“That all of them may be one.” – John 17:21
New Strategies For Building Maintenance
Sitting in the facilities oversight committee meeting this past week gave me a chilling perspective into how deep the pandemic has hit our organization. Our board of directors formed this committee to assess each capital expenditure carefully. They understand we need a very vigilant approach to any expenditure, particularly unbudgeted ones. Our Y has always taken pride in caring for our facilities – it has been a long-standing practice, and with our financial success over the years, we have been able to address almost any need as it arose. The pandemic changed that and the committee was designed to devise a new approach with new strategies to address each situation as it arises. The committee is comprised of three board members – an architect, a developer, and a property owner – along with Ed Bressette, Loren Johnson, Toko Thompson, and me.
During this particular meeting, the committee addressed three roof projects: one at the Bremerton Y, one at the Lakewood Y, and one for Rich Lodge (the old dining hall) at Camp Seymour. While a total replacement has been deemed necessary at both Bremerton and Camp Seymour, the committee recommended using just enough resources to address the main portion of the problems, though more collateral repair may be necessary at Lakewood. (In the case of Bremerton, we are negotiating with the City to replace the roof since they own the building.)
Over the next few months, Ed and Loren will compile an in-depth inventory of all our capital needs and will work with the committee to prioritize the list. The committee will design a strategy allowing our association to address urgent repairs and not put us at risk for any situation to progress. The steps we are taking will definitely makes us a better Y, but exerting this degree of caution in our decision-making brings to light how deep this crisis runs into our organization.
Hearing Toko announce we had received the $4 million loan from the Paycheck Protection Program during Friday’s Staying Connected call was certainly great news. In addition, Toko reported we will receive nearly $6 million in credit as part of the Employee Retention Tax Credit program, which will give us close to $10 million of total relief in 2021. It does give us a chance to breathe a little, but as Toko is quick to point out, we are not yet sure if the PPP loan is forgivable or if we will need to pay it back. Furthermore, the relief provided by the PPP and the ERTC will only last for one year. Though both forms of relief are only to be used toward payroll, it will free up other resources, which can be directed toward critical facility repairs. Toko has done a great job securing this relief, working alongside our board to help navigate the application process. It will definitely make a huge difference in helping our Y rebuild itself, providing us with much-needed time to attract members back into our operation.
Rebuilding Our Y
Toko also announced during her report last Friday that we are forecasting membership to return to 55% of pre-COVID numbers by year-end; currently, we are at about 35% of pre-COVID numbers. As Tara Bywater reported, membership continues to creep up, but we are not entirely sure how the community will respond to Pierce County going back to Phase 2, nor are we sure how much more of the community will choose to be vaccinated. Though there is certainly good news to celebrate, the path forward is not clear and, as Toko will add, there is urgency in rebuilding our Y. Debt repayment and reinvesting into facilities require immediate attention, which will be soon after our newfound relief funds are dissipated within the next year.
Clearly, rebuilding our Y is our most important focus. Brian Flattum and the operations team have done a great job designing a plan to draw our members back into our centers. Thus far, we have seen our members are most responsive to the addition of programs, as the participation continues to be high. In addition, we continue to see participation climb in both childcare and early learning, and Scotty is reporting strong interest in summer camp (both resident and day camp). These components form the core of our operation, and we believe this will remain the case moving forward. The question we grapple with, however, is whether our core is enough to rebuild our Y – and in a timely manner. As a result, it has been our approach from the outset to not stand pat. We need to explore new methods to serve and connect with our community to attract additional members.
One of the publications I regularly read is from McKinsey and Company, a global management consulting firm that serves a broad spectrum of businesses, governments, and nonprofit organizations, assisting them with their performance. Throughout the pandemic, McKinsey has published over 50 reports addressing the challenges created by the pandemic. Recently, they came out with two reports focused on the fitness industry and, more generally, what businesses need to look like coming out of this crisis. Interestingly, we have been focusing on many of their key points. The report highlighted that companies need to have a new and leaner structure coming out of this crisis. In addition, technology, both for the employees and the customer will play a prominent role in defining success for companies. Those seem obvious, but there were a few other points worth noting. One is that successful businesses will need to address equity, both internally and externally if they intend to be relevant moving out of COVID. The pandemic has shone the light on the inequities in our country, particularly with respect to accessing health services, and there is a heightened urgency that this disparity is addressed. Secondly, in the fitness industry, customers will be looking for total wellness and a customizable experience, one that will give them a constant measurement of their progress. Finally, successful companies will need a clear purpose that will inspire its employees – this crisis elevated the need for people to find purpose in their lives and in their work experience.
I do recognize we need to have an intense focus on rebuilding our Y. I also believe our primary purpose is to help our communities rebuild as well. People have been forever impacted by this crisis and, as McKinsey points out, people will be seeking mental and emotional support through their experiences. The stress and isolation brought on by COVID has made it clear that we, as human beings, need connection and support more than ever before. I believe the Y is perfectly positioned to help address this need, “to put Christian principles into practice through programs that build a healthy spirit, mind, and body for all.” Serving all and addressing the whole person is at the core of what we do. We will continue to discover new ways to connect with our members and address their needs using technology and the great spaces we have within our facilities. Michael Marquez says it best: “We will meet people where they are at.” I am grateful to be part of this great team. This is our time, and our community needs us.
#StayStrong #StayWithUs