City Council Meeting Date: October 18, 2016
To: Mayor and City Council
From: Ben Martig, City Administrator
Title
Consider approval of Link Center Contract for 2017-2019.
Body
Action Requested:
Staff recommends a motion approving the LINK Center contract for 2017-2019.
Summary Report:
The Northfield City Council discussed the Link Center contract and funding request at their October 11, 2016 Work Session. Attached are the requests of the LINK Center. Staff has drafted a revised contract to include the total cost versus the requested amount as there was significant feedback from Council with interest in funding the full level rather than partial funding. This total amount for 2017 is $34,040 versus the $27,500 initially requested. There are alternative actions to fund at the funding level requested or to not fund at all.
The contract revision does include further distinction of the service areas and also the addition of data to determine the hours of local governments benefitting from their services as a percentage of the whole. When reviewing the 2015 LINK Center Service Area Pie Chart, it appears that about 16% of the total hours are benefiting Northfield Public Schools when you add the “Education” and “Youth” categories. The City/County Services combined generate 6% of the usage. Staff feels it will be valuable information to have these tracked specifically in preparation of the next renewal. There is currently funding in the communications budget. These revenues are generated by cable access fees but over time there are fewer cable subscribers so revenues are anticipated to trend down over time as more competitive television options via the internet and satellite increase.
The LINK Center provides Spanish translation/interpretation services for the City and assists Spanish-speaking members of the community. The LINK Center connects community members (particularly newcomers to the community) with available local resources and opportunities. The LINK Center is currently open 31 hours per week to all community members. This is an increase in minimum hours from the current contract. This is the last year of a three-year contract between the City of Northfield and the LINK Center. The LINK Center has been receiving $22,100 per year for the last three years in the current contract. The LINK Center is requesting a new three year contract for the amount of $27,500 for 2017, and a 3.5% increase per year for 2018 and 2019. Funding for the LINK center comes from our Communication Fund 229.
Alternative Options:
a. Renew the contract as requested including the first year of $27,500 for a three-year period.
b. Not renew the contract.
Financial Impacts:
The Communication Fund budget is showing an excess of revenue over expense for the 2017 year. The Communication Fund is anticipated to have a fund balance of at least $350,000 at the end of 2016.
Full funding will increase expenses in our proposed 2017 communications budget by $11,940 in our communications fund.
Alternative option “a” will increase expenses in our proposed 2017 communications budget by $5,400.
Alternative option “b” will reduce expenses in our proposed 2017 communications fund by $22,100.
Tentative Timelines:
Staff is recommending to take action in October or early November to get clarity on whether funding of these outside organizations will be approved or not. This will allow us to finalize the development of the 2017 budget.