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MCC Advisory Board Agenda01-20-20055. 33 COMMUNITY CENTER ADVISORY BOARD JANUARY 20, 2005 - AGENDA, Board :30 P.M. - ACADEMY RO Members: Harvey Kendall -Chair, OM Harvey ski a dall-Chair, Richard and Clint .Herbst. Quick -Vice Chair, Sandra T Staff Members; Grabinheros, Bob Kitty Baltos-Director l ' Call the Meetingto order. 2' Consideration of adding ng Items to the agenda. 3' Consideration of ap minutes. proving the December 16, 200 4 Advisory Board regular m 4' Update Item eeting s. a' End of b year purchases Fifth Anniversary versa c 2004 facility usage numbers (financial info Discussion of and ration unavailable) Health Possible approval for Club Association membershi ' membership(MIHCA) program that roV1n the Minnesota Independent costs. p ides reimbursementent Meeting for health club g Adjourned. COMMUNITY CENTER ADVISORY BOARD MEETING MINUTES DECEMBER 16, 2004 - 4:30 p.m. Board Members Present: Harvey Kendall -Chair, Richard Quick -Vice Chair, Sandra Theros, Bob Grabinski and Bruce Thielen. Staff Member Present: Kitty Baltos-Director 1. Meeting called to order by Chair Harvey Kendall at 4:34 p.m. 2. Consideration of adding items to the agenda: a. Internship for the community center #7 b. Swan River Montessori School #8 C. Community Center five year anniversary celebration #9 3. Consideration of approving the minutes from the November 18, 2004 regular meeting. MOTION by Richard Quick to approve the minutes as submitted, SECOND BY Bob Grabinski, MOTION PASSED. 4. Updates Items: a. 2004 Budget surplus and plans for use: Kitty reported to the Board that she had just been able to get financial information from the finance department to determine where the community center expenses were. Because of the lateness of the year, the items that they were going to be able to purchase was limited by the ability to get the items in before the end of the year. The items that she is looking at are; draperies for the Mississippi Room as previously approved by the Board, window covering for the River Room, freezer for the kitchen, fitness equipment, electrical work for the gymnasium and the front counter, pool storage cabinet, one security camera added to the pool and two cameras switched to color cameras, a ping pong table, and ornamental trees for the Gallery Hallway. The Board seemed pleased with the suggestions and Kitty will move forward as able before year end. b. Community Center usage totals through November 2004 and financial information through October 2004: Kitty Baltos reported that the users numbers are well ahead of expectations and should top 130,000 by year end. The Board reviewed the financial statement through October with some minor discussion. Kitty also reported that the community center had sold 1013 memberships through November 2004. 5. Discussion and determination of how Bernick's Pepsi money will be used. The Board reviewed the list of capital purchases that had been lowered to a "B" or "C" priority and also reviewed the five year capital purchase plan submitted to City Hall for ideas. Kitty noted that she would like to see as many areas of the community center improved as possible so that a larger number of MCC customers see an improvement. Sandra Theros suggested improvements in the Romp `n' Stomp since this is one area that has not seen any changes since we opened. Sandra also suggested a palm tree for the pool and expansion of the fitness area. She will ask members and community members their suggestions. The Board asked that Kitty put togther a list of suggestions and have the Board review them at a future meeting. 6. Review of the Wheel Park history for the past five years and discussion of future plans for the parks. Kitty Baltos provide revenue, employee costs and usage numbers for the wheel parks for the prior five years. The history is showing a trend of less users, less revenue, however, higher employee costs. The Board felt that even though this area was not covering all of it's costs, it was an important asset to the community. The park provides a place for an age group that often does not have a place to go, it takes a dangerous sport off of the sidewalks and is a point of pride for the Monticello community. Kitty Baltos further agreed that she is not ready to throw in the towel. She would like to explore other communities wheel parks and see if they are also experiencing lower attendance numbers and try to put together a multi -park package to encourage a renewed interest the parks. The Board felt that perhaps wheel park use was cyclical in its usage and are hopeful that we will see the interest renewed, however, they want to stay on top of the numbers to cut their losses if they don't see renewed interest. The Board asked that Kitty look into partnerships and other ways to improve the parks use and return to the Board with suggestions. 