Minutes - Council Work Session - 06/25/2013

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than asking. Mr. Fisher stated PACT Schools is a good tenant and this is the offer made by Independent Auto Care. He noted he would not argue that the doors are an issue. Finance Director Lund stated the 6745 Highway 10 site also has very difficult access. Youth First Lease Finance Director Lund stated the Youth First lease is on tonight's consent agenda and consideration is to extend beyond 2016, subject to a 30 -day written notice. She explained that when Premier was let go, the Council at that time had indicated that Youth First should cover the cost for utilities and maintenance, which is how tonight's case is written, to hold Youth First accountable for water and gas bills and to set a term. Mr. Fisher stated all of the paperwork for Youth First has expired and they have been called to the site several times to resolve minor issues. He recommended that some framework be in place, even if it is "tenant at will" with a 30 -day notice. Councilmember Tossey asked about the City's contribution to Youth First. City Administrator Ulrich reviewed the City's contributions, noting it is a significant amount. He stated staff is proposing the lease include payment of utilities by Youth First. Finance Director Lund stated Youth First is currently paying 60% of one -half of the costs with the church paying the other 50 %. The cost for utilities for the year is about $5,000 so it will cost Youth First $2,000 to $3,000 for gas, electric, and water. Councilmember LeTourneau noted that three to four yeas ago, Youth First asked the Rotary Club for support to pay the utility bill as it was quite significant in their operating budget. Mayor Strommen stated there should be some responsibility for use of utilities and the City contributes to Youth First in other ways. Councilmember Tossey stated he thinks Youth First staff will contact him about having to pay the utilities because they are in financial hardship; however, he thinks there should be some responsibility and accountability with the utilities. Finance Director Lund stated Youth First is aware of this change to include utilities. Mayor Strommen stated if it was a concern, they would probably have responded. City Administrator Ulrich stated the Council will be addressing the 2014 budget in several months. The Council agreed with the request of Mayor Strommen to next consider Case 2.03 since the auditor was in attendance. City Council Work Session / June 25, 2013 Page 4 of 8