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080607 CC SP AgPCITY OF SHOREWOOD CITY COUNCIL SPECIAL MEETING MONDAY, AUGUST 6, 2007 AGENDA 2. 3. 4. 5. CONVENE SPECIAL CITY COUNCIL MEETING A. Roll Call B. Review Agenda 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS Immediately Following City Council Work Session Mayor Lizee Woodruff Turgeon Callies Wellens LIQUOR STORE LEASE AND OPERATIONS (Att. -City Administrator's memorandum) SOUTHSHORE CENTER PROPOSAL (Att. -City Administrator's memorandum) OTHER ADJOURN J ~~ CITY ®F 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 MEMORANDUM TO: City Council FROM: Craig W. Dawson, City Administrator DATE: August 2, 2007 SUBJECT: Liquor Store Lease Extension, Waterford (Store # l; East Store) The Liquor Committee met on Monday, July 30, and reviewed financial data and the proposed lease extensions for the liquor store in Waterford. The Committee believed that the Council should extend the lease, with no consensus on a preference. Proposal No. 1 would be a continuation of the current lease from April 1, 2007, through October 31, 2008, at a 10 percent increase over the prior rental rate (with the City being credited for rents paid over this amount retroactive to April 1). Termination of the lease prior to October 31, 2008 would require four months' notice. The annualized gross rent would be $73,990. The total gross rent for the 19-month lease would be $117,151. Proposal No. 2 would be a five-year lease, from April 1, 2007, through March 31, 2012. The annualized gross rent would range from $63,756 to $71,764. The total gross rent would be $338,492. With both proposals, the landlord would no longer be paid 12 percent of yearly gross sales between $750,000 and $1 million. The Committee also had discussion about whether there should be a forum for public comment if the Council made a preliminary decision to discontinue its off-sale liquor operations. The Committee believed that there should be an opportunity for public comment at a Council meeting on a widely- publicized date, and that the Council should make no decision until a subsequent Council meeting. .' r®~® PRINTED ON RECYCLED PAPER .v h, ~ 3une 20, 2007 Don Swandby Shorewood Liquor 19905 Highway 7, Suite F Shorewood, MN 55331 Re: Lease proposal options per 6-12-4D7 meeting uetvveerr Swami ~ iSr~n PropNusal #I: 1. Lease period April I, 2007 thra October 31, 2008. Z. Notify the Landlord 4 months prior to lease expiration date of the intent to stay or vacate. 3. Space to remain at 4500 s,f. No construction cost. 4. Rent shall be 10% over 2006 rent.. $5605.30 per month x 1.10 = $6165.83 per month. This is grass rent price, 5. 25% rent increase from 2006 cost will occur again if lease expires with no notice or lease extension.. Progosai #2: 1. Lease to date back to Aprit 1, 2007 and emend 5 years to March 31, 2012. 2. TrTotiee pel-iod same as original lease. 3. Space to be reduced to 2850 s.f. 4. Gross Rent to be X22.77 per 2850 s.f. for 1 ~` year. This includes $1 per square foot per year to cover a portion of the construction cost in reducing the space. Each year to follow will increase by 3°!0. {$23.45, 24.16, 24.88, 25.63). S. Construction to be done: a. Demising wall between the 2 spaces. b. WaII from back entry into new vacant space with locked door. e. Lockable door from back entry into back room of new liquor store space. cl. flr~e existing front glass door will be exchanged with one existing window to create new liquor stvrz entry and reduce vacant space tv orze door. e, Front stoop to be add~i at new liquor store entry as required. 5661 International Pkwy Minneapolis, ~l 55428 763-533-9403 (Fax) 763-533-9586 f. (Z) 8'-0" walls to form office between back mom and main space with an opening from the back ro©m into this new office. g. ;rleCtrical outlets in new wall up to code. h. 6'-0" x 6'-0" linoleum by front entry. . i. Any other construction items requested. by Tenant will be paid for up front by Tenant. j. Move handiCapged spaces in front of store. This must follow city codes and be located at ramped curb area. If no other ramped curb is available, city will neea~ to alter curb if they wish to move the spaces. 