • • • 4 5 Sample Ballot Language Richfield residents are being asked to authorize the City of Richfield to impose a one-half of one percent (0.5%) sales and use tax to fund three separate parks and recreation projects that would restore natural habitat and enhance recreational facilities in the city. Residents must consider each project individually. City Question 1 SALES AND USE TAX FOR NEW COMMUNITY CENTER Shall the City of Richfield be authorized to impose a sales and use tax of one-half of one percent (0.5%) for up to 20 years, to finance up to $45 million plus the cost of interest and of issuing bonds, to build a new community center? •Yes •No By voting "yes" on this question you are voting to use a local sales tax in Richfield to pay for a new building that provides wellness and recreational activities, replacing the current Community Center. If any of the other questions are approved along with this question, the maximum total sales tax by the city would be 0.5%. The length of time may vary based on which other questions are approved, with a maximum of 20 years. City Question 2 SALES AND USE TAX FOR VETERANS PARK IMPROVEMENTS Shall the City of Richfield be authorized to impose a sales and use tax of one-half of one percent (0.5%) for up to 20 years, to finance up to $9 million plus the cost of interest and of issuing bonds, to enhance and restore facilities at Veterans Park including the outdoor pool, park trails and ice arena? •Yes •No By voting "yes" on this question, you are voting to use a local sales tax in Richfield to pay for the repairs and improvements of the pool, trails and pavilion, ice arena, bandshell and minigolf building at Veterans Park. If any of the other questions are approved along with this question, the maximum total sales tax by the city would be 0.5%. The length of time may vary based on which other questions are approved, with a maximum of 20 years. City Question 3 SALES AND USE TAX FOR NEW WOODLAKE NATURE CENTER BUILDING Shall the City of Richfield be authorized to impose a sales and use tax of one-half of one percent (0.5%) for up to 20 years, to finance up to $11 million plus the cost of interest and of issuing bonds, to build a new Wood Lake Nature Center building? •Yes •No By voting "yes" on this question you are voting to use a local sales tax in Richfield to pay for a new educational facility and site updates, replacing the current Wood Lake Nature Center building. If any of the other questions are approved along with this question, the maximum total sales tax by the city would be 0.5%. The length of time may vary based on which other questions are approved, with a maximum of 20 years. Construction Costs: $18 million Includes escalation, design contingency, construction contingency, general conditions, construction management fees, bonds/insurance, and permitting. Project Soft Costs: $8 Million Includes professional services fees, fixtures/furniture/equipment (FFE), exhibits, testing/inspections, survey, AV/Technology, owner contingency, etc. Funding: State Bonding - $12 million Federal Grants - $3 million Unsecured Funding - $11 million (Bonds paid by Sales Tax Option or Property Taxes depending on outcome of referendum) F.LEGAL CONSIDERATION: None ALTERNATIVE(S): PRINCIPAL PARTIES EXPECTED AT MEETING: