Kelowna opens H2O operating contract to competition as YMCA agreement runs through 2028
KELOWNA — The City of Kelowna has opened the future operation of H2O Adventure + Fitness Centre to competition, inviting proposals to manage the City-owned facility while the YMCA of Southern Interior BC continues operating it under an agreement that runs through 2028.
The YMCA is eligible to bid for the new contract. The request for proposals, listed by the City as Reference 12925, closes Nov. 6 at 2 p.m. PST. Kelowna says proposals will be assessed on community benefit, relevant experience, sustainability practices and financial and operational considerations.
The City is looking for an operator that can maintain safe, accessible and affordable operations while continuing aquatic, fitness, wellness and community recreation services at H2O. Its procurement posting also calls for financially responsible operations and the ability to respond to changing community needs.
For people who currently use H2O, the competition does not bring an immediate service change. The City says programs and services will continue under its existing agreement with the YMCA while longer-term arrangements are considered. No change to fees, programming, staffing or public access has been announced as part of the procurement process.
The current lease and operating agreement approved by council in 2024 began Jan. 1, 2024 and had an initial expiry date of Dec. 31, 2026, with an option for a further two-year renewal by mutual agreement. The City's Sept. 28 announcement says the agreement remains in place through 2028.
That agreement also requires the City and YMCA to prepare a facility-management transition plan at least one year before the end of the renewed term, with the aim of maintaining existing service and programming levels through the transition.
The 2024 agreement provides some indication of the financial structure behind the current operation. It set an annual YMCA management fee of $540,979, with adjustments based on the annual average B.C. Consumer Price Index beginning in 2025. The City also provides an operating grant tied initially to utility and chemical costs.
The agreement calls for that operating grant to decline by 25 per cent annually, reaching zero in the final year of the renewal term. When council approved the deal, staff said the financial model was intended to move the City's operating subsidy toward zero over the life of the agreement. Operating deficits beyond the facility's operating reserve are the YMCA's responsibility.
H2O is owned by the City of Kelowna. The City signed its original management and operating agreement with the YMCA in October 2008, before the facility opened in April 2009. The YMCA has operated H2O since it opened.
The current RFP will determine who operates the facility after the existing arrangement ends. The City has not announced when it expects to select the successful proponent.
Property owners and their designated representatives can enter specific Bald Range wildfire-affected properties under a Prohibit Entry Order, while general visiting and occupancy remain prohibited as post-fire hazards and recovery work continue.