October 18, 2017 Board of Directors Meeting Minutes

BOARD OF DIRECTORS
October 18, 2017

CALL TO ORDER

President Whitfield called to order the October 18, 2017 special meeting of the Board of Directors of Apex Park and Recreation District, held at 6:30 p.m. in the Randall Room at the Apex Center, 13150 W. 72nd Avenue, Arvada, Colorado. Board members in attendance were: Jim Whitfield, Jeff Glenn, and Kristen Larington. Director Pyne was in attendance via teleconference. Director Skul was absent, absence excused. District staff members present were: Lauri Dannemiller – Executive Director; Bob Roby and JoAnn Gould – Deputy Directors; Jim Reasor – Finance and HR Director; Brent Anderson – Racquet Sports Manager; and Dawn Fredette – Executive Assistant and Recording Secretary. Also present was David Bell of Stifel Nicolaus & Co., Inc., Underwriters.

APPROVAL OF AGENDA AND ADDITION OF AGENDA ITEMS

MOTION: Director Glenn moved for approval of the Agenda. Director Larington seconded and the motion passed unanimously.

APPROVAL OF MINUTES OF THE SEPTEMBER 21, 2017 MEETING

MOTION: Director Glenn moved for approval of the Minutes of the September 21, 2017 meeting. Director Larington seconded and the motion passed unanimously.

PUBLIC INPUT – None

NEW BUSINESS:

1. Consider Approval of a Resolution Authorizing the Execution and Delivery of the District’s Refunding and Improvement Certificates of Participation (COPs), Series 2017 (Resolution No. APRD2017-19)

Ms. Dannemiller explained that the Board is being asked to approve the funding for the Apex Center roof and HVAC improvements, which includes refinancing the 2010 Certificates of Participation. She also explained that the District is using COPs instead of cash to not deplete reserves. Because the roof needs immediate attention, waiting to build up fund balances is not an option.

Discussion ensued regarding the impact, if any, to future financial options involving Meyers Pool. Ms. Dannemiller noted that due to the District’s low debt to income ratio, the District would still be able to support future funding for Meyers Pool, within reason.

There was also discussion on potential pool closures during the roof work. Mr. Roby indicated there might be a few minor closures for safety issues, but no sustained closure. The roof work will take 6-8 weeks to complete, but permitting will likely increase the total amount of time.

Mr. Bell discussed the Moody’s ratings call today, which went well. He also discussed the timeline for obtaining the funds and noted the money should be available in mid-November. Mr. Bell further discussed the refinancing of the Field House COPs and interest rates.

MOTION: Director Glenn moved for approval of RESOLUTION NO. APRD2017-19, authorizing the execution and delivery of the District’s Refunding and Improvement Certificates of Participation, Series 2017. Director Larington seconded and the motion passed unanimously.

2. Consider Resolution for Final Guaranteed Maximum Price (GMP) – Lutz and Long Lake Ball Field Projects

Mr. Roby reviewed his memo and explained this is a second amendment to the CMGC contract with ECI, and final GMP for the second amendment. There will be a third amendment and corresponding final GMP in the future. Mr. Roby also discussed the impact weather has had on the projects.

MOTION: Director Larington moved for approval of RESOLUTION NO. APRD2017-20, A RESOLUTION AUTHORIZING THE SECOND AMENDMENT TO THE CMGC AGREEMENT WITH ECI SITE CONSTRUCTION MANAGEMENT TO ESTABLISH A FINAL GMP FOR THE APEX LUTZ AND LONG LAKE BALL FIELD PROJECTS.  Director Pyne seconded and the motion passed unanimously.

3. 2018 Budget Overview

Mr. Reasor gave a PowerPoint presentation on the 2018 Budget. Topics included:

– fund structure of the budget
– the budget by fund and various factors that impacted budgeting
– sources of funds – primarily charges for services followed by property taxes
– expenditure categories
– budget issues for 2018 including debt/bond projects, capital budget, new facility operations, and employee compensation
– additional info on sources of funds and expenses in the General Fund
– snapshot of 2018 Budget summary by fund
– FY17 and FY18 highlights
– upcoming budget dates and deadlines

Ms. Dannemiller explained that 2018 is a transition year with the new facilities and staffing. She noted some of the staffing will need to occur prior to facility opening. She also discussed fee increases being a District-wide focus, not to offset costs of the new facilities. Ms. Dannemiller further noted that the proposed changes in organizational structure, i.e., centralizing fitness, will be more efficient.

Discussion ensued about the addition of high level positions in the new organizational structure and the reorganization of District Services. There was also discussion about the shift in income sources. It was also noted that the District has its new procurement policy in place.

