Council pauses Wellness Center RFP amid procurement dispute and emergency contract

The Everett City Council postponed further action on the Wellness Center procurement after extended discussion about a contested request-for-proposals process and an ongoing emergency procurement.

Councilor Stephanie Smith, who pressed the council on the item, said the administration rejected a timely RFP submission that she and others considered qualified. Smith summarized past concerns at the center: inconsistent posted hours, a history of operating losses, vendor revenue activities (for example, selling supplements or offering personal training) with limited city revenue sharing, and prior changes to vendor payments without a new RFP.

City staff and the city solicitor said an emergency procurement had been approved by the state Inspector General's office earlier for public health reasons to keep classes running; that emergency approval has expired; and that the city entered a license agreement to preserve prepaid classes through April 30. The solicitor said city employees now operate some functions and that the license agreement is more flexible than a full contract and can be terminated.

Councilors asked for a clear timetable and said they want the procurement committee to report back. Several members suggested the city consider operating the facility directly or issuing a new transparent RFP. Councilor Smith asked for a financial comparison showing in-house operation versus outsourcing; she said a past city analysis showed outsourcing had been less costly but requested updated numbers.

The council postponed the item to its first meeting in May with a request that the procurement committee return with a plan explaining whether the facility will be run under a license, reissued RFP, in-house model, or closed for roof work, and with a timetable for decisions and any implications for city employees now operating the center.