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HomeMy WebLinkAbout13.F.1. Congregate Dining /3.F 1. City of Shakopee MEMORANDUM TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrator SUBJECT: Congregate Dining DATE: July 16, 2010 Introduction Council is asked to consider the current status of the Congregate Dining site and provide initial direction to staff regarding its future. Background In December of 1979 the City entered into a Tong -term lease for space inside the senior high - rise at 200 Levee Drive in order to provide a site for a congregate dining program. The CAP agency operates a congregate dining program in numerous Scott, Carver and Dakota County communities. They pay for the food and staffing, but it is the host city's responsibility to provide a physical space that includes a commercial kitchen. In addition to making lease payments, the lease also obligates the City to pay the utilities and provide maintenance and custodial service for the space. For 2010, the adopted budget for Congregate Dining is $40,980, of which $23,640 is for direct rent payments. This is entirely a General Fund expense. The original lease agreement included provisions for multiple 5 -year extensions of the lease, which have been exercised. However, all such extensions will have been exhausted as of November of this year. Therefore, the City Council will need to make a decision regarding the future of the site in the coming months. Options include negotiating a new lease with the owner of the existing site, exploring alternative sites within the community that have a commercial kitchen and meet the other requirements of the CAP agency, or discontinuing the program and having current participants who are interested register with the Mobile Meals program as an alternative. Staff from the CAP agency and I have discussed the possibility of discontinuing the program at its current site and then re- launching it at some date in the future if and when the City has its own senior center with a commercial kitchen. It was their opinion that this could probably be achieved; however, they cannot absolutely guarantee it. Additionally, it should be noted that the Congregate Dining program has not been operational since the first week of December, 2009 when the owner of the building embarked on an extensive remodeling of the space that forced the program out. Staff from the CAP agency has been delivering meals prepared at the Prior Lake site to residents of the building during the remodeling. The remodeling of the site is now complete; however, we are having difficulty obtaining access and consensus for reopening the program in the newly remodeled space. Lastly, the number of individuals utilizing this service must be taken into account. The CAP Agency reports that they regularly serve about 14 -17 individuals at this site and that participants are almost exclusively residents of the 200 Levee Drive building. Seniors from other areas of the City are not using the program, and this has been the case for years. In a City of 34,000 residents, the questions must be asked as to whether or not it is an effective and efficient use of taxpayer dollars to benefit such a small group. Budget Impact As noted above, the 2010 budget for leasing and maintaining this space is approximately $41,000. A decision regarding how much, if any, funds should be budgeted for this purpose in 2011 will need to be made between now and adoption of the preliminary budget and levy on September 7. Requested Action No formal action is requested at this time. However, the Council is asked to discuss and provide staff with some general direction as to the desired future for this program.