City Council Meeting Date: March 19, 2019
To: Mayor and City Council
City Administrator
From: David E. Bennett, Public Works Director/City Engineer
Brenda Angelstad, Finance Director
Title
Discussion of NCRC Contracts.
Body
Action Requested:
None
Summary Report:
The City is in the process of extending/updating the Northfield Community Resource Center Management (NCRC) Service Agreement. The agreement will expire on December 31, 2019.
The NCRC Service Agreement provides for management services for the operation of the NCRC Facility. With the November 2018 Election and passing of the School Referendum, upon completion of new Greenvale Elementary School and remodeling of the existing elementary into Community Education/Early Childhood there will be changes coming to the NCRC leased spaces.
Currently, the NCRC Management Service Agreement provides for managing the facility as follows:
• Manage tenant leases (approved by NCRC and City)
• Subcontract with management company (Currently Bluewater)
• Marketing for promotions and activities
• Marketing for new tenants is leased space is available
• Scheduling meetings spaces
• Development of an annual Operations Plan
• Facility maintenance
• Responsible for utility bills
• Custodial services, grounds, trash removal, and other general operations services.
• Collection of rent
• Responsible for NCRC personnel staffing
NCRC Corp. hired Bluewater to assist with the management of the NCRC. Bluewater provides the following services for NCRC Corp:
• Provide for full management operation services through its employees and subcontractors
• Manage repairs and alterations to the building
• Contract with building maintenance services
• Financial reporting
Improvements, Alterations, Repairs and Capital Expenditures
NCRC Corp. is responsible for maintaining and keeping the building in a good operating condition. This includes capital expenditures made for repairs to the building, which are amortized over the expected life of the improvement. The tenants are responsible for any alterations, improvements, and additions to their spaces.
With the repairs to the Senior Center Roof that were completed in 2018, the City funded the project through NCRC reserve funds. As we move forward, staff will be working with NCRC Corp. on financing capital improvements, and allocating them within the rents of the tenant over the life of the improvement.
Fifty North
In 2019, due to continued rise in membership at Fifty North, they are going through space planning and programming to determine space needs into the future. There will be information later into 2019 and 2020 about this study. In addition, Fifty North is requesting a parking lot expansion project. This project needs further scoping and needs to be programmed into their Capital Improvement Plan.
Alternative Options:
N/A
Financial Impacts:
A summary of NCRC Fund is below.
2019 NCRC Operating Levy $189,472
2017 NCRC Fund #211 Balance $392,309
2018 Project Year End NCRC Fund #211 Balance $251,650
Tentative Timelines:
N/A