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Costa Mesa Senior Center board to discuss city takeover

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Costa Mesa Senior Center board members could take steps during a special meeting Friday to hand over significant financial responsibility to the city.

The senior center’s financial turmoil came to light in January, when the city published an audit report predicting that the organization’s general fund would run dry by June.

In an attempt to save the ailing facility, municipal officials and center board members drafted an agreement in which City Hall would take over almost all of the center’s finances and operations.

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If the board votes to approve the contract Friday, the city will absorb several functions, including staffing, distributing the center’s newsletter, building maintenance, and activities and programs, according to the contract.

“We’ve done all we can,” Councilwoman Wendy Leece said. “The ball is in the court of the senior center board to decide if they want to move ahead in the process.”

The facility, at 695 W 19th St., currently operates autonomously but relies on the city for a portion of its funding. The city annually grants the center $240,000. This fiscal year, the center also received an estimated $535,570 worth of in-kind services from the city.

The board was aware of the center’s grim financial situation in the months before the city’s audit, members have said.

If they approve the contract, the center’s board will still retain certain responsibilities, including approving new classes and acting as a voice for seniors.

The board will also discuss the possibility of dissolving the non-profit corporation, meaning the center would no longer have an official board of directors.

In that case, the City Council would form and appoint a Senior Commission to represent the center. Current board members would automatically become part of the commission, the agreement states.

Once the city’s takeover is official, current senior center employees will be fired and given the option of reapplying for their jobs through the city.

The city will provide interim employees for the center in the meantime, according to the contract.

Board members will discuss the terms of employees’ termination during the closed session portion of the meeting.

The closed session conversation will consist of whether the organization will offer severance to its employees, Leece said.

The city has not been asked to help fund severance packages yet, Leece said, and doing so would require the council’s approval.

Senior Center Board President Judy Lindsay could not be reached for comment.

The city’s preliminary 2014-15 budget includes $300,000 that has been set aside for costs related to the senior center acquisition, including improvements to the aging building.

“We feel that we’ve made an offer that will help them and relieve the financial burden that they’re under right now,” Leece said.

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