The Morgan Hill City Council has agreed to increase the indoor
recreation center budget by $12,000 in order to pay half of the
cost of a market study that would evaluate a possible partnership
between the city and the YMCA.
City will spend $12,000 to study if partnership could work
The Morgan Hill City Council has agreed to increase the indoor recreation center budget by $12,000 in order to pay half of the cost of a market study that would evaluate a possible partnership between the city and the YMCA.
As the city constructs a new indoor recreation center, ways of operating the facility are being explored. Two years ago, the city explored entering into a contract with the YMCA of Santa Clara Valley to provide certain services such as aerobics, aquatics and fitness programs at the IRC, with the city determining the types of classes, their schedules and prices. Different models were explored, but none of the proposals proved suitable for the city.
Last Wednesday, Rod Cooper, interim recreation manager for the city, presented yet another new model for the partnership with the YMCA at the city council meeting. The model is based on a study by Phil Balducci and Associates in 2001. The council’s Public Safety and Community Service subcommittee is interested in exploring the proposal further. Although some operating expenses and cost of personnel are higher, the new model shows revenue obtained from annual passes, swim lessons personal training and other classes to be an estimated $700,000, much greater than revenue showed in the original model proposed by the Sports Management Group. The new model shows a net profit of $331,000; the original model showed a deficit of nearly $30,000.
“The YMCA is fiscally good at breaking even at their facilities,” Cooper told the council. “The YMCA is a little better at the entrepreneurial side (than cities). … Can we just be as good as they are? We need to check it out.”
Cooper told the council the market study would be able to answer this and other questions about operations and revenues. He said the study would examine the numbers generated by the proposal to see if they are valid and analyze the merits of the proposal.
Construction on the $16.7 million IRC began in May of this year. The new facility will include a gymnasium, natatorium, fitness room, aerobics room, a senior and youth community use areas. There will also be a full-service kitchen, locker rooms and metal stud framed interior partitions. The building will be about 52,135 sq. ft. the facility is scheduled to be completed in August of 2006.
Rose Meily cover City Hall for the Morgan Hill Times.
