The Sherwood City Council is on the verge of stripping management of its recreation center from the local YMCA and giving it to an out-of-state, for-profit company at a predicted financial loss.

Despite the protests of the public, the findings of a feasibility study and, well, basic logic, the City Council voted 4-2 to begin negotiations with HealthFitness for a five-year management contract.

Confused? You're not alone.

"It doesn't make sense to me because we don't have it in our budget to absorb those losses," said City Councilor Sean Garland, who voted against the measure. Residents, he said, "are confused as to why we are even doing this and why we've gotten to this point."

Councilor Kim Young, the other dissenting vote, said, "I don't see where the city could ever enter into a contract with somebody that's showing a possible loss, most likely a loss, for five years... We don't have that money in our budget."

Keith Mays, a former Sherwood mayor and current member of the YMCA Columbia-Willamette Board of Trustees, said, "It's just a crazy, crazy idea. They will see the impact to the general fund. You're going to not hire the police officer you need because you need that $100,000 to subsidize a for-profit entity."

There's now a recall effort to remove Mayor Krisanna Clark-Endicott and Councilors Sally Robinson and Jennifer Harris - all the HealthFitness supporters - from office.

Jim Copfer, chief petitioner, said he planned to file paperwork for the recall Tuesday morning after the Labor Day holiday. A Facebook group is planning a recall kickoff meeting at 8 p.m. Tuesday at the Marjorie Stewart Community/Senior Center.

"No reasonable person would look at those options and vote that way," he said.

Like a half-dozen others interviewed for this story, Copfer believes the vote is fueled by Clark-Endicott's personal dissatisfaction with the YMCA and complaints about the facility's child care services and staffing.

Clark-Endicott would state in email only that her decision was based on the proposals, "nothing more, nothing less."

Her coy answer sheds little light on her reasoning.

The YMCA of Columbia-Willamette has operated the city-owned recreation and aquatic center since it opened in 1998. At the time, it was a first of its kind partnership. Today, municipalities across the country have similar arrangements.

But that initial contract was rarely updated in writing, and questions about excess revenue and maintenance were handled with a handshake agreement, not formal policy. No one disputes it was time to revisit things as the contract ended in 2018.

This spring, the city released a request for proposals and interviewed three possible management providers: Tualatin Hills Park & Recreation District, HealthFitness and the YMCA.

The YMCA's proposal was the only one in which the operator assumed the financial risk for losses. Rather than a set management fee, the YMCA would take 11 percent of revenues for overhead costs. Even after that percentage, the proposal predicted net revenues of $119,000 over five years.

Minnesota-based HealthFitness, which describes itself as "an award-winning provider of health management, corporate fitness and condition management solutions," proposed a flat annual management fee ranging from $192,000 to $216,000 over five years. The company would also require the city to cover operating losses, which it predicted would exceed $480,000 over the life of the contract.

That's the more optimistic version of losses, by the way. The company's original proposal predicted a more than $1.5 million deficit over five years. HealthFitness submitted an updated version that cut salaries and budgeted for $414,000 in additional revenue.

How will those tacked-on revenue goals be reached?

Why does a for-profit company plan to receive $469,000 in community donations?

A HealthFitness spokesperson had no comment while contract negotiations were underway.

The third proposal by Tualatin Hills Park & Recreation District predicted a net operating loss of $1.1 million over five years, also to be covered by the city.

They were not approached about resubmitting a proposal, a district spokesperson confirmed.

On her evaluation, Clark-Endicott gave HealthFitness a perfect score, despite their predicted revenue loss, and wrote they represented an "appropriate cost increase for enhanced services."

What are those enhanced services? We are left to wonder. There are no additional service hours and no new programs outlined in the proposal.

Nor do most Sherwood citizens seem to want something new anyway.

City Manager Joe Gall said the "vast majority" of citizen emails received about the rec center are supportive of the YMCA. An independent survey found members were quite pleased with the center and its services. Memberships are on the rise.

During a March town hall attended by more than 250 people, nearly all were there on behalf of the Y.

The city paid $28,300 for a feasibility study that determined the YMCA had a "very healthy budget" and noted it was "remarkable" the YMCA had been making bond debt payments to the city for the construction of a teen center.

On Aug. 15, taking no public comment, the City Council revealed its rankings of the three providers. Councilors' split their top picks 3-3 between the YMCA and Health Fitness.

Robinson did not return requests for comment.

Harris argued the city would actually pay less to HealthFitness than the YMCA. While it's true the YMCA estimates its 11-percent take will be about $316,000 a year, that's a prediction based on revenue. The city has no obligation to cut a check to the YMCA - though it will certainly be cutting big checks for losses to HealthFitness.

Because Clark-Endicott and Robinson ranked the parks district above the YMCA, HealthFitness had more points than the YMCA in a scoring system designed to break a tie.

Councilor Jennifer Kuiper, who named the YMCA her top choice, voted to move forward negotiating with HealthFitness.

"I agreed with the process in the (request for proposals)," Kuiper said. "I wasn't there to second guess anybody's scoring."

She added, "Most of the people I've been hearing from are Y supporters, and that means something to me."

Kuiper could turn out to be the "John McCain" vote - voting to move forward with the process, but ultimately voting against the final proposal. It's too early to tell. City staff expects to bring a contract before the Council within the next 30 days.

If the contract vote ends in a 3-3 tie, a HeathFitness contract can't be approved.

It's unclear how a vacant seat on the City Council, up for election this November, or the recall threat could affect a contract vote.

But one thing is certain: Under the management of the YMCA, the Sherwood Recreation and Aquatic Center has built a sense of community. It's become a place for teens to hang out, for seniors to socialize, for children to become part of a team, and for homeless residents to take a shower. Citizens support it not just as a gym but as a social services provider.

HealthFitness may be able to bring in new equipment and spin classes - for a price. But that sense of community can't be easily replicated with a corporate culture.

-- Samantha Swindler

@editorswindler / 503-294-4031

sswindler@oregonian.com