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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 22, 2008 7:00 o’clock p.m. ___________________________________________________________________________________ ____________________________________________________________________________ PAGE 3 of 18 (3. FUNDING FOR GILLESPIE CENTER, Continued) Gillespie Center currently has one full-time staff person and that the majority of the services are provided for by volunteers. Ostvig noted the City of Mound does do some work for the center at no cost, which would add up to another eight to ten thousand dollars a year, in addition to the $4000 it presently contributes. Ostvig stated after the ten year period, the City would no longer need to provide funding for the center and that the City would actually start to realize a savings after the ten years. Ostvig stated with the additional funding from the City, the Gillespie Center would be able to continue to do their fundraising, which would then go into the endowment fund. Ostvig noted that the Cities of Spring Park, Minnetrista, and Mound have already agreed to the extra amount. Ostvig stated under the goals of the agreement being proposed, the City would start to realize a cost savings if the Center receives the additional fundraising. If the Center is unable to raise the additional funds, the City would have the right to stop the additional funding. Ostvig stated in their view this would solve the Center’s long-term financial dilemma. Harold Pellant, Co-President of the Gillespie Center, stated they would like to set up a funding mechanism that would help ensure financing of the desired services into the future. The Center is almost entirely run by volunteers and that they are requesting some support from the cities so they are able to concentrate more fully on the fundraising for the endowment fund. Bremer asked what the Gillespie Center envisions at the end of the ten years if the endowment fund is not fully funded as currently envisioned. Bremer commented she would like to see the agreement successfully fulfilled but that there are no guarantees that it will be. Bremer asked what impact there would be on the cost of services at the end of the ten years when the endowment fund is hopefully fully funded. Bremer expressed concern that in ten years time the City would again be asked to provide additional funding because the fundraising was not totally successful. Ostvig stated ten years from now, it is possible that the center could fall short on their endowment fund but that there is also the possibility that they could raise the money sooner than the ten years. Ostvig noted the contract ends in ten years and that the Center is committed to fulfilling that obligation. Ostvig stated at the end of the ten years, if the endowment fund is successfully funded, it is the plan that the Center would then tap into that endowment fund to help finance the services. Ostvig noted the golf tournament held this year has been extremely successful and that the long-range goal is for the center to become financially independent but that nothing is 100 percent guaranteed. Bremer commented this is a difficult time to be requesting additional funds given the current economic situation, particularly with the limits placed on the City’s levy limits. Bremer expressed concern that there is not an option for the City to opt out of the contract if the Center is not performing their end of the bargain. Bremer stated she understands the intentions of the Center are very good but that unfortunately the contract should contain language that allows the City to discontinue the funding if the fundraising goals are not being met. Lee Grensled, Treasurer, stated approximately two years ago they had $70,000 and now they have $170,000, which shows the dedication and commitment that the residents and the Center have to this program. Grensled stated in his view the Center will be successful in its efforts. Item #02 - CC Agenda - 10/13/08 Approval of Council Minutes 09/22/08