Loading...
072406 CC WS AgP CITY OF SHOREWOOD CITY COUNCIL WORK SESSION MONDAY, JULY 24, 2006 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 6:00 P.M. AGENDA 1. CONVENE CITY COUNCIL WORK SESSION A. Roll Call Mayor Love _ Lizee Turgeon _ Callies Wellens B. Review Agenda 2. SENIOR COMMUNITY SERVICES AND FRIENDS OF THE SOUTHSHORE CENTER RE: FUTURE FUNDING (Att. - Administrator's memorandum) 3. OTHER 4. ADJOURN CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927 . (952) 474-3236 FAX (952) 474-0128' www.ci.shorewood.mn.us. cityhall@ci.shorewood.mn.us Celebrating 50 Years. 1956 - 2006 MEMORANDUM TO: City Council Craig W. Dawson, City Administrator 00 July 20, 2006 FROM: DATE: SUBJECT: Future Funding of Senior Community Services and Southshore Center (Work Session Item) Funding for SCS: Senior Community Services (SCS) has provided cultural and recreation programming for the five South Lake Minnetonka cities for many years, even pre-dating the construction of the Southshore Senior/Community Center. For many of those years, the services of SCS were able to be paid entirely through funds from the federal Community Development Block Grant (CDBG) program and other organizations such as United Way. Around five years ago, CDBG funds essentially evaporated and SCS requested funding from the five cites for programming at the Southshore Center. The cities have fully funded SCS's requests since then. In 2006, Shorewood is paying $6,500 to SCS. Senior Community Services has had discussions with the Board of the Friends of the Southshore Center as well as staff of the five cities, and related that it has been running deficits at the Southshore Center for several years. It has proposed levels of funding from the five cities that would phase-in increases 320 percent, from $16,500 to $69,355, by 2009. Shorewood's payment would increase from $6,500 to $27,322 ($20,822, or 320%) by 2009. For 2007, the cities' payments would increase to $34,119; Shorewood's share would be increase to $13,441. SCS has requested an opportunity to speak with the City Council regarding the changes it is proposing regarding the funding. The Friends Board has asked to be present and make comments to the City Council when SCS makes its presentation, and I have contacted the Friends Board about the date and time of tonight's work session. Funding for Southshore Center Building: One difficulty that I have picked up on relates to the responsibilities of the Friends to fund the building. The Friends conduct fundraising incessantly, and the major source of revenue comes from rentals of the Southshore Center. SCS has provided services to promote rentals and the resulting income for the Friends. #. t . PRINTED ON RECYCLED PAPER .... Future Funding of Senior Community Services and Southshore Center July 24, 2006, City Council Work Session Page 2 The Southshore Center was constructed by the five cities after approval of a cooperative agreement in March 1996. Shorewood was responsible for the construction of the building. The project costs were allocated as follows: Shorewood Excelsior Deephaven Greenwood Tonka Bay $311,000 $ 90,812 $139,639 $ 24,569 $ 55.980 $622,000 50.00% 14.60% 22.45% 3.95% 9.00% The Friends also contributed significantly to the construction cost of the Center. Shorewood and Excelsior arranged financing for their portions of the project. Shorewood's annual payment of$37,550 will end in 2008. Excelsior's annual payment of approximately $10,700 also will end in 2008. The other cities paid their full amounts at the beginning of the project. The agreement required that the cities enter a 25-year lease for $1/year, with four subsequent five- year renewals, to the Friends of the Southshore Center. It stated the Friends' responsibility would be: "Friends shall operate and maintain the Center. Friends shall be required to pay for any and all forms of insurance to adequately insure the Center against any and all risks associated with operating and maintaining the Center, both known and unknown, including [various . ]" Insurances . ... There is also a provision that any excess funds from construction would be placed in "a restricted capital reserve fund for the prupose of repairs and capital replacement of the Center. This account shall be controlled by the Friends... This reserve is not intended for day-to-day maintenance such as snow removal, routine building maintenance and cleaning[,] or for any other operating costs." In the