01-27-1997 Council Packet - Laserfiche WebLink

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Joint Powers Cities Report on Suburban Alliance, Page 2 Eight cities were the original members of the Suburban Alliance board. Over time, the number of member cities has grown to twenty one, but an additional four cities receive services but provide no funding. Each member city can appoint two individuals to the Suburban Alliance Board. At their discretion, the board also can appoint various “at large” representatives. Because the size of the board (currently well over forty individuals) makes for unwieldy decision making, the board appoints an executive committee. This group effectively manages the organization. In its twenty three years of existence. Suburban Alliance has expanded its scope from the original functions of human services planning and coordination Suburban Alliance has managed the Energy Assistance Program (state funding), managed Emergency Services contracts for Hennepin County, and provided home energy audits for NSP. Its planning and coordination funding has been provided by the joint powers cities and by Hennepin County. It also spawned two other organizations. Community Builders works to provide housing options for low income residents of western IU«,.*epin County. The Suburban Hennepin Anti-Racism Coalition (SHARC) seeks to combat racism and encourage tolerance. Suburban Alliance has a tradition of human sen/ices advocacy and grass-roots citizen participation. Through the years Suburban Alliance and the joint powers cities have not had an active working relationsliip. DISCUSSION: Unbeknownst to the joint powers cities. Suburban Alliance ended 1995 with expenditures exceeding revenues. Nearly all of the debt was owed to ^ emergency services providers: Interfaith Outreach, Interchurch (ICA), VV'ECAN, and STEP. Money also is owed to Twin Cities Voice Mail. These organizations had provided services during 1995, but had not been reimbursed for these services by Suburban Alliance. Under the Hennepin County emergency services contract. Suburban Alliance was to approve the emergency services vouchers and to pay them with funding from the County. It appears that some of the emergency service dollars earmarked for the providers was used to pay other obligations of Suburban Alliance. The problem was compounded by inc'ci^e.i overhead expenses, due to an office relocation and rental market conditions &• U: • u^oe. During the spring, Hennepin County held discussions with Suburban Alliance about repaying the debt. In May, the Suburban Alliance Executive Director resigned. Suburban Alliance was unable to devise a repayment plan and to provide planning and coordination services which met the requirements of Hennepin County. In July, Hennepin County staff decided to recommend to the Hennepin County Board the termination of all contracts with Suburban Alliance, effectively shutting down the agency. Hennepin County staff then contacted the joint powers cities and informed them of this recommendation. In general, the call from Hennepin County was the first time the member cities were made aware of