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<br />2. City Control Over Design, Construction and Operation <br /> <br />A. Generally <br /> <br />My preliminary research has led me to the conclusion that the statutory authority <br />which we would rely on to authorize this agreement is found in Minn. Stat. 471.15, et. <br />seq. The Attorney General's opinions under this statute make it clear that a public <br />recreation facility developed under this authority must be operated for a public purpose <br />under the control of a public entity. The Attorney General opinions require that all <br />important, or discretionary, decisions be made directly or indirectly by the public entity <br />with only ministerial, or routine, decisions delegated to the entity managing or <br />operating the program. <br /> <br />We will be seeking direction from Kennedy & Graven on such issues as to where <br />and how we draw this line and whether there i.s alternative statutory authority which <br />would authorize a greater delegation of power by the City. As we frame these issues <br />for presentation to Kennedy & Graven, I would appreciate Council input on how much <br />control the Council would like the City to have over the design, construction and <br />operation ofthe y. <br /> <br />B. Design <br /> <br />The MOD prepared by the Y proposes that the Y "will manage the design, <br />construction and operation" of the facility. This is a publicly-owned building on City <br />owned property which can only be built for a public purpose. We would like Council to <br />discuss and to give us direction on what level of input the City should have over the <br />design, including issues such as what facilities and amenities to include, the quality of <br />the construction and design, etc. <br /> <br />C. Construction <br /> <br />As a publicly-owned facility, the building will have to be publicly bid under the <br />state public contracting laws. <br /> <br />D. Operation <br /> <br />. Fees, Programming, and Budgeting <br /> <br />The Y can not give up any control over fees charged to members <br />or programming, as the fees and most programming are system-wide. <br />They will agree that they can not exceed the system-wide fee for the Elk <br />River location without City approval. The Y would be responsible for all <br />day-to-day management, for paying all staff members and all operating <br />expenses, and would take the risk that the fees generated from <br />memberships would cover these costs of operation. One question is what <br />