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Mounds View City Council June 26, 2006 Regular Meeting Page 26 MOTION/SECOND: GUNN/FLAHERTY. To waive the reading and adopt Resolution 6866 1 Including Various Items in the Feasibility Report for the Street and Utility Improvement Program 2 / Public Informational Meeting Update as amended. 3 4 Ayes – 5 Nays – 0 Motion carried. 5 6 I. Resolution 6853 Authorizing the Contract for Architectural Services for the 7 Preparation of Plans and Specifications for the Mounds View Community 8 Center 9 10 City Administrator Ulrich stated that on June 5, 2006, the City Council at a work session 11 reviewed the proposed improvements to the Mounds View Community Center, which included 12 concept and development level plans. 13 14 Administrator Ulrich stated that the Mounds View Community Center Task Force presented the 15 initial report to the City Council on March 6, 2006 and based on that report, the Council acted to 16 hire DSGW Architects, Inc., to conduct a study of the task force recommendations. 17 18 Administrator Ulrich explained that the architect worked with City to refine the concepts, to 19 make additional recommendations, and to develop a cost estimate for the proposed improvement, 20 estimated at $600,000. 21 22 Administrator Ulrich added that there are several funding sources; including Special Projects 23 Fund, Park Dedication Fund, Internal loans with general tax levy, Internal loans repaid with 24 increased room rentals and membership fees and Capital bonds. 25 26 Administrator Ulrich stated market feasibility was discussed briefly, and ultimately the first 27 source would be funding the proposed improvements with internal loans paid back through 28 rentals and fees generated by the facility. He said that it was the anticipation of the Community 29 Center Task Force that memberships revenues could be increase with several different 30 membership opportunities. 31 32 Financial Director Beer had included spreadsheets with different levels of memberships and what 33 revenues those would bring in. He said the break-even point is about 400 memberships of each 34 type for a total of 1200 memberships. He said that if no memberships were sold, the City would 35 run a deficit of $190,000. He stated with the status quo, the City contributes $47,000 annually to 36 the Community Center operation in addition to the budget for $142,000. 37 38 Administrator Ulrich said it is strongly recommended the City contract for the preparation of a 39 market feasibility study. He stated that the firm Maxfield Research, Inc. would charge $7,000 for 40 such service. He also suggested doing a survey of residents, which was not included in $7,000 41 quote. 42 43 Administrator Ulrich stated received a quote from Anderson Niebuhr and Associates, which has 44 done work for various locations who recommend the City survey sample of 400 residents, which 45