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09-17-13 SSC Advisory Cmt Agenda Southshore Center Advisory Committee City of Shorewood Tuesday, September 17, 2013 5755 Country Club Road 4:00 – 5:30 PM Council Chambers Members: Paul Skrede, Mayor, Deephaven____ Mary Jo Fulkerson, City Council Member, Excelsior____ Debra J. Kind, Mayor, Greenwood____ Kristine Sundberg, City Council Member, Shorewood____ Elli Ansari, City Council Member, Tonka Bay ____ Theresa Zerby, Southshore Senior Partners____ Erik Sill, Minnetonka Schools VANTAGE program____ Others: Bill Joynes, City Administrator, Shorewood____ Twila Grout, Park & Rec. Coordinator, Shorewood____ Scott Zerby, Mayor, Shorewood____ AGENDA 1.Roll Call 2.Approve Agenda 3.Approve Minutes of August 27, 2013 meeting (Attachment 1) 4.Summary of Past Information (Attachment 2) 5.Summary of September 10 meeting with Tim Litfin, Director, Minnetonka Community Education (Attachment 3) 6.Update from Member Cities 7.Other 8.Adjourn ATTACHMENT 1 - REVISED Southshore Center Advisory Committee City of Shorewood Tuesday, August 27, 2013 5755 Country Club Road 5:00 – 6:30 PM Council Chambers MINUTES 1.Introductions/Roll Call Present: Shorewood: Councilmember Kristine Sundberg Bill Joynes, City Administrator Mayor Scott Zerby Twila Grout, Park & Rec Coordinator Excelsior: Councilmember Mary Jo Fulkerson Greenwood: Mayor Deb Kind Tonka Bay: Councilmember Elli Ansari Deephaven: Mayor Paul Skrede (arrived at 5:07 p.m.) Other: Theresa Zerby, Southshore Senior Partners Eric Sill, VANTAGE Program Absent: None 2.Approve Minutes of August 8, 2013 Meeting Kind moved to approve the minutes of the August 8, 2013 meeting as written. Sundberg seconded the motion. Motion carried. 3.Update from Member Cities Kind stated Greenwood City Council has not met since the last meeting. She stated she, S. Zerby, B. Joynes and Tim Lifkin from MCES will be meeting on September 10 to discuss any possible commitment from them on the future of the Center. Fulkerson reported on the Excelsior meeting and noted there were not a lot of positive responses from the Council. She stated she had no concrete responses at the meeting. She stated there is one Councilmember who would like to know the trends over the last five years. She stated she is a strong supporter of the Center and is curious how the funding got so messed up. She would like more clarification. Sundberg asked if the negative feelings were about what is happening now or the future. Fulkerson stated the feelings are about the future of the Center. Sundberg stated she asked how the usage has changed over the last five years. She believed it has increased. She stated fees should be charged for usage. Ansari stated the Tonka Bay City Council appreciates the building asset and would like to continue any future support of the capital asset. She discussed the need for future marketing of the Center. She didn’t believe there was any interest in helping with programming. Sundberg stated the Shorewood City Council values the Center. The challenge now is to determine what the future is. S. Zerby stated nothing has changed from the Council’s point of view, and they still value the Center. Deb Siakel, Shorewood City Councilmember stated she would like to see more support from the other cities. Sundberg asked if there are any other things we should be exploring as a group before final decisions on participation are determined. 4.Discuss Other Proposals S. Zerby distributed a proposal where the other cities would be asked to sponsor an active elder program. He discussed the cost associated with such a program which includes the need for staff, rent and overhead. Staff would help manage the facilities and help with programming. He reviewed a simple formula based on tax capacity which would result on contributions from the other cities for a total of $30,800 a year. Kind noted Greenwood is shown on the list twice, and Deephaven is not included. S. Zerby noted it is a clerical error and will be corrected. S. Zerby stated the building would be used the rest of the time under a Joint Venture Program with groups such as MCES, Mrs. M, and Joey Nova’s. Joey Nova’s has indicated they would like to rent the building for their larger events. S. Zerby also reviewed an “exit” clause whereby a city would pay Shorewood for the last three years in order to make them whole and “walk away” from the original construction donation. Committee members discussed what the amount would mean for their individual cities. Fulkerson asked if grant money was a possibility. S. Zerby stated there was grant money given to the seniors, and it has now gone away. He noted it was then run by volunteers, then a director, and fundraising was also done for a while. Skrede stated if he were to relinquish their portion of the ownership, he would like to know how much the amount would actually be for Deephaven. Skrede stated if he were to relinquish Deephaven's portion of the ownership, he would want to be