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<br />level of oversight, if any, the Council would like to have over budgeting, <br />day-to-day operations, and management of the facility. <br /> <br />. Financial Reporting <br /> <br />The Y will agree only to provide a financial report for their entire <br />Metro area operations, as they typically do not prepare facility specific <br />financial reports. <br /> <br />. Maintenance <br /> <br />The Y would like the agreement to provide that funds for <br />maintenance would have to be generated from revenues. It is not clear to <br />me how this squares with the concept of the Y taking the risk of operating <br />the facility. We would like some input from the Council on what level of <br />oversight the City would like to have to ensure that the facility is properly <br />maintained. <br /> <br />. Capital Improvements <br /> <br />Facilities such as these are not only typically high maintenance <br />(swimming pools, etc.), but frequently need upgrading and updating as the <br />needs and interests of the public change. The Y has proposed that capital <br />improvements to the facility would be funded two-thirds by the City and <br />one-third by the Y. The initial improvements would come from a reserve <br />funded by bond proceeds. After the initial reserve is depleted each party <br />would be responsible for funding its share of the improvements. We <br />would like input from the Council on whether this structure is acceptable <br />and also on the issue of whether to fund a capital reserve account on an <br />annual basis. Another issue would be how decisions on capital <br />improvements are made. <br /> <br />. Recreation Board <br /> <br />If Kennedy & Graven concurs that Section 471.15 et. seq. will <br />need to provide the authority for proceeding with this agreement, the City <br />and Y will need to create a recreation board to operate the recreational <br />program which will be the Y. My opinion is that such a board would have <br />to be controlled by the City, with Y representation. However, we would <br />like input from the Council on whether the City wants to control this <br />recreation board or is comfortable with the Y having control over the <br />Board and therefore ultimate control over the operation of the facility. If <br />so, we can inquire of Kennedy & Graven as to whether the agreement can <br />be structured to allow that under state law. <br /> <br />Conclusion <br />