So we will see that Jason's too much.

Yeah.

Actually, I think she said she would probably be a little late.

So okay, it is 5 30, so we'll go ahead and get started.

Um sort of logic to join us here shortly.

But we have two items on the agenda for the city council conference for Tuesday, August 26th.

The first item is a discussion regarding resolution R 2526-38 between the City of Norman and Healthy Living Center Norman L.

And we have city staff here to talk about that.

Catherine's here to break up my my awesome storytelling.

And hopefully I don't embarrass myself too bad.

That's the reason she's sitting next to me.

So we're going to talk to about the adult wellness and education operator.

Uh we are gonna um tonight you're gonna have a resolution to reassign the contract from one organization to another, but they're basically been operating pretty close, and you'll find out there's a lot of similarities between the the group.

Uh before we head too far into that, let's go over some key dates with our operator, especially um as it has to do with our adult wellness and education center in November 2020.

We put an RFP for an operator.

At that time, the project was called Senior Wellness Center.

Uh, in April of 21, we signed an MOU with Healthy Living and Fitness Incorporated.

They were the selected operator for uh the what was also still known then as a senior wellness center.

Uh, as we started getting closer in May 23rd of 23, we did sign a contract uh with uh it was still held healthy living and fitness, but they set up an LLC to oversee their operation in Norman so that they could separate entities between their Oklahoma City operation and the Norman operation.

Uh in on November 11th, 2023.

We opened the Adult Wellness and Education Center right before that.

I think a few months before that, our ad hoc committee did settle on that adult wellness center name.

Uh and then December 2024, uh, we did get notification from uh Healthy Living Center Norman LLC that they wanted to form a different uh uh incorporation to further separate themselves from their operation in Oklahoma City and Norman.

Uh at that time uh they did try to uh put a lot of uh members uh of their board from Oklahoma City.

Uh then we um then eventually got to the point where we thought it was best for both partners for uh our residents of Norman to be operating that facility, and that's kind of where we're leading today.

Uh we finally got to that point um as we're talking about assigning the contractors, not to the terms in the contract are aren't changing.

What is changing is who the contract is assigned to.

Uh and I wanted to go over a few of the details before we got into the what we're talking about contract assignment.

Uh very high level details, what's in that contract?

The uh the operator will operate and manage and uh maintain the property for five-year terms.

We do have uh the option to extend that for three additional five-year turns, terms, excuse me, utility assistance.

Uh the city will uh assist with utilities for the first three years of operation.

We're still still in that window.

Uh it is a tier system that we use with a lot of our contract, especially our new operators.

It's 100% uh utility assistant that first year, and then it goes down by 40% um each year until it gets to basically zero in that fourth year.

We're also paying for janitorial services uh right now, and that's for the first three years of operation.

Uh landscaping and uh lawn services is also uh we're paying for uh poll maintenance, which is a big one for us.

Uh and and we learn from talking to Oklahoma City with the same organization, um, um healthy living that it is very important for the the city to take a ownership in that pool because if something goes south, uh it can go south very, very quickly.

I always like to compare to a polls to like weddings.

Anytime you throw the word poll or wedding in front of a service, it like triples the cost of it.

So that's the reason that that we want to uh make sure that we stay involved with that.

But that's for the first five years of operation uh and that first section of contract.

So all that stuff could uh could change as we go in there uh or talk about the second five years.

But the uh this is what we're kind of hitting on today.

So uh contract assignment, we're taking it um from basically where the Oklahoma City uh Incorporation is gonna hand it over to the Norman New Incorporation, and they're also gonna um eventually be a uh nonprofit as they're working towards that status.

But uh section 710 of the contract they sign, and this is pretty much norm in any of our operator contracts.

This gives the ability of an operator to reassign the contract to another operator with the permission of the city, and that's kind of where we are tonight.

Um we have uh got a resolution from both the what would be the Oklahoma City of Corporation and the newly formed corporation in Norman.

They are both agreement in reassigning it, and uh the city is very supportive of this move.

And uh you're gonna vote on it hopefully tonight after this meeting.

Uh we also said no changes, as we're saying is anticipated with any of the operations or staffing at the adult wellness and education center as a result of this assignment.

