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04-14-14 Council WS Agenda CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL WORK SESSION COUNCIL CHAMBERS MONDAY, APRIL 14, 2014 6:00 P.M. AGENDA 1. CONVENE CITY COUNCIL WORK SESSION A. Roll Call Mayor Zerby _____ Hotvet _____ Siakel _____ Sundberg _____ Woodruff _____ B. Review Agenda ATTACHMENTS 2. PRESENTATION BY DEB KIND AND ELLI ANSARI ON THE Cove Proposal SOUTHSHORE CENTER “COVE” PROPOSAL 3. ADJOURN I , r LEARN - PLAY - CELEBRATE 3 -YEAR PILOT PROJECT PROPOSAL APRIL 3, 2014 Prepared by Tonka Bay Councilmember Elli Ansari and Greenwood Mayor Deb Kind BACKGROUND The Southshore Center (SSC) is located at 5735 Country Club Road, Shorewood, MN. The facility was built in 1996 with funding from the following: The Friends of the Southshore Center operated the center with funds from grants and their membership until 2008 when grant money dried up. From 2009 to present, the city of Shorewood has managed the SSC. They hired a director to increase rentals of the facility and to create programming for all ages. At the same time, the "Friends" became the Southshore Senior Partners (SSSP) and rented space at the SSC for approximately $600 per month for their senior programs. In 2012, Shorewood contributed $60,000 to subsidize SSC operations. In August 2013, Shorewood officials initiated discussions with the 5 owner cities to determine the future operations of the SSC. A SSC Advisory Committee was formed and engaged students from VANTAGE (Minnetonka High School's Advanced Professional Studies program) to help with the project. From November 2013 to January 2014, the VANTAGE team worked with SSC Advisory Subcommittee members to conduct research and make recommendations that will restore the financial viability of the SSC so it can continue its mission of providing services and facilities to the residents and businesses of the 5 cities. Key learnings from the VANTAGE team's research: 1. There are 6 community centers in the metro area that operate at or near "break even," so it is possible for the SSC to break even as well. 2. The facility's awareness needs to be improved. 43% of survey respondents never heard of the SSC, and of the 57% who have heard of the SSC, most believe that it is a "senior" center only. 3. To break even, the facility needs to ... • Have professional programming, scheduling, and marketing to maximize use of the space. • Appeal to all ages and potential renters. 4. To appeal to all ages and potential renters ... • The appearance of the building needs to be upgraded to have a "wow" feeling. • The building technology needs to be upgraded. • The building needs new "branding." Key desires from the city of Shorewood and the SSSP: 1. Would like someone on site during regular business hours, programming, and rentals. 2. Would like the SSSP to be able to continue to rent space at the facility. The 3 -year pilot project proposal on the following pages addresses the above "key learnings" and "key desires" with the goal to set a course that will make the center financially viable for the future. * On March 5, 2014, Deephaven submitted a letter notifying the other owner cities of their withdrawal from participation in the Southshore Center. This draft of The Cove 3 -Year Pilot Project Proposal has been revised accordingly. 