6. Utilities will be paid 90°/o by liquor store when adjoining spare is vacant. Any power in the vacant space will be temporarily disconnected crud d$Tnpers for beating and Cooling will be closed to keep majority of utilities ntnning in Liquor store only. The remaining 10 °~o will be paid by the owner. Utilities will be split by square footage pen~tage when adjoining space receives a new ten~ani. Gras and elrCtric metering u=ill not be split. Utility bills will bz fcmz=arded to Waterford Center LLP office (after separation is complete} and billed to each tenant for their individual portion from that time on. Invoices will be sent out monthly and due with the following months rent. We wish to fines this transactions sooa. Please call if you have any furtheer questions. Thank you. _s . P semi (Swami) P~tner Waterford Ccsnter LLP Sbbi International Pkc;ry Minneapolis, MI~+I 554,28 763-533-9443 (~a;:) ?63-533-95oG (;I'f'\' 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 MEMORANDUM TO: City Council FROM: Craig W. Dawson, City Administrator DATE: August 2, 2007 SUBJECT: Funding Proposal for Southshore Center and Staffing/Programming Services for 2008 Background: In mid-February this year, SCS convened a forum for the five South Lake Minnetonka Cities to consider, at a minimum, a change in the way they would divide their future voluntary payments for SCS to provide staffing and programming services at the Southshore Center. In subsequent meetings of this forum, there was considerable discussion about the roles and responsibilities of the Friends of the Southshore Center and the cities as they related to the costs to operate and maintain the building, and to the staffing/programming activities in the Center. A consensus has been building toward proposing, in the simplest terms, that (1) the cities take financial responsibility for the operations, maintenance, and capital replacement costs of the facility; and (2) the Friends take responsibility for costs of staffing and programming activities at the Center. Several basic details of the proposal have yet to be worked out. Under the current agreement, the Friends are responsible for all of these costs. An unanticipated crisis: Progress on developing this proposal has been superseded by the financial viability for SCS to continue to provide its staffing/programming services at the Southshore Center. For several years, SCS has been able to provide these services with a $45,000-$50,000 annual subsidy from its other revenue sources. The primary source of undesignated revenue came from contracts with the Metropolitan Council to provide dial-a-ride services in this area. Earlier this year, the Met Council issued a competitive request-for-proposals (RFP) for dial-a-ride services for the "Minnetonka area" -Minnetonka, South Lake Minnetonka, and Westonka. In May, the Met Council determined that SCS was not the lowest-cost responsible proposer, and awarded the dial-a-ride contract to a private for-profit provider. In the last of a series of appeals, on July 11 the Met Council stood by its decision and SCS will no longer be under contract to serve this area starting September 1, 2007. Without the income from the dial-a-ride contract, the SCS Board has decided that it will continue providing services at the Southshore Center through October 31, 2007. It will consider, likely favorably, continuation of services through December 31 if the cities and Friends agree to a financing plan for 2008 by the SCS's Board meeting in early September. Actually providing its services in 2008 would require a commitment by the Friends and the cities to provide funding in 2008. ~®~~ PRINTED ON RECYCLED PAPER Funding Proposal for Southshore Center and Staffing/Programming Services for 2008 August 6, 2007, City Council Special Meeting Page 2 An interim funding proposal: With the immediacy of the possibility of SCS not providing services as early as this fall, on July 9 the group considered a proposal for "bridge funding" -for 2008 only- for funding the Center and the staffing/programming activities there. The prior discussion regarding roles, responsibilities, and funding obligations would be postponed, with the goal of completing it by the end of the first quarter of 2008. The elected officials present agreed to bring the proposal to their councils prior to the next meeting of the group on August 13. At its monthly meeting later on July 9, the Board of the Friends of the Southshore Center affirmed to maintain its relationship with SCS through 2008. The interim funding proposal is attached for Council's consideration. The primary components are: 1) The cities in 2008 would pay the Friends what they contributed to SCS/Friends in 2007 -- $17,600 -but based on the share of cost for the construction of the building. For Shorewood, as its share was 50 percent, this commitment would be $8,800. 