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HomeMy WebLinkAboutC36620 - Staff Reports-OtherContract No. C36620 STAFF REPORT CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT MEETING DATE: May 10, 2018 PREPARED BY: Johnny Terfehr, Management Analyst REQUEST: Request for approval to award Contract No. C36620 for Professional Services to the Family YMCA of the Desert, Palm Desert, California, for management and staffing of the Palm Desert Aquatic Center for $165,000 plus reimbursement of all costs. Recommendation By Minute Motion: 1. Award Contract No. C36620 for professional services to the Family YMCA of the Desert ("YMCA"), Palm Desert, California, for management and staffing of the Palm Desert Aquatic Center; 2. Authorize the Mayor to execute the Agreement. If the above actions are approved, funds are available in the following accounts: Aquatic Contracted Labor, Prof - Other, Prof — Other, Admn Expenses, COGS - Food & Merchandise, Strateqic Plan Account No. 2424549-4802101 Account No. 2424549-4309000 Account No. 2424549-4309300 Account No. 2424549-4801100 High quality facility management and staffing at the Palm Desert Aquatic Center (PDAC) sustains one of the City's premier recreational facilities. The proposed action will further the goals of the Strategic Plan by providing pervasive recreation opportunities for residents and visitors. Background Analysis The current contract for management of PDAC ends June 30, 2018. In January 2018, the City issued a request for proposals for management the Aquatic Center. A competitive bidding process was conducted resulting proposals from the YMCA of the Desert and Standguard Aquatics. The proposals were reviewed and scored by a panel of staff from April 26, 2018 - Staff Report Award Contract No. C36620 for Professional Services to Family YMCA of the Desert Page 2of3 Standguard Aquatics. The proposals were reviewed and scored by a panel of staff from various City departments. Staff conducted interviews with principals from both organizations and made their evaluations based on qualifications of the firm, management approach, proposed services, and completeness of response. The YMCA scored highest of the two proposals based on these factors. The cost proposals were sufficiently different in approach to make a direct comparison of cost difficult. The YMCA continued with its model of a flat management fee of $165,000 per year (increased from $132,000) plus reimbursement of costs. Standguard proposed an operational management fee of $598,800 which includes costs except those related to programming and concessions. Instead, Standguard proposed cost sharing for revenues associated with programming and concessions but the City would still reimburse for costs associated with both. Since the grand opening of the facility in June of 2011, the YMCA has done an excellent job managing the facility. PDAC has a score of 4.5 out of 5 on TripAdvisor.com and 4 out of 5 on Yelp.com. In addition, staff has received very few complaints about the management the Aquatic Center, but rather, consistently receives compliments about the professionalism and courtesy of staff along with the excellent overall condition of the facility. The YMCA is dedicated to operating a safe facility, to providing a community oriented management philosophy, and to maintaining the facility in excellent condition, consistent with the City's maintenance standards at other City -owned facilities. While certain features can be out of service temporarily for maintenance, the Aquatic Center has not had to close due to lack of staffing or maintenance failures under the management of the YMCA. Based on the proposal evaluation scores, interview scores, and the simple management fee plus reimbursement of costs financing approach, staff is recommending that the City continue its relationship with the YMCA as operator of the Aquatic Center. Fiscal Analvsis The YMCA has not requested an increase in its management fee since PDAC opened in 2011. In this proposal, the YMCA is requesting a 25 percent increase in the management fee bringing the total from $132,000 to $165,000 per year. Funds for this increase are available in the Aquatic Center FY 2018/2019 budget. April 26, 2018 - Staff Report Award Contract No. C36620 for Professional Services to Family YMCA of the Desert Page 3 of 3 LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER Robert W. Hargreaves Ryan Stendell Ja et Moore Lauri Aylaian City Attorney Director of Community Director of Finance City Manager Development VENDOR: YMCA of the Desert CITYCOUNCILA9"ON 43-930 San Pablo Ave APPROVED ✓✓ DENTED Palm Desert, CA 9226(YECEIVED OTHER ATTACHMENTS: Agreement MEET GRATEI C".-'� YMCA Management Pr r)' YMCA Cost Proposal ABSENT: - ABSTAINr 1YIr VERIFIED BY: Original on File with City tek 's Office