3 -YEAR PILOT PROJECT PROPOSAL 1 2 Contribution % of Ownership Deephaven* $139,639 22.45% Excelsior $90,812 14.60% Greenwood $24,569 3.95% Shorewood $311,000 50.00% Tonka Bay $55,980 9.00% Friends of the Southshore Center (Seniors) $100,000 Total $622,000 100.00% The Friends of the Southshore Center operated the center with funds from grants and their membership until 2008 when grant money dried up. From 2009 to present, the city of Shorewood has managed the SSC. They hired a director to increase rentals of the facility and to create programming for all ages. At the same time, the "Friends" became the Southshore Senior Partners (SSSP) and rented space at the SSC for approximately $600 per month for their senior programs. In 2012, Shorewood contributed $60,000 to subsidize SSC operations. In August 2013, Shorewood officials initiated discussions with the 5 owner cities to determine the future operations of the SSC. A SSC Advisory Committee was formed and engaged students from VANTAGE (Minnetonka High School's Advanced Professional Studies program) to help with the project. From November 2013 to January 2014, the VANTAGE team worked with SSC Advisory Subcommittee members to conduct research and make recommendations that will restore the financial viability of the SSC so it can continue its mission of providing services and facilities to the residents and businesses of the 5 cities. Key learnings from the VANTAGE team's research: 1. There are 6 community centers in the metro area that operate at or near "break even," so it is possible for the SSC to break even as well. 2. The facility's awareness needs to be improved. 43% of survey respondents never heard of the SSC, and of the 57% who have heard of the SSC, most believe that it is a "senior" center only. 3. To break even, the facility needs to ... • Have professional programming, scheduling, and marketing to maximize use of the space. • Appeal to all ages and potential renters. 4. To appeal to all ages and potential renters ... • The appearance of the building needs to be upgraded to have a "wow" feeling. • The building technology needs to be upgraded. • The building needs new "branding." Key desires from the city of Shorewood and the SSSP: 1. Would like someone on site during regular business hours, programming, and rentals. 2. Would like the SSSP to be able to continue to rent space at the facility. The 3 -year pilot project proposal on the following pages addresses the above "key learnings" and "key desires" with the goal to set a course that will make the center financially viable for the future. * On March 5, 2014, Deephaven submitted a letter notifying the other owner cities of their withdrawal from participation in the Southshore Center. This draft of The Cove 3 -Year Pilot Project Proposal has been revised accordingly. 3 -YEAR PILOT PROJECT PROPOSAL 1 2 3 -YEAR PILOT PROJECT PROPOSAL 1. Since the "Southshore Center" name evokes "senior center," it is important to re -brand the building with a new name and tagline to appeal to all ages and potential renters. The proposal is to change the building's name to something like The Cove — Learn, Play, Celebrate (see design idea on the cover of this document). The Cove name is inspired by the building's cozy / hidden location near Lake Minnetonka. 2. Update the website and building with the new brand. 3. Make building upgrades to create a "wow" first impression that appeals to all ages (see list on pages 4 -5). The list includes costs for "now" and costs for potential "future" upgrades. The "now" costs include changes that would create the biggest impact for the least amount of money ... (a) A dramatic entrance with a feature wall, accent lighting, carpet, etc. (b) To house the "senior" items and to make better use of space, the large coat room would be re- purposed into "The Corner" gift shop / display area — a centralized place to showcase bakery sale items, greeting cards, newsletters, books, etc. (c) Coats would be hung on an attractive new coat hook system in the hallway. (d) To tie -in with the lake theme, the rooms would be named after Lake Minnetonka bays — Echo Bay Room (dining room), Gideon Bay Room (activity room), Excelsior Bay Room (conference room) — and black and white prints of Lake Minnetonka images would be displayed on the walls. A proposal for paying for the "now" costs is on page 6. 4. A Cove Executive Board would oversee the upgrades (see page 6). 