2) The Friends would raise an additional $25,000 for costs at the Center for 2008. The cities would match the amount raised by the Friends, with each city's match based on their cost for the construction of the building. These matching funds would be given to the Friends. For Shorewood, this commitment would be up to $12,500. The total commitment for Shorewood could be as high as $21,300. The City Council authorized a $6,500 voluntary payment to SCS for 2007 in March. The proposal is a concept at this time. Further details would need to be worked out in a document for approval by all parties. Status among City Councils: The four other city councils are taking official positions at council meetings. The City of Tonka Bay has endorsed the proposal. It is on the agenda for the August 6 council meetings of Deephaven and Excelsior, and the August 7 council meeting of Greenwood. City Council Direction: The City Council should indicate whether it will support this concept proposal. The Council's discussion and action will be related to the Cities/Friends group at its August 13 meeting. lr - h.- trt €,~f ., n~:~, - 1~...: July 2007 The Friends of the SouthShore Center Interim Funding Proposal for FY 2007-08 To the five cities: Deephaven, Excelsior, Greenwood, Shorewood, and Tonka Bay: 1. City appropriations for the SouthShore Center would be designated for the building and paid to the Friends of the SouthShore Center. 2. This proposal is for one year and is considered "bridge funding" as the Friends Board and cities develop a proposal for long term funding. 3. Funding levels will start at the same level as FY 2007 ($17.600), however, the allocation of the funds among the cities will follow the building ownership percentages rather than the historic 2007 amount by city. 4. The cities are also being asked to fund $25,000 additional funds (grand total: $17,600 + $25,000 = $42, 602). The allocation of funds among the cities will follow the building ownership percentages. 5. The Friends will monitor, and evaluate programs and services at the center and assume responsibility for this function. The Friends will have responsibility to negotiate staffing and program funding with SCS. 6. If the Cities agree, SCS will cover staffing costs for 2007 from agency reserve funds. City 2007 Contribution %of $42,600 % of total 2007 based on ownership % Levels Deephaven 22.45% $3,951.20 $9,564.15 22.45 4,500 Excelsior 14.60% 2,569.60 6,219.89 14.60 3,000 Greenwood 3.95% 695.00 1,682.78 3.95 3,100 Shorewood 50% 8,800.00 21,301.00 50.00 6,500 Tonka Bay9.00% 1,584 3,834.18 9.00 500 Total $17,600 $42,602.00 Jul 1J U'! lU::itia L:it~ of excelsior ~5~4'/4Ei;jUU F• ~--.~ ~ - ~;. ~ ~ r;:: ~'"* ~ i'{~ ,e t, • ~ ' 11 The heart of active living July 10, 2UU7 Dear Tim: Thank you for your letter of July 9, 2007, responding to the Deephaven Mayor, Paul Slcrede's request for a proposal fioxn Minnetonka Community Education (MCE} to take over the programming and operations of the South Shore Senior Center (SSSC}. We appreciate that MCE views "the South Share Senior Center as an asset to the entire community. The programming and facility serve area residents with a place to meet acid to stay engaged in the community." Qur friend's board endorses maintaining our existing relationship with Senior Community Services (SCS} far the year 2008. The strength of our center revolves around our volunteerism and social outreach programs we provide. We believe the ,--~. complex services we want to offer are best provided by SCS. Sincerely ,' ~- `~"' -'fie y Brec President Friends of the SouthShore Shore Center Cc Mayor Nick Ruel-l, City of Excelsiaz• Mayor Chris Lizee, City of Shorewood Mayor William LaBelle, City ofTonka Bay Mayor Bab Newman, City of Greenwood Superintendent Dr. Dennis Peterson, Minnetonka Public Schools ~.. 