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<br />Item No: 06 <br />Meeting Date: Sept 6, 2016 <br />Type of Business: Work Session <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: James Ericson, City Administrator <br />Item Title/Subject: Discuss Possible Change of Child Care Provider at the <br />Mounds View Community Center <br /> <br /> <br />Introduction: <br /> <br />A few times over the last year or so, the YMCA has expressed an interest in becoming the <br />child-care provider at the Mounds View Community Center. The current provider, Creative <br />Kids Academy, has a lease with the City that expires on July 31, 2018. As discussed at the <br />August 22, 2016, City Council meeting, the lease allows for the option of an early <br />termination by providing the tenant with a one-year notice in writing. Representatives from <br />the YMCA and Creative Kids Academy attended the August 22 Council meeting, providing <br />feedback and answering questions. <br /> <br />Discussion: <br /> <br />The current tenant, Creative Kids Academy - Mounds View, Inc., has been in the facility <br />since 2008 when it took over the lease from the previous tenant who had been operating a <br />business under the same name for years prior to 2008. The current tenant has been a <br />stable fixture in the building, and the City has had no reason to explore other child care <br />tenant options until the YMCA approached the City with its proposal and asked the Council <br />to give it some consideration. <br /> <br />The YMCA has reviewed the current lease and believes that it would be able to provide the <br />same or a greater level of child care service in the leased space. If the YMCA were the <br />child care provider, representatives indicate that it would be able maximize the use of the <br />child care space which is generally unused after-hours and on weekends. The YMCA <br />would be positioned to utilize this space in conjunction with other programs, making the <br />space more efficient and more cost-effective to operate. <br /> <br />In addition, the YMCA proposes to use their own custodial services at the same cost we <br />are paying our current vendor, thus eliminating the need to have multiple cleaning venders <br />in the building and freeing up city staff to address other maintenance and exterior facility <br />needs. Other benefits to the City would include the elimination of an annual property tax <br />payment, saving us about $8,400 each year. <br /> <br />Finance Director Beer indicates that the City could anticipate annual savings in excess of <br />$30,000 if the YMCA were the child care provider. (Refer to the attached financial <br />projection.)