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r <br />A few comments on the final calculation, in particular the contingency. The contingency <br />number consists of $5,000 for legal fees, and over $10,000 to accommodate an <br />anticipated revenue shortfall. The following provides more detail on these two items. <br />• Legal Fees. One remaining outstanding issue is the final determination of the money <br />owed to Suburban Alliance from Community Builders, a spin-off organization of <br />Suburban Alliance. The amount owed is $40,000; however, it is unlikely that <br />Community Builders can afford that amount. Suburban Alliance and Community <br />Builders have not yet reached an agreement to resolve the debt. It may be necessary <br />to initiate legal action to recover some or all of the amount owed, nence the legal fees <br />number in the contingency. It also may be necessary to initiate legal action against <br />some joint powers cities. When an agreement or legal settlement is reached and the <br />money is received, joint powers cities will receive a partial refund. <br />• Revenue Shortfalls. Several joint powers cities (Excelsior. Loretto, Long Lake, <br />Minnestrista, Mound, and Tonka Bay) have not made their 1996 contribution to <br />Suburban Alliance or only made a partial contribution. This is a major factor in the <br />1996 operating deficit of $6,500. In addition, several cities (Long Lake, Loretto, <br />Minnestrista, and Mound) have indicated a hesitation to pay their share of the close­ <br />out costs because of questions about membership status in Suburban Alliance. The <br />contingency includes $10,000 in anticipation of not receiving funds from these cities. <br />We continue to investigate the membership questions and the possible legal <br />implications. If the contingency funds are not needed, the joint powers cities will <br />receive a partial refund. <br />To make certain that we are able to close the doors of .Suburban Alliance on ' <br />January ’ 31, we ask that you remit a check to Suburban Alliance by January ’ 17, <br />1996. <br />One final action will be necessary’, and that is for your city council to pass a <br />resolution dissolving the joint powers agreement. After the first of the year, we will <br />forward to you a draft resolution for your use. <br />Thank you for your assistance and cooperation during this long process. Should <br />you have questions, please give any of us a call. <br />Steve Mielke <br />Hopkins <br />939-1326 <br />Geralvn Barone <br />Minnetonka <br />939-8200 <br />Kathy Lueckert <br />Plymouth <br />509-5052 <br />Wally Wysopal <br />St. Louis Park <br />924-2519