5735 Country Ctub Road Shomwood, Minnesota 55331. 952-474-7635 ~ wrvK~.southshore-center.org Jul 1J U'/ lU::~Ua [:lt`,~ of txcel~lor ~5~4'/4EaUUU P• U Timothy A. Litfin Executive Director of Community Eduauion $c Ser 5621 C.onnty Road lol Minnetonka, MN 55345 (952)4(11-5050 (952}401-5011 fax timlit5n@ttuuttet vnl~.1c12.m~ Sexvwc rrrs July 9, 2007 coninsuNrrtES ofiTa: Mayor Paul SIa'ede, City of Deephaven Manager Dana Young, City of Deephaven M~NN~N~ RE: South Share Senior Center CrinNHessEN Dear Paul Skrede and Dana Young: Dser[~+veN Dennis and I appreciated the invitation to meet wzth you to discuss the South Share Enea. Pwux~ Senior Center in June. This letter is in response to your question to Superintendent Dennis Peterson anal myself on Wed. June 20, regarding the subznissian of a proposal Exct:cs~oR from Minnetonka Caxnrxlunity Education (MCE) for the programming and operation of the South Share Senior Center for the five cities to consider. GRS~woov SHOxrwoOA The South Shore Senior Center is an asset to the.entire community, and its programming anal facility serve area residents with a place to meet and to stay engaged in the ToNrn $A1' community. MCE would be willing to work with you and form a partnership with the five cities for the operation of the South Shore Senior Center, under the right conditions. vicrown MCE could improve the situation at South Shore Senior Center, and I believe that also through MCE a more comprehensive program could result for the benefit of our entire VVOOPLAND CaI2]n]Llnlty. Subsequent to the five cities and the Friends Board reaching agreerxlent on the direction you would Iike to take with the South Share Senior Center, please let me know and I would be happy to continue the discussion and fine tune the attached draft proposal. Sincerely, ~~ Tim Litfin Director, Minnetonka Communit}r Education. Cc South Share Senior Center Friends Board Ivlayor Nick Roehl, City of Excelsiaz Mayon Chris Lizee, City of Shorewood -, Mayor William LaBelle, City of Tonl:a Bay Mayor Bob Newman, City of Greenwood Superintendent Dr. Dennis Peterson, Minnetonka Public Schools Jul 1J U'l lU: UJ~ L i t~ of txce 151 or J5~4'/4Fi:jUU Draft -South Shore Senior Center Proposal Item 1. 2. Budget & Responsibility Building: > Maintenance, Repair, Capital, Insurance, Utilities 5 Cities Revenue: > *Friends contribution/fundraising 25,000 Friends P•'~ > *Building rental (brought in from current users, not paid by MCE) 25,000 Friends +MCE * If there is a shortfall in either of these areas, the city contribution would need to make up the difference > 5 Cities financial contribution 20,000 5 Cities > Programming 10,000 MCE {as a result of creating a new financial arrangement with existing South Shore vendors) 3. Expense: > Director and benefits > Custodian > Cook & misc. supervision > Registration ~~. Marketing/postage > Office supplies and technology > Misc. 45,000 MCE 15,000 MCE 5,000 MCE MCE system in place 5,000 + MCE's on-going efforts 8,000 MCE 2,000 MCE Budget premise: a. The 5 cities would need to be responsible for the building. b. MCE would be responsible for staffing and programming. c. The numbers above are a look at what the fast year budget could be. d. l believe efficiencies could develop and programming would increase. Years two and three could look more favorable for all concerned. e. MCE would be given first right of refusal for each succeeding year. f. MCE would manage and set the rental rates. g. MCE programs would be rent free. h. The Friends Board would continue. z. The Friends Board would continue to help with fundraising efforts as they may be noN1, in order to meet budget. j. Bldg. rental income would be MCE's responsibility, with the Friends Board assisting wit17 accounts as perhaps they have in The past. L. MCE would like to honor the past senior prob amming efforts, and also increase senior programming. 1. MCE would like to maximize the use of the building by adding multi age prograzzuning to fill schedule voids.