5. The proposal is for Shorewood to continue to be the "fiduciary responsibility" and manage operations, set room rental rates, etc. Based on the projections on pages 7 -10 spreadsheets, the operations are likely to break even (conservative estimate) or could be profitable (optimistic estimate). The spreadsheets for operations assume the following: A. Minnetonka Community Education (MCE) will provide professional programming for all ages. Marketing will be done through the MCE catalog that is mailed to all school district homes. The catalog will include an ad for renting The Cove. MCE also will be in charge of scheduling all programs and rentals, so space information is in one place. Rentals will be for the room and table set -up only. The renter will need to arrange for linens, catering, liquor insurance, etc. Program revenue will be split 60% to the instructor / program director, 30% to MCE, 10% to The Cove. Rental revenue from weddings, class reunions, etc. will be split 30% to MCE and 70% to The Cove. B. The Cove may host fundraising events during times when the facility is not being used for MCE programming or rentals. C. The Cove's regular business hours would be gam to 4pm, M -E The reception desk would be "manned" during regular business hours and anytime The Cove has programming or rentals after hours. D. A Site Manager / Receptionist (paid by The Cove) would work 4 hours per day, M -E Responsibilities include: — Greeting people who enter the building, answering the phone, responding to emails. — Maintaining the Facebook page, website, electronic monument sign, TV loop. — Recruiting, training, and scheduling Assistant Receptionists to cover the other regular business hours and after -hours programming / rentals as needed. — Showing facilities to potential renters (scheduling will be done through MCE). — Coordinating The Cove fundraising events such as Oktoberfest and Open Mike Nights. — Managing the Custodian. — The Site Manager will have access to the schedule and / or coordinate with MCE to determine scheduling for the reception desk and Custodian. E. The Custodian (paid by The Cove) will report to and be scheduled by the Site Manager. The Custodian will be responsible for cleaning / general maintenance of building and for table / chair set -ups as needed. 6. To honor the historic contributions of the "Friends" and SSSP, The Cove may discount rentals to the SSSP, and may split proceeds from "The Corner" gift shop / display area with the SSSP. However, to ensure that The Cove's re- branding efforts are successful, the SSSP will need to keep a clear and separate identity for their organization and printed materials. The proposal is to commit to the above pilot project for 3 years. If all goes well, The Cove / MCE partnership may be continued in the future. 3 -YEAR PILOT PROJECT PROPOSAL 1 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Estimate of Upgrade Costs CD Q c D C3► v co E r v 12 oa .� E 3: r v 12 oa MIND EL 7' Remove: Southshore Center lettering EA 1 $200 $200 $250 Paint: change white under canopy to dark brown SF 600 $2 $1,200 $1,500 Paint: downspouts and columns dark brown EA 4 $200 $800 $1,000 Add: new laser cut sign of The Cove loo EA 1 $2,500 $2,500 $3,125 Add: new block address numbers brushed aluminum EA 1 $300 $300 $375 Future: dark brown lattice to screen trash area 10' x 12' x 6' high LF 44 $30 $1,320 $1,650 Future: down lighting for columns (2 recessed cans in soffit) EA 4 $300 $1,200 $1,500 Move: display bookcase, bakery rack, magazine racks, and card display to "The Corner" $0 $0 Paint: touch up walls as needed SF 800 $1 $1,000 $1,250 Paint: accent paint on tray ceiling (2' high soffit and linear cove light) SF 200 $2 $300 $375 Replace: track lights with new disc lights EA 9 $50 $450 $563 Add: new small flat screen TV for looping JPGs of upcoming