We can um fully expect operations will continue as they are now.

The prices will continue, memberships will continue as they are now.

You will see no changes besides um the the board who's going to be assigned uh to now oversee this.

And once again, the city thinks this is in the best interest of the adult wellness and education center.

Uh when you start looking at this, you're gonna see a lot of familiar names that's attached with the this new LLC that's forming, and uh I think most importantly, you're you're gonna notice that these are all Norman people.

So uh the best interest of Norman will be will be upheld and um at the forefront when when this new LLC is formed and transferred uh to Healthy Living Norman LLC.

We have uh a few council members or former council members beyond here, uh uh former mayor.

Uh we also have uh people that are from Norman Regional.

We have uh uh a attorney and then I um another person that works at OU.

So we have a lot of a lot of people very diverse area uh involved in this, and and like we said, we're kind of looking forward to to this next step in uh the adult wellness.

Uh tonight you'll be voting on this.

It's R252638.

Uh this approves uh the reassignment or assignment of the contract from Healthy Living Norman LLC to Health In Healthy Living Center Incorporated.

Uh this also releases all uh future liability from uh healthy living Norman LLC, which is uh the Oklahoma City portion that was formed, and uh it is number 21 on the consent agenda tonight.

This uh so I think that's very high level.

Um nothing's changing uh except for our board members, and uh, like we said, we're moving from mainly an Oklahoma City board to an all-Norman board, which we think is very, very good, and this is was the anticipation of what we were planning when the first uh opened back in November of 23.

Council Mark Black?

Um, I'm supportive.

I'm just curious uh how somebody gets selected to serve on the board, especially with this new one.

Good question.

So we do have our executive director from Healthy Living, Catherine Leedy, and she probably can um go over that a little bit more in detail.

Okay.

Hi.

So our Healthy Living Center Norman Inc.

Board um really is a transfer from our LLC, our local advisory board group that has been with us since before we opened with Lynn as the chair, and um, so now this board is uh selecting uh and nominating new board members.

We just added Greg Heibel, and we have another person writing to the board as well.

Do they apply if they're interested in applying, they just would have expressed interest at this new entity and say hey.

To one of our board members, yeah.

Okay.

Um how long are the terms?

Three years, I believe.

And they're staggered.

Um, and the qualifications are you have to be a Norman resident?

Yes, and um we're looking for folks that will round out the skills um and um experience to have it well rounded out board.

So by law say either a Norman resident or work in Norman.

Yes, yes.

Thank you.

And is there a city staff person who would be on it or a council member liaison or anything like that?

Right now, there's an ex-officio uh that's part of that.

That's the city manager or his design.

Uh, so that design has a lot of times when it has to do with that department, it's a department head, so that I am right now the um ex officio that representing on that board.

Okay.

Any other comments, questions, council okay.

Um all right.

Anything else?

Okay.

Well, I think uh more local controls is usually a good thing.

So very good.

Okay, if that's it, then we'll move on to the second one item on the agenda.

Thank you, Jason.

And uh okay, item number two is a discussion discussion regarding operation of the cafe at the young family athletics center.

Jason Olsen, director of parks and recreation here to talk about the YFAC concession stand or cafe.

Uh as you all know, the YFAC, which we consider highly successful, is uh uh been up and going since the 2024 February is when uh we opened that.

So we actually had our full first full fiscal year of uh YFAC operations.

Uh uh we did have somebody we we did work with a local coffee shop at first.

We put an RFP out and uh Beanstock Coffee and Snow as the uh that was selected to run our concession stand that uh we entered into a contract with them in 2023 in December.

Uh since then, uh they had their first full year through there, and uh through multiple reasons um and agreement on both sides, we have decided to uh uh separate uh with them, and uh nothing negative on either side.

We were um actually very happy working together.

Uh when you kind of enter into a a place like the Young Family Athletics Center, you find a lot in a recreational atmosphere, is very chaotic and um unplanned, and I think it was very stressful and hard to uh for them to set up a consistent business model out there.

Um they were very very successful, but at the same time, uh it was taking a lot of time from the owners of Beanstalk.

