10-13-2008 Council Packet - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 22, 2008 7:00 o’clock p.m. ___________________________________________________________________________________ ____________________________________________________________________________ PAGE 2 of 18 (3. FUNDING FOR GILLESPIE CENTER, Continued) Withhart indicated they are providing meals to some residents within the City of Orono. Murphy asked if there is a written agreement that outlines the relationship between the Gillespie Center and the SCS. Withhart stated both are nonprofit organizations and that there is not a formal agreement in place. Murphy asked how the arrangement works. Withhart indicated the Gillespie Center raises some funds that go directly to SCS and in return SCS provides the transportation and staffing for the Meals on Wheels program. Withhart stated the relationship between the two is viewed more as a partnership. Rahn asked if the $19,000 that the City currently provides would be redirected. Withhart stated it would. Rahn asked how much additional funding the Center is requesting and for how long of a period of time. Withhart stated they are requesting an additional $10,000 each year from the City. The plan is for SCS to continue the same level of services to Orono through the Gillespie Center. Murphy commented he would be more comfortable knowing that they are putting $19,000 into services but stated that the funding appears to get tangled up with SCS and that there is nothing in writing explaining the relationship. McMillan asked if the $19,000 is going into a building endowment versus providing services. McMillan stated the City would like the Meals on Wheels program continued and that they would like to know if the money is going towards the services. Withhart explained that the money that is being requested tonight would be allocated for services and not for the endowment. The funding would allow the center to continue those services and the additional fundraising that the Gillespie Center is conducting would be put into the endowment. McMillan asked if the additional money would go towards operating costs rather than the endowment fund. Withhart stated it would. Dave Ostvig, Mound City Council, stated the City cannot legally give money to an organization for an endowment fund and that the Gillespie Center is basically proposing a services contract to provide funding to continue services. The current fundraising efforts by the Gillespie Center would be directed into the endowment program. The Gillespie Center is requesting $11,000 over the next 10 years. The SCS would surrender the $19,000 to the Gillespie Center for the services it receives. Ostvig stated after years of the center struggling on a very thin budget, the committee has come to the conclusion that an endowment fund would be the best way to plan financially for the future. The Item #02 - CC Agenda - 10/13/08 Approval of Council Minutes 09/22/08