Morgan Hill
– Uncertainty over management of the city’s latest redevelopment
jewel could delay the opening of the Indoor Recreation Center next
fall.
Morgan Hill – Uncertainty over management of the city’s latest redevelopment jewel could delay the opening of the Indoor Recreation Center next fall.
The $16.8 million center is scheduled to open in September as part of Morgan Hill’s centennial celebration, but that date is now in doubt because city council members haven’t decided who will run the facility and there is sharp disagreement over a proposal to operate the center in conjunction with the YMCA.
There is no known example of a similar operating arrangement in California. Councilman Greg Sellers said a successful partnership could become a model used nationwide. But he also cautioned against relying on the YMCA just to avoid a late ribbon-cutting at the center.
“This could become the standard model for a public-private partnership,” Councilman Greg Sellers said. “I’d rather have our act together and operate it well from day one. If we need to, we can delay the opening if we can’t come up with something.”
A recent survey found strong support from residents for a YMCA-run facility, but members of the city’s parks and recreation commission, and council member Mark Grzan, say the survey was slanted and based on incomplete financial data. Critics of the survey say the city’s commitment to the YMCA is short-sighted and is tantamount to a giveaway of the first redevelopment project that could actually help Morgan Hill’s bottom line.
“I want to see a fair economic comparison of what services will cost and what services will be delivered,” said Grzan, who wants the city to run the center. He said the survey was based on a false assumption of “all things being equal” between a city-run and YMCA-operated center.
“How can you make that assumption?” he said. “Without a city model you can’t say all things are going to be equal. I think the survey should be thrown out.”
And so do several members of the parks commission who have opposed a city-YMCA partnership since the concept was first proposed more than two years ago.
The commissioners believe the proposal places too many management decisions beyond the city’s control. Commission member Craig van Keulen is especially bothered by the YMCA’s request for $139,000 a year for overhead expenses in addition to its operating expenses of about $1 million.
Any gains or losses will be shared between the city and the YMCA. The last city-only model, prepared in 2001, projected a $30,000 annual loss. The latest YMCA proposal predicts a yearly loss of about $13,000. Without the additional overhead charge, van Keulen said, the project could be in the black.
“That’s why we’re so upset,” he said. “It looks like it would be a money maker. That money would otherwise be in Morgan Hill.”
The partnership with the YMCA dates back to late 2003, before Grzan joined the council. At that time, the rest of the council agreed to include the YMCA in the Indoor Recreation Center. No other provider was considered. The YMCA currently operating out of the Friendly Inn serves all of South County and there are fears that the organization could leave the area.
“We’re trying to define how we want the YMCA to be part of this center,” Councilman Larry Carr said. “Who can do a better job [attracting customers]?”
The current proposal calls for a center with staff and operations split among the city and the YMCA. The city would handle the center’s youth and senior programs, manage the pool and swimming lessons and be responsible for building maintenance. The YMCA would sell memberships, run fitness and gym programs, handle daycare and perform equipment maintenance.
Interim parks director Rod Cooper developed the model. He has said he doesn’t believe the city, which has lost more than $1 million over the last two years on other redevelopment projects, can run the facility on its own.
And city staff is reluctant to perform a new analysis on the center. City Manager Ed Tewes said the program planning staffing and marketing required for the center demand that a decision be made on an operator in the next few weeks.
“If it is to be a city-only operating model we need to hire staff, we need to begin marketing,” Tewes said. “We need to decide that pretty soon.”