7. Added item: Internship for the community center: Kitty received a call from a student at St. Cloud State, Clint Lumley. He is working towards his degree in Recreation Administration and is interested in doing an internship at MCC. Kitty informed Clint that she had no budget for an intern at this time and he indicated that he is very interested in doing his internship at MCC even if there was no payment. Kitty will be meeting further with him and following through on the paperwork to be approved as an internship site and if approved, Clint Lumley will begin his internship on January 10, 2005. 8. Added item: Swan River Montessori School: Kitty reported that at the last Council meeting that the Council voted not to proceed with an agreement with the Swan River Montessori School. She was unsure at that point what would be the status of the building in the near future, however, would keep the Board apprized if that changed. 9. Added Items: Discussion about February 7" five year anniversary for community center: Kitty Baltos suggested discounts on membership or concession give away items. The Board suggested that it would be nice to see a larger event happen. Kitty expressed concern about the fact that if they did anything the weekend before the 7', it is already so busy in the building and specifically the pool, that it would put a tremendous strain on the facilities amenities and people would be disappointed with the crowds. The Board felt that something away from the pool might be the best idea and directed Kitty to look into other ideas with her staff. Some suggestions were free popcorn, guests free for the day, etc. Kitty will bring their ideas to the next meeting. 10. MOTION by Bob Grabinski to adjourn the meeting at 5:25 p.m. SECONDED by Bruce Thielen, MOTION PASSED, meeting adjourned with everyone's thanks to Bruce Thielen for his service on the Council and on the Advisory Board. 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Discussion of an possible approval for memership in the Minnesota Independent Health Club Association (MIHCA) program that provided reimbursement for health club membership costs. A. REFERENCE AND BACKGROUND: There is a new program through Blue Cross Blue Shield that provides for membership reimbursement for their insurance customers. This program is administered by a third party called the Minnesota Independent Health Club Association or MIHCA. I called to request information about enrolling the Community Center for membership. I have been receiving a few requests from our pass holders to become participants in this program. Syntregy Fitness, formerly Life Fitness Centers, is a member as of January I", so I was able to speak them Janel Swanson, the owner, about the program because I have some concerns about our participation. The difficulty in not participating is that it really is a nice benefit for our members if we enroll. There is a cost to become a member of MIHCA first for $400. Then you have to use their software and that cost is $49 per month or $588 per year. This is just the basic package hopefully it would work for us. There will be administrative time to run, proof and edit the reports. When I spoke with Janel Swanson, she said that initially it took between 15 and 20 hours per month to do this. It has since gotten better for them. Janel also said that Syntregy Fitness had to have some modifications to their computers to accept the software and that cost was $2,000. I spoke with the representative from MIHCA to see if we could find out how many Blue Cross Blue Shield customers there were in our area so that I could determine how large or small our market might be. They will not share the information except to say that 70% of out state Minnesota is on Blue Cross Blue Shield. I then asked if there were any qualifications required and they said they just need to be fully insured through BOBS, however, Syntregy found that the Monticello schools are BCBS but they don't qualify for the program. I am continuing to do research on the program, but would like to review it with the Advisory Board for approval if we feel it's right for us. There are other insurance programs available; for example, Medica and Health Partners have programs that offer member reimbursement. Once we've gotten into one, it would work to participate in them all. The Medica and Health Partner programs are not administered through a third party so I am guessing that the cost would be somewhat less, however, the time commitment would be similar. B. ALTERNATIVE ACTIONS: For discussion at this time. To be determined if membership is appropriate. C. STAFF RECOMMENDATIONS: I will continue to research this program and the other programs we could participate in for the benefit of our members. We are currently taking names and numbers of our customers who are interested in participating in this program or are able to participate in this program. This will allow us to determine our potential customer base if we become members. 