The Board thanked Mr. Reasor for his work on the 2018 Budget and the presentation.

4. Bond Projects Update

Mr. Roby gave a PowerPoint presentation and discussed the status of construction at each project site. Presentation topics and discussion included the following:

• Fitzmorris and Secrest
– the foundations
– the goal to have both centers open by Memorial Day weekend 2018
– the dirt that’s been moved to Secrest

• Tennis Center
– outdoor tennis courts and fencing; anticipated completion date is late Oct
– Tennis Center structure; anticipated completion for whole project is Jan 5

• Lutz
– the stream; utilities are in; sloping issues
– buildings being set the week of Nov 3
– identification of the posts for the backstops

• Long Lake
– two ball fields have been rough cut
– the artificial turf fields, turf material, and studies on artificial turf materials

• Apex Center – Splash Pad and Indoor Middle Pool
– weather delays and mitigation steps to dry the splash pad site; completion after Christmas; commissioning in the Spring at same time as indoor playground
– middle pool demo started this week; project scheduled to be done shortly after Thanksgiving

Mr. Roby noted that each team is doing their best to catch up following delays. There will be challenges getting the ball fields opened timely.

The Board thanked Bob for his work on the bond projects and the presentation.

5. Consider First Amendment to the Intergovernmental Agreement (IGA) between the City of Arvada, Jefferson County School District, and Apex Park and Recreation District regarding Fitzmorris Recreation Center

Ms. Dannemiller talked about the initial IGA and that the amendment addresses some additional details, i.e., trash, snow removal and parking. These maintenance items will be handled by District Services. Ms. Dannemiller also discussed communications with the City.

MOTION: Director Larington moved for approval of the FIRST AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF ARVADA, JEFFERSON COUNTY SCHOOL DISTRICT, AND APEX PARK AND RECREATION DISTRICT REGARDING THE CONSTRUCTION AND MAINTENANCE OF THE FITZMORRIS RECREATION CENTER AND RELATED OBLIGATIONS. Director Glenn seconded and the motion passed unanimously.

6. Senior Leadership Team Presentation – Apex Tennis Center

Mr. Anderson introduced himself and talked about his tennis background. He’ll have been with the District for 22 years next month. He’s excited for this new phase of the tennis program and thanked the Board for their support. Mr. Anderson also discussed current staffing and new full-time and part-time positions.

He then gave a PowerPoint presentation which included the following:
– a rendering of the entire facility, which will have controlled access at all times
– 2018 budgeted revenue; permanent court time biggest source of revenue
– a lottery for permanent court time will be held Nov 17; there will be 128 time slots available and he’s expecting 200-400 people to enter the lottery; being offered to residents only to start
– youth tennis programming and the various ROGY levels; it’s a new USTA initiative and it’s free; manuals and different colored tennis balls for the different levels were distributed and explained
– 3v3 match play; Apex Academy Jr Program levels; Adult Tennis Programming; USTA Adult Leagues

Mr. Anderson discussed the transition of leagues from North Jeffco Tennis Club during 2018, and that Apex will take over in 2019. Details are being narrowed down for a Memorandum of Understanding. He also discussed hiring of the new tennis pro.

Additional presentation topics included:
– USTA sanctioned tournaments
– additional adult opportunities including lessons, drop-in play, indoor socials, etc.
– drop-in outdoor court rental and limited indoor
– Tennis Center open on Jan 5 with a grand opening on Jan 27
– Apex Foundation will not be doing an opening event

The Board thanked Mr. Anderson for his presentation.

OLD/OTHER BUSINESS – None

EXECUTIVE DIRECTOR REPORT

Ms. Dannemiller discussed the next payment to be received from the City for Fitzmorris.

BOARD MEMBER REPORTS/INPUT

Director Pyne had nothing to report at this time.

Director Larington had nothing to report at this time.

Director Glenn had nothing to report at this time

Director Whitfield reported that Kiwanis is planning a bowling fundraiser with silent auction. The Board agreed to donate a foursome at Indian Tree for the silent auction. Director Whitfield also noted that the Legion’s 1st Friday breakfasts have started up again. He attended this month’s breakfast and will attend next month as well.

ADJOURNMENT

MOTION: Director Larington moved that the meeting be adjourned. Director Glenn seconded and the motion passed unanimously.

President Whitfield adjourned the meeting at 8:25 p.m.

Respectfully submitted,

Dawn Fredette, Recording Secretary

ATTEST:

Kristen Larington, Secretary/Treasurer