events EA 1 $750 $750 $938 Add: feature wall with cool "fireplace" and laser cut of The Cove loo SF 120 $25 $3,000 $3,750 Add: new end tables EA 2 $200 $400 $500 Add: new "entry grade" wall -to -wall carpet squares on top of tile, carpet base board SF 900 $5 $4,500 $5,625 Add: new framed BW prints of Lake Minnetonka maps or photos EA 6 $250 $1,500 $1,875 Add: new accent ceiling lights EA 5 $150 $750 $938 • ' • ' • • • Remove: coat rack and everything except pop machine $0 $0 Paint: patch and paint entire room SF 400 $1 $500 $625 Add: new wall -to -wall carpet squares and carpet base board SF 120 $5 $600 $750 Add: display bookcase, bakery rack, magazine racks, and card display from foyer $0 $0 Add: quilt from reception desk area $0 $0 Remove: blinds covering door to conference room and extra desk $0 $0 Paint: touch up walls as needed SF 200 $1 $250 $313 Add: Cambria counter (6ft) SF 18 $60 $1,080 $1,350 Future: new wall cabinet system to cover up door to conference room LF 10 $200 $2,000 $2,500 Remove: valance / shades, string lights, fake plants $0 $0 Paint: change piano color to be black $0 $0 Replace: 2 entry doors with new glass / wood doors / exisitng frame EA 2 $1,200 $2,400 $3,000 Add: pull down 12' screen ($350), short throw LCD projector $1200 EA 1 $1,550 $1,550 $1,938 Future: touch up walls as needed $1,000 $1,000 $1,250 Future: new framed BW prints of Lake Minnetonka maps or photos EA 6 $250 $1,500 $1,875 Future: replace (24) 2 x 4 fluorescent lights with new indirect lights EA 24 $300 $7,200 $9,000 Future: replace 140 ceiling tiles to match reuse in activity room EA 140 $10 $1,400 $1,750 Future: replace (20) 2 x 2 fluorescent lights a long perimeter replace with new dimable CFL recessed can light in new ceiling tile EA 20 $75 $1,500 $1,875 Future: stylish sliding "barn doors" to hide kitchen windows and door EA 2 $1,500 $3,000 $3,750 Future: replace 2 steel storage room doors with wood doors EA 2 $1,200 $2,400 $3,000 Future: refinish deck and deck furniture ? ?? Future: new dining chairs (200) ? ?? 3 -YEAR PILOT PROJECT PROPOSAL 1 4 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 Estimate of Upgrade Costs L CD Q c M C3► 0 CO) GIDEON • • M (ACTIVITY ROO E = (4 3: a U r°oa .� E = (4 3: a v r°oa Remove: chair rails, wall artwork $0 $0 Paint: patch and paint entire room SF 1350 $1 $1,688 $2,109 Replace: stained ceiling tiles with best ceiling tiles from dining room $0 Add: pull down 10' screen for short throw LCD projector EA 1 $200 $200 $250 Add: new Cambria counters (7ft and 18ft SF, 30 $60 $1,800 $2,250 Future: new wall -to -wall carpet squares on top of vinyl floor and carpet base board SF 1100 $5 $5,500 $6,875 Future: new framed BW prints of Lake Minnetonka maps or photos EXCELSIOR BAY ROOM • •• EA 12 $250 $3,000 $3,750 Remove: window coverings, fake plants, TV / cart, wall artwork, upholstered chairs $0 $0 Move: bookshelves and books to "The Corner" $0 $0 Paint: over existing wallpaper SF 900 $1 $1,125 $1,406 Add: new framed BW prints of Lake Minnetonka maps or photos EA 5 $250 $1,250 $1,563 Add: large flat screen TV EA 1 $400 $400 $500 Add: new Cambria counter 11ft SF 22 $60 $1,320 $1,650 Add: accent ceiling lights EA 3 $300 $900 $1,125 Future: new wall -to -wall carpet squares and carpet base board SF 570 $5 $2,850 $3,563 Remove: plastic picture hangers, bulletin board $0 $0 Paint: touch up as needed $0 $0 Add: 100 coat hooks on 1x4 wood trim EA 100 $20 $2,000 $2,500 Add: new picture hanging system $0 $0 Paint: over existing wallpaper and dark mauve trim SF 600 $1 $750 $938 Future: Replace two 7ft counters / sinks with Cambria and undermount sinks SF 22 $80 $1,760 $2,200 ONE— Remove: all extraneous signs and posters $0 $0 Replace: all plastic room signs with new stainless -look signs EA 8 $50 $400 $500 Website Rebranding $1,000 Future: kitchen appliance upgrades ? ?? Future: cocktail hi -top tables for special events ? ?? Future: 30 x 60 tables with locking wheels for versitile space set -up ? ?? +$44,891 Total Cost $45,475 These costs were estimated by Tammy Magney (architect/ designer of The Commons Workplace). Note: Shorewood also is considering parking lot improvements. See the concepts provided by Shorewood in the FYI section of this document. 