Today the Sun Messenger ran yet another story focusing on Bill Conti's plan to obtain public subsidies for Team Energetics, the private Highland Heights fitness facility that Conti owns with partner Bob Kaleal.
The Sun Messenger coverage of Conti's plan has been quite remarkable for a number of reasons, including the amount of coverage it has received (the number of stories and the amount of newspaper space given to Ed Wittenberg's stories) and the fact that--at least up until this week--the stories primarily quoted Conti and no one else. None of the municipal players involved were quoted---save for Mayfield Heights Mayor Greg Costabile, a public supporter of the plan.
Today's (October 8th) edition of the Sun Messenger reported for the first time that at a September 1st Committee of the Whole Meeting, Mayor Coleman and Highland Heights council (except for Frank Legan, councilman-at-large) expressed no interest in Conti's contract.
The paper also reported that Conti and Kaleal were present at that meeting. I was there too. Although Councilman Frank Legan later stated that he was "disappointed" that they were "not given an opportunity... to make a presentation" to council, the fact of the matter is that neither Conti nor Kaleal asked to speak that night, and they quickly left the room once the public discussion about the contract ended.
I have to admit, I have found Conti's tactics fascinating.
Rather than do what most people would do-- approach the communities first, to see if they were even interested in the concept and, if so, on what terms---Conti bypassed the preliminary negotiation step entirely.
Instead, he used the media (in this case, the Sun Messenger ) to announce that he intended to obtain public tax dollars for his private business and that he expected five cities (Lyndhurst, Mayfield Heights, Mayfield Village, Gates Mills, and Highland Heights) to sign a contract (with terms that he alone selected) giving him those tax dollars---as it turns out, for an indeterminate number of years.
When the cities failed to jump on his bandwagon, Conti followed up by announcing, again through the media, that he would offer discount classes for senior citizens--a quick way to try to build up demand for his facility (and perhaps a way to pressure local officials into reconsidering their rejection of his contract. Whether that strategy has worked remains to be seen; so far only 13 senior citizens from the 5 cities have signed up.)
Conti has also hinted at some political maneuvers. After noting that all 7 Highland Heights council members are seeking reelection in November (actually only six are), Conti was quoted as saying: "After the election is over, my feeling is it (the Team Energetics contract) will be put back on the table. "
I just don't get all the public high-pressure tactics.
If this is such a good deal-- a true "win-win" situation for both public taxpayers and privately owned Team Energetics--then why didn't Conti simply sit down with each community beforehand---before the public announcement in the Sun Messenger--to see if he and the five cities could come to some understanding of what might work?
Of course, if Conti had bothered to talk to the cities first, before publicly announcing his plan, he might have run up against what, for him, might be an unpleasant reality.
I dont know how it works in other cities, but in Highland Heights, contracts over $ 25,000 are supposed to be put out to competitive public bid. So, even if it had liked the deal, Highland Heights would not have been free to accept Conti's no-bid contract.
Despite that fact, Councilman Frank Legan was quoted this week as saying:
"I'm open to continuing the dialogue on both sides.
Any time you have an opportunity to create a partnership between the city and the private sector, a nonprofit, or any other public entity to provide additional city services at a reasonable cost, we need to consider that."
Aerobics a "city service"? That's a new one to me.
FYI, here are some of the terms of the contract Conti asked the five cities to sign:
- Although Conti has made a big pitch to senior citizens and to city workers (and their families)--who would be given free passes---Team Energetics is described in the contract as a facility giving "special attention to sports and children programs..."
- The contract has no specified length and no set ending date. It states that it "shall continue in existence until terminated, liquidated, or dissolved by law or mutual agreement of the parties..." The cities do not have the right to unilaterally end their involvement with Team Energetics.
- The contract requires the cities to pay Team Energetics/Hillcrest Community Fitness $2,700 a month for the first five years, $ 3,700 a month for the second five years, and to discuss a contract extension and increased compensation for the years after that.
- The contract requires the cities, "at their individual cost and expense," to: 1. "advertise and promote the use" of the facility "in a timely manner"; 2. to "properly display...events within their city/community limits"; and 3. to cooperate in "informing residents of delays and interference with the use of the facility" "due to the construction of a new facility." The contract does not suspend the cities' monthly payments when such interruption or "interference with use" occurs.
- The contract does not specify when or where any new facility would be built, nor is Team Energetics/Hillcrest Community Fitness obligated to locate any new facility in Highland Heights--or even in the Hillcrest area.
- The cities are required to obtain liability insurance covering Energetics/Hillcrest Community Fitness and to "indemnify" Team Energetics/Hillcrest Community Fitness (i.e. reimburse them) for any "losses, judgments, liabilities, expenses and amounts paid in settlement of any claims sustained" by Team Energetics/Hillcrest Community Fitness in connection with running the facility. So if someone gets hurt while using the facility, the cities are legally liable to pick up the tab arising from that injury or claim.
- The cities have no say over how the facility is run and can not hold Team Energetics/Hillcrest Community Fitness liable for any action it takes or any decision it makes unless the action/decision is negligent or a result of "misconduct." The cities are legally bound, however, by all of the decisions/actions taken by Team Energetics/Hillcrest Community Fitness.
- The cities have no financial interest in the facility. Team Energetics/Hillcrest Community Fitness keeps all the profits and makes all the decisions.
- The "operating calendar" attached to the contract states that the "Community Fitness Center" hours of operation are, M-F, 8:30 am to 3:30 pm and 8:30 pm to 6:30 am. On Sat & Sun: 8:30 am-3 pm. The contract notes that some areas of the facility have specific schedules indicating when they are available for open use, "subject to additional chargeable classes, camps, personal training, etc." The contract makes clear that all of the operation/availability schedules are subject to change.
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