5.1. SR 12-11-2006 - Laserfiche WebLink

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City of Elk River REQUEST FOR COUNCIL ACTION Agenda Section Meeting Date Administration December 11, 2006 Item Description Memorandum of Understanding between the YMCA, Economic Develo ment Authori , and Ci of Elk River Administrator Introduction The City and YMCA have drafted a Memorandum of Understanding (MOU) to outline the main points of an agreement between the YMCA, the City, and the EDA that will be the basis of a lease between these three parties for the design, construction, operation, and maintenance of an EDA owned facility that will be leased to the YMCA to operate YMCA programs. Discussion The attached draft MOU is the result of many discussions between YMCA representatives and City Council representatives, attorneys, and staff. The City Council has reviewed the MOU on numerous occasions including July 10 and July 17, 2006, before the ballot question was approved, and again on November 6, November 20, and, most recently, on December 4. The Council's comments and recommendations from those discussions where discussed with YMCA representatives and are addressed in the attached draft. Some of the main items of discussion included benefits to Elk River residents, who pays for building and grounds maintenance and capital improvements, park use by the YMCA, and expansion of the gymnasium. As a result of those discussions, the draft MOU provides for the following: . Elk River residents will receive four one-day household passes per year to attend the YMCA for free. . The Elk River Recreation Department will, at a minimum, receive 23 hours of gym use each week for recreational programming. . The YMCA will be allowed to use park grounds on a non-exclusive basis and may use City park facilities based on the City's Facility Use Policy. . The YMCA is responsible for all operating costs including building and grounds maintenance. . Capital improvements will be paid by the YMCA during the life of the lease. Capital improvement costs will be prorated if either party has requested termination of the lease. The payment causes for prorating costs differ depending on the type of capital improvement, whether it is structural or programming, and which party requested termination of the lease. . If a grant is received from Sherburne County's Landfill Legacy Grant program, grant proceeds may be used to expand the gymnasium. The EDA has been authorized by the voters to issue up to $12,000,000 in debt to fund this project. The debt issued shall not exceed $12,000,000. The MOU provision allowing the Council, at its discretion, to S:\Council\Lori\2006\ YMCA MOD 12 11 06.doc