So uh through a conversation, we decided to mutually separate.

Uh they were sent notice on June 23rd of this past year of a 60-day written notice uh which was in the contract for us to um give our termination.

Um we plan on as a parks um department um to operate the new concession stand, which will reopen in October.

Right now we're kind of in a dead period, and this is a good good uh chance to transfer operations of it.

Uh and just to let you know, uh super busy um everywhere from about October all the way through through July is the busy season out there once school starts and you start fall sports, and there's just not the their tournaments or schedules or uh basketball or volleyball or indoor sports happening right now, as you know.

Um with the crazy weather that happens in Norman, uh fall's the best time to start all your sports.

Uh Jason, does that mean that the YFAC is open?

WIFAC is a more available to regular residents or what when that's well during it it's a it's available, it's open seven days a week, and technically we have we're open to the public every single one of those days.

Now, when we have tournaments, the access is does become a little bit more difficult because of the parking situation.

But uh, I would say probably your five days a week during the day or or up to about six o'clock uh in the evening is pretty much the prime time to kind of get out there and um get it in and out.

Uh a lot of times during your weekends, that's when you see the tournament, and those are kind of uh those weekends are hit and miss.

If you hit one of our big tournament nights, uh it's just it's difficult for you to get in there to play some uh like open open court basketball or volleyball or swim.

Council McGrath, oh my go before I ask questions.

Oh, perfect.

Uh so you're talking about the concession stand, we're proposing the parts department to go ahead and operate this.

We do have uh a what we refer to as our food and beverage coordinator Ari working out at Westwood.

What we're gonna um what we're proposing to do is probably expand her scope of work, take her up uh a few classes and pay to and throw this uh underneath her belt and make sure that she has appropriate staff at both Westwood and um WiFAC to operate.

So I kind of put in our numbers from being our first full fiscal year of opening.

You can kind of um see our our our costs or expenditures, it's kind of divided up into uh three different uh cost centers.

Um, and I put all of our revenue into one area.

As you can see in our first floor year of operations, we did lose about 290,000.

Uh when you talk about a business at a large scale uh of uh the young family athletics center when you're open a lot of times and into your peak revenue opportunities are on the weekends.

We're kind of limited to 40 weekends or 40 dates or 40 events that where we kind of try to compact all that revenue in.

We think we did pretty well in the that first uh full year of measurement.

Uh and we were starting to see these numbers coming in come in, and we kind of knew we're running behind.

We did get a little boost there towards the end of the year, but uh we also have been um talking to one of our consultants that actually helped us out on our parks master plan, and uh he saw our numbers and kind of like what are you worried about?

But uh we also been um talking to one of our consultants that actually helped us out on our parks master plan, and uh he saw our numbers and kind of like, what are you worried about?

Uh is is technically a rec center, all rec centers um do lose money, and they are for the uh advantage of uh for the community.

Uh, but he just said even in your your best uh scenarios when you're opening a new business, your goal is to be profitable within three to five years.

So we're we think we're pretty well on track.

Uh one of the the even though we're sad to be separating from bean stock, we uh do see the opportunity in it.

It is uh an area where we could feel like we can make some money and make up that gap and hopefully lower that gap.

Uh we put some uh together some initial cost and and revenue to try to figure out where we might be.

And once again, this is this uh just a guess, and we did have some numbers off of bean stock to to try to make that guess more educated.

So we think the uh total when you start talking about operation and supplies, so operation will include the our staff, uh you're probably talking about 235 dollars in actual cat uh cost for for the city, and we believe that we'd be in a neighborhood of somewhere around 400,000 in total revenue.

Uh so net revenue would be uh 165,000, which would help us a lot when we're trying to uh uh cut down or uh shrink that delta between uh what we have going on right now.

Uh there's other things that you know when you start looking at this as a whole, we're in contact with OGE about energy saving ideas that are currently happening there instead of opening up the whole gym we're talking about um during the day, we're talking about just opening up half of that, and they can say um not turning on the video board during the day.

They think they can save somewhere in the neighborhood about 30% of electricity a day.

So that would be um helpful.

Uh there's uh a few other things that as we get more experience about starting to run our own programs, which we've been kind of depending on a lot of outside program going on.

