Memo - Depot Coffee House Update
FACILITIES DIVISION
MEMORANDUM
To:
FROM:
DATE:
SUBJECT:
Honorable Mayor and Members of the City Council
Jay Strachota, Facilities Director
November 3, 2005
Depot Coffee House Update
The purpose of this Depot Coffee House Update work session is update the Council on a few key
areas of change and possible change at the Depot. The Depot Coffee House program has two
important projects on the horizon - an alternative energy initiative and possible site
improvements by Three Rivers Park District and has had two organizational changes this past
year - the Management Agreement with Royal Cuisine to manage the coffee house operations,
and the employing of the Teen Coordinator by the YMCA. These topics will be the key
discussion topics for the work session.
Site Improvements
Three Rivers Park District is prepared to invest in a major capital improvement project at the
Depot site to improve the functionality and appearance of the site. The concept drawing drafted
as a starting point in the improvement discussion included those items recognized by Three
Rivers, City, and Depot staff as being needed to improve the site. Improvements could happen
as soon as 2006. As Three Rivers and the City proceeded with the improvement discussions there
was an assumption that the light rail transit would not affect the site for another 15-20 years so
any improvements would be substantially depreciated by that time.
Over the past several weeks a couple developments have come to affect how the improvements
might proceed. The most high impact development is the finding that if funding and
development fall into place quickly, the Southwest LRT could start to be constructed as soon as
2010 with an opening date in 2015. This would impact the Depot improvements much sooner
than anticipated. Three Rivers staff is now reviewing these findings and the LRT people are
working on getting the City draft drawings of what the site might look like with the LRT.
The second development is the pursuit of more improvements to the Depot building in the way
of a building addition, alternative energy improvements, and maintenance needs, in place of
proposed site improvements that now may be prohibited by the LRT's path. Three Rivers Park
District staff has this information and is working through it along with the LRT development.
The Hennepin County Regional Railroad Authority staffhas reviewed the initial concept
drawings and did not express any concerns with the improvements as shown on the drawings.
At this point we are in a holding pattern until there are LRT drawings available and Three Rivers
responds to the new developments.
Alternative Energy Initiative
On September 7, 2004 the Council passed the attached resolution in support of an Alternative
Energy Lab at The Depot Coffee House. Since that time the Depot board has worked with Xcel
Energy through a rebate program to upgrade the lighting at the Depot to more energy efficient
compact fluorescent bulbs, have attended numerous informational/educational opportunities on
alternative energy, had an energy audit ofthe Depot, met with Depot employees on energy
conservation, and have met with contractors on the use of solar panels as an alternative energy
source for the Depot. A Depot Energy Task Force has been formed to focus on Alternative
Energy and has met with Hopkins High School teachers.
For more alternative energy initiative see the attached Vision, Benefits & Challenges statement.
Royal Cuisine Management Agreement
Royal Cuisine is fully operational in the management agreement with the Depot Coffee House.
All Depot Coffee House employees have been transitioned to school district employees. There
are financial books kept by Royal Cuisine in a Peach Tree accounting program that gives the
Depot Board and Partners up-to-date cash accounting of the business and the City Finance
Department keeps the Depot program budget in the City books as we have always done. The
Finance Department is satisfied with the contractual arrangement with Royal Cuisine. Invoices
are submitted and processed as in the past. The Police Department is unaffected by the change
over. Royal Cuisine is coordinating maintenance and repair as outlined in the management
agreement.
The Depot Board reviewed the Depot Management agreement recently and met with City, Royal
Cuisine, School District, and YMCA staff to discuss their review of the agreement. In general the
results of that meeting show there are a few wording changes and additions that need to be edited
into the agreement for clarity, and also it was agreed that communications are very important.
Strategies to improve communication and create lines of communication were suggested. Before
the one year review of the agreement the review process should be clarified so that those
evaluating and those being evaluated are comfortable with, and have an understanding of, the
method to be used.
In a recent development with the management agreement, Royal Cuisine has proposed a plan in
which Kathleen Taber, the Depot Coffee House Manager, will no longer be designated as the
Depot Coffee House Manager, but instead will act as the Management Liaison and Supervisor
for the Depot Coffee House. The position's direct areas of responsibilities at the Depot Coffee
House will be the typical management responsibilities of all staffing responsibilities, training,
development, daily acconnting, ordering supplies, inventories, rentals, marketing, etc. In
addition, the position will be the coordinator and work on program development with the
Marketing, Advertising, Business and F ACS curriculum at the High School, therefore fulfilling
the district requirement of student learning for the School Lease. This new position will not work
behind the counter in a serving customer capacity at the Depot and will not be full time at the
Depot. A portion of the new position's time will be allocated to the Royal Cuisine in other areas
of their operations thereby relieving the Depot of some of its payroll burden. Of the changes
made in going to a management agreement personnel expenses are the one area that remain too
high to approach profitability under the current amount of revenue. The plan brings a net budget
savings of $9,830. The plan has the advantages of fostering follow through on the business class
work, creating a better link between the Depot and Royal Cuisine operations, and it will allow
the manager to better focus the on management, marketing & curriculum. There has been
concern expressed about the expectations on the position and it's part-time designation. This will
be something that Royal Cuisine will monitor. With revenues increasing slowly, and cost of sales
reduced, this new management approach makes sense as a way to substantially improve the
bottom line of the Coffee House operations.