lease, "Tenant [i.e., Friends] shall repair or replace at its own expense any improvement or part thereof on the Premises necessary to so maintain it, and to return the Premises at the end of the term of this Lease in the same condition as its was received, reasonable wear and tear, casualty losses and acts of God excepted. Any improvements, expansion or structural modifications by the Tenant to the Premises shall become the property of the Landlord at the termination of the Lease." Future Funding of Senior Community Services and Southshore Center July 24, 2006, City Council Work Session Page 3 Policy Ouestion: A, if not the, general understanding is that the cities built the building, and the Friends are responsible for all future costs. The Friends have an obligation operate and maintain the building; but should maintenance include major capital repairs and replacements (e.g., a roof, a heating/cooling system; a parking lot)? The Friends fund-raising efforts have been sufficient to operate and maintain the building, but as I understand it, have not been at a level to make sustainable significant contributions to the long-term capital reserve. After ten years of experience, it may be appropriate to start a discussion with the other member cities about a change in responsibilities, such that the Friends are responsible for building operations and maintenance (for which they have been successful in funding,) and the cities are responsible for the capital reserve fund. BOARD OF DIRECTORS David F. Fisher President Phil Kern 1st Vice President John Gray 2nd Vice President Laurie Lafontaine Treasurer Marvin Johnson Secretary John Lawson Past President Gloria Johnson Member-at-Large Cheryl Fischer Member-at-Large Sharon Burnham James Crist Marty Guritz Francis Hagen Sandy Hewitt Aiko Higuchi Mike Holtz Ron Klecker Rep. Ann Lenczewski Woody Love Dr. Chinyere (Ike) Njaka Senator Gen Olson Curtis A. Pearson Tom Ticen Benjamin F. Withhart Executive Director & CE O. PROGRAMS . Supporting Positive Aging - Transportation - Community Senior Centers . Caregiver Support Services - Senior Outreach . Frail Elder Support Services - H.O.ME - Senior Outreach A Founding Member of Eldercare Partners to A United Way Agency SENIOR COMMUNITY SERVICES 10709 Wayzata Blvd., Suite 111, Minnetonka, MN 55305-1529 Phone: (952) 541-1019 FAX: (952) 541-0841 E-mail: scs@seniorcommunity.org Website: June 15,2006 Mayor Woody Love and City Council Members City of Shorewood 5755 Country Club Road Shorewood, MN 55331 Dear Mayor Love and Council Members: On behalf of the elders who utilize the Southshore Senior/Community Center our sincere thanks for your ongoing support. Last year the Center ser.ved317 unduplicatedShorewood residents. (most-over the age of 75) offering a wide variety of programs assisting residents of your community to remain independent and as active as possible. For many the Center serves as the principal point of access to needed services and information. Shorewood residents participated approximately 5,320 times in Center activities including health & wellness opportunities (health screenings, physical exercise classes), counseling groups, congregate dining, tax and energy assistance, recreational groups, a wide range of cultural and educational activities, many volunteer opportunities and transpOliation. The transportation service allows those people who no longer drive to continue to grocery shop on their own and do personal errands without having to depend on others. We are requesting $13,441 from the City of Shore wood for calendar year 2007 ($20,381 in 2008 and $27,322 in 2009). Over the next three years we are asking each of the five supporting Cities for greater increases than in the past to cover the Center's direct Program operating deficit/expense. Weare hopeful that the City will agree the Southshore Center continues to be a valuable asset to the citizens of the conununity and deserving of your suppOli. SiI.lcere.lY' c~....~ ~ '" d. "---. ' , 'f7'~'~ .