0. SUPPORTING DATA: The program plan from MIHCA. August 30, 2004 Dear fellow club owner: As an independent club operator, you have been ignored by health insurance companies (Health Partners and Medica) who have only chosen to do business with Minnesota's larger club chains - Lifetime Fitness, Northwest Athletic Clubs and YMCA's. This has led to a surge in the large club's membership, but an unfortunate problem for independent club owners. It has also disappointed potential fitness members outside the metro area and metro members not near one of the big chain clubs. Therefore, we have created the Minnesota Independent Health Club Association (MIHCA). The MIHCA is a non-profit organization created to represent the independent health club owners of Minnesota and to level the playing field vs. the large club chains. With over 300 independent clubs throughout Minnesota, we collectively have more members and significantly more market coverage vs. the large club chains. By joining forces, we create a powerful entity that cannot be ignored! We are currently in discussions with Blue Cross Blue Shield of Minnesota, Medica and HealthPartners to either develop new programs or take part in existing programs that subsidize the fitness membership dues of HMO members. The current plans work like this: A person who has Medica or HealthPartners insurance would receive a $20.00 dollar monthly reimbursement if they work out 8 times per month. This means, if you charge $35.00 per month for a membership, your member would pay $15, and Medica would pay $20. As you can imagine, the marketing, sales and retention upside for your club will be incredible! The HMO's originally chose the big chain clubs because they prefer a single report of the member's usage (they do not want 300 clubs sending in information, as opposed to one chain sending one report). By joining forces, we can supply a single report to the insurance companies and provide more fitness options for their HMO members. Bottom line, you can sell more memberships by being part of their reimbursement plan! What you need to do: Join the MIHCA — * it costs $399.00 per year. You will be listed on the MIHCA web site. In addition, a potential member can type in their address or zip code and your club will come up alphabetically as a choice for fitness in the potential member's area. When we finalize an agreement with the HMO's, our association will be listed as an option for their members, and the HMO's members can use the site for choosing a club from which to buy fitness membership. 1. We will coordinate all the paperwork necessary for you to do business with Blue Cross, HealthPartners or Medica. We have negotiated with Apex Management Services to provide free software which is necessary for the usage and tracking of your members taking part in the HMO reimbursement. How do you join? Fill out the accompanying form with your check made out to MIHCA, a major credit card number, or call us with your credit card and enroll over the phone, 651-554-9416 or toll free 866-484-9173. We will then mail you your membership packet, which will include your club on the list as a choice for the HMO plans. Please don't wait — the sooner you get started, the sooner you may be included as a choice for the health plan reimbursement program. I look forward to your enrollment! Terri Blattenbauer Executive Director MIHCA terri(&,mihca.org September 16, 2004 Dear Friends, The Minnesota Independent Health Club Association (MIHCA) is very pleased to announce an exciting partnership with Blue Cross Blue Shield of Minnesota to bring your club the opportunity to participate in a new reimbursement program called BluePrint for Health fitness discounts. The concept is simple: By partnering with Blue Cross, we collectively can provide added incentive to join or stay with a health club that's convenient and meets the needs of Blue Cross members. How the program works Blue Cross will offer a $20 per month health club discount for eligible members who use their membership at least eight days a month at participating health clubs. Members will simply show their discount card to enroll in the program, after that, their workouts will be tracked automatically by "scanning in." How to participate Blue Cross has partnered with MIHCA to extend the program's reach to the independent health clubs in Minnesota. The next step is to enroll your club as a member of MIHCA to become a participating fitness center.