3 -YEAR PILOT PROJECT PROPOSAL 1 5 PROPOSED FORMULA FOR PAYING THE "NOW" COSTS • After meeting with the cities of Greenwood and Tonka Bay, their seems to be a desire to support cost sharing based on building ownership. • Since Deephaven has given notice that they no longer will be participating in the SSC, any cost - sharing formula will need to be calculated without Deephaven. The 1996 agreement states that withdrawal from participation does not mean that Deephaven will give up their share of ownership. It simply means that Deephaven will no longer participate in sharing costs for capital expenses or operations. However, if the facility is sold in the future, Deephaven's share of capital expenses would be subtracted from their share of proceeds from any sale. Hence, the below formula that separates out Deephaven's share of the capital expenses for The Cove's "now" costs. • Note: If in -kind partnerships (e.g. Cambria) and / or donations from the community are collected, the costs per city would be adjusted accordingly. 1 Cost sharing for The Cove's "now" upgrades divided by owner cities % of SSC building Share of The Cove's 2 ownership "now" upgrades 3 4 5 6 7 8 9 Deephaven 22.45% $10,078 Excelsior 14.60% $6,554 Greenwod 3.95% $1,773 Shorewood 50.00% $22,446 Tonka Bay 9.00% $4,040 TOTAL 100.00% $44,891 to It appears that the original ownership percentages were based on population in 1996. 11 Without Deephaven, the current population percentages are ... Current population 12 Current population' percentage 13 14 15 16 17 18 Excelsior 2235 18.83% Greenwood 698 5.88% Shorewood 7438 62.66% Tonka Bay 1499 12.63% TOTAL 1 118701 100.00% 19 Using the population percentages (yellow), the cost sharing for Deephaven's share of 20 The Cove's "now" upgrades (blue), plus the each city's share (gray) would be ... Share of Deephaven's Current Population Share of The Cove's Plus, City's Share of The Equals Total Share of The 21 Percentage "Now" Upgrades Cove's "Now" Upgrades Cove's "Now" Upgrades 22 23 24 25 26 27 28 Excelsior 18.83% $1,898 $6,554 $8,452 Greenwod 5.88% $593 $1,773 $2,366 Shorewood 62.66% $6,315 $22,446 $28,761 Tonka Bay 12.63% $1,273 $4,040 $5,313 Total 1 100.00%1 $10,078 $44,891 Current Population Source: Met Council, 03120114 THE COVE EXECUTIVE BOARD The proposal is to establish The Cove Executive Board to oversee the improvements. The following outlines the procedures and duties of the board ... 1. One elected official appointed by each participating city. The board chair is elected by the board. 2. The participating city councils must approve expenditures beyond the scope outlined in the approved budget. 3. The board will review monthly payables reports and YTD statements provided by the fiduciary contractor via email. 4. The board may call special meetings as needed. 5. The board exists for the duration of improvement project only. 3 -YEAR PILOT PROJECT PROPOSAL 1 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 Projection for Ongoing Operations - Conservative Estimate REVENUE Revenue Averaqe class fee per person per hour $10 Times average number of members per class X 10 Averaqe income per room per hour 100 A Potential programing hours per day (9am to 9pm) 12 Times 3 rooms X 3 Times days per week (no programs on Fridays or weekends) X 4 Times number of weeks per year X 45 Equals total number of potential programming hours per year 6,480 Minus 65% of program hours unscheduled or cancelled classes — 4,212 Total number of proaram hours per vear 