Council split on pact with YMCA

Diana Sahagun

Thursday, Dec. 20, 2001 | 10:17 a.m.

The lights will stay on for at least another year at the Northwest Leisure Services Center, but not all city officials are convinced that taxpayers should be helping cover utility bills at a privately run facility.

Faced with a shrinking budget and the chance that programs may be cut, the Las Vegas City Council narrowly agreed to pay about $200,000 in utility bills at the center next year.

The decision had some council members questioning whether the partnership with the YMCA, which runs the facility, was a lesson in cost-savings or an indication that the city could operate the facility just as efficiently.

The city hired the YMCA in 1999 to run the northwest recreation center, a pilot project to determine whether the city could save money in regard to staffing costs by partnering with an outside agency.

The city built the $7 million center, and the YMCA agreed to cover costs associated with running it, including utilities.

In February YMCA officials asked the city to cover the year's utility bills, which were $136,500. Officials said projected revenues were not covering the cost of programming at the center, and on Wednesday -- citing similar problems -- asked the city to cover the utility bills for the remaining three years of the contract.

Mike Lubbe, president and chief executive officer of the YMCA of Southern Nevada, said if the subsidy were not provided the agency would have to cut programs currently provided to more than 10,000 residents.

"We wanted to be able to run the facility at no cost to the city, but at this time it's not possible," Lubbe said.

Mayor Oscar Goodman supported the one-year subsidy but said if the center came back to the council next year the board may reconsider whether it should continue with the agreement.

Council members Lynette Boggs McDonald, Michael McDonald and Lawrence Weekly, who voted against the subsidy, also voted against paying the bills in February.

Boggs McDonald pointed out that, compared to the Veteran's Memorial Leisure Services Center -- which is run by the city -- the cost to run the northwest center are nearly identical. Boggs McDonald said the city will need additional funds to help cover rising energy costs at the centers it currently runs.

"Every dollar we divert from the general fund, those are dollars that may need to be shifted to other projects that we are responsible for as well," she said.

Although the money will come from the city's general fund, Councilman Larry Brown said the subsidy is a positive because the YMCA has saved the city money in the long run.

Deputy City Manager Steven Houchens estimated the city would save $500,000 this year from having the YMCA operate the center. He did not know, however, at what point the city would recoup its original investment in building the center.

Brown said other city-run community centers finish in the red between $200 to $500,000 per year. The savings from the northwest center are potentially helping pay for programs at other centers, he said.