* Once we have received your enrollment, we will provide you with the following by December 1, 2004: • Free software from Apex Management Systems for tracking • Internal promotion materials (i.e., counter displays, flyers, etc.) • Training information on the process for your staff • Enrollment forms for Blue Cross members to join the program. • News release and advertising templates • Frequently asked questions • Reimbursement chart All you have to do is communicate to your members and prospective members, train your staff, and prepare your facility to serve more people! Blue Cross will also communicate with its members and include a list of participating clubs on their website (a preliminary link is active today at http://www.bluecrossmn.com/public/group/fully_fitness.html. (To ensure your club is listed, please enroll by October 31) The program will kick off January 1, 2005. It's a new day for your club! We look forward to working with you to implement this incentive for your members and prospective members. Feel free to contact me at MIHCA with questions at 866.484.9173 toll free, or 651.554.9416 local. Sincerely, Terri Blattenbauer Executive Director MIHCA * To be eligible to participate in the BluePrint for Health fitness discounts program, your club must track membership electronically and must comply with the standards and ethical guidelines attached. Minnesota Independent Health Club Association (MIHCA) Fitness Center Participation Agreement The following agreement represents the agreement entered into by and between Blue Cross and Blue Shield of Minnesota (BCBSM) and MIHCA. MIHCA has agreed to, on behalf of participating Independent health clubs in Minnesota, to the following: To promote the health of eligible members of BCBSM, effective January 1, 2005, BCBSM will provide a monthly incentive to any eligible member who completes eight daily workout sessions at any MIHCA Fitness Center location. The amount will be the lesser of $20 (up to $20). The BCBSM incentive obligation will be limited to a maximum of two adults per month per household unit. MIHCA Fitness Centers agree to waive any and all initiation fees for new members that are BCBSM eligible participating in the program. 2. All MIHCA Fitness Centers will provide a member incentive (to be mutually agreed upon) to all eligible members that meet 8 days/month criteria for 12 consecutive months. 3. All MIHCA Fitness Centers will coordinate a minimum of four "fitness events" per year that emphasize family fitness. The schedule of events for the year will be provided by MIHCA Fitness Centers by March 31, 2005. MIHCA will provide an outline of options for clubs. 4. MIHCA Fitness Centers will not increase its monthly dues or other costs as a result of an eligible member's participation in the Program unless otherwise agreed upon in writing by BCBSM. 5. MIHCA Fitness Centers agree to comply with all applicable state and federal laws, rules, regulations, orders and requirements. We further agree to comply with the revised American College of Sports Medicine/ IHRSA Standards for health/fitness. (Attached) 6. MIHCA Fitness Centers agree to provide a list of eligible members who used the facility for health enhancement programs or activities on designated days each month. 7. If an eligible member terminates membership before receiving the full benefit of each earned incentive, the fitness center will not reimburse the eligible member for any unused incentive. 8. MIHCA Fitness Centers authorize BCBSM to use name or names, including addresses, telephone numbers, in an ethical and reasonable manner for purposes of promoting and advertising the Program. MIHCA Fitness Centers agree to not use names, symbols, trademarks, or service marks of BCBSM in advertising and promotion and for solicitation of members for its programs, unless they are given prior written permission to do so by BCBSM. MIHCA and BCBSM will cooperate on an ongoing basis on joint promotion/advertising/marketing efforts. 9. MIHCA Fitness Centers acknowledge and agree that all BCBSM membership eligibility data is and shall remain the sole property of BCBSM. Data should only be used to comply with obligations under this agreement. MIHCA Fitness Centers agree to provide data in the format required. 10. To the fullest extent permitted by law, MIHCA Fitness Centers shall indemnify, defend and hold harmless MIHCA, BCBSM, its subsidiaries, affiliates, tenants, officers, directors, trustees agents, and employees from all claims, demands, losses, damages, injuries, liabilities, expenses, judgements, liens, encumbrances, orders and awards (Claims), together with attorney's fees and litigation expense. 11. MIHCA Fitness Centers will at it's own cost and expense, maintain (and cause its subcontractors, if any to maintain) the following insurance coverages in full force: Workers' Compensation Insurance and Commercial Liability Insurance, with limits of not less than $1,000,000. The insurer must give BCBSM thirty days written notice before the insurance is canceled or altered in a way that it no longer satisfies the requirements. 12. MIHCA Fitness Centers will need to furnish current certificates evidencing that insurance is being maintained. Delivery of a certificate which is not in full compliance is not deemed a waiver of obligations. 