2,268 B Times averaqe income per room per hour (A) X $100 A Equals total program revenue per year 226,800 60% to instructors $136,080 30% to MCE $68,040 10% to The Cove (Annual Programming Revenue) $22,680 $22,680 Weddings and Special Event Rental Revenue $25,000 SSSP Space Rental ($600 per month) $7,200 30% to MCE $9,660 70% to The Cove (Annual Rental Income) $22,540 $22,540 VANTAGE Space Rental $15,000 Donations to The Cove - from businesses and individuals $2,000 The Cove Fundraising Events (Oktoberfest, Open Mike Nights) - proceeds above costs $2,000 Total Revenue $64,2201 EXPENSES (paid by The Cove) Labor Re (7 hours per day, 5 days a week, 52 week: Site Manager (4 hours Der day. 5 day ular business hours per year 1,750 H per year, minus iu r Receptionist hours a week, 48 weeks F Times ho ear) 960 1 rate X $15 Site Manaqer / Receptionist cost per year 14,400 J Reception Desk Assistants hours per year (H — 1) 790 Additional program hours (4pm to 9pm M -F) + 518 B -H Additional special event hours (Friday late niaht and weekend rentals) + 550 Times hourly rate X Reception Desk Assistants cost per year 14,864 K Custodian hours per year 300 Times hourly rate X 30 Cost per year 9,000 L Total Payroll (J + K + L) 38,264 FICA (6.2 %) $2,372 Medicare Contribution (1.45 %) $555 Workers Total Labor $41,491 $41,491 3 -YEAR PILOT PROJECT PROPOSAL 1 7 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 Custodian Supplies (light bulbs, cleaning supplies, etc.) $1,500 Office Expenses (rental price sheets, envelopes, stamps, etc.) $1,000 Sales & Marketing $2,000 MCE Catalog Program Listings $0 MCE Catalog Ad for The Cove Rentals $0 Web Hosting $450 Fiduciary Contractor $2,500 Payroll Receivables Payables Year -to -Date Reports Year -End Report Audit Property Taxes (none - government building) $0 Building Insurance $1,000 Utilities Cable TV - None rnone �bl,5uu Electric $9,300 Gas $2,000 Internet - WiFi (Shorewood) $0 Waste Removal $2,150 Water ?? Snowplowing & Landscape Contractor $1,000 Snow Plowing Mowing / Landscape Maintenance Pest Control Total Expenses $63,891 NET PROFIT (Revenue minus Expenses) $329 3 -YEAR PILOT PROJECT PROPOSAL 1 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 Projection for Ongoing Operations - Optimistic Estimate REVENUE Program Revenue Average class fee per person per hour 1,750 $10 Times average number of members per class X 10 Average income per room per hour 100 A (4 hours per day, 5 days a week, 48 weeks per year) 960 1 Potential programing hours per day (9am to 9pm) X 15 12 Times 3 rooms X 3 Times days per week (no programs on Fridays or weekends) X 4 Times number of weeks per year X 45 Equals total number of potential programming hours per year Additional program hours (4pm to 9pm M -F) 6,480 Minus 30% of program hours unscheduled or cancelled classes — 1,944 Total number of program hours per year Times hourly rate 4,536 B Times average income per room per hour A X 100 A Equals total program revenue per year 453,600 60% to instructors Custodian hours per year $272,160 30% to MCE Times hourly rate $136,080 10% to The Cove (Annual Programming Revenue) Cost Der vear $45,360 $45,360 L Weddings and Special Event Rental Revenue $25,000 SSSP Space Rental ($1000 per month) $12,000 30% to MCE $11,100 70% to The Cove (Annual Rental Income) $25,900 $25,900 VANTAGE Space Rental $15,000 Donations to The Cove - from businesses and individuals $2,000 The Cove Fundraising Events (Oktoberfest, Open Mike Nights) - proceeds above costs $2,000 Total Revenue $90 260 EXPENSES (paid by The Cove) Labor Regular business hours per year 1,750 H (7 hours per day, 5 days a week, 52 weeks per year, minus 10 holidays) Site Manager/ Receptionist hours per year (4 hours per day, 5 days a week, 48 weeks per year) 960 1 Times hourly rate X 15 Site Manager/ Receptionist cost per year $14,400 J Reception Desk Assistants