Agenda Packets - 1999/07/12 - Laserfiche WebLink

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UNAPPROVED Finance Director Kessel stated that there were three components to the Agreement. He stated that one was the operation of the Community Center, one was the operation of the recreation programming, and the third was the general administration of the recreation program. He stated that the Agreement provides that the recreation program will not operate if a project is expected to lose more than $50, unless the City approves to fund the loss. He explained that if the YMCA generated a loss of $50 and the City had not agreed to fund the remaining deficit, the YMCA would be responsible. He stated that in regard to the Community Center, the City would be paying for equipment and utilities and would, therefore, be monitoring those costs. He stated that there are provisions in place relating to the monitoring of the HBA system for efficient use. He added that the City would be responsible for the cost of the janitorial services. He stated that he believed these provisions would cover any possible deficits. Council Member Stigney stated that he had a concern regarding Article 4, Item A, regarding compensation in relation to the Consumer Price Index. He noted the third sentence, "On January ? of subsequent years, the annual compensation and corresponding monthly payment shall increase by the Consumer Price Index," and requested the addition of the phrase "for the Twin Cities Metropolitan Area" before the comma. He stated that this would align them with the costs for living in the Metropolitan area, as opposed to those of the national Consumer Price Index. Mayor Coughlin stated that during discussion at the Work Session, they had concluded that they would leave this provision to staff's discretion. Council Member Marty stated that he was not present for discussion of that issue and felt it had merit, in that the national average varies, and the local price index was more relative to them. Mayor Coughlin stated that the matter had been discussed at length, noting that Finance Director Kessel had provided extensive information on the subject. He stated that he thought it was the consent of the Council, and for the sake of continuity, that they allow staff to make this determination. Council Member Stigney stated that they could contact the AMM, to determine which Consumer Price Index they utilized. He added that the suggestion to leave the matter to the determination of staff had been suggested by Council Member Thomason, and he had not given his consent at that time. He stated that he had wanted the Council to consider the matter. He added that City Administrator Whiting had expressed to him that, in his opinion, it would be good to incorporate the Twin Cities Metropolitan area into the Agreement. Finance Director Kessel stated that the wording was the same as that in the School District contract. He stated that if Council was receptive to the idea, they could discuss the matter with the School District, the Children's Home, and the YMCA, to determine if they would all be agreeable to define the index in their respective contracts. He stated that there was concern in utilizing one index on the revenue side, and another on the expense side. Mayor Coughlin stated that he would leave the wording as is, and direct staff to discuss the matter with all parties to see if they were agreeable to amending their contracts. City Attorney Long stated that he believed this would be the proper way to proceed. Council Member Stigney stated that he was still uncomfortable signing this contract and would like the Consumer Price Index to refer to the Twin Cities Metropolitan area. 20 C:\ADMIN\MINUTES\CC\6-28-99.CC