Community Center must undergo a financial audit

The Agoura Hills/Calabasas Community Center is operating in the red and an audit has been ordered to determine whether the 30,000-square-foot facility remains a viable community resource.

Amy Jones-Brink, director of community services for the city of Agoura Hills, outlined the center's financial problems to the Agoura Hills City Council last week and asked the panel for advice on how to proceed with the center's operation.

Council members debated whether the center should operate as a self-sustaining, profitmaking business enterprise or be considered a community service that requires ongoing subsidies from the cities of Agoura Hills and Calabasas.

The community center opened in December 1999 and although located in Calabasas, it is operated by a joint powers authority representing both cities. It has been subsidized by the cities since its opening.

"The gap between income and expenses has been growing," said Brad Rosenheim, a member of the joint powers board.

Rosenheim said competition from private health clubs has hurt the Community Center. Its fees are comprable to the private sector, yet it still can't break even.

"Baffling," Rosenheim said.

According to Agoura Hills City Councilmember Harry Schwarz, "Cities should not be in the business of running private enterprise."

Officials said Agoura Hills and Calabasas each allocated $105,000 to the Community Center budget during the first three years of operation, but gradually the funding was phased out.This year, the center received $50,000 from the cities to offset financial losses due to the decrease in recreational programs.

The Community Center features a fitness center, gymnasium for basketball and volleyball, a dance and aerobics room, three banquet halls, a rockclimbing wall and an activity room.

Ed Corridori, a former Agoura Hills City Council member who helped start the Community Center, said the facility was meant to be self-supporting. But he also said there was an understanding that some services would not necessarily be "money-making."

Corridori said that while the cities are not expected to give a "blank check" to the center, he believed that some funding might be necessary.

"It's inherent in the mission that this tension is going to be here," said Corridori, who spoke in favor of the audit.

Corridori explained that renting out the community rooms has been difficult because of growing competition from hotels and other venues. While the gymnasium is often used for basketball games, it's not considered a money-making program, and the rock-climbing wall was never intended to be profitable.

"We knew from day one that the climbing wall would not pay for itself, but it would be unique and attract a segment of teens," Corridori said.

According to Jones-Brink, the fitness center takes up 8 percent of the facility and earns 50 percent of the total revenue, while the gymnasium uses 36 percent of the center's space, but generates only 20 percent of the revenue.

An after school teen program at the center offers homework support to students from A.E. Wright and Alice C. Stelle middle schools in Calabasas. The program is funded by registration fees, funds raised at Friday night rock shows, and donations from the Community Center Alliance. The city of Calabasas offers free transportation to the center from both schools.

Jones-Brink said the Community Center budget has almost doubled since the facility opened. Additional staff was needed to support new programs and capital improvements were needed to upgrade the facilities.

"The fundamental question is, are we running the operation efficiently today or could we do things better to get more bang for the buck?" Rosenheim asked.

"We always talked about it being self-sustaining," said Denis Weber, Agoura Hills mayor. "It's not good to be on the hook ad infinitum."

Agoura Hills Councilmember Dan Kuperberg said he hopes the audit would examine all elements of the center, from program costs to marketing strategies.