13. Either party may terminate this agreement with or without cause upon 60 days advance written notice to the other party. If this agreement is terminated for any reason, MIHCA Fitness Centers agree to honor any incentives earned by eligible members prior to such termination. 14. MIHCA acknowledges and agrees that participation in BCBSM's Program will be an exclusive arrangement, and that MIHCA will not enter into any similar arrangement with any Minnesota health or insurance plan for a period of one year following January 1, 2005. 15. MIHCA represents and warrants that it has the authority to enter into this agreement on behalf of MIHCA Fitness Centers. MIHCA further agrees to have each MIHCA Fitness Center execute EXHIBIT 4 (attached) to ensure that each club has agreed to all terms and conditions of this agreement. MIHCA will provide a copy of each EXHIBIT 4 to BCBSM. 16. All parties agree that any dispute or controversy which arises out of or related to this agreement, will be settled by mandatory binding arbitration in Minneapolis, Minnesota. 17. This agreement shall bind the successors of both parties to the agreement. Please refer to EXHIBIT 4 and return to: MIHCA 1869 Oakdale Ave. Suite A West St. Paul, MN 55118 Minimum Standards for Health and Fitness (IHRSA 1998) Standard #1: The club will open its membership to persons of all races, creeds, and places of national origin. Standard #2: The club responds to and endeavors to resolve, within 60 days, and consumer complaints made to the Better Business Bureau or to state or local consumer Protection Agencies (or other such agencies). Standard #3: The club will not sell pre paid lifetime memberships. Standard #4: The club must conform to all relevant laws, regulations and published standards. Standard #5: The club must be able to respond in a timely manner to any reasonable foreseeable emergency event that threatens the health and safety of the club users. Towards this end, a club must have an emergency plan that can be executed by qualified personnel in a timely manner. Standard #6: The club must offer each adult member a pre -activity screening (i.e. equipment orientation, health risk assessment, etc.) appropriate to the physical activities to be performed by the member. Standard #7: Each person who has supervisory responsibility for a physical activity program or area at the club, must have demonstrable professional competence in that physical activity program area. Standard #8: The club must post appropriate signage alerting users to risks involved in their use of those areas of the club that present potential increased risk(s). Apex Management Services Preferred Vendor for MIHCA Members As a member of MIHCA, you will receive free software, compliments of Apex. The following is an overview of additional Apex service options: Option 1 BASIC: $49/month This is the minimum requirement for MIHCA members. The club will provide Apex a text tab delimited file once a month and Apex will provide you with the specific format. The format is available by email request. Apex will process the file and release funds from Blue Cross within 30days. Apex will send remittance reports and a check on the lst and 16t" of every month. The club will adjust the individual members billing account each time a payment is received. Option 2 Basic plus software: $69/month Includes: The Apex Frontier check -in system This package will provide software support and software upgrades. The software will automatically track the usage for your customers. You may purchase a proximity card reader for $499.00 and your customers will purchase the cards from you at point of sale. You will need internet connectivity once a month to transfer the file. This process is a simple click of a button once a month. Apex will charge $1.00 data entry for each Blue Cross/Blue Shield membership agreement. You will be handling your own billing and have to adjust the individual member payment when received by Apex. Option 3 Apex can handle all your billing headaches! All you have to do is send your membership agreements to Apex and they will handle everything for you. Data entry, past due accounts, renewals, member correspondence, applying payments, cancellations, complete software including point of sale and many other services are available. You will still maintain complete control of decisions on all accounts. Apex can provide you a complete list of their fees and services. Contact. David Mortensen Apex Management Services 800-317-2739 ext. 118 dave@apexmanagement.com We look forward to working with MIHCA members on the Health Club Reimbursement program! Call with questions: 800.317.2739 x 118 1. Draperies for Mississippi Room/ River Room $4,215.52 2. Double door freezer $31127.91 3. Upright exercise bike / lying leg curl machine $41707.30 4. Electrical upgrades gym and concession $41900.00 5. Pool Storage Cabinet $1,400.00 6. Security Cameras, Pool, Warehouse & Fitness Area $21075.69 7. Ping Pong Table $677.87 8. Ornamental Trees - Gallery Hallway $607.05 TOTAL $219711.34