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Outsourced Total Facility Management <br />•Key elements <br />–Turn -Key management team runs all membership, usage, programs, scheduling, and staffing <br />–Management company pays all staff, utilities, regular cleaning and handles marketing and other <br />normal operating costs <br />–May include all annual and long term maintenance and replacement <br />–May require City paid management fee based on profit model for Management Company <br />•Pros <br />–Can be faster start up than City managed facility <br />–May reduce City start up costs if equipment and other costs included in management contract <br />–Reduces City annual operating deficit risk <br />–No significant increase in City staff or expenses <br />•Cons <br />–Adds another layer of cost to support profit margin that may add City cost <br />–City may have less control of membership and usage fees <br />–May reduce accessibility to community groups and other non-revenue generating City program <br />goals <br />–For profit management group may not share City vision and goals <br />–Requires very detailed agreement and understanding of City requirements 17