assured that portion was transferred directly to Shorewood, not divided among all of the Cities. Kind stated Greenwood would be opposed to ad valorem and would prefer percentage of ownership or based on the population. She stated usage would also be a preferred method to determine the contribution. Kind stated Greenwood would support capital expenses but not programming. Ansari stated she would take on the task of preparing a list of public funding sources. T. Zerby suggested she check with Shorewood staff to find out who they have reached out to in the past for funding. . Sill stated Hopkins School District works with the City to run a coffee shop at the Depot that runs well. He also noted there is a lot of entrepreneurial ability throughout the area that could also be tapped. In response to a question from S. Zerby, he stated he would find out who to contact for more information. He also noted there are a lot of high school students who are looking for community service opportunities. S. Zerby discussed future plans to upgrade the adjoining park which would create new parking spaces for the Center. 5.Operating Expenses Summary Expense and revenue information were included in the meeting packet. 6.Set Next Meeting Date The next meeting will be held on September 17 at 5 p.m. 7.Adjourn Motion by Kind to adjourn the meeting at 5:43 p.m. Sundberg seconded the motion. Motion carried. Respectfully submitted, Clare T. Link Recording Secretary Attachment #2 Southshore Center Advisory Committee Summary Information, September 11, 2013 Please find below a compilation of the information, options and community positions that the Advisory Committee has received over the last several months. It is hoped that with this summary the Committee can move to a recommended solution to the Center’s operations this fall. Each of the sections below reflect information provided by the various cities party to the original founding agreement and the Senior Partnership. Legal Status: In June of 2009 the Founding Cities (Landlord) entered into an agreement with the City of Shorewood (Tenant) to designate Shorewood as the controller and operator of the existing Center. The purpose was to “undertake its best efforts to make the Center widely available to all citizens and residents.” Shorewood was given the option of contracting the management of the Center to an outside party which it did in July of 2009. That agreement was amended in January of 2012 to increase the staffing hours at the facility. Shorewood’s designation as Tenant was to expire on December 31, 2012. The lease would renew for successive three year terms unless a written notice was received from tenant. That notice has not been given. In March of 2013 Shorewood accepted the termination of the managing contract with Kristi Anderson. In the summer of 2013 the City of Shorewood asked for the Founding Cities and the Senior Partnership to participate in an Advisory Committee to explore options for the future of the Center. The existing Lease agreement (2009) is silent on any financial obligations of the Founding cities and assigns normal operating costs and maintenance of the facility to the Tenant. Financial Operations: While the Center experienced some initial success with the “contractor” relationship with Ms. Anderson, the increased hours in 2012 did not result in a corresponding increase in revenue. In 2012 and through most of 2013 the Center has run a deficit. That deficit, on average, is about $60,000 per year and has been subsidized by the Shorewood General Fund Reserve. Currently, Shorewood is providing staff to maintain the current schedule which includes one half time Manager and several part time Building Coordinators in addition to part time janitorial support. At that level of staffing and expected use of the Center, the $60,000 deficit will likely occur again in 2014. Capital Costs: To maintain the existing use of the Center, Shorewood estimates that a ten year Capital Budget of $88,500 would be necessary to cover the items of the roof, HVAC, water heater and exterior painting. There is no budgeted money for repairs and upgrades for the commercial kitchen which is starting to become a concern. Historical Contributions: Initial contributions for the construction of the Center were as follows: Shorewood $311,000 50.00% Deephaven 139,639 22.45% Excelsior 90,812 14.60% Tonka Bay 55,980 9.00 % Greenwood 24,569 3.95% Friends of the South Shore Center contributed an additional $100,000, although they were not considered “owners” of the facility. They did subsequently enter into a lease arrangement with the Founding Cities. A number of the Cities on the current Advisory Committee have presented documentation relating to additional, ongoing contributions and rental fees for the facility but admittedly the records are not consistent and would need further review if those monies become a factor going forward. Facility Usage: Data presented by the South Shore Senior Partners, provided