And so when you start talking about running your own programs, we don't have to divide our revenue with other groups.

Uh we're looking towards that, and and a lot of uh some of the good news too.

When you talk about the projections, uh I would say uh probably about 60 to 70 percent of that is areas that we can um as reassigning um budget that we did not spend this last year, we can reassign that, and we actually don't need too much of a of a budget adjustment.

So to do some of this stuff, I would imagine that we would come back and have a small small ask uh for more money to be allocated uh to this, but we think it that that number is gonna be pretty low once we crunch all those numbers.

But just mainly letting you know that we have separated with bean stock and we're um moving forward uh with us operating the concession stand.

Conserver agreed.

Um so with the operational costs.

I'm hearing somebody's getting our race.

How many city jobs would this create at the concession stand?

And are they full-time, halftime?

So it'd be zero full-time jobs that was created off of this, and there would probably be uh when we start talking if we have two categories of work, uh uh, you know, our full-time and permanent part-time.

Uh so we've we've been asking for three permanent part-time positions with this, and the rest of that will be made up with what uh kind of called seasonal part-time.

Uh so and we don't know exactly.

Usually when you start talking about seasonal part-time, we just assign a dollar amount to it, and that could be when you sign a dollar amount, that could be five kids, it could be 10 kids.

Is this uh, you know, we just figure out how much we need there assigned to that, and then how many employees that come with it?

It's what is the starting rate for uh so when you're like a permanent part-time position is somewhere in the neighborhood of 13 to 14 dollars an hour.

And the seasonal folks seasonal is about $10 an hour.

Okay.

Um and what kind of supplies and concessions do you envision?

Like, will it be what we see at Westwood or different for you know, sports drinks?

We already have a contract with Coke, and uh the cool thing about our coke contract, uh that will be we we actually get revenue back or or um losing the word, but we get a portion back.

So every time we uh buy a a case from them, uh we get back a little word is rebate.

Thank you.

And that's the reason Catherine's sitting here, a rebate uh on every single thing that that we sell.

So it'd be coke, coke products along with uh sports drinks, the everything else will be kind of similar to uh to West.

We were talking about uh everything from like nachos, hot dogs, popcorn, uh some other fresh food uh fruits, like uh we saw them uh fresh fruit um and breakfast things because it does start when we're talking talking about these tournaments, they often start about eight o'clock in the morning.

Uh so we just have to have a little bit of variety.

We'll be look working with a lot of local businesses to uh when you talk about um like lunch or dinner items.

Um we've talked to Ray's barbecue, Chick-fil-A, uh about them bringing out um sandwiches and whatnot, and keeping that we have warmers that are already out there, um pizza similar of what we do at Westwood, just a little bit more on a longer, more spread out scale.

And did being stock offer anything like that, or is it mostly coffee and burritos and pastries?

They did work some with local businesses, but the uh ours would probably be more expanded on what you would call traditional concession food.

They they uh they kind of chased after what you're saying in burritos and um different kind of things that in coffees and snow cones.

Did you hear feedback uh as the games are going on this last year about like oh it'd really love notches or something that wasn't what meat stock was offering?

Uh not really.

And I might turn to Mitchell on that one.

Uh I don't think I don't think we have Mitchell's our our recreation manager, so he's actually closer to all that, but uh part of the reason it's traditional concessions to it's because it's easier and faster to put together, and they were probably putting a it also has a high profit margin on it compared to some of the things that they were doing.

I mean, yeah, that seems pretty traditional for you.

So yeah, I just wanted to kind of drill down on that negative net revenue number.

Um, I know it might look bad on the screen, but one thing your slide doesn't have is the um the increased sales tax collections that we've seen in the area around Wi Fac, which are a result of this facility existing.

And so I don't know what those numbers are exactly, but I'd be adventure to say that it's a net positive when you factor all that in.

And uh Shaq thinks so.

Yeah, yeah.

So yeah, the uh and we haven't done it in a while, but usually at Baca, I think we've taken it down to a quarterly report.

That is what in some of the uh when you start talking about cell phone data as it going from one place to another, you actually can see uh the total number that have walked through there, and then it gets percentages.

