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Adhoc Committee for Rec Facility Packet 2012 07-09-12 `,�ip,_D CITE © United City of Yorkville 800 Game Farm Road EST. 1836 Yorkville, Illinois 60560 -4 Telephone: 630-553-4350 o CIO Fax: 630-553-7575 Nndkl CauTy <LE AGENDA AD HOC COMMITTEE FOR RECREATION FACILITY ALTERNATIVES Monday, July 9, 2012 7:00 p.m. City Hall Conference Room Citizen Comments: Minutes for Correction/Approval: June 11, 2012 New Business: Old Business: 1. City-YMCA Partnership Options —Discussion Additional Business: UNITED CITY OF YORKVILLE Ad Hoc Committee for Recreation Facility Alternatives Committee Meeting City Hall Conference Room Monday,June 11, 2012 7:00 p.m. Call to Order: Chairman Chris Funkhouser called the meeting to order at 7:00 p.m. an Establish a Quorum: Present: Chris Funkhouser, Chairman,Alderman Jackie Milschewski,Alderman h Larry Kot,Alderman ��a Q Rose Spears,Alderman Gary Golinski Mayor Ken Koch, Park Board Dan Lane, Park Board n%b%•. � W;,,,. City Officials Present: Bart Olson, City Administrator Tim Evans, Superintendent of Recreation Shay Rosborough, Recreation Laura Schraw, Director of Parks Other Guests: Tony Scott, Record Newspaper Andrew Bobbitt,YMCA Rebecca Mophey,YMCA Lisa Peterson,Yorkville Resident Judy Burks,Yorkville Resident Don Burks,Yorkville Resident Joe Gilespee,Yorkville Resident Citizens Comments: None. Previous Minutes: The minutes from the May 7, 2012 meeting were approved. Motion made by Jackie Milschewski and seconded by Larry Kot. New Business: Page 1 of 5 None. Old Business: YMCA Partnership Options: Two things to discuss today which are two options of how things can be structured. Alderman Funkhouser said at this point, there is not a drafted agreement in front of the committee. Mr. Bobbitt stated after the first meeting, he went back and presented to the board of directors the options that were openly discussed. The two options the board liked were co-development on a new facility, which he stated he understands is not an option because the city cannot bring anything toward construction, and the second being proposing a management agreement for the YMCA to run the REC Center. Mr. Bobbitt said he understands this is a time sensitive issue. He would like to get the information of what the city expects, so that he can draft an appropriate management agreement. Mr. Bobbitt stated he would like to meet with Bart Olson to discuss the financial end of the agreement, so the YMCA knows what they would be committed to. �kwv,- Mr. Bobbitt asked the committee if they are interested in a management agreement and what things the committee would like included in the agreement. Mr. Koch stated he thought that the YMCA was going to bring an agreement tonight so the committee could discuss and look over it. Alderman Funkhouser stated the YMCA needed more time and they didn't want to bring forth an agreement as of yet. Alderman Funkhouser stated without having anything in front of the committee, there is not a lot we can truly discuss and he understands the YMCA not wanting to release some of the information. Mr. Bobbitt said he could put an agreement together, but half of the pages he stated the committee would object to, so he would like to present a document that includes what the committee is looking for. Mr. Bobbitt stated he needs more information from the committee on what details they want included i.e. utilities, staff, space, finances or lifeguards or other city services. Mr. Bobbitt didn't want to present a document that would waste the committee's time. Mr. Kot asked how much time he will need to come up with an accurate document. Mr. Bobbitt said the city has not given the YMCA any time frame. Alderman Funkhouser stated June of 2013 is when the city has to make a decision. Alderman Funkhouser said in terms of the time line, the committee thought we would have something presented by now, and the committee needs to see a draft and determine how many weeks it will take to see a document so a decision can be made. Mr. Bobbitt said half a dozen options were discussed and two were suggested to move forward and we forwarded those on to Bart Olson. Mr. Bobbitt said the YMCA has not received word that the co- development of a new facility was off the table. Alderman Funkhouser stated at the last meeting we came to the understanding the city could not co-develop a new facility. Mr. Bobbitt said this is why a discussion needs to happen before the document is presented, so the document will be accurate. Mr. Bobbitt asked for a list of concerns and ideas so that he can present an Page 2 of 5 accurate document. Mr. Bobbitt said he is asking for feedback from the committee. Alderman Kot said the new facility option was ruled out because it was cost prohibitive.Alderman Kot stated he would like to see numbers to make a decision. Alderman Kot stated until he knows numbers he cannot say yes or no to it. Mr. Bobbitt stated it is varied as to what would be included in the facility, but anywhere from 3 to 12 million dollars. Alderman Funkhouser said the numbers could sound good,but how would the city fund our portion. Alderman Funkhouser said the current facility pays for itself. Alderman Funkhouser asked if the committee wants to see the numbers on the co-development of a facility and management of a facility. Alderman Funkhouser stated he is concerned on the, e line and making these meetings very efficient to move things along. Alderman Kot stated he is interested in seeing both of those options. Alderman Milschewski