below, gives a picture of the usage of the Center relating to their programming. It should be noted that the actual collection of the data is informal and the numbers should be used in the most general fashion. Numbers reflect usage in the last year. Shorewood 6,444 Excelsior 4,224 Tonka Bay 1,521 Deephaven 1,103 Greenwood 193 Other Cities 20,241 South Shore Partners Membership: The current membership in the South Shore Senior Partners is estimated to be 2 to 3 hundred. The percentage breakdown by City is as follows: Excelsior 34.3 % Shorewood 29.0 % Tonka Bay 7.3 % Deephaven 4.0 % Greenwood 3.0 % Total population by City: Shorewood 7,312 47.7 % Deephaven 3,643 23.8 % Excelsior 2203 14.4 % Tonka Bay 1477 9,6 % Greenwood 688 4.5 % 15,323 100 % Going Forward: The Advisory Committee has discussed a number of options for the future operations and use of the Center as well as different levels of involvement for each of the Founding Cities. In summary form, topics explored have included:  Sale of Building and distribution of assets.  Enhanced Center with additional staffing support and capital resources with new funding formula decided by remaining cities.  Joint South Shore Park and Recreation/Event coordination and Center operation  A new Public / Private contractor arrangement  Option allowing Founding Cities to drop their equity and any further involvement o obligation.  Maintaining the current minimal operation with an additional “Active Senior Program”  Maintaining current program with remaining cities sharing repair and capital costs  Contributions to Shorewood for some or all of the last several years’ deficits.  Partner with Minnetonka Community Education in some form to enhance programming and provide cost sharing  New Name New Brand City Positions: As of the date of this summary, cities on the committee have provided initial reactions solicited from their full Councils concerning their preferred level of future involvement. The positions below are considered “initial” in nature and are not in response to any specific proposal. Shorewood The City Intends to be involved Deephaven At this point they are likely out and will transfer their equity to the new organization Greenwood Will likely support continued operation with CIP support, not operations Tonka Bay May support CIP costs and possibly some operations Excelsior No preference stated as yet Southshore Center (SSC) Meeting with Tim Litfin September 10, 2013 Participants: Bill Joynes, Shorewood City Administrator Deb Kind, Greenwood Mayor Tim Litfin, Director of Minnetonka Community Education Services (MCES) Scott Zerby, Shorewood Mayor Discussion: A. Tim said that MCES has a need for more space to keep up with demand. B. Key assets of the SSC are ... a. The commercial kitchen. b. The ability to have alcohol on the premises for weddings, anniversar C. Tim said he discussed the concept of MCES doing programming at the SSC with his staff and there is interest, but details would need to be worked out. D. The timing of this discussion is about right, because there still would be time to include SSC programming in the next MCES booklet that comes out at the end of December. E. The group discussed rentals and decided that it would be best ifMCES took care of all scheduling, so all of the SSC space information is in one place. F. While MCES is interested in programming and scheduling, they are not interested in paying for maintenance, improvements, utilities, and custodian services for the SSC. G. However, Tim is open to the concept of revenue sharing to help the SSC cities defray the cost of the (F) expenses. Percentage examples (not agreed to): a. Program revenue could be split 60% to the instructor / program director, 30% to MCES, 10% to SSC cities; b. Rental revenue from weddings, class reunions, etc. could be split 30% to MCES a 70% to SSC cities. H. Logistics ... a. The thought is that there would not be a receptionist or regular building hours at the SSC. Instead, a custodian would open and close the building as scheduled by MCES. b. Program set-ups: MCES would coordinate the room set-up with the custodian, and the custodian also would be responsible for cleaning up after programs. c. Rental set-ups: Rentals would be for the room only. The renter would need to arrange for set-up of chairs, tables, linens, catering, liquor insurance, etc. MCES would coordinate opening and closing the building with the custodian, and the custodian would be responsible for miscellaneous cleanup after the event. I. Tim said he would be open to continuing current senior programming and other current programming. He also would try new things that would interest seniors and other age groups. Tim was given the latest Southshore Times so he could see the cu is going to send Tim a list that includes current senior programming and all other current programs at the SSC. J. We are going to report back to our respective groups and meet on September 20, 2013 to share reactions and discuss further.