YMCA Teen Coordinator
The Teen Coordinator (TC) position was filled for the Depot as a YMCA employee in March of
2004. The position is 30 hours per week and offices out of City Hall. The TC is independent of
direct responsibilities to the YMCA or the City, focusing exclusively on the Depot.
The new employment arrangement is working well from the City's perspective. Having the TC
office at City Hall has provided communications tools (computer, email, phone, voice mail, fax),
which were shared or didn't exist for the past TC. Having the TC at City Hall also fosters
communication with the Police Department, City Manager, Finance Department, and Facilities
Director just through the convenience of the location. Having the TC be a YMCA employee
works well because the YMCA Youth Development Program Director meets with the TC once a
week to support efforts with the Depot. The previous TC did not have this support. The TC is
also able to have closer relationship with the YMCA than in the past, which allows the Depot to
more readily access YMCA resources.
Overall from staffs perspective the arrangement to have the YMCA employ the TC and having
the TC office out of City Hall brings together a much-improved support system and resource
pool for the Teen Coordinator.
.
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION 2004-062
Supporting the Creation of an Alternative Energy Learning Lab at
The Depot Coffee House
Whereas, the mission of the City of Hopkins is "Partnering with the community to enhance the
quality oflife;" and
Whereas, the Hopkins City Council recognizes The Depot Coffee House and The Hopkins
School District as partners in many efforts that benefit youth; and
Whereas, The Depot Coffee House and The Hopkins School District are pursuing a project to
create an alternative energy learning lab at the depot and on the surrounding grounds; and
Whereas, sustainable energy solutions enhance quality of life now and in the future; and
Whereas, the City of Hopkins leases the depot property from Hennepin County Regional
Railroad Authority (HCRRA) for use by The Depot Coffee House; and
Whereas, on May 18, 2004, the HCRRA (landlord) approved the usage of the building and
grounds for these purposes; and
Whereas, the project requires immediate planning funds to support a teacher/coordinator position
and start-up expenses as well as future implementation funds; now
Therefore be it resolved that the Hopkins City Council supports this project and recommends that
the Hopkins High School/ The Depot Coffee House Alternative Energy Learning Lab
project build the institutional and individual relationships necessary and seek the
resources required to create an alternative energy leaming lab at The Depot Coffee House
and on the surrounding grounds.
Adopted by the Hopkins City Council this 7th day of September 2004.
BY:~/~
Mayor
......
Our Vision
Within the overall mission of The Depot, the mission of the renewable energy project is to create a
visible, inviting alternative energy learning lab for schools and community.
Benefits
. Students benefit from interactive, hands-on experience with *conservation, efficiency and
renewable energy sources.
. Community members benefit by having easy access to conservation, efficiency and renewable
energy tools and information.
. County will benefit through owning a more economically viable building and will possess a
showcase for retrofitting existing buildings with new technology. If used in other government
buildings these technologies could not only actually save dollars for the city, county and state,
but they can also create many long-term jobs in the service, retail and industrial sectors.
. As students and community grow in knowledge and practice together, society benefits by the
growth of public will to reduce reliance on diminishing *non-renewable energy that harms our
environment and hurts our economy.
. As acceptance of new technology increases, business and the workforce benefit as new jobs are
created.
Challenges
. Our society will face an energy crisis within the next few decades if we stay on our current
course of depleting primary energy stock (energy that occurs in bulk naturally). Currently,
widespread awareness, understanding and acceptance of this imminent threat do not exist.
. The Depot was renovated with donated funds and equipment 8 years ago, with little attention to
conservation or efficiency and no attention to renewable energy technology. Current
equipment is in need of replacement and additional equipment must be acquired.
. In order to raise necessary funds, the students of The Depot Coffee House project must
spearhead a community-wide initiative to help the depot "Go Green."
* Definitions
Renewable Energy: sources that are recycled continually within the ecosystem being renewed after
use by incoming radiant energy from the sun (wind, solar, biomas); Clean (essentially no waste) all
end products may be reused with energy being transformed, not used up; Endless
Non-renewable Energy: Materials that are acquired from the earth, extracted, used and the waste
discarded, such as coal, crude oil, uranium ore; Dirty (produces waste products); Finite (source will
run out)
Conservation: Change in lifestyle to reduce energy consumption. For instance, turning down your
thermostat while no one is using the house is a lifestyle change that can conserve heat.
Efficiency: A "technological" fix to reduce energy consumption. Replacing energy-hogging light
fixtures is a technological measure that improves efficiency.
Thinking Big in a Small Space - A lab for learning and demonstrating proven and cleaner
technologies.
The Goal
Shifting our thinking and practice to conservation, efficiency and use of renewable energy at The
Depot. Our near-term plan is to take advantage of:
. Energy Audits - Gather more ideas on possible improvements.
. Weatherization - Make the best use of the space we have.
. Replacement of fixtures/appliances - Improve efficiency of operations.
. Behavior changes - Teach our student and community audience to make better choices.
. Solar photovoltaic panels - Use the sun to generate clean electricity.
. Wind turbine installation - Use the wind to provide clean electricity.
The How
. Research
. Partnership with Schools / Earth Club / County (HCRRA Landlord) / Utilities / Media /
University ofMN / Legislature
. Ask for contributions of timelresources from our partners
o In-kind energy audit from utilities
o In-kind weatherization from County
o Ask legislators for alternative energy equipment/installation funding
o Seek funds from government and private sources