said she thought the new facility was ruled out because of no funds. Alderman Milschewski stated she feels like she doesn't have enough information to decide on anything at this point. Mr. Bobbitt said there are many questions for a partnership that would be helpful to have discussions on before an official draft. Alderman Milschewski stated she would have liked to see an example of an agreement used in other places to get an idea of how things have been done. Alderman Milschewski said the committee could have used that as a template. Alderman Funkhouser asked if it would be prudent to have staff meet with Mr. Bobbitt to discuss some of these issues and to work these things out. He asked if the committee had any objections to the staff working with Mr. Bobbitt. Alderman Funkhouser stated he doesn't want there to be issues with how the committee is handling things. Alderman Funkhouser recommends Mr. Bobbitt working with staff because they know a lot and it could help expedite the process. Alderman Milschewski stated that is fine, but she would like to see something drafted soon. Mr. Bobbitt stated he thinks within three weeks he could have an agreement drafted working with both entities, which is less work in the long run. Ms. Mophey stated the hardest part has been the YMCA not sure what the city wants from the the YMCA. Mayor Golinski asked if there have been any agreements similar done in the Chicagoland area. Mr. Bobbitt stated most of what he has seen were not in Illinois. Mayor Golinski asked the committee what they want to see in this agreement. Ms. Mophey said that is what the YMCA needs to know. Alderman Milschewski stated she wants to base this on keeping the REC Center. Alderman Funkhouser said the committee needs to decide if we want to retain staff, keep programing and just let the YMCA manage. Alderman Milschewski said that is what she wants to see. Mr. Lane stated that nothing has been done since the last meeting and there are no new answers or ideas. Mr. Bobbitt said there are two things co-development of a facility and management of REC Center. Mr. Bobbitt stated that was the first meeting and those questions led to more questions because this is a very complex matter. Mr. Bobbitt would like to present a document the city had opportunity to be a part of. Mr. Lane stated he doesn't see any substance tonight. Ms. Mophey stated the YMCA needs to find out what the city wants, as the Mayor just asked. Mr. Bobbitt stated this entire process began at the request of Brian Weiss to connect the YMCA and the REC Center, so there was a first meeting and then more questions came about. Mayor Golinski asked if the YMCA would be interested in partnering on the REC Center financially. Mayor Golinski said he is having trouble with why the city would buy a recreation center and let someone else manage it when Page 3 of 5 we have competent staff to manage it now. Mr. Bobbitt stated that the YMCA is a non-profit status and our organization is meant to relieve the burden of government and it limits the risk and protects your residents. Mr. Bobbitt stated he could see more savings made and limit a negative impact to taxpayers. Mr. Koch stated he would like to see at least a 20 year commitment. Alderman Funkhouser agreed a long term commitment is what the committee is looking for. Mr. Bobbitt stated that is why it is helpful to have the conversation between the YMCA and the city so the document will be correct. Alderman Milschewski said if the city acquires the REC Center and the YMCA manages it what are the benefits of the merge. Mr. Bobbitt said he has done this for 20 years and he see opportunity for savings. Alderman Milschewski asked if the city will have some income from it. Mr. Bobbitt stated ideally,yes,but there are always risks involved. Alderman Milschewski said there should be some profits made for new equipment etc Alderman Kot asked about the Mayor's point of co-owning the REC Center as opposed to just managing it. Ms. Mophey stated that is something that we can take back to the board. Alderman Funkhouser stated that would provide a much more secure relationship between the two. Alderman Funkhouser asked if these negotiations break down, how likely is it that a new YMCA facility will be built within five to seven years. Ms. Mophey stated that it will happen somewhere near Yorkville. Don Burks asked if city owned land could be used to provide collateral for a new facility. After discussion with the committee, it was determined that is not a possibility. Lisa Peterson asked if the YMCA and city partner, will the YMCA open another facility in the next 20 years. Mr. Bobbitt said he can't say that there are no guarantees. Alderman Funkhouser said it would add additional resources for the members if we enter into an agreement. Alderman Funkhouser said in the agreement the city needs to put who will be on the hook for shortcomings the YMCA or the city because we have to look out for the best interest of our residents. Alderman Funkhouser asked if the YMCA has had any discussion on the purchase of the REC Center building. Ms. Mophey said years back, not recently. Alderman Funkhouser said he would not oppose someone coming in and purchasing the building and it not being a city run facility. Alderman Spears asked if Mr. Bobbitt was aware of all the programs the REC Center runs. Mr. Bobbitt stated yes. Alderman Spears asked if the YMCA handle taking on those programs if the REC is not there. Mr. Bobbitt stated yes, but it might mean additional construction to accommodate more