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<br />Item No: __01__ <br />Meeting Date: __July 6, 2020 <br />Type of Business: ____WS___ <br />Administrator Review: ____ <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Nyle Zikmund, City Administrator <br />Item Title/Subject: YMCA Contract <br /> <br /> <br />Introduction: <br />The City and YMCA have been partners for over 15 years. We provide the facility and the <br />YMCA provides staff and programs. We operate under a 5 year contract which is due in August <br />of this year. <br /> <br /> <br />Discussion: <br />COVID-19 resulted in the YMCA reflecting on their overall operations. All staff but Andy <br />Thomas had been furloughed despite the city paying those salaries. When staff reached out to <br />ascertain what would be needed to bring them back, and correspondence was transmitted as <br />requested and supported by council – the Y responded with an email indicated a need to <br />discuss the contract. <br /> <br />Chief Operating Officer Greg Waibel’ s email (attached) indicated they wanted to severe the <br />relationship at worst, or re-negotiate the contract if we were to move forward. A conference all <br />was set up with Directors Beer and Peterson. <br /> <br />Attorney Riggs was consulted on contract language and has opined that the YMCA failed to <br />notify us 180 days prior to the contract expiring as compared to within 180 days as Mr. Waibel’ s <br />email indicates. We have not shared our opinion with him at this time. <br /> <br />During the conference call later that week, Mr. Waibel was asked and responded in the <br />affirmative that he will assemble a proposal for our review as to what they would need to <br />continue operations. <br /> <br />While we had wanted to bring the staff back, and we are paying for them, that issue is still on <br />hold pending this discussion. <br /> <br />I have had two conversations with Andy, who is understandably distressed and asked him to <br />attend the July 6 workshop. <br /> <br />Both Greg Waibel and Andy Thomas indicate an ability to still “participate” in some of the YMCA <br />programs such as the Youth in Government program. <br /> <br />Financial Analysis/Comparison/Information: The 2020 contract requires the City to make <br />quarterly payments of $75,610.53 for an annual total of $302,442.12. In addition the city will <br />pay a technology support fee of $2,935. Other charges include additional staffing for the Event <br />Center ($21,757 – 2019) and staffing for the Warming Houses ($2,231 – 2019). The City also <br />incurs facility operating expenses (2019) of $218,287 and debt service on the Energy Savings <br />improvements of $53,119. ($600,771) <br /> <br />The revenues excluding the childcare lease and City transfer and General Fund payments total <br />$240,014 which breaks down to Event Center - $117,585, Program Profit Share - $53,141, <br />Room and Gym rentals - $42,040, Open Gym participant fees - $26,429, and Miscellaneous -