MCC Advisory Board Minutes 09-18-2012MINUTES
MONTICELLO COMMUNITY CENTER (MCC) ADVISORY BOARD
TUESDAY, SEPTEMBER 18, 2012 -4:30 P.M. MISSISSIPPI ROOM
Board Members Present: Darren Paumen, Jennifer Bethke, Heath Bird and Clint Herbst
Board Members Absent: Sandra Theros
Board Liaison Absent: Lloyd Hilgart
Staff Members Present: Kitty Baltos and Wayne Oberg
Guests Present: Nate Redington, Student, St. Cloud Technical and Community College
1. Call meeting to order
Darren Paumen called the meeting to order at 4:36 pm.
2. Consideration of adding items to the agenda
a) Wayne Oberg- Finance Director, 2013 Budget Review
3. Consideration of approving the minutes from the August 21, 2012 regular meeting
HEATH BIRD MOVED TO APPROVE THE MINUTES OF THE AUGUST 21, 1012 REGULAR MEETING. JENNIFER
BETHKE SECONDED THE MOTION. MOTION CARRIED 4 -0.
4. Added Item
Wayne Oberg reviewed the financial information for the community center 2008 through 2013. He
indicated that the property tax levy and debt service through the years with statistical and graphical
information. The information shows that the community center will have a negative fund balance that
will need to be addressed. He will be working with Kitty to review part time salaries which do very
somewhat, even out the capital expenditure requests, review a rate increase, etc. to try and zero out the
fund balance. Kitty noted that she will be also looking at further cuts to expenses and purchases and
reviewing the costs of the National Guard in the facility to help the Council determine if they should
renegotiate the contact with them.
Clint Herbst asked if it were possible to meter separately for utilities. Kitty said that she will look into
what options would be available to do this.
Darren Paumen asked why Charges for Other Services went down over 22% for 2013. Wayne identified
savings on utilities, repairs and maintenance and professional services was most likely the reason.
Kitty informed the Board that along with the rate increase, they would continue to look at their fund
balance deficit and how to address that.
5. Update items
a. Usage Summary through August
No questions on Usage Summary from the Board
b. Manager's Monthly Update
Clint Herbst asked about the concerns with the digital signage software. Kitty noted that the
software is not user friendly or intuitive. Though their technical support is fairly good, other areas
of support are not as accommodating like having the screens lowered in the main hallway to the
appropriate height. Kitty is planning to have herself and staff really work to learn the software
and then train the Liquor Store and DMV before a decision is made to abandon the software.
c. Construction Update
a)Clint Herbst asked if the community center had any problems with the Union thus far.
Kitty indicated that they had not had any picketers as yet. Clint then showed the Board a
letter that Jeff O'Neill received anonymously regarding Ebert being let go from a previous
job for not paying their sub - contractors. He asked Kitty to follow up on this. Jennifer
Bethke noted that the Department of Labor has a "black list" of contractors and it might
be worth finding out if Ebert is on that list.
b) The Fitness floor was poured on Monday the 17`h and the fire proof material was
sprayed on the underside.
c)The mechanical room was emptied out of all equipment and the new equipment was
delivered on Tuesday the 18th and was craned into the mechanical room.
d) The top of the slide is completely off.
e)The doors and door frames are off all around the pool area.
f) They are rebuilding the south wall with block.
g)Kitty is in contact with the City Attorney regarding the lack of sealant in the parapet,
which was specified in the original building plans, but was not installed. This allowed
moisture to go up between the moisture barrier and the roof membrane causing the
insulation and fiber board to get wet and moldy.. The City has hired All Elements to put a
new roof on the natatorium. They will work with Ebert to coordinate their schedules.
They Attorney will let us know if we might be able to go back to the original General
Contractor, Donlar Construction, even though we are past the 10 year statute limit.
h) Kitty is please to say that Ebert is courteous and competent. They work hard to
keep MCC informed of any changes that will affect the customers.
i) It appears at this time, that the project might be three weeks behind schedule. A revised
schedule is expected at the end of the week, Friday the 21 ".
j) There is a concern about the ceiling painting and availability of a dust vacuum. This might
further hold up the project. Kitty is working with Councilmember Lloyd Hilgart on the
pain options and with Wold to determine the resulting delays.
k) Darren Paumen asked how the "complaint list" was looking. Kitty said that there have
been very few complaints or request for accommodations at this time.
1) Kitty reviewed the alternate pool usage numbers, family game night and the indoor
movie. Clint Herbst suggested that we look at a movie series for next summer's movie
options.
6. Consideration of Council request to increase fees charged specifically membership /daily use rates for
2013
Kitty provided a worksheet for the Board with most of the Community Center's current pricing for review.
The Board asked what percentage would be needed to bring the Community Center to a balanced budget.
Kitty did not know that number, however, she did indicate that to cover the anticipated $230,000 fund
balance deficit it would mean adding at least $15 per month to each community center membership.
Clint Herbst said that he did not believe that the Council expected that there would be no subsidy for the
Community Center, however, it was expected that the revenue should cover as much of the expenses as
possible.
Darren Paumen asked if the worksheets provided could be modified to add a column showing how many
of each type of membership there are to help the Board determine what the overall rate of recovery
would be if membership rates increased.
Kitty reported that she does track, but did not bring to the meeting, the percentage of operational
expenses covered by the revenue net of taxes taken in. In 2011 the percentage was 75% and in 2010 it
was 80 %. Kitty says she has had the goal of 85% to 90% of coverage.
Clint felt that the room rental fees were just adjusted and most likely would not be reviewed again for
raises this next year. He felt that the "ala carte" items should be reviewed for increases to encourage
more people to take out memberships. He also feels that the Community Center is leaving money on the
table by not charging the full amount of the possible of the insurance reimbursement available. Kitty will
bring back to the next meeting, the number of people submitted to insurance, how many memberships
this is and what the percentage of submissions vs reimbursement is to help the Board determine if a
premium for this type of membership is appropriate.
The Board felt that ifs appropriate to look at the non - membership user fees for increases. Clint
suggested that a percentage or a dollar figure be determined and work to attain that in revenue looking at
the areas indicated; insurance membership, non - member user fees.
The Board further discussed the idea of working on a promotional program with the local hotels to
provide them access to the fitness center.
The Board also asked Kitty to find out the rates for the Maple Grove Community Center. She will also
modify the worksheet to show the number of each type of membership we currently have and then a
percentage grid of 1 %, 3% and 5% to help determine the impact of an increase on a particular fee. The
Board did agree with the Council, now is the best time to review an increase in rates with the fitness
center expansion and new equipment.
7. Adlourn
The meeting was adjourned at 6:00 p.m.
Approved:
Attest:
Kitty M B4tos, MCC Director