So when you when you start talking in our first six months that we were open, I think they were talking in a neighborhood of 200,000 people walk through the through the door, average dwell time was um two hours plus, and then actually showed real percentages, like two percent of the uh people were going to a torchies, one percent weren't going, and then when you start bringing it and breaking them down, two percent of two hundred thousand.

That's a pretty pretty big number.

And it also traced back where they are uh hotels are going back to.

So it it's a real number.

Uh like I said, we are having 40 weekends a year, and I would say uh out of those 40 weekends a year that we're having events, about 30 of them are overnight stays, so are definitely happening within that area.

So not just sales tax, but hotel motel tax.

There's yeah, lots of uh net benefit, which is kind of a self-fulfilling prop um prophecy because we're getting a portion parks and records get a portion off that hotel moto tax.

I think it's winter.

It's from Montoya.

So what type of input has the finance department provided in this budget analysis and preparation since this is brand new?

Mitchell, do you mind uh Mitchell had a meeting with them?

I was not in the finance meeting, but Mitchell, there you go.

Oh great.

Cool.

Uh yeah, so we communicated with finance to kind of have that breakdown.

We did cost estimations and everything of what the business provided a business plan and how what they saw with it, made a few adjustments and move forward with what we think is of it's honestly where we had the revenue projection is is less than what uh we really think it is, but we're estimating about 12% decrease just off of cost changes and things like that, and then the operational standpoint of getting everything transferred to account to account, everything works.

Okay, that was that was the main concern as well.

Yeah.

So will there be new expenditure and revenue line items, you know, and the chart of accounts that way we can if we waited to see a report and monitor the progress, we can get those reports.

Yeah, correct.

So yeah, we created a whole we're going to create a whole uh separate cost center within YFAC.

Okay, right.

And what and when you talk about our full-time employee, that will actually, we haven't figured out the percentage, but that full-time employee will be split between Westwood and WiFac at that point.

Okay.

Wonderful.

Councillor Gainsburg.

Just on the expenditures part, also and everything.

After this first year, you know, in the sports realm of high school, where it got around very quick about the kind of caliber courts were there and how the tournaments were run and everything like that to a higher standard.

With this increase in parking, do you see like collecting a bigger host fee for the tournaments that come to possibly you know draw those to weed out some competition to get the bigger tournaments here and thus make you more money at the end of the day?

So the uh, and I think we're writing a to answer that question.

We've looked into it where when you start looking, there is definitely a market out there, and uh when you start talking about being at the top of we're definitely at the top.

So you start looking at other places like the old lighthouse, and then you got Santa Fe and Oklahoma City, and then you go into Edmund, and there's more gyms uh up there that offer the uh somewhat of what we're doing.

We're about $20 more an hour per gym rental than they are, and we think we're we're pretty far.

We we've kind of maxed out what we can in the market.

We're we're um we're looking at other things where we uh possibly could make possible revenue out of it.

We we looked at uh Oklahoma City, so uh at the fairgrounds when they do a do a rental for a sporting event, um, they have to pay a rental fee plus a percentage of whatever gate they collect.

Uh we looked into that and kind of talked to other centers.

Nobody in Oklahoma is doing it, uh, but uh uh we found some others in Texas that are doing it.

Um so the the question is how much can more can we uh squeeze out of a potential renter without having to move move out to another place.

Um now here's the advantage that we have that the options are pretty small.

So if you move to Oklahoma City to get the same service that you're having at the WIFAC, which there is definitely advantages of being out of eight courts in one place at one time.

There's no other place in the Oklahoma City area you you can do that.

So if you go to Oklahoma City and you want to have eight gyms here, you might have to rent three different centers, which means you're actually gonna have to hire more staff to uh oversee what's going on at each one individual um building that you're renting.

So there is a vintage and there's cost savings of having all of them in one place.

When you start talking about getting bigger tournaments, uh we uh either need to figure out, and this is probably a normal forward two thing, but you either need to figure out how to get more gyms or have another another um capacity to have a lot more games inside the city area.

The uh uh when you start talking about the larger live events um with 90 Adidas or or Puma, the uh they need like 16 courts all within a um like a 10 mile radius.

