06-07-2021 Council Work Session Packet

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Page 42 of 73 FACILITY MANAGEMENT and STAFFING MODELS MANAGEMENT MODELS AND OPTIONS Center Management Options The ISG Study explored three Center management options: 1. Total City Managed Facility 2. Total Outsourcing of Management and Operations by outside entity a. Essentially the same as the former YMCA management model 3. Hybrid Option a. City manages and operates the facility b. Outside entities provide management and programming in specific areas City Managed Model The City Managed Model is very straight forward and is the model used by most municipal recreation centers in the area. In this model the City provides all management and operational staff and pays all operating expenses and maintenance costs. The City also retains all of the revenue. Some instructors may be independent outside contractors or providers, but for the purposes of this financial operating analysis all part-time instructors and trainers are assumed to be City employees. Outsourced Management Model The full Outsourced Management Model is often used for municipal facilities, especially golf courses and sometimes ice rinks or large sports complexes. Most outside management groups are for-profit businesses. In the case of recreation centers where many of the program and use elements are community service based there is less net operating to support the for-profit management groups. The City also loses some control over programming and membership models depending on the structure of the management agreement structure. In analyzing the City goals and objectives and the financial model, ISG determined that the full Outsourced Management Model was not a good model for the Center. Hybrid Management Model The Hybrid Management Model is designed to take advantage of the City’s expertise in managing and maintaining facilities while bringing in outside providers or developing program partnerships in areas where City staff does not have the expertise or experience in house to run specific programs and management tasks. The Hybrid model also can generate cost reductions in several areas:  Staffing o Reduce program specific instructors and trainers who are now provided by the outside entity o Reduce some facility staffing in the overall operations and program specific support staff  Program equipment and supplies o Outside program providers often provide their own equipment which can generate significant capital and operational cost savings, especially in the category of fitness programs