hours per year (H — 1) 790 Additional program hours (4pm to 9pm M -F) + 2,786 B -H Additional special event hours (Friday late night and weekend rentals) + 550 Times hourly rate X 8 Reception Desk Assistants cost per year 33,008 K Custodian hours per year 300 Times hourly rate X $30 Cost Der vear $9.000 L Total Payroll J + K + L $56,408 FICA (6.2 %) 3,497 Medicare Contribution (1.45 %) $818 Total Labor $61.023 $61.023 3 -YEAR PILOT PROJECT PROPOSAL 1 9 56 Custodian Supplies (light bulbs, cleaning supplies, etc.) $1,500 57 Office Expenses (rental price sheets, envelopes, stamps, etc.) $1,000 58 Sales & Marketing 59 MCE Catalog Program Listings $0 60 MCE Catalog Ad for The Cove Rentals $0 61 Web Hosting $450 62 Fiduciary Contractor $4,500 63 Payroll 64 Receivables 65 Payables 66 Year -to -Date Reports 67 Year -End Report 68 Audit 69 Property Taxes (none - government building) $0 70 Building Insurance $1,000 71 Utilities 72 Cable TV - None $0 73 Phone $1,500 74 Electric $9,300 75 Gas $2,000 76 Internet - WiFi (Shorewood) $0 77 Waste Removal $2,150 78 Water ?? 79 Snowplowing & Landscape Contractor $2,000 80 Snow Plowing 81 Mowing / Landscape Maintenance 82 Pest Control 83 84 ITotal Expenses $86,423 85 86 INET PROFIT (Revenue minus Expenses) $3,837 NEXT STEPS We (Elli Ansari and Deb Kind) have met with Tim Litfin from MCE, and tweaks were made to this proposal based on his input. However, the MCE board would need to approve the plan before "committing" to anything. After our presentation to the SSC Advisory Committee, the consensus of the group was to present the concept to the owner city councils to gauge their interest in pursuing the project before anything is presented to the MCE board. Also, it should be noted that the revenue spreadsheets include income from renting to Minnetonka High School's VANTAGE program. It is our understanding that VANTAGE is looking for more rental space, but we have not met with VANTAGE officials yet. Therefore, the next steps are ... 1. Present the proposal to the owner city councils to gauge their interest in pursuing the project and get input regarding the formula for "now" costs. 2. Present the proposal to Tim Litfin and the MCE Board. 3. Discuss concept with VANTAGE officials. 4. The participating city councils consider approval of the 3 -Year Pilot Project. 3 -YEAR PILOT PROJECT PROPOSAL 1 10 FYI a �a �s 6 z d z � o W r, Z~°Qw z F- Q W W W O Q 0 3 1 CL O 0 U� O Q H . I ` 10 - - uWi x Q Q O c) O W W cV sQ0 r�h Z LL 9 3 LL O N o `—" o ~ w w O �LL l ..{ D vii —� 1{ a -A IL d Z W w. ow W v � ' W W w U_ m d 3 Z W O U W O I W Q WO 7 a. - Z_ � C3 f l F LL J N J z O FU U d I N N N y. O fSJ w Z r ►Y U. • 1 w #i 03 �uC FYI U 0 00> ^> C- V) 0 -t-- U q- 0 rr3 .Ux w Z F w Z w � tt" F 3 p0Oa z N ❑U�o h �a VOL, i LU V CL Ow 0 1 CL L � ' Q� I C9 U � Z Z� V a F 0 d N �o I I W � � OX O _ � Q Z Z¢ u Q ° O� J p l9 Z J M �o goZ o Z� L xZ H Q' ❑ K w JI{ W C LL �I Jd VS pm Q w U Z II LL I C9 Z F 0 d N I I Z _ u Q W J CL J p �o Z� L xZ W Z JI{ i 4 �I V FYI Capital Improvement Program City of Shorewood, Minnesota Project ft PF -11 -01 Project Name South Shore Community Center 2014 thru 2018 Department 490 - Southshore Center Contact Type Improvement Useful Life Category Public Facilities/Buildings Priority n/a Total Project Cost: $88,500 Description The council directed funds be included to cover possible capital maintenance or improvement costs to the South Shore Community Center. 2016 - Water Heater $2,500 2017 - Roof $41,000 2018 - HVAC $43,000 2021 - Exterior Paint and Caulk $2,000 Justification Expenditures 2014 2015 2016 2017 2018 Total Equip /Vehicles /Furnishings 2,500 43,000 41,000 86,500 Total 2,500 43,000 41,000 86,500 Funding Sources 2014 2015 2016 2017 2018 Total 403 - Equipment Replacement 2,500 43,000 41,000 86,500 Total 2,500 43,000 41,000 86,500 3 -YEAR PILOT PROJECT PROPOSAL 1 13