residents.Alderman Funkhouser said there potentially could be a gap in programming. Mr. Bobbitt stated the owner could extend the lease for the REC. Judy Burks said if the city doesn't purchase the facility, the owner could then go back to a private facility and run it as before. Alderman Funkhouser said the YMCA and the city staff should work together and come up with ideas for an agreement. Alderman Funkhouser said the board is to consider a joint venture and anew facility jointly with the city. Alderman Kot said he is very pleased with the current REC Center staff and he doesn't like the idea of someone else running it if the city purchases it. Alderman Spears said the city could put in the agreement to retain the staff. Don Burks asked what programs could the YMCA absorb and could the YMCA pick up what is offered in the REC Center other than the health club portion. Mr. Bobbitt stated that can be worked out. Mr. Gilespee asked if the city walked away from the REC Center could the YMCA pick up these residents needs. Mr. Bobbitt stated yes. Alderman Funkhouser stated the YMCA now has some direction to Page 4 of 5 come back with an agreement. The committee agreed to meet again on July 9, 2012. Adiournment• Motion to adjourn made by Alderman Kot and seconded by Alderman Milschewski. Meeting was adjourned at 8:06 p.m. Minutes Respectfully Submitted by: Lisa Godwin E Page 5 of 5 17Fox Valley Family Y M C A A United Way Agency 0 PRELIMINARYDRAFT—based on guidelines provided by City of Yorkville (see back page). Operation/Management Agreement Proposal—Yorkville REC Center Intent: As a 501 (c) (3) not-for-profit organization we are obligated to relieve the burden of government. This management agreement accomplishes this by providing savings and reducing risk for the City. Additionally, it will limit the competition between two facilities that are just over 2.5 miles away from one another or for the City if the YMCA were to physically expand to Yorkville as we are considering. Revenue and Budgets: it is the YMCA's objective that the REC Center be operated at a financial breakeven point with current revenue equaling or exceeding direct operating expenses. The Y may engage in fund raising or grant activities to supplement operating revenue or it may supplement the operating budget through its own resources. Throughout the term of this Agreement all membership and program revenue generated from the REC Center including,but not limited to, user fees, class fees, and other fees or charges shall be collected and retained by the YMCA. All revenue received in relation to the REC Center shall be administered by the YMCA for purposes of covering operating expenses of the REC Center. If the revenues received on behalf of the REC Center do not cover the operating expense of the REC Center, responsibility for the shortfall in operating expenses shall be divided equally between the City and the YMCA. If the revenues received on behalf of the REC Center exceed the operating expenses, those excess funds shall be retained for future capital expenditures or other expenses as determined jointly by the City and the YMCA. The operational decisions related to the REC Center will be made exclusively by the YMCA. All decisions related to capital expenditures shall be made jointly by the City and the YMCA. Scholarships: qualifying Yorkville residents would receive up to 60% off programs and memberships. In 2012 the YMCA anticipates awarding over$50,000 in direct financial assistance scholarships. In 2011 the REC Center provided $389 in Scholarships. City's Fee: shall be paid by the YMCA to the City on a monthly basis in the amount of$XX,000 for each complete month the YMCA operates the REC Center. Agreement Term: This Agreement shall run for a five year(5) term commencing on Award Date. The City may extend the performance period for up to three (3) five year periods beyond the initial Agreement term date if desired. The City shall provide a six (6)month advance written notice to the YMCA of the extension or termination as such and the YMCA likewise is to provide a six (6) month notice to the City not to renew. Maintenance Obligations: The YMCA agrees to provide routine maintenance and daily cleaning of facility and equipment, the expense for this obligation to be covered as an operating expense. Repairs, Replacement,Alterations and Damage: The City shall assume responsibility for any facility repairs, capital improvements and/or future expansions of the Center. The City shall reimburse the YMCA for repairs to any capital asset in excess of$X,000, unless otherwise agreed to by the parties in writing. For purposes of this section, capital asset is any tangible item with a useful life of more than one year. 1 Operating Schedule: It is the intention of the YMCA to maintain the summer and fall/winter hours the City has established however, the YMCA may set and modify hours of operation based on the use of the Center with a minimum of thirty (30) days notice to the City. Programming, Use and Rate Structure: The YMCA shall develop, operate and manage programs that serve the community. The YMCA shall continue to analyze community participating and shifting needs and adjust programming accordingly. The YMCA's Programs will have first priority based on space availability for facility usage but can at its sole discretion approve/provide the City with available program space with as much advanced notice as possible. Outside Community Organizations or entities will schedule directly through the YMCA and it will