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HomeMy WebLinkAbout13.F.2. Future of Congregate Dining ProgramCity of Shakopee MEMORANDUM TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrator SUBJECT: Future of Congregate Dining Program DATE: November 4, 2010 Introduction The Council is asked to consider ending the City's involvement in the senior congregate dining program operated by the CAP Agency. Background In December of 1979 the City entered into a long -term lease for space inside the senior high - rise at 200 Levee Drive in order to provide a site for a senior 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 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. Since the Council's last discussion of this topic a few months ago, there are several relevant updates: 1) The relationship with the owner of the 200 Levee Drive building has become even more strained. The CAP agency has been unable to resume regular operations in the recently remodeled kitchen and since December 4, 2009 has delivered meals to program participants instead. 2) A local church contacted City staff after reading an article in the paper regarding the possible relocation or discontinuation of the program. Representatives of the CAP agency toured the church space and felt it would work for the program. The church staff presented the idea to their Board, which responded with an offer to rent the space for $1500 per month. While this is lower than the $1970 per month plus utilities that we are currently paying, it is still markedly higher than the $200 - $600 per month being paid to rent kitchen space in other south metro communities. 3) Current program participants were surveyed to determine their interest in possible alternatives, including transitioning to Mobile Meals or traveling outside their building to an alternative congregate dining site. A total of 21 survey responses were received and only 2 indicated they would be willing to travel outside of the building they live in to attend the congregate dining program at an alternative site. Staff at the CAP agency has told me that they will find a way to continue to serve the program's existing clients should the City discontinue participation, although they are not ready to announce the details of that plan at this point. Recommendation Given the lack of participant interest in traveling to an alternative site, the still relatively high cost of renting space elsewhere in the community, and the CAP Agency's ability to continue to provide the current participants with meals via alternative methods, staff recommends that the City formally end its participation in this program effective immediately. If Council concurs, letters will be sent to the owner of the 200 Levy Drive building and to the CAP Agency notifying them that the City will not be pursuing a lease renewal at the current site or a new lease at an alternative site. Requested Action lithe Council concurs it should offer a motion to direct staff to give written notice to the owner of the 200 Levy Drive building that the City does not wish to extend its lease relationship and to formally notify the CAP Agency that the City will no longer be leasing a space for the congregate dining program, effective January 1, 2011.