Senior Center takeover inches forward

Costa Mesa’s gradual takeover of the Senior Center’s operations moved a step forward Friday, as the center’s board approved consulting an attorney to aid in the effort.

Ten members of the board met in closed session to approve the move, which will involve the center’s current employees losing their jobs as interim city employees take over.

Current Senior Center employees will be able to re-apply for their jobs through the city, said Councilwoman Wendy Leece.

The board also spent time discussing the four-page proposed agreement with the city, highlighting specific items members would like to have included, and clarified, in the document.

Municipal officials and center board members drafted the agreement in which City Hall would take over almost all of the center’s finances and operations.

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

The facility at 695 W. 19th St. 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.

Board President Judy Lindsay said she’s hesitant about jumping into an agreement with the city that hasn’t been adequately reviewed.

“I’m rushing as fast as I can while trying to be as through as I can,” Lindsay said.

Other board members, including Barbara Echan, urged her colleagues to move forward with a sense of urgency, noting seniors who frequent the center are upset by the uncertainty surrounding the city’s takeover.

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

Board Vice President Joan Weeks questioned whether the board will be responsible for fundraising for the center and whether the city is adding the senior center non-profit corporation to its insurance policy.

Since the items were not specifically addressed in the proposed agreement, Lindsay agreed to approach the city to negotiate. She will report her findings back to the board May 20.

At the start of the meeting, several board members were critical of the Daily Pilot’s coverage of the center, asserting that the newspaper has spread misinformation about the organization’s financial stability.

Writing that the audit predicted the center’s financial instability is misleading because the board was aware of the financial turmoil even before the city became involved, said board member and treasurer Ron Frankiewicz.

The audit, which was published in January, states that the senior center will run out of money in its general fund by June.

“We’ve been projecting these losses for years, but we have a cushion,” Frankiewicz said.

The cushion is a memorial foundation set up by a former senior center member, Albert Dixon.

In 2006, a foundation was created in his name after Dixon’s second wife died, leaving the senior center $650,000.

In previous meetings, board members have debated the necessity of using the funds, which many seniors believe should not fund the day to day operations of the center.

The board that oversees the Albert Dixon Memorial Foundation agreed to fund the senior center for the next two to three years, Frankiewicz said.

The Albert Dixon Memorial Foundation has already agreed to give the senior center $50,000, said President Mike Scheafer.

“We’ve agreed to consider their requests when they make them,” he said, adding that as long as they are reasonable requests, the foundation will fund them.