be the YMCAs discretion whether to rent space or provide space at no cost. Programs offered at the REC Center from time to time shall be generally based on perceived need. The YMCA may revise its Program Schedule from time to time. Community Needs Survey and Assessment The YMCA will employ a number of tools and strategies to determine community needs and desires, and to also evaluate how those needs are met. As part of this effort, the YMCA may send a survey to local residents, conduct focus group meetings with local residents, review local demographic information and assess other local services provided in the community. On an annual basis, the YMCA will appraise program quality, levels of program participation and customer satisfaction through a variety of methods to include program audits, written program evaluations, focus groups, or customer's suggestion box. Advertising and Marketing Signage, etc.... If the YMCA prepares any brochures, newsletters, promotional publicity, or other marketing materials specifically related to the Center, it agrees to forward a copy to the City for notice only. Each party agrees to list approved general program, facility and contact information in each other's publication and advertisement opportunities if such information is specific to the Center. Personnel Selection and Salaries—the YMCA agrees to secure, furnish, train and pay for all personnel as are reasonably necessary to be employed in the successful operation of the Contract Area. Any and all claims that may or might arise under the Workers Compensation Act of the State of Illinois or similar act on behalf of said employees or other persons while so engaged in any work, or services provided to be rendered herein, shall be the sole obligation and responsibility of the YMCA. Contract Manager/Contractor Representative Within ten (10) days of Award Date, the City and the YMCA will each designate in writing the Contracts Manager for this agreement. The City will provide written notice to the YMCA and vice versa, should there be a subsequent Contract Administrator change. The Contract Manager will be the YMCA's principal point of contact at the City regarding contract performance. Neither the Contract Manager nor the YMCA Executive Director is authorized to waive or change any material terms of the Agreement. Obligations of the City Utilities—are to be paid by the YMCA. Any amounts in excess of 10%paid by the YMCA from the same period of the prior year will be applied as a credit against the following month's payment made to the City each 2 month. Any fees that can be waived by the City as a City owned buildings are expected to be passed along to the YMCA. General Maintenance and Repair: The City shall notify the YMCA in writing of any issues, concerns or complaints with the maintenance and repair of the Contract Area and the YMCA shall have thirty(30) days to remedy the City's concerns. Cost for this maintenance and repair to be paid as an operating expense. Other General Maintenance and Repair—The City agrees to maintain the following in good repair and condition and to make all repairs thereto which may be reasonably necessary, cost for this maintenance and repair to be paid as an operating expense: 1. Inspect the pool equipment quarterly. 2. Maintain the parking areas at the Center. 3. Maintain and care for all plantings within the Contract Area and grounds outside of the Contract Area of the Center. 4. Maintain the Facility Equipment that is used in the operation of the facility for its intended purpose such as air conditioning units, ceiling speakers, etc... 5. Coordinate an annual closure of mutually agreed upon designated areas of the Center for cleaning, maintenance and repair by the City/YMCA. Furnishings, Fixtures and Equipment The City agrees to maintain the Furnishings, Fixtures and Equipment in the Contract Area. Good Faith and Cooperation It is agreed by the City and the YMCA that it is in their mutual best interests and in the best interest of the public that the Center be operated and managed as herein agreed and, to that end, the parties shall in all instances cooperate and act in good faith in compliance with all the terms, covenants, and conditions of this Agreement and shall deal fairly with each other. * Bart Olson, City Administrator-United City of Yorkville "Per our phone conversation, here are some guidelines to work on an agreement. So, I will not have a detailed breakdown of parameters for you to discuss. In general, my comments for any partnership agreement are as follows: 1) The City is not going to be interested in providing you any operational or seed money. We don't want to pay the Y's bills, as is the case in the NLV agreement. The Y should be an autonomous unit within the facility, paying the City rent. Typical landlord/tenant rules would apply for maintenance of the facility and its components. 2) The City would like to be able to use the facility from time-to-time for classes and events. In general, if the room or facility is empty, we would like unfettered access at no cost. 3) City staff would have to be given positions in the facility, if they cannot be retained by the City. As you stated, whatever agreement you already have drafted would be acceptable to send to me, even if its components do not align with the above. While I understand both of us should have a hand in drafting any language, it sounds like you're much farther ahead. It's much easier for me to see the components of what you've already got drafted and then to comment on it." 3