Minutes - 1999/06/28 - Laserfiche WebLink

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damage, and recommended the addition of a statement indicating that if a vehicle was damaged, the City would be reimbursed for the cost of the damage. Council Member Stigney requested clarification regarding the automatic renewal of the contract for two five-year terms. He stated that the language indicates that the contract could either be terminated or renegotiated, noting that there was no provision for amendment, even if both parties agreed to amend. He suggested the language specify that amendment of the contract was allowable. Finance Director Kessel stated that Article 8, Item B of the Agreement allows for this provision, noting that the City Attorney may wish to address the issue further. City Attorney Long stated that the issue was properly addressed in this Item, adding that notice of termination of the contract would also provide for amendment of the Agreement. Council Member Stigney stated that another concern was in regard to the duties and responsibilities of the YMCA, as specified in the Agreement. He stated that he did not see any language pertaining to the general management and operations operating within a budget. He noted that if there was a loss, the City would pay for the first $2000 and any remaining debt would be equally shared by the City and the YMCA. He stated that he would like to see terminology indicating that they would operate in a prudent and economical manner. 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 1st 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. 22N:\DATA\USERSUOANB\SHARE\M INUTES\CCi 1999\06-28-99.CC