~ Be!njamin F. Withhmi Executive Director cc: Craig Dawson, City Adnunistrator Demographics by City City Total 75 and Over %of 65 and Over %of Population Population Population Deephaven 3,853 172 4.5% 416 10.8% Excelsior 2,393 210 8.8% 367 15.3% Greenwood 729 27 3.7% 70 9.6% Shorewood 7,400 193 2.6% 586 7.9% Tonka Bay 1,547 54 3.5% 136 8.8% TOTAL 15,922 509 3.1% 1,575 9.89% Minnetonka 51,301 2,644 5.2% 7,165 14.0% Mound 9,435 297 3.1% 845 9.0% Minnetonka Center funded by the City of Minnetonka Gillespie Center in Mound, operated by Board similar to Friends Senior Community Services Proposal as Presented bv Mr. Withhart 5/23/06: 2006 2007 2008 2009 Shorewood $6,500 $13,441 $20,381 $27,322 Greenwood $1,500 $ 3,102 $ 4,703 $ 6,305 Tonka Bay $1,500 $ 3,102 $ 4,703 $ 6,305 Excelsior $ 2,500 $ 5,169 $ 7,839 $10,508 Deephaven $ 4,500 $ 9305 $14,1 10 $18,915 Total Cities $16,500 $34,163 $51,737 $70,955 Sr. Advisory Board $ 5,000 $ 5,105 $ 5,300 $ 5,460 United Way/CDBG $ 7,984 $ 8,175 $ 8,370 $ 6,975 Total Revenue $29,484 $47,443 $65,407 $83,390 Total SCS Expenses $76,949 $78,751 $80,607 $82,520 Difference (47,465) (31,308) (15,201) + 807 Under Mr. Withhart's proposal, in the year 2009 the Cities contributions will constitute 85% of all SCS expenses (staff salaries, office support, phones, postage, printing, supplies, insurance, training and mileage). No money is designated for the daily expenses or maintenance of the building. Friends 20060perating Budget: Total Income Total Expense Budget $23,300 $25,962 ($2,662) Actual Jan-June '06 $19,374 $24,587 ($5,213) $49,908.86 Proposed '06 Annual Budget $61,950.00 $57,880.00 $ 4,070.00 Current Assets Rental Income: Custodial Expense for Rentals: Custodial Expense for Daily Operations: (And Maintenance) Down 17% from budgeted amount Down 39% from budgeted amount Up 61 % from budgeted amount Rental Coordinator: Effective June 26, 2006 SCS turned over the responsibility of rental coordination to the Friends. SCS included the following in their budget to cover SCS staff salary for this position: $5,397 in 2006 $5,559 in 2007 $5,726 in 2008 $5,897 in 2009 This expense will now be incurred by the Friends SCS and the Friends entered into a partnership nine years ago when the building was constructed. The understanding at the time was that SCS would supply the staff and programming for the Center, and the Friends would fund raise to cover the operating costs to support those services and programming being provided by SCS. The Cities position when the facility was constructed was: "The Cities shall be under no further obligation, pursuant to the terms of this Cooperative Agreement to fund the maintenance, operation, prO/tramming or staffing of the Center or anv other costs, expenses or capital investments relating to the Center. " It was anticipated nine years ago that additional revenue could be generated through rental of the facility to cover operating costs. Unfortunately, rental of the facility is flat-lined averaging approximately $24,000 annually over the last 3-years, with 48% -51 % of that income coming from one renter (Emmaus Baptist Church). August, September and November have historically been the least revenue generating months for rental, as is evident again this year With income from fund raising and rentals down considerably, and expenses running higher than anticipated, the Friends will have to fund raise over $40,000 to break even in 2006. It is becoming apparent that the Friends alone cannot support the Center. The Cities need to reconsider their position regarding financial assistance for the building which they own. Laura Turgeon Congregate Dining- meals served Monday, Tuesday and Friday at Noon Cost: $3.00 per meal paid directly to VOA Maximum participants served: Average participants served: Least participants served: Cost for Cook: Activities: Bridge 500 Recycle Card Wood Carving Crafters Bingo 20 (usually happens on Mondays) 12-15 5 (usually happens on Fridays) $8,547 (2006) $63.31 avg. per participant $8,803 (2007) $65.21 avg. per participant $9,068 (2008) $67.17 avg. per participant $9,340 (2009) $69.19 avg. per participant 35-45 participants 30-40 participants 2 participants 3-4 5-6 Meet Thursday @ 1 :00 * Meet Tuesdays @ 1 :00 til 4:00 * Meet Tuesdays @ 9:00 * Meet Tuesdays 9:30 - 11 :30 Meet Fridays @ 9:30 * Meet Fridays @ 12:30 * * groups donate money toward programming at the Center Pilates/Y oga Happy Feet Belly Dance Easy Does it Exercise AAA Driving 8-10 participants by appointment Intergenerational Wood Carving Meet Tuesdays fee paid to instructor $50/1 0 classes Tuesdays - fee paid to service provider $28 Appointments are handled by provider Wednesdays 10:00 - fee paid to instructor $25 M - W - F fee paid to instructor $25 for 11; $50 for 22 $18 paid to AAA, $5.00 reimbursed to Center, Applied toward programming $5, max $1 O/family for materials No portion of the fees collected come into the Center.