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A report says financial terms pertaining to both groups should be reviewed

A review and evaluation of the city of Sherwood’s operating agreement with the Sherwood Family YMCA shows that the contract between the two entities is “poorly written with respect to specific financial terms and requirements.”

As a result, a report by Talbot, Korvola & Warwick, LLP, states both organizations have interpreted terms differently when it comes to expectations and outcomes and has made recommendations to avoid future misinterpretations.

Last December, Mayor Bill Middleton and other members of the Sherwood City Council had asked for specific breakdowns of how much money the city pays to the YMCA under an agreement that has been in effect since the late 1990s.

The current agreement allows the YMCA to charge the city 15 percent of adjusted gross revenue to cover or pay for management services – human resources, information technology, etc. — charging roughly $338,000 annually.

The review recommends:

• Undertaking a formal review and revisions to the current agreement regarding financial terms and conditions, making it clear what the set expectations are from both organizations.

• The city and YMCA should meet, discuss and agree upon terms as to what amounts represent appropriate capital costs under the agreement and see if anything is owned to the city.

• The city should define terms such as “reasonable” reserve levels and determine what capital expenditures should be paid by the city versus those paid by the YMCA.

• The city should talk with the YMCA about cost of services as the basis for evaluating overhead payments to the corporate The city needs to establish a formal procedure regarding appointments to the YMCA’s board.

Renee Brouse, YMCA executive director, said she didn’t find any surprises in the report, only different interpretations of the agreements between the city and YMCA.

The city’s contract with the YMCA expires in 2018.

“Let’s get rid of the past and go forward,” Brouse said. “Our desire is to extend the contract.”

Mayor Bill Middleton said the review “did a good job to point out the problem between the city and YMCA.”

“We’ve got to rewrite the contract and we’ve got to shorten the (length of the) terms,” he pointed out, noting he would like to see a new contract put together over the next three months. He blamed past city managers and mayors for not reviewing the contract more frequently.

The mayor praised Councilor Krisanna Clark for bringing up issues with the contract agreement last fall, saying if she hadn’t, the review would never have been undertaken.

The city released the contract review report following an executive session on March 18, and the council will discuss its results at an April 1 meeting.

To read the complete report, visit the city’s website at sherwoodoregon.gov and click on the “Outside review of YMCA contract released” tab.

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