And right now we're offering uh uh yeah, we have uh we can use the high schools, which all have single courts in it, which is not a whole lot of help because once again you start spreading out your costs.

Uh, there's another gym in Norman as three.

So I mean you're kind of looking at you know, 11 courts over two areas.

Uh it'd be a lot of a lot more of an edge if we had 12 courts in one area or 16 courts in one area, or if you're talking about like uh another building that's built another uh as a convention center add-on or uh Griffin Park where you can throw in and we're soccer area, we can throw eight more basketball courts down.

Yeah, all of a sudden you have a lot more areas you could also you could do that.

Cool.

Counselor Dixon.

Um I'd just like to express thanks to Jenny and Adrian for Beanstalk for stepping up and doing this.

They did a great job.

Um, I spent a bunch of money uh with them on all kinds of good stuff, but and they're always so happy.

Um like they're truly you know in the service business, and they they've done a great job for us.

I just want to thank Jenny and Adrian.

Yeah, absolutely.

Um revenue, uh what is the revenues total revenue sources?

What is the gym bringing in?

What is the pool bringing in, or is it even being broken up like that?

Or is it just it is in one admission?

And of course, I ran off and left the the revenue added printed out, and it's on my desk, but it is broken out into two different uh three different areas.

So we have poll rentals, gym rentals, and then we have uh an overall arching membership cost and overall arching like big event where everything's thrown into it's it's split off into a bunch of different areas.

I would tell you that the uh the pool cost with uh revenue in there, that's the the kind of the biggest, probably where we're really really far upside down, the cost of chemicals, electrical, HVAC, and everything is attached to it.

It's very, very expensive and the revenue opportunities are uh not as high there uh with it because we we have a 25 meter or 25 yard course that even though we're still getting decent sized events, it's just not large enough to bring in like a state tournament or these large meets.

Uh but yeah, we have it broken down and we can share that with everybody.

Um get that scanned and emailed to council first thing in the morning so you'll see all the detail and cost categories.

And uh do facilities like this and other places do they typically charge for parking?

It's a good question.

Um so when you start talking about uh these areas ran for like as a private business, yes.

Uh when you start looking at areas uh that they're they're ran by a city or or a county, uh not typically.

Uh just different different purposes.

Uh personally, I I I look at our building and our operation.

Uh I don't think um, I don't see how private the private side would ever open up something like this.

Cause I it's just the profit is not there unless you you try to extend it over a long course.

But yeah, they have to chip away every single uh revenue making source that they can um possibly pay uh make.

But no, uh on our our side uh it's kind of 50-50 depending on how it's owned.

Uh and at MSC Suites, Your Honor, to that point, uh Embassy Suites handful of months ago in a real simple data park.

They do charge their hotel guests.

It's just you'll see it on your seat if you're parking there, they'll charge you $15 a night.

Uh they have polls with a QR code, and they just say, hey, if you're parking in our parking lot, click the QR code and pay to park.

I don't think anybody's policing it.

Uh and we have not had that conversation with embassy suites to say how's that going?

Uh, but it's definitely a conversation to be had as we move forward, and then that longer term uh vision the opportunity to develop parking structures uh on several yeah.

I would like to know how it's going for them, but also in relation to if we're talking about adding more parking to serve the WiFac.

Where does the where do we where's the money come from to pay for that parking?

If there's a revenue stream for some parking, that would make that would be helpful.

Uh at the event that I went to at embassy suites the other night, I parked at the Wi Fac.

So I'm not going to pay to park at the hotel.

Sorry, MC Suites.

It's not gonna happen.

Um I will park at the YFAC for free and walk over.

So I don't know, what if hotel guests start doing that?

Uh I would expect if you're staying there, you get like a parking validated or something.

But anyway, uh, but that you know, revenue stream to help pay for expansion of parking, like everybody is wanting us to do out there, I guess, uh, would be uh good discussion, especially if it is going well for them if they're collecting random.

So any other discussion or comments, questions about this?

Okay, all right.

Well, no nothing else, anything else, Jason